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What is the cost of Employee’s Compensation Insurance? Thank you


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Q:

How much is the EC insurance in Hong Kong ca.? I'm setting up a business plan and really need your answer. Thank you. I'm planning with 20 employees. How much is the property insurance for a retail store (8,000 ft2)? Thank you

A:

The cost of an Employee’s Compensation Insurance policy will depend on a number of factors including your employee’s salaries, the nature of their work, and the specific type of business you are engaged in.

It is important to realize that an Employee’s Compensation Insurance policy will cover your employee’s against the specific types of activities they are engaged in, and that employees undertaking higher risk job duties can inflate the overall cost of the policy.

For example, while a sales clerk in a retail store would not necessarily inflate the premium to a great extent, a warehouse worker who routinely moves heavy stock items would be a bigger risk and consequently mean that there would be an increased premium loading.

Generally, the square footage of the business location is not an important consideration under EC Insurance coverage. What is of greater concern (and which will need to be declared on any EC Insurance application you may make) is the salary of all the employees you will be covering.

As Employee’s Compensation Insurance covers the liability your company would be exposed to in the event of a worker suffering an on-the-job accident or injury, the cost of the policy will be highly dependent on the wages you are paying to your staff. This is because the worker will be compensated against lost wages should they find themselves in a claims situation under the plan.

Consequently, it is not possible to provide a quotation without this information. Furthermore, CCW Global is unable to offer any quotation services through our ASK CCW platform as this is intended for general education purposes. If you would like to receive a free quotation for an Employee Compensation Product for your business please Contact Us Today and one of our expert business insurance brokers would be happy to answer any questions you may have.

As you are considering opening a retail store it may be worth mentioning that many Office Contents, or Shop Insurance packages available in Hong Kong will also be able to provide you with a suitable level EC Insurance coverage to meet the Labour Department Requirements.

Obtaining a Shop Insurance package could be a good idea in your situation as it will enable you to cover all of your stock items, acquire umbrella Public Liability Insurance protection, and satisfy your EC Insurance need under one simple policy.

Again, the cost of such a policy will depend on a number of variables specific to your business, so we would be unable to provide you a quotation without receiving further information about your business activities.

Should you have any further questions or concerns please let us know and we would be happy to assist you!

Answered on: 19 March, 2018 14:51


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