Property Insurance and Home Contents Insurance are two different types of cover. We help expats in Hong Kong with both…
By definition, a contractor is an independent entity that is with a company or employer to provide a set of services or deliver goods within a specified time frame.
More and more businesses in Hong Kong are opening opportunities for contractual jobs because of the shift in need for more independent workers. Another reason for a greater demand for contractors is that the country has been regarded as a fertile ground for startups which usually work with a skeletal team that are not as capable of affording full time employees and the benefits that are required for such positions. Expats in particular have taken great advantage of these opportunities specifically with tech and B2B startup ventures.
There are two factors that contribute to the appeal of contractual jobs to expats. One is higher earning within a short period and the second is flexibility which allows them to pursue other personal projects while traveling.
*Note that a contractor has to enroll in a Mandatory Provident Fund scheme and make contributions on his own.
What about Insurance?
Regular employees are entitled to Employee Compensation Insurance, which is mandatory for all employers by law. Since contractors are not technically under an employer, you will need to make arrangements for your own financial protection. The recommended policy is a generalLiability Insurance, which can be broken down into several more specific policies that cover different risks.
Contractors need protection from the following risks:
Professional Indemnity: Contractors who provide consulting and advice, such as accountants, financial planners, interior designers and landscape architects, need to be concerned about liability risks due to losses a client may experience as a result of the contractor’s recommendations. Also called “Errors and Omission Insurance.”
Product liabilities: For liability protection with goods or products you produce that may injure a third party.
Total and Permanent Disability: To protect your income in case you are seriously injured or become ill that leaves you incapable to go back to work.
For more information on business and personal insurance needs, contact us at email@example.com or fill up the forms in our website for free quotes on insurance.