What is a key reason employers maintain employers liability insurance?

Employers maintain employers liability insurance primarily to provide coverage when workers' compensation claims are contested. This type of insurance serves as a critical safety net for employers, protecting them against lawsuits filed by employees who may claim that their injury resulted from the employer's negligence or other failures outside of the standard workers' compensation framework.

This coverage is essential when there are disputes regarding the circumstances surrounding a workplace injury or when an employee argues that their injuries were not adequately addressed within the workers' compensation system. In such cases, employees may seek damages beyond what workers' compensation provides, which is where employers liability insurance becomes valuable, as it covers the legal costs and potential settlements.

The other options refer to different aspects that do not accurately reflect the primary purpose of employers liability insurance. For instance, managing costs of non-work-related claims or only covering injuries incurred during employment does not pertain to the liability aspect, while absolving employers from all liabilities is misleading; the insurance mitigates risk but does not eliminate all forms of liability. Thus, the emphasis on contested claims highlights the essential protective function of this type of insurance in the context of employer-employee relations.