What is the limit of indemnity for employers' liability under legal liability cover?

The limit of indemnity for employers' liability under legal liability cover is typically set at £10 million. This limit reflects the minimum standards set out in UK legislation, particularly the Employers' Liability (Compulsory Insurance) Act 1969, which mandates that employers must hold insurance to cover their liability towards employees in the event of injury or illness due to work-related activities.

A £10 million limit is not only a common figure but also provides a sufficient buffer to cover most claims arising from serious incidents or multiple claims, which can involve considerable financial compensation. Thus, setting the limit at this level ensures that both employees' needs for protection and employers' capabilities to meet their obligations are adequately addressed.

Limits lower than £10 million, such as £1 million or £5 million, would not meet the regulatory requirements and could leave employers significantly exposed in the event of catastrophic claims. The option of 'no limit' is unrealistic and not in line with standard insurance practices, as it could lead to unlimited financial exposure for insurers and hence is not typically offered in employers' liability policies.