An employer has 50 employees making overalls in a factory. What insurance must they have by law?

Employers' liability insurance is a legal requirement for businesses in many jurisdictions, particularly for those with employees. This type of insurance protects employers against claims made by employees who suffer job-related injuries or illnesses. Essentially, it provides coverage for medical costs and legal expenses arising from such claims, ensuring that employees can receive appropriate compensation while safeguarding the employer's financial interests.

In the context of a factory with 50 employees making overalls, the employer is legally obligated to have employers' liability insurance as it ensures support in the event that an employee is injured or becomes ill as a direct result of their work. This coverage is crucial in promoting workplace safety and accountability while also fulfilling legal obligations, thus helping maintain a responsible employment environment.

While other insurance types, such as business interruption, products liability, and public liability, serve important roles in a business’s risk management strategy, they are not specifically mandated by law for employers with employees. Business interruption covers loss of income due to a specific event, products liability protects against claims from defective products, and public liability covers claims made by third parties for injury or property damage, but none of these are statutory requirements for employers. Therefore, having employers' liability insurance is the correct legal requirement in this scenario.