LIABILITY INSURANCE
Employers’ liability (EL) definition
Employers’ liability is insurance that protects employers against claims from employees for work-related bodily injury or occupational disease.
In practice, this means a form of insurance designed to protect employers against claims that may be brought against them by their employees for liability in tort. The insurance covers compensation payments to employees who are able to prove the employer’s liability for such injury or illness.
This term is especially useful in liability insurance, claims handling and policy wording. It helps assess legal responsibility, claim response and protection against third-party or employee claims. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Employers’ liability (EL) is closely related to workers’ compensation, liability insurance, duty of care and occupational disease. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Liability insurance, claims handling and policy wording.
- Purpose
- Helps assess legal responsibility, claim response and protection against third-party or employee claims.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- workers’ compensation, liability insurance, duty of care and occupational disease.
Example of employers’ liability insurance
An employee is injured at work and alleges that the employer failed to provide safe equipment. Employers’ liability insurance may respond to the claim and associated defence costs.