1. An employers’ liability policy that does not contain prohibited conditions, i.e. certain conditions allowing an insurer to repudiate a claim. This does not preclude a condition allowing the insurer to reclaim from any employer any amounts paid by the insurer following injury to an employee when a condition, otherwise prohibited, has been breached. The prohibited conditions are set out in the Employers’ Liability (Compulsory Insurance) Regulations 1998. 2. The term is also used in contracts that impose an obligation to insure one of the parties to the effect that the policy has to be approved by the party imposing the obligation.