This corporation was established in 1880 to offer employers' liability and general accident insurance in the United Kingdom. The foundation of the corporation was the result of a conversation between Leopold Salomons and Samuel Watson of the firm of solicitors Watson, Sons & Room concerning the Employers' Liability Act, which was before parliament at that time.

Prior to the act, an employee had no right to claim for compensation if he was injured at work, except in cases of undisputed negligence. This led to incidents where a member of the public would be able to claim for injuries sustained in a railway accident but an employee of the railway company travelling on the same train going about his private business would not.

Employers' Liability was the first company established to offer employers' liability insurance, thus giving the employer and employee peace of mind.

In 1885, the corporation entered the fire reinsurance business but withdrew after only six years. The company decided to re-enter the fire business in 1907, appointing T E Keysell manager of the fire department. By 1913, business had expanded again to include plate glass, burglary, motor car and property owners insurance.