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About Employer's Liability Insurance

This type of insurance protects the insured’s property interests bearing material liability under the Russian Federation laws to employees as a result of death, injury or other injury to health (physical harm) while carrying out their employment duties or due to work performance (providing services) under the civil law contract concluded with the insured as well as damage to their personal property (pecuniary damage) and extra charges. 

The essense of this type of insurance

1. Why do I need employer's liability insurance? 

In many countries, compensation for industrial injuries and occupational illness is paid out through the public social insurance system, mandatory insurance programs for employees against accidents at work, or through mandatory employer’s liability insurance. Government compensation systems prevail in central and eastern Europe and the Commonwealth of Independent States (CIS), including Russia. Unfortunately, payouts under government social systems in our country are negligible, and even when the Social Insurance Fund pays out to an employee, he has the right to seek redress in court if he believes that the payouts did not cover all of his expenses, such as the cost of treatment. 

  • A contractor’s customer or investor may insist on having an insurance clause in the contract 
  • Employer-employee relations: in cases when insurance is not mandatory, it may be an additional incentive program evidencing the employer’s desire to create favorable conditions for employees and provide additional protection of their employees on a voluntary basis 
  • The policy of the employer in ensuring safe working conditions in the workplace can be supplemented with the appropriate type of insurance 
  • It is used to increase the amount of insurance payouts made under the state social insurance system of the Russian Federation, when such payouts are very low (Russia) 
  • It protects the employer from subrogation by the government health authorities or government insurance agency when an employer negligence claim is filed 
  • It protects the employer from lawsuits by employees 

Employer’s liability insurance protects the property interests of the employer against claims of bodily injury, fatal illness or illness of employees as well as property damage to employees in the course of performing their duties under an employment or civil contract 

Features of insurance:

  • Covers losses and legal costs 
  • Covers such losses as loss of earnings, medical expenses and the cost of patient care 
  • A broad interpretation of the definition of “employee” (includes students and trainees undergoing practical training at the workplace of the insured) 
  • Covers damage to life and health, which includes psychological damage 
  • Applies to cases of employees performing their duties both in the workplace and outside of it within the established workday 
  • Covers insurance claim events of employees temporarily performing work outside the country 
  • The insurance policy can be expanded to cover expenses related to criminal defense if they are related to events covered by the policy 

Our advantages:

  • We work in all sectors, including energy, construction, oil and gas, the food industry, chemical manufacturing, real estate, etc. 
  • We have sufficient resources to provide a large volume of financial capacity (limits of liability up to US$100,000,000 or the equivalent in Russian rubles at the Central Bank’s rate on the day when the contract is signed) in Russia without the need for facultative reinsurance from other reinsurers 
  • AIG operates in 160 countries and jurisdictions and provides fast settlement services in all of them, whether you’re a transnational corporation or a small or medium-sized business operating in a single country 
  • Financial stability 
  • International experience 
  • Flexible and individual approach 
  • We can issue a single insurance policy covering general liability, product liability, contractor’s liability, service provider’s liability and employer’s liability. 
  • We issue policies in both Russian and English, allowing you to quickly negotiate the wording of insurance contracts with companies that require them 

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