What is the primary purpose of employers' liability insurance?

The primary purpose of employers' liability insurance is to protect employees who are injured or become ill as a result of their work. This type of insurance provides coverage for legal costs and compensation claims that arise when an employee sues their employer for negligence relating to workplace injuries or illnesses. It is essential for businesses to have this insurance in place, as it helps ensure that employees who suffer from work-related incidents can receive appropriate support and compensation.

Employers' liability insurance serves to safeguard both the workforce and the employer, creating a sense of security within the workplace. It plays a critical role in the overall risk management strategies of a business by covering potential financial losses that can arise from workplace incidents, thus helping to foster a safer work environment.

The other choices, while related to insurance and liabilities, do not pertain to the specific purpose of employers' liability insurance. For instance, coverage for legal liabilities from product defects pertains to product liability insurance, while damages from public interaction are more relevant to public liability insurance. Compliance with government regulations often involves different types of insurance and does not directly align with the focus on employee protection inherent in employers' liability insurance.