As an employer you have liability towards your employees on two fronts:
Under Labour Law - Labour Law generally stipulates that if an employee gets hurt whilst working, the employer is responsible for the resulting medical expenses, salary during absence and compensation for disability suffered. This is irrespective of whether the employer is at fault or not Under Common Law - If an employee suffers injury where he can reasonably attribute such injury to employer's negligence or fault, he may proceed for compensation under the Common Law to obtain higher compensation. We can protect this exposure by providing 'Employer's Liability Extension'.
 

Over and above the employees or their heirs may sue the Employer in a civil court under common law. The Workmen's Compensation policy will provide indemnification to the Employer against these risks.