Employers’ liability insurance: permitted policy terms

The Employers’ Liability (Compulsory Insurance) Act 1969 requires an employer to obtain liability insurance against claims for death and personal injury in respect of employees injured at work. The Act controls the terms that may be included in a policy, and requires an insurer to make payment despite the fact that it would otherwise have the right to refuse to do so by reliance on a restricted term.

In that situation the insurers have a right to indemnification from the employer. In Amlin UK Ltd v Geo-Rope Ltd [2016] CSOH 165 the employer tried to evade the right of recourse by arguing that the insurers should not have made payment to the employee.