According to the Employees’ Compensation Ordinance, all employers (companies and individuals) are required to purchase an employees' compensation insurance policy for all employees with a compensation limit of not less than HK$100 million, in order to cover legal liabilities arising from employees' work-related injuries.
The purchase of employees’ compensation insurance is not only mandated by law, but is an essential means of protecting companies against potentially huge losses and safeguarding corporate assets in the event of employee accidents. In general, employees' compensation insurance covers medical expenses, salary compensation and compensation for permanent disability and death. Some plans even extend protection to employees working under poor weather conditions.