What is

EMPLOYERS’
LIABILITY
INSURANCE

Employers’ liability insurance is meant to protect employers from financial losses following work-related accidents. It covers the compensation costs and legal fees that result from being sued by an employee or ex-employee for illness or injury caused by their work in your company.

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What is the maximum cover you should have?

Employer’s liability insurance is usually following local regulation which might state maximum limits. The limit is set at HKD 100,000,000 in Hong Kong which is very high. There is no such limits in China and Singapore and best is to follow standard contract limitations.

How much does it cost?

The employers’ liability insurance premium is based on your staff costs as well as the duration of work. Of course, the administrative staff working in an office all day will have a lower risk than the sales staff or factory workers, so the premium rate will vary depending on the job performed. To get a quote, please click here.

Do I need employers’ liability policy if I already have social insurance?

Local social insurance is compulsory in some countries but it does not cover a company’s liability to pay as a result of an accident in the business environment.

Is employers’ liability insurance similar to employment practice liability (EPL) insurance?

No, EPL coverage is different from that of the employers’ liability insurance. The EPL protects employers from liabilities arising from wrongful employment practices. Most EPL policies cover claims regarding sexual harassment, discrimination, and wrongful termination. This coverage, however, is not very common in Asia.

Is employers’ liability insurance compulsory?

Yes, it is a legal requirement in most countries. In Hong Kong, it is compulsory, and the policy is also called employee compensation. In Singapore, the coverage, though not as comprehensive as employers’ liability, is called working injury compensation, and it is compulsory for all manual workers or employees with a monthly salary below SGD 1,600. In China, the coverage is compulsory only in some provinces and industry-types.