Employment Liability Insurance In Mexico

• Published date: 28 March 2024
• Subject Matter: Employment and HR, Insurance, Employee Rights/ Labour Relations, Insurance Laws and Products
• Law Firm: Ius Laboris
• Author: Daniela Hidalgo Martínez (Basham, Ringe y Correa S.C.) and Santiago Villanueva Dur'n (Basham, Ringe Y Correa SC)

Social security in Mexico is a fundamental right. It ensures access to health care, medical assistance, protection of livelihoods, and necessary social services for individual well-being.

Social Security consists of two regimes: Mandatory and Voluntary. The Mandatory Regime is compulsory and applies to those in formal employment (as well as various public sectors) and their families. This regime, outlined in the Social Security Law, encompasses five types of insurance, namely:

• labour risks;
• illness and maternity;
• disability and life;
• retirement, old-age severance, and elderly benefits;
• nurseries and other social benefits.

Labour risk insurance is fully covered by employers. It provides financial and in-kind benefits for incapacity or death of a worker due to labour risks, which are divided into two categories:

• Work accidents include any bodily injury or functional impairment (whether immediate or subsequent) or death occurring suddenly during or because of work. This applies regardless of the location or time of the accident, including during travel between home and the workplace.
• Professional or occupational diseases encompass any pathological condition resulting from continued exposure to a cause originating or motivated by work, or the environment in which the worker is obliged to provide services, as well as work-related diseases outlined in the Federal Labour Law.

When employers first obtain their Employer...