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Employer's Liability Insurance

What Is It?

Employer's Liability Insurance protects businesses against claims from employees who have suffered illness or injury as a result of their work. Unlike Workers' Compensation, which is a no-fault system, Employer's Liability covers claims where the employer is alleged to have been negligent or failed in their duty of care.

Key Features

  • Coverage for legal defense costs in employee injury claims
  • Compensation for damages awarded to employees
  • Protection against claims of employer negligence
  • Coverage for workplace disease and long-term health conditions
  • Often included as part of a broader liability insurance package

Common Exclusions

  • Deliberate or intentional acts by the employer
  • Fines and penalties imposed by regulatory authorities
  • Claims arising from non-compliance with safety regulations
  • Contractual liabilities that exceed legal obligations

Where Is It Mandatory?

  • United Kingdom (not mandatory in most Southeast Asian countries)
  • Often required by contracts or as part of broader business insurance packages

Typical Cost

0.25% to 1.5% of annual payroll, depending on industry risk level and claims history

Related Insurance Types

Need More Help?

Speak with a broker who specializes in employer's liability insurance.

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