Insurance for large companies

With the range of risks facing modern businesses, it is important that all companies effectively manage those perils with a comprehensive portfolio of insurance coverage. Even beyond assisting with the losses which could potentially impact a company, insurance can be a vital tool with which to engage employees and ensure productivity.

The simple truth is that the larger an organization becomes the more it has to lose in the event that something goes wrong.

In the modern world, there is a great deal which can go wrong. From unhappy customers, to illness debilitating your employees, or even malfeasance on the part of your directors, there are a variety of Hong Kong and International Business Insurance options which can assist in your recovery and continued corporate operations even in the most trying of times.

Worker’s Compensation Insurance is Mandatory

Employees’ Compensation Insurance is required to be held by all employers in Hong Kong. As such, larger companies will likely already have taken this type of insurance.

However, it is important that you keep your policy updated as the business grows. EC insurance covers an employer’s liability towards workers suffering an accident or injury in the routine course of their employment; as such any gaps in the company’s protection could have serious and long-term consequences. For example, businesses with fewer than 200 employees are only required to hold HK$ 100,000,000 in coverage for any one claim event, but companies with more than 200 employees must have (at minimum) HK$ 200,000,000 in protection.

If your business has recently hired more employees, then it is likely that your risk has changed – more employees will mean more chance of an accident occurring, even in an office environment. Failing to disclose material changes in your workplace can mean voiding the overall Employee’s Compensation Insurance policy which would not only leave you without cover, but also see the company in breach of the Employees’ Compensation Ordinance, Cap. 282.

Errors and Omissions Insurance can be useful

Mistakes happen. Even the most experienced or well-intentioned employee can have an off day and commit errors in their work.

In an ideal world all mistakes or errors would be noticed as they occur, and immediately fixed by a service provider or vendor. However, we do not live in a perfect world, and in many cases, it is only after a customer has experienced a loss might they claim that business or company was responsible.

Professional Indemnity Insurance can also be called Errors and Omissions insurance, or “malpractice” insurance in the medical industry.

Simply put, a PI Insurance plan protects a business from claims of negligence made in relation to its operations. The policy accomplishes this by providing funds to mount a legal defense, and may even cover the costs of any legal judgements in the event that the business (or its employees) is found to have been negligent in respect to the services or products being sold. This can be hugely important as big losses on the side of the customer will necessitate big compensation by the company at fault.

Professional Indemnity Insurance is a simple yet effective way to ensure that any business will have access to the help it needs in the event that mistakes are made within the organization.

Digital Insurance for Cyber Crime

There is, possibly, no greater threat to businesses in the modern world than that posed by Cyber Crime. From ransomware locking you out of vital networks and systems, to hackers stealing client data, there is a lot that can go wrong on the Internet of Things.

Cyber insurance is the name for all the coverage under policies covering risks associated with the internet. With recovery costs for cleaning up websites and servers after unauthorized access, to the expenses associated with paying regulatory fines, managing the company’s reputation, and informing customers of the cyber threat, Cyber Insurance is a robust and flexible form of coverage designed to face the biggest business risks of the 21st century.

One of the biggest benefits of Cyber Insurance policies, both in Hong Kong and elsewhere around the world, is the addition of crisis management services to help your business efficiently manage any cyber crisis while ensuring the day-to-day operations continue. With access to expert vendors, including IT and Legal professionals, to assist a company during any digital threat event, cyber insurance covers all possibilities and safeguards the organizations bottom line in a worst-case situation.

Group Health Insurance for your employees

Many businesses opt to overlook a corporate health insurance policy.

This can be due to the fact that Hong Kong has an excellent, low-cost, government-run healthcare system. It can be due to the fact that health insurance is often perceived by companies as an expensive luxury which does nothing but drain the budget.

However, studies have shown that employees are more likely to have long-term careers if they are offered quality health insurance coverage. Further studies have shown that workers who receive quality medical benefits as part of their employment package are likely to take fewer absences from the office and be more productive. Even basic levels of health insurance protection provided by an employer have significant positive connotations for both the company and employee; by ensuring a safety net for the worker should they suffer a serious medical condition the company often gains a higher level of satisfaction and efficiency from the workforce.

It is important to note that group health insurance policies for businesses, whether underwritten by a Hong Kong or international insurance company, are extremely flexible and can be tailored to the specific needs of your organization.

For example, with different tiers of protection available to different employee classes, it is possible to create a policy which provides higher levels of coverage to senior staff and more modest benefits to junior employees. This gives the company control of its budget and allows the organization to reward workers while efficiently managing finances. In addition to this, many benefits are completely optional for inclusion in most health insurance products, allowing an employer to select coverage options which work for the employees.

With choice of geographical coverage area, and even deductible payments, Group Health Insurance products for companies are a great way to incentivize and retain key members of staff.

Key Person Insurance enables continuity

If an important person in your businesses suddenly passed away, how would the company cope?

For many businesses in Hong Kong this person could be the CEO, the CFO, the Marketing Director, or even one of the founders. But the loss of a critical member of staff, someone who holds institutional knowledge and (quite literally) knows where the passwords are, can cause chaos.

Ignoring the emotional trauma caused by the sudden death of a colleague or friend, the business concerns created by this individual’s absence are likely going to be extremely stressful and time critical. Trying to keep a workforce engaged, and operations continuing in this situation is going to be extremely hard.

While no one and nothing is going to be able to bring back your friend and colleague, there are insurance mechanisms that can assist the organization to carry on. Key man life insurance is essentially just a life insurance policy taken out on an important employee that pays a benefit to the company if that individual should die.

That benefit can be used to find another employee to assist with the company’s operations, or can be used to support ongoing business activities, but provides an influx of cash at a critical time for any business.

Corporate Risk and Insurance Consultations

CCW Global is able to provide comprehensive insurance services to businesses located in Hong Kong. With access to leading local and international insurance companies we are able to offer coverage solutions for most major corporate risks, and can help you to tailor an insurance portfolio that efficiently manages your most pressing risks.

With no-cost, no-obligation benchmarking and quotation services, our expert Hong Kong Business Insurance Brokers work with you to understand your business, your corporate needs, and the biggest risks you face; creating a complete assessment of how you may be best to control losses in the future.

For more information or to request a free quotation, please Contact Us Today.