This policy provides indemnity in respect of an employer's legal liability to his employees for occupational injury or disease. Both the Workmen's compensation Law of 1987 and the Common Law impose certain legal obligations on employers. Under the act, an employer must pay compensation in accordance with the provisions of the Act where an employee is injured or killed in the course of his employment. The Employers' Liability policy takes care of the employers' legal, financial obligation to the employee in such an event.