Employees’ compensation insurance (ECI)
Employees’ compensation insurance (ECI)
EMPLOYEE COMPENSATION INSURANCE
The Employees’ Compensation Ordinance (Cap. 282) requires an employer to take out an insurance policy to cover ALL employees engaged in his business, whether full-time, part-time, temporary or casual.
If an employee sustains an injury or dies as a result of an accident arising out of and in the course of his employment, his employer is in general liable to pay compensation under the Ordinance, even if the employee might have committed acts of fault or negligence when the accident occurred.
Employee Compensation
Employees’ Compensation Insurance in Hong Kong: What Employers Must Know
As a licensed insurance broker in Hong Kong, we help businesses navigate the complexities of mandatory Employees’ Compensation coverage with confidence.
The Legal Framework
Hong Kong law requires all employers to carry Employees’ Compensation insurance that covers:
- Work-related injuries and illnesses
- Death benefits
- Permanent disability (total or partial)
- Medical expenses
- Lost wages during recovery
| Number of employees | Minimum cover per event |
|---|---|
| 200 or fewer | HK$100 million |
| More than 200 | HK$200 million |
Understanding Coverage Limits
While compensation amounts vary based on:
✓ Employee’s age
✓ Monthly earnings
✓ Nature of injury
✓ Length of employment
Every policy we arrange meets the statutory minimum cover of HK$100 million per event (HK$200 million for employers with more than 200 employees).
Why Proper Coverage Matters
- Legal Compliance – Avoid penalties of up to HK$100,000 and potential imprisonment
- Financial Protection – Shield your business from unexpected liability costs
- Employee Assurance – Demonstrate your commitment to workplace safety
How ION Help
Our brokerage specialists:
- Analyze your specific workforce risks
- Secure comprehensive coverage at competitive rates
- Ensure full compliance with Hong Kong’s evolving regulations
- Provide ongoing policy management and claims support
Understanding Coverage Limits
Hong Kong Employees’ Compensation Insurance FAQs
Employers must report work injuries to the Labour Department using Form 2 within the time limits set by the Employees' Compensation Ordinance: within 7 days for a fatal accident, and within 14 days for an injury resulting in incapacity of more than 3 days. Employers should also notify their insurer promptly. ION will help you notify your insurer and manage the claim.
Yes. The ordinance applies to all workers employed in Hong Kong, regardless of nationality or visa status. This includes part-time staff and foreign domestic helpers (FDHs). We help tailor coverage for diverse workforces.
Policy adjustments are often needed when:
- Headcount increases
- Job risks change (e.g., switching to manual labor)
- Employee salaries are revised
- We proactively review policies during renewal and offer mid-term adjustments.
Enquire
Send us a message when we would be glad to assist you.
