EMPLOYER'S LIABILITY INSURANCE

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.

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 Insurance – Handles claims that WIBA may not fully cover, including legal defense costs.

Who Needs Employers’ Liability Insurance?

• Construction & Engineering Firms – High-risk workplaces with heavy machinery.
• Healthcare Institutions – Covers medical staff against workplace injuries and infections.
• Corporate Offices – Protects against slip-and-fall accidents, ergonomic injuries, and stress-related claims.
• Transport & Logistics Companies – Covers drivers and warehouse workers.
• Manufacturing & Industrial Plants – Reduces financial impact of machine-related injuries.
• Retail & Hospitality Businesses – Covers employees working in shops, restaurants, and hotels.

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.

Difference Between WIBA Insurance & Employers’ Liability Insurance

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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.