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Protecting Your Business With Insurance

Published on: 26 May 2021 by Michael Lamb

The news in Hong Kong has been abuzz with whispers of an economy on the rebound. CCW Global recently published an article where we discussed Employee’s Compensation insurance as a result of this; if the economy is starting to grow then it is likely that companies will once again be looking to hire new employees.

However, while Employee’s Compensation cover is the single insurance purchase required by the Hong Kong government for employers, this type of policy does not protect a company from the myriad other risks it faces. With this in mind, join us as we look at the many comprehensive Business Insurance options available in Hong Kong.

No two businesses are the same

When it comes to protecting your business, it is important to realize that there is a wealth of choice available to you. Hong Kong insurance companies understand that no two businesses are exactly the same, and even companies and organizations within the same industry could be facing significantly different risks.

As such, when it comes to protecting a business from risk you are put firmly in the driving seat to control what coverage you will obtain. From niche products that may really only be applicable to very specific companies, through to more generalized umbrella protection, you are able to customize your risk management portfolio to meet the requirements of your organization. This ensures that you are both comfortable with the products you have purchased, and the level of protection you are receiving.

When it comes to business insurance, insurers have worked very hard to ensure that products are not “one-size-fits-all.” A company operating in construction will have a very different set of needs to a financial planning firm. Even within the only legally required form of business insurance, employee’s compensation protection, coverage is provided on the basis of the company’s business activities.

Protecting your Legal Requirements

We’ve covered Employee’s Compensation insurance recently, so we’re not taking a deep dive here.

Suffice it to say that Employee’s Compensation Insurance is regulated by the Hong Kong government and is a legally required purchase under Labour Department Guidelines for any person, employing any worker, to perform any job.

Employee’s Compensation Insurance covers a business’ liability towards its workers suffering an injury or accident in the normal course of their employment.

Protecting Your Office and Assets

Just as you can insure the contents of your home and your personal possessions, businesses can insure their offices. Office Contents insurance is a specially designed form of insurance to cover the needs of companies should they experience a loss event at one of their physical locations.

This type of insurance normally starts with protection against Theft and Accidental loss, covering the business should they be the victim of a burglary and have their work equipment stolen. Similar to Home Contents insurance, an Office Contents insurance policy can be obtained on an “All Risks Basis” ensuring that claims like lost laptops, or mobile phones, are able to processed and the assets replaced.

Depending on the needs of your company, it is even possible to expand the scope of an office contents insurance policy to include protection against risks like:

  • Renovation Damage
  • Damage of external company signage
  • Fire Extinguishing Expenses
  • Rental Relief from temporary office closure

In some cases, Office Contents insurance packages may even be able to include Employee’s Compensation cover into the package, giving your business complete protection against risks facing both your employees and equipment.

 Protection from Mistakes

Many companies in Hong Kong are in the business of giving advice. CCW Global, as an insurance broker, would be in this category – we give advice to our clients about the types of insurance that best meet their needs. However, mistakes can and will happen, and when they do it is possible for a customer to be impacted and make a claim of negligence against the business.

Professional Indemnity Insurance, also known as Errors and Omissions Insurance and Professional Liability Insurance, is designed to protect a business should it face a negligence claim. In the medical field Professional Indemnity is often referred to as Medical Malpractice Insurance.

The range of businesses which could potentially benefit from Professional Indemnity cover is staggering. Lawyers, Accountants, Tutoring Centers, Financial Planners, Management Consultants, and Media organizations are just a few of the many examples of organizations which should consider obtaining this type of insurance.

Without holding a professional indemnity insurance plan, a business risks being extremely exposed by any customers wishing to bring legal action due to negligence or a material error being made which consequently led to a loss. Professional Indemnity cover ensures that your business has the support you require if it ever faces this risk.

Protecting your Exposure to the Public

For businesses which experience regular interactions with members of the general public, like shops or an event organizer, one of the biggest risks you face is the liability you have towards the people entering your facilities.

General Liability insurance, also known as Third Party Liability Insurance or Public Liability, protects a business against its liability towards third party property damage and accidental bodily injury.

General Liability Insurance can be obtained under some Office Contents packages, and is generally a very good purchase for any company. Should a customer trip and fall in your office, or if your signage detaches and hits someone on the head (or damages a car), your public liability insurance coverage can be the difference between massive financial exposure and the security needed to continue operations.

Public Liability insurance is not a legally required purchase for any business in Hong Kong. However, it may be a contractual requirement depending on the industry in which the business is operating.

Protecting your Computer Systems

In the modern world the reality of cyber crime is something that cannot be ignored, and businesses often present more attractive targets than individual users. As with the recent Colonial Pipeline hack, Cyber criminals have proven themselves to be determined, innovative, and successful.

Cyber Insurance is designed to protect your company against the financial and operational exposure caused by a malicious cyber event.

From the ransomware payments to customer notification and reputation management expenses, the aftermath of a cyber crime event can be costly and distracting. While your company is focused on putting out the flames, you’re probably not going to be looking at running your business effectively.

Cyber insurance is a vital tool to support your recovery from a cyber event and should be considered an essential purchase in the modern risk management portfolio.

Protecting Your Business Interests

The insurance products we’ve listed above are just some of the many, many options available to businesses and companies in Hong Kong. As previously stated, no two businesses are alike and the coverage solutions offered by insurance companies in Hong Kong (and elsewhere around the world) reflect this.

The only way to truly understand what insurance solutions are right for your organization is to have a no-cost, no-obligation with an expert CCW Global Insurance Broker. Our experience in the Hong Kong Insurance market and our understanding of the risks facing businesses in a modern post-covid world mean that we can help guide you to the protection you need; while giving you control over whether it will work.

For more information Contact Us today.



Author: Michael Lamb

Michael Lamb is an insurance industry professional with many years of experience within the Hong Kong Insurance market. Focusing on APAC coverage issues, Michael is able to provide extensive analysis and insight to a range of pressing topics. Previously, Michael provided insurance broker Globalsurance.com with their most highly valued articles and was a key influence in the development of all the content on Pacificprime.com, Michael has a passion for insurance matched by few others in the region.

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