Employers’ Contingent Liability

This policy was formerly known as the Workmen’s Compensation Policy, which was a compulsory insurance and guided by the Workmen’s Compensation Decree of 1987 (Workmen’s Compensation Act of 1990). Under this Act, employers are mandated by law to be responsible for the compensation of any employee under the contract of service who suffers injuries, disabilities or death arising out of the course of employment. The compensation includes death benefits, disability benefits and medical expenses as stipulated by the law.

By the year 2010, the Workmen’s Compensation Act of 1990 was repealed and replaced with the Employees’ Compensation Act 2010 which empowered the Nigerian Social Insurance Trust Fund (NSITF) as the statutory body to regulate and administer the collection of contributions and payment of compensation to employees who suffer injuries, disabilities or death arising out of the course of employment. By this period, the privilege possessed by insurance industry to issue a workmen’s compensation as a compulsory insurance was relinquished to the NSITF.

However, insurance companies now issue the policy under the new name EMPLOYERS LIABILITY.


The Employer’s Liability policy cover the employer against legal liabilities for injuries, occupational diseases, disability or death to any employee under the contract of service (not contract for service) arising out of the course of employment or the discharge of the official duties.

Therefore, unlike the Workmen’s Compensation policy where benefits are stipulated by law, under the employer’s liability policy, the employer determines the amount or limit of liability in respect of which it wants to be responsible in respect of any employee and throughout the period of insurance.

The policy also covers all costs, charges and expenses incurred by the insured to contest the case, subject to the insurer’s written consent. Such cost includes legal representation cost, claimants cost against the insured and other expenses.