Part One of the Standard Workers Compensation and Employers Liability Policy provides workers’ compensation insurance. Part Two provides employers’ liability insurance against liability arising from injuries to an employee. Both parts insure only the named employer. If the LLC is the employer named in the policy, the policy insures only the LLC—not its members.
SAIF Corporation is authorized to provide workers’ compensation and employers’ liability insurance to Oregon employers. Because the LLC, not its members, is the employer of the LLC’s employees, SAIF cannot expand the policy by endorsement to provide liability coverage to LLC members.
Please note the decision in the Cortez case is not yet final, and may be appealed. Ultimately, this exception to the exclusive remedy may require legislative action to resolve. The Workers’ Compensation Management-Labor Advisory Committee (MLAC) has been briefed on this issue, and employer groups such as Associated Oregon Industries (AOI) have identified it as a legislative priority. In the meantime, LLCs and their agents should explore whether coverage is or can be provided through their general liability policies, and may wish to confer with their own attorneys about risks posed to them by the Cortez decision.
Source: SAIF.com