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The policy provides that if at any time during the period of insurance the employee in the insured’s service shall sustain personal injury by accident or disease or otherwise arising out and in course of his employment by the insured in the business and if the insured shall be liable to pay compensation for such injury either under the law set out in the schedule or common law, then the insurer will indemnify the insured against all sums for which the insured shall be so liable.

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The liability exists under common law and under the provision of the workmen’s compensation Act of 1987. In addition, the insurer is under obligation to pay all costs and expenses incurred with its written consent in defending any claim for such compensation.

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