Employers' Liability (EL) insurance in its typical form has some inherent problems of delivery. The most notorious being the typically disproportionate legal costs that accompany the compensation payment. Our ReWage extension to the EL policy is designed to help with this.

Standard EL is intended to indemnify you for the cost of claims that arise out of accidents to employees in the workplace for which you are legally liable. It is also adopted by the Government to fulfill a social need and is therefore compulsory. However, with various punitive cost regimes introduced in recent years to assist employees in bringing their injury claims, we often face the injustice of costs exceeding compensation. This drives up premiums and creates frustration and difficulty for both you the Employer and the injured employee.

The most recent Government reforms may reduce this cost exposure but our approach is back to basics proposition predicated on whether an employee needs to seek legal representation in order to be compensated for his wage loss.

Our experience tells us that Employers would like to have more input into the conduct of a claim and be able to react flexibly when an accident at work is reported. In situations where wage payments are maintained, subsequent to the injury and where recovery is aided by physiotherapy or other appropriate medical intervention, more favourable claim outcomes are achieved, return to work accelerated and legal costs can be eliminated.

About ReWage

What is ReWage?

It is a part of the Employers' Liability policy that indemnifies the policyholder for wage payments made to employees during periods of absence caused by accidents at work.
The policyholder undertakes to continue paying wages to an injured employee who has sustained an accident at work that is RIDDOR reportable.

In discussion with the policyholder Syndicate 2525 will establish whether liability will attach and agree whether all, 75% or none of the injured party’s wages should be paid going forward and be met by ReWage.

For longer periods of absence, Syndicate 2525 instructs and pays for rehabilitation services in order to promote early return to work.

How does ReWage work?

The ReWage concept is quite simple and intended to provide a platform for an injured employee to continue to receive wages during absence following an accident at work where liability can readily be established and agreed. This makes formal, legally represented claims largely unnecessary thus reducing the legal cost impact to the claims experience.

The instruction of a Rehabilitation Consultant provides important information about the extent of the employee’s injuries and ‘return to work’ can be hastened with the co-ordination or addition of medical services. This is a free addition to the Employers' Liability policy that policyholders may use should they choose. The more it’s used, the more the workforce perceive better welfare benefits. The normal Statutory Employers' Liability cover remains in place regardless.

If using ReWage, the policyholder must:

  • Keep paying the injured employee following his accident

  • Notify Syndicate 2525 that they are doing so within 21 days

Product overview

The larger part of any liability claim settlement is ‘Special Damages’, which mainly consist of wages the claimant would have received had they been able to work. ReWage reimburses wages to the policyholder who continues paying same to the injured employee from the date of loss. All the policyholder needs to do is advise Syndicate 2525 within 21 days that they have decided to continue paying wages.

Liability will quickly be established and reimbursement under ReWage confirmed. Liability discussions allow for a reduction of future wage payments to reflect contributory negligence on the part of the employee or cessation of further wage payments where it is agreed that no liability exists. A £750 excess applies only if the employee is absent for less than four weeks.

Key features
  • Liability usually agreed within 28 days with confirmation of reimbursement

  • £750 excess only applies for absences less than 28 days

  • Medical Consent obtained early to enable full understanding of injuries sustained and recuperation required

  • ‘Return to Work’ managed by Rehabilitation Consultant if required

  • Legal representation fees can be avoided thus negating their impact on claims experience

Key benefits
  • Lower incidence of claims being made

  • Lower cost of formal claims that are made

  • Creates goodwill between employer and injured employee

  • Rehabilitation consultants automatically used for longer absence periods without cost to Policyholder

  • Workforce perceive better welfare benefits

  • If the Policyholder already pays wages during absence this product will effectively negate much of their current spend for this as well as allowing the Policyholder to match the payments made against their likely liability.


Ive Syndicate 2525 ReWage (pdf)


Secure Liability Solutions.pdf


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