What was a key change brought about by the Employers Liability (Compulsory Insurance) Regulations of 1998?

The Employers Liability (Compulsory Insurance) Regulations of 1998 introduced significant changes to the insurance landscape for employers in the UK. Among those changes, one of the most important was the increase in the minimum required limit of cover for employer liability insurance from £2 million to £5 million. This requirement is intended to ensure that employers have adequate financial protection to cover potential claims for work-related injuries or illnesses that could arise from their operations. This increase reflects the need for a higher level of coverage to better protect employees and ensure that adequate funds are available to meet large claims that could arise in serious injury cases.

The other options do not accurately represent the changes made by these regulations. While opting for coverage for all employees is essential, there are specific exceptions and requirements for certain types of workers. Eliminating the need for employer liability insurance would contradict its purpose; instead, the regulations reinforced the necessity of such coverage. Finally, setting a maximum premium for liability insurance is not a focus of these regulations; rather, they aim to ensure sufficient coverage levels to protect employees and compensate them appropriately in the event of workplace incidents.