A study of the need to hold an employers’ liability insurance

Abstract

The present study explores the necessity of implementing mandatory Employers’ Liability Insurance. While workplace environments should ideally be safe and conducive to employee well-being, they may also inherently pose certain risks that could lead to substantial harm through workplace injuries, if not eliminated or at least mitigated. Within the Maltese context, assigning responsibility and determining compensation for such incidents trigger lengthy legal disputes at the expense of various stakeholders including the State, employers, the injured parties and their families. A comprehensive analysis of international practices show that mandatory Employers’ Liability Insurance may serve as an efficient mechanism to promote a culture of well-being and safety practices and provide compensation to employees who experience such predicament. Adopting an interpretative case study approach, this study digs deep into eight incidents to identify relevant themes that explore the current Maltese legal system, employer’s responsibility and the effects such incidents have on employees. This study highlights the existing reliance on the judiciary and dispute resolution mechanisms and underscore the need to re-evaluate prevailing practices. It seeks to understand the far-reaching impact of the absence of Employers’ Liability Insurance. Furthermore, a survey addressed to legal and insurance professionals was used to validate the importance of the identified themes through factor analysis. This quantitative outlook served to utilise the knowledge within the industry to investigate the role of insurance and the significance of reliance on insurance. This work identified the importance of clear legislation to eliminate ambiguities that is necessitated for the effective implementation of mandatory Employers’ Liability Insurance.