What is the usual premium base for an employers' liability policy?

For an employers' liability policy, the premium is typically calculated based on the wage roll of the organization. This is because the wage roll reflects the total amount paid in wages to employees, which directly correlates with the level of risk presented to the insurer. Since employers' liability insurance is designed to cover claims made by employees who suffer injury or illness as a result of their employment, the more employees there are and the higher their wages, the greater the potential liability for the employer.

Using the wage roll as the premium base helps insurers assess their risk exposure appropriately, enabling them to set a premium that is commensurate with the potential claims that could arise from the workforce. This method of calculating premiums ensures that the coverage reflects the actual level of risk associated with employing staff.