What is Employers' Liability Insurance?
Employers' Liability Insurance is a policy that protects businesses from legal and financial liabilities if an employee suffers injury, illness, or death due to work-related activities. It covers medical expenses, legal costs, and compensation claims made by employees or their families.
In Kenya, this insurance is particularly important for businesses that employ workers in construction, manufacturing, transport, healthcare, and other high-risk sectors. While Work Injury Benefits Act (WIBA) insurance covers basic employee compensation, Employers' Liability Insurance offers additional protection, including legal defense and settlements.
KES 3M+
Average employee injury claim
24/7
Claims support & legal assistance
What Does Employers' Liability Insurance Cover?
| Coverage Type | Description |
|---|---|
| Workplace Injuries & Illnesses | Covers medical costs and compensation for workplace-related injuries or diseases. |
| Legal Defense Costs | Pays for legal representation if an employee sues the employer. |
| Compensation Payouts | Covers settlements or court-ordered compensation to injured employees or their families. |
| Occupational Diseases | Protects against claims from employees suffering from work-related illnesses. |
| Permanent Disability & Death Benefits | Provides financial support if an employee becomes disabled or dies due to workplace conditions. |
| Third-Party Liability | Covers claims from subcontractors or temporary workers. |
Who Needs Employers' Liability Insurance?
Construction & Engineering
High-risk workplaces with heavy machinery and hazardous conditions.
Healthcare Institutions
Protects medical staff against workplace injuries and infections.
Manufacturing Plants
Reduces financial impact of machine-related injuries in industrial settings.
Transport & Logistics
Covers drivers, warehouse workers, and logistics personnel.
Retail & Hospitality
Protects employees in shops, restaurants, hotels, and service businesses.
Corporate Offices
Covers ergonomic injuries, stress claims, and workplace accidents.
Why is Employers' Liability Insurance Important?
- Legal Compliance – Protects businesses from employee lawsuits and complies with labor laws.
- Financial Protection – Covers legal fees, medical expenses, and compensation claims.
- Business Stability – Prevents financial losses due to workplace accidents.
- Employee Welfare – Demonstrates commitment to employee well-being and safety.
- Covers Beyond WIBA – Handles claims that WIBA may not fully cover, including legal defense costs.
Legal Requirement
While Employers' Liability Insurance itself isn't mandatory in Kenya, the Work Injury Benefits Act (WIBA) requires all employers to have insurance that covers workplace injuries. Our Employers' Liability Insurance provides comprehensive coverage that exceeds WIBA requirements.
WIBA vs. Employers' Liability Insurance
| Feature | WIBA Insurance | Employers' Liability Insurance |
|---|---|---|
| Legal Requirement | Mandatory under the Work Injury Benefits Act (2007). | Not mandatory but highly recommended. |
| Coverage Scope | Covers medical expenses, disability benefits, and lost wages. | Covers legal defense costs, employee lawsuits, and additional compensation. |
| Legal Proceedings | No need for an employee to sue; claims are processed automatically. | Protects against lawsuits and provides legal defense. |
| Compensation Limits | Standardized benefits as per WIBA regulations. | Customizable coverage limits based on business needs. |
| Additional Protection | Basic coverage for work-related injuries and diseases. | Extended protection including legal costs and higher compensation. |
Why Choose Laren Insurance Agency?
- Specialized expertise in business insurance for Kenyan companies
- Comprehensive risk assessment and workplace safety advice
- Access to multiple insurance providers for competitive pricing
- Quick and fair claims processing with dedicated specialists
- Understanding of industry-specific risks and regulatory requirements
- Customized coverage options for different business sizes and industries
- Ongoing policy review and risk management support
- Regulatory compliance guidance with WIBA and labor laws
Frequently Asked Questions
While Employers' Liability Insurance itself is not mandatory, the Work Injury Benefits Act (WIBA) requires all employers to have insurance that covers workplace injuries. Our Employers' Liability Insurance provides comprehensive coverage that meets and exceeds WIBA requirements, offering additional protection against lawsuits and higher compensation limits.
WIBA insurance provides basic coverage for workplace injuries as required by law, with standardized benefits. Employers' Liability Insurance offers broader protection, including legal defense costs, higher compensation limits, and coverage for claims that may not be fully covered under WIBA. It essentially provides an extra layer of protection beyond the statutory requirements.
The appropriate coverage amount depends on several factors including your industry, number of employees, risk level of operations, and potential maximum claim amounts. We recommend coverage of at least KES 5 million for small businesses, with higher limits (KES 10-50 million) for medium to large enterprises or high-risk industries. Our experts can help assess your specific needs.
Yes, our Employers' Liability Insurance can be extended to cover subcontractors and temporary workers. This is particularly important as businesses can still be held liable for injuries to non-permanent staff. We can customize your policy to include these additional exposures based on your specific workforce composition.
In case of a workplace injury: 1) Ensure immediate medical attention, 2) Document the incident thoroughly, 3) Notify us immediately to begin the claims process, 4) Cooperate with any investigation, and 5) Maintain all relevant records. Our claims team will guide you through the entire process and handle communications with the employee and their representatives.
Ready to Protect Your Business?
Get comprehensive Employers' Liability Insurance coverage tailored to your specific business needs. Our experts will help you find the right protection at competitive rates.