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FAQ > Employer Obligation > E01

Q: Are employers obliged to take out employees' compensation insurance policies for all employees? View : 50
A:

According to section 40 of the Ordinance, no employer shall employ any employee in any employment unless there is in force a policy of insurance to cover their liabilities both under the Ordinance and at common law for injuries at work in respect of all their employees, irrespective of the length of employment contract or working hours, full-time or part-time employment. Should there be any queries on legal liability, employers should seek professional legal advice.

The minimum insurance cover should be for an amount:

• If the no. of employees not more than 200, The amount of insurance cover per event should not less than $100 million.
• If the no. of employees more than 200, The amount of insurance cover per event should not less than $200 million.


An employer who fails to comply with the Ordinance to secure an insurance cover commits an offence and is liable on conviction to a maximum fine of $100,000 and imprisonment for two years .

Moreover, under the Employees' Compensation Assistance Ordinance, Chapter 365 of the Laws of Hong Kong, an employer who fails to comply with the compulsory insurance requirement is liable to pay a surcharge to the Employees Compensation Assistance Fund Board.

For any information concerning the list of insurers underwriting employees' compensation insurance, please access the relevant website of the Hong Kong Federation of Insurers. http://www.hkfi.org.hk

For information concerning the extended insurance coverage to the Shenzhen Bay Port Hong Kong Port Area, please access the relevant website of the Office of the Commissioner of Insurance. http://www.oci.gov.hk

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