What type of policy typically allows for additional premium payments based on the number of employees?

Employers' liability insurance is designed to cover businesses against claims made by employees for injuries or illnesses that occur as a result of their work. The nature of this insurance often requires adjustments in the premium based on the number of employees covered. This is especially relevant in industries where employee numbers may fluctuate, as the risks associated with workplace injuries can vary with the workforce size.

Typically, insurers will use a rate per employee or a sliding scale based on payroll or employee count to determine the final premium, tailoring the coverage to reflect the true exposure of the business. The potential for increased claims as the workforce grows justifies this approach, making employers' liability insurance uniquely situated to adjust premiums in response to changing staffing levels.

In contrast, property insurance generally covers physical assets and does not adjust based on employee counts; professional indemnity insurance pertains to errors or omissions by professionals, focusing on service rather than workforce size; and public liability insurance covers injury or damage to third parties rather than directly relating to the number of employees. This makes employers' liability insurance the only option that consistently correlates premiums directly with employee numbers.