Overview
Business Interruption Insurance
Suspending business operations, even for a day, can have disastrous financial consequences for any company. Long term interruptions to business, especially when that interruption is due to a serious emergency, can be crippling.
Thankfully, there are a range of business insurance products available in Hong Kong that are designed specifically to ensure that financial support is available to a company that has had to suspend its operations due to a covered interruption.
Coverage
Hong Kong Business Interruption Coverage
Defined as “protection against the necessary or unavoidable interruption or interference of the policyholder’s business operations” Business Interruption insurance can be obtained to cover against a wide range of possible risks, including benefits for:
- Weather Interruption or Cancellation
- Terrorist Threats
- Acts of Terrorism
- Acts of Sabotage
- Government Seizures
- Strikes and Civil commotions
- Riots
- Mutinies
- Military Coups
- Civil War
- War
The coverage offered by these benefits will generally be specific to the risk being insured. Normally, Business Interruption insurance will provide complete financial protection against any financial losses stemming from a forced suspension of business operations due to the covered benefit.
Some Hong Kong business interruption insurance plans will provide umbrella protection for a full range of interruption risks. Other policies will only provide cover for a single benefit.
It is important to note that the more comprehensive a Business Interruption Insurance plan is, the higher the premium a company can expect to pay. Additionally, premiums for business interruption insurance in Hong Kong will generally be calculated based on the annual revenue of the company obtaining cover. Consequently, coverage for a multinational organization will be much more expensive than the same protection given to a Small Business or Sole Proprietorship.
Business Interruption Insurance plans in Hong Kong can be taken out to cover all of a business’ locations worldwide, or can cover a single city.
However, the coverage is only applied to new interruption events arising following the activation of the policy. Interruption acts which were already in force prior to the commencement of the policy can not be covered under a Hong Kong Business Interruption policy.
Quotation
Free Hong Kong Business Interruption Quotes
If you would like to receive a free quote for a Hong Kong Business Interruption Policy, or if you would like to learn more about any of the Hong Kong Insurance products offered by CCW Global simply complete the short form on this page or Contact Us.
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