What is Employees’ Compensation Insurance?
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If you are an employer in Hong Kong then you are legally required to possess an Employees’ Compensation Insurance policy. Also known as EC Insurance, Worker’s Compensation Insurance, or even Employer’s Liability insurance, this type of policy covers an employer for their liability towards any worker who suffers an accident or injury in the routine course of their employment.
Employees’ Compensation Insurance is a mandated purchase for all employers in Hong Kong under the Employees’ Compensation Ordinance, Cap. 282. The relevant portion of the ordinance specifies:
No employer shall employ any employee in any employment unless there is in force a policy of insurance to cover his liabilities under the laws (including the common law) for injuries at work in respect of all his employees, irrespective of the length of employment contract or working hours, full-time or part-time employment.
Employees’ Compensation Insurance offerings in Hong Kong have been specifically designed to satisfy an employer’s obligations to the law.
Who needs EC Insurance in Hong Kong?
Any employer in Hong Kong is required to hold a valid Employees’ Compensation Insurance policy. An employee’s length of service, employment duties, nor status as a full time or temporary employee does not matter.
Any individual employed to perform any job must be covered by a valid EC Insurance policy.
This means companies and businesses must hold Worker’s comp protection for all employees, no matter what the nature of their business may be or what sector they operate in. Similarly, private employers are also beholden to this regulation which would also include individuals and families employing domestic workers like maids, chauffeurs, or gardeners.
If you have an intern working in your office, for two months over the summer, that individual must be covered under the EC Insurance ordinance.
All employers in Hong Kong must take out an insurance policy covering their liability towards any worker who suffers an accident or injury in the routine course of their employment.
There are no exceptions.
What Employees’ Compensation Insurance do you need?
The Labour Department and the Employees’ Compensation ordinance specify a minimum level of coverage required to remain complaint with Hong Kong Law.
Companies with 200 or fewer employees are required to hold an employee compensation insurance policy with a coverage level of at least HK$ 100 million per claim. Companies with more than 200 employees must double than minimum level of protection and hold a valid insurance policy which covers their liability towards employees in respect of at least HK$ 200 million per claim.
This is all that is specified by the Labour Department towards your EC Insurance requirements. Beyond these minimum levels of protection, you are free to expand the policy as you wish. You are also allowed to chose a bare-bones, spartan policy which only covers you for the legally required minimums – beyond your satisfaction of the EC ordinance, there are no further government mandated insurance policies which apply to all employers.
Any supplemental cover is at your choice and discretion.
Adding to your Employee’s Compensation Insurance Protection
It should be noted that employers can purchase EC protection under the umbrella of different coverage types.
Domestic Helper insurance and EC Coverage
All domestic helper insurance products offered by CCW Global in Hong Kong will have Employees’ Compensation cover form the basis of the policy. From here employers have the option to include additional benefits which may satisfy their contractual obligations towards their helper.
These can include Health Insurance, Personal Accident Protection, and even loan protection insurance, giving you (as an employer) complete coverage against a range of risks which are commonly associated with hiring a helper.
Office Contents Insurance and EC Coverage
Businesses and companies may be surprised to discover that an easily obtainable form of Employee’s Compensation Insurance can be found attached to some Office Contents Insurance products. This enables easy administration and, specifically for smaller corporates and start-ups, protects risks while efficiently managing your budget.
Office Contents Insurance is a mainstay for inclusion in a comprehensive corporate risk insurance portfolio, and protects the physical assets of your office against loss, theft, or (in some cases) simple damage.
By bundling Employer’s Liability Protection in an office contents policy companies are able to guarantee their compliance with local laws and regulations while also going a long way to ensuring that they are adequately covered should anything happen to their physical work space.
How are EC Premiums Calculated?
The amount that you can expect to pay for your Employees’ Compensation Insurance coverage will depend on a number of factors. These include
- Nature of business
- Nature of employee duties
- Total number of employees
- Employee salary information
As Employee’s Compensation Insurance is designed to compensate employees for their lost income following an accident or injury a main consideration in the pricing of a worker’s comp policy is going to be the salary earned by each worker under normal circumstances.
In addition to this the nature of the business and the employee’s job duties are also going to be extremely important. A secretary for a banker who stays in their office and doesn’t perform any strenuous physical labor will be less of a risk for suffer a claim than an operator of a furnace in a factory that smelts metal. Simply put, if you have high paid workers, or if your workers have “risky” jobs you can expect to pay more for your employee’s compensation insurance protection.
Free Hong Kong EC Insurance Quotes
If you would like to receive a free, no-risk, no-obligation quote for an Employees’ Compensation Insurance policy in Hong Kong simply complete any of the quote forms on this page. Alternatively, you can Contact Us to speak directly with an expert Hong Kong Insurance broker and discuss which EC insurance products may be best for your specific needs.