This policy offers protection to employers for their legal liability (under Common Law), for damages and claimant’s costs and expenses of lawsuits filed by an employee. The Liability would arise if an employee in the insured’s immediate service dies or is ]injured out of or in the course of their work, through any perceived negligence on the employer’s part. The policy also reimburses the insured the expenses they may incur in the course of defending any such action/lawsuit. It is important to note that the employee reserves the right to sue the employer for negligence despite having been compensated under the Workmen’s Compensation (Act) or a Group Personal Accident policies for a work related injury or accident. Cover is usually arranged on the basis of the employee’s earnings.