Although, it could be any one from where these liability may come from however some of the possible sources are:
Third party loss/liability
Financial loss and/or Property loss or damage and/or Legal liabilities due to below circumstances:-
Financial loss due to dishonest/fraud act of employee resulting into:
In an increasingly working environment, possibility of death or bodily injury to any employee during course of employment cannot be ruled. And since employee rights under law have also moved forward very much in corporate world with better communication thus significant liability will certainly come over employer account under such circumstances.
Therefore it is always important for every employer to cover their such uncertain liability cause they are going to be very significant in quantum when it will come. Also, cost of such insurance solution is also very minimal in comparison to quantum of liability.
Though policy covers all under liabilities under employee compensation act 1923, the fatal accidents Act, 1855, Common law. However, circumstances are illustrated as below:-