Under Hong Kong law it is a requirement that all employers in the city hold an Employee's Compensation insurance policy to cover their liability in the event that their staff suffers an injury or illness during the normal course of their work.
Employee's Compensation Insurance, also known as EC Insurance, must be purchased by all employers in Hong Kong. It does not matter if your workers are Part-Time, Temporary, or Full Time, and neither does it matter what the scope of their employment is; if you employ an individual under a contract of service, or apprenticeship, then you must be protected by an Employees Compensation Insurance policy.
While the coverage required under Hong Kong’s Employee Compensation ordinance is based around a scale which incorporates a number of variables, such as the age of the employee and the extent of their injury, local insurance companies will normally provide Employee Compensation insurance coverage in the range of HK$ 100,000,000 for any one claim event.
To view the full employer liability calculations under the ordinance please visit the Labour Department Website.
Consequently, with an Employee Compensation Insurance policy an employer is protected in the event of their workers suffering an accident while on the job. For example, if you employ a domestic helper and your helper accidently spills hot oil while cooking dinner, resulting in severe burns, then your Employee Compensation policy will provide coverage for your liability to the helper’s injury.
Similarly, should you own a retail company with a brick-and-mortar location, and one of your shop staff has a shelf fall on them while restocking the store, an Employee Compensation insurance plan would also cover your liability to any injury arising from that situation.
On the above, please note that most Maid Insurance Policies will include EC Insurance coverage as standard; please click Hong Kong Maid insurance Coverage for more information.
CCW Global works with a number of Hong Kong Insurance Companies offering Employee Compensation Insurance plans including:
However, if you are experiencing difficulty in purchasing Employee Compensation insurance for your domestic helper or business, or if you have been classified as running a business in a “High Risk” group, then you may be eligible for EC coverage received through the Employees’ Compensation Insurance Residual Scheme Bureau.
In order to access coverage through the Employees’ Compensation Insurance Residual Scheme Bureau, employers must have been denied coverage by at least 3 different insurance companies, or who have been quoted premiums in excess of 30 percent of standard market rates for EC insurance protection in Hong Kong.
Please click Employees’ Compensation Insurance Residual Scheme Bureau for more information about this scheme.
If you would like to compare a range of Employee Compensation insurance quotes in Hong Kong, or if you would like to learn more about this type of insurance coverage, our expert Hong Kong Insurance Brokers are standing by to help you. Simply complete the short form at the top of this page and select Business Insurance from the appropriate menu and we will be in touch shortly.
Further information about this process can be found at Hong Kong Business Insurance Quotes.
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