Employee Compensation (EC), also known as Employer’s Liability, is one of any new company’s first insurance.
As an Employer, you got a liability if one of your staff suffers an injury or contracts illness in the course of his duties. Thus, whatever your staff is a full or part-time worker, contractor, sub-contractor, free-lance etc…
For most countries, this is mandatory insurance that comes with the basic insurance package (together with Property All Risks and Public Liability) you will subscribe to when you start your business.
The insurance will cover wages and salaries during sick leaves, medical costs, and permanent disability/death compensation.