Part Two includes coverage for liabilities when the employer is sued as manufacturer for a product defect.

Part Two includes coverage for liabilities when the employer is sued as manufacturer for a product defect.

• A. Dual-capacity claims
• B. Loss of consortium
• C. Products liability claims
• D. Claims for care and loss of service

Answer: (C)

Part Two is about the employer’s liability beyond workers’ compensation, and it specifically covers claims where the insured is sued in a second capacity—for example, acting as a product manufacturer. When a defect in a product leads to injuries and the employer is named in a lawsuit because of that product, the policy responds under this dual-capacity coverage. The idea is to extend protection beyond the traditional employer-employee relationship to situations where the employer’s liability arises from another role the insured fills, such as making a defective product. Loss of consortium or care-and-loss-of-service claims relate to damages, not the capacity in which the insured is sued, and while products liability can come up, the mechanism that handles the employer-as-manufacturer scenario is dual-capacity claims.

Part Two is about the employer’s liability beyond workers’ compensation, and it specifically covers claims where the insured is sued in a second capacity—for example, acting as a product manufacturer. When a defect in a product leads to injuries and the employer is named in a lawsuit because of that product, the policy responds under this dual-capacity coverage. The idea is to extend protection beyond the traditional employer-employee relationship to situations where the employer’s liability arises from another role the insured fills, such as making a defective product. Loss of consortium or care-and-loss-of-service claims relate to damages, not the capacity in which the insured is sued, and while products liability can come up, the mechanism that handles the employer-as-manufacturer scenario is dual-capacity claims.