This type of insurance is important to various companies. The company may be unable to pay compensate to all the worker or employees so that company purchase the insurance for them. Sometime, the employee of any company might be unable to generate income or dies, in such cases insurance compensate the losses which is known as employers’ liability insurance.

                       Amount of compensation is to be made by the owner of company as per the agreement made by labour union company or as per the provision of exiting rules and regulation of country but the owner may not be ready to pay such amount so he/she has to purchase insurance of workers or employees. This type of insurance gives the security to the employees and there family. If the employees dies than the insurance company provide compensate to the employee’s relative or family member.