Affordable employees compensation insurance protects your legal liability as an employer under the Hong Kong Employees’ Compensation Ordinance, and at common law.

The employer will be liable if an employee sustains an injury or dies due to an accident arising out of and during his employment. The same also applies to occupational disease.

All employers are legally responsible for having mandatory Employees’ Compensation in place. According to section 40 of the Ordinance, no employer shall employ an employee to perform any employment unless there is an in force EC policy to cover his liabilities for injuries at work, irrespective of the length of the employment contract or working hours, full-time or part-time employment.

This policy is inclusive and applies to all employers, including those who are the sole Director and the only employee of their company.

Coverage must also be extended if employees are required to have temporary work trips overseas during their employment.

An employer who fails to comply with the Ordinance to secure insurance coverage is liable to prosecution and, upon conviction, to a maximum fine of HK$100,000 and imprisonment for two years.

The statutory minimum limit that an employer with less than 200 employees must purchase is HK$100 million. If there are more than 200 employees, you must purchase a minimum insurance limit of HK$200 million.

The cost of Employees’ Compensation will depend largely on the industry or sector they operate in. The subsequent premium rate(s) will then be applied against the estimated earnings for each category of employee(s).

The annual premium cost is a % of the total wage bill, so a company with ten employees (8 IT consultants’ and two Directors’) with a total wage bill of $5,000,000 could expect to pay an annual premium (adjustable) in the range of 0.3 – 0.7% or HK$27-30,000*

*This is an indicative premium, for a personalised Quote, please complete the quotation form opposite.