Employer Liability Insurance in Thailand

What is Employer Liability Insurance?

Although frequently sold together with a Workers Compensation (WC) policy, Employer Liability Insurance is a different risk of liability against the employer in Thailand. Injured workers can seek legal redress for workplace based injury or illness where negligence by the employer can be shown. The employer is not immune from litigation despite an employee receiving Workers Compensation insurance benefits and can be sued for any amount, under the Thai Civil and Commercial code.

If an employee claim does end up in court, compensation amounts will be determined on factors such as medical costs and loss of current and future income due to the employee not being able to work. The Employer’s Liability Insurance policy will cover compensation pay-outs awarded by the court and your legal costs & expenses.

What are the key features of Employer Liability Insurance?

The key features of Employer Liability Insurance include:

• Medical Expenses
• Lost Wages
• Legal Expenses
• Death Benefits
• Disability Benefits 

The primary purpose of employer liability insurance is to protect both employers and employees. It helps employers fulfill their financial responsibilities in the event of workplace injuries or illnesses, while also providing employees with the assurance that they will receive necessary medical care and compensation for lost wages.

It’s important to note that workers’ compensation laws and regulations vary by jurisdiction, and employers are generally required to carry this type of insurance coverage to comply with legal requirements and to ensure the well-being of their workforce.

Although it’s not compulsory in Thailand for employers to have, Employer’s Liability Insurance is a useful business protection and generally not expensive. The same information is needed as if applying for a workers compensation insurance:

• Total numbers of employees divided by their separate job categories.
• Total annual payroll divided the same way, matching the employee split of duties.
• Occupation of the employer.
• Whether work is onshore or offshore.

Employer Liability Insurance is provided subject to a standard policy Limit of Liability set by law of THB 1.5m but amounts over this can be requested, perhaps to comply with customer contract requirements. The Employer Liability Insurance rate is usually 10% of the WC rate. No tariff rate applies if the EL policy limit is higher than the standard Baht 1.5m. An open rate applies depending on the insurer’s rating tables. 

Employer’s Liability Insurance is available as a separate, independent policy on its own or it can be wrapped within a standard Public Liability or Commercial General Liability Insurance policy, as a sub-benefit.

Thailand Insurance Services will provide you with the right Employer Liability Insurance from the leading insurance providers in Thailand for you, your business & your employees. We are the leading insurance broker in Thailand for Employer Liability Insurance coverage.