31Oct

Travel in 2021: Overseas and Domestic Trips

2020 is the year of huge shifts. The pandemic may have permanently changed the way we go about normal activities – from dining out to travel.

The travel industry experienced one of the biggest negative impacts of Covid-19 with massive layoffs and restrictions that have delayed recovery. In addition, going on holidays and quick trips in nearby areas have turned into inconvenient (and hazardous) undertakings.

Getting overseas work for expats has also become uncertain with regions having different border policies that may change the very next day. However, there are some parts of the world slowly reopening to make way for economic recovery.

As we close the year with the information we know now, many of us may be wondering how travel will look like in this 2021. From our perspective here in Hong Kong and Asia in general, international and domestic travel will pivot to provide more protection to travellers and further prepare everyone better for unexpected events.

Here’s how we see travel in 2021:

DECREASED BUSINESS TRAVEL

Travel in 2021: Less Business Travel

Online interactions will be the norm even for traditional businesses. Video conferencing and collaborative software have allowed companies to operate through the pandemic which means 2021 will be a year of reinforcing digital infrastructures. With a bulk of operations moving to the digital space – from hiring to client management – we foresee less frequent business travels.

This trend could mean two things:

  1. Skill-based overseas work or the need for foreign hires will be fulfilled locally.
  2. A less nomadic life for digital nomads.

For businesses who may find more roadblocks while adapting, we also foresee the greater need for liability insurance and business travel insurance to cover all their bases.

THE EMERGENCE OF TRAVEL CONSULTANTS

Travel in 2021: Need for travel consultants

As people resume travelling, they will need to outline their itinerary to safely navigate through the new changes for different countries. Travellers will need expert advice on border and health policies to lessen risks and unnecessary stress. 

Top travel consultants will be highly sought after by travellers to help them plan holidays. This could signal an opportunity for travel agencies. As information becomes more complex, agents and tour operators will be expected to take care of all transportation arrangements with more attention to details regarding health regulations and customer safety.

Thus, the cost of travel may also increase and the coverage policies of travel insurance will see plenty of changes.

PRIVATE AIR TRAVEL FOR BUSINESSES

Travel in 2021: More private jet travel for businesses

According to industry reports, private jets are experiencing an exceptionally high level of bookings as of Q2 2020. Specifically, most of the booked flights are reserved for new customers. For various reasons, air travel is indispensable means of transportation. Pre-pandemic, commercial flights used to be easier and safer. In 2021, people will begin to turn to private jets to maximize safety, comfort and convenience. 

PREFERENCE FOR LOCAL ATTRACTIONS

Travel Trend in 2021: Local Attractions will be on demand

Social distancing will be permanently integrated into public transportation which makes international travel more costly (because airfare will cost more to make up for fewer passengers). Because of this, people will be keener on local destinations and itineraries that require less contact with other people such as bike tours, hiking, birdwatching, kayaking, and other outdoor activities.

Travel is foreseen to be far different from how we knew it. Clearly, new ways of getting to a destination will need to be both safe and sustainable at the same time. Information sharing is crucial and we have to be cautious about more things at least until there is a vaccine. For now, businesses and travel-enthusiasts must adapt.

Get in touch with Village Insurance Direct for travel and liability insurance with Covid-19 cover. We can help find the right policy for your needs.

20Oct

5 Personal Insurance You Need Plus Pro-Tips Before You Buy

It’s impossible to eliminate all risks from a single insurance plan. However, layering your personal finances with a handful of essential covers immensely help with risks.

So what are the important insurance types you need to protect yourself and your family?

  1. HEALTH INSURANCE

There is a multitude of insurance plans to help you with the cost of healthcare. Health insurance takes care of hospital costs when you’re sick or in an accident. Most will acquire this type of insurance through an employer. Self-employed individuals will have to get this from the open market on their own.

Pro-tip on what to consider:

– Cost of premium
– The amount of deductible (out-of-pocket cost before the insurance comes in)
– Co-payment amount (the amount paid for a particular visit)
– Co-insurance (cost divided between you and the provider)
– Cap out-of-pocket cost (maximum cost before the insurance starts)

An important thing to remember when shopping for health insurance is that you should be aware of your anticipated health needs so that you can check if it’s part of the plan. So if you have a history of heart condition in the family or cancer is involved, be sure to find a plan that will assist with the cost of those specific conditions.

  1. LIFE INSURANCE

Life Insurance Tip from Village Insurance: How much life insurance do you need?

There are two main types of Life Insurance: 

(1) Permanent Life Insurance – covers your lifetime
(2) Term Life Insurance – covers a certain period of time (e.g. 30 years)

Pro-tips: Term Life Insurance is generally more cost-effective because it protects you for a period when you’re least likely to die. This is, of course, if you get the plan at an early age.

In terms of the cost (how much you need to have covered), Village Insurance will always advise clients to consider their annual income. So if you need to replace your entire income, then you will need 25x your annual salary which is understandably a substantial amount. A positive outlook while thinking of that amount is that your family can withdraw around 4% from that amount for as long as the insurance is in place. If you want to replace an amount that covers certain things such as the mortgage, then you’ll need less.

  1. DISABILITY INSURANCE

This insurance plan also comes in two variants:

(1) Short term – for medical emergencies that prevent you from working (e.g. having a baby)

(2) Long term – for events that inhibit you from making a living for months or years.

When do you need short term disability Insurance? Blog: Village Insurance Direct

Pro-Tips: Short-term disability becomes quite handy when your employer doesn’t offer paid maternity at work. To determine how much you need, make a budget plan for the amount you’ll need while you’re unable to work.

Also, keep in mind that long-term disability insurance has a 3-4 month waiting period before it begins replacing lost income. On top of running through a budget plan for how much you’ll need, check if your plan is subject to taxes as well as your condition’s impact on your social security disability income.

  1. DENTAL INSURANCE

Health insurance plans do not automatically cover dental. Dental care can be quite expensive especially in Hong Kong. Treatments beyond preventative procedures can cost thousands of dollars. Teeth implants and other restorative treatments are often overlooked but once they’re there, you’ll be glad to have dental insurance when you see the cost per visit.

Pro-tip: Get dental insurance before you actually need it, meaning, get it while you’re young. Premium will cost less. Also, like some insurance covers, there may be a waiting period for expensive treatments so add that into consideration when scheduling your appointment.

  1. HOMEOWNER’S/RENTER’S INSURANCE

How to choose renters insurance and home insurance. Pro tip from Village Insurance Direct

Homeowner’s insurance covers both the house and all its contents. On the other hand, renter’s insurance covers what’s inside the rented space. 

Renter’s Insurance is a must-have in Hong Kong. Some landlords may even ask for additional liability insurance from renters to cover the entire building in case of damage.

Pro-tip: There are plenty of reasonably priced renter’s policies in the market (some as low as $20 monthly). Village Insurance recommends getting this so you won’t have to worry about damages to the apartment that are beyond your control such as a fire. 

For homeowner’s insurance, check your policy if it covers the current value of the property or the replacement value. You may also look for a plan that has add-ons to cover the cost of high-value items inside the house (e.g. jewellery, computer equipment).

Again, layering your finances with different insurance policies to take care of anticipated needs is the best way to protect you and your family from extreme loss of income. 

Get in touch with us if you need help finding specific personal as well as business insurance while you’re staying in Hong Kong.

 

14Oct

Infographic: What is PIP?

 

During these uncertain times, it’s crucial that one has the right protection for a high-risk job. Below is an infographic that explains the basic of a PIP.

Infographic: What is Pilots Income Protection?

Village Insurance, in conjunction with ABC (Aircrew Benefits) and Millstream (the lead underwriter), has created a new stand-alone pilot income protection (PIP) product.

The policy is designed for pilots who may wish to make savings on their existing PIP coverage by switching insurance carrier (subject to underwriting) or to purchase additional coverage.

8Oct

Understanding Professional Indemnity Insurance with Examples

Let’s first define what professional indemnity (PI) insurance is.

This is a type of insurance cover that protects a company from incurring legal costs and expenses in their defence, as well as any damages or costs that may be awarded if they have been alleged to have rendered inadequate advice, services or designs that caused a client to lose profit.

It’s also often referred to as professional liability insurance.

In Hong Kong, it is compulsory for some businesses to take out liability or professional indemnity insurance before they can operate.

Here are some examples of professional indemnity insurance claims you may find useful:

Case Study 1

Government Statutory Board | 6 Staff members | HKD5.5M turnover

Background: 
A claim was made against the Insured by one of its former clients. The claim alleged that the Insured failed to protect the claimant’s medical conditions whilst acting for the claimant in court, resulting in the claimant’s identity being easily searched online and discriminated against.

Outcome:
The Insured appointed panel solicitors to assist with managing the dispute. The Insured incurred defence costs of HKD280,800 which were indemnified by the Policy.

Payment: HKD280,800

Case Study 2

Insurance Broker | 5 Staff Members | HKD3.9M turnover

Background: 
A claim was made against the Insured by their client, a recreation club. The client alleged that the Insured misrepresented that their Directors and Officers Policy would cover the club’s own rights which were, in fact, incorrect when a claim was presented to the insurer and was declined. The claimant further alleged that the Insured failed to exercise reasonable skill and care whilst advising and obtaining adequate insurance.

Outcome:
The Insured appointed panel solicitors to assist in defending the matter against them. The claim was settled at mediation. The Policy paid a total for settlement costs of HKD1,482,000 and defence costs of HKD351,000

Payment: HKD1,482,000 plus HKD351,000 in defence costs.

Case Study 3

Logistics Operator | 8 Staff Members | HKD1.95M turnover

Background: 
The Insured, a logistics operator, was storing vaccines in its Cold Room for their client. A claim was made against the Insured by their client alleging that there had been a fall in temperature in the Cold Room which was a result of a hardware malfunction, which damaged their products. The Insured notified Insurers for their Fire Policy as well as their PI Policy. The Insurers of the Fire Policy indemnified the Insured to the sum of HKD1,287,000 which was insufficient to meet the total replacement cost of the vaccines due to a global shortage in certain of those vaccines. One of the vaccine’s cost had increased from HKD29.02 to HKD519.87 per vial. The Claimant sought further damages of HKD1,950,000.

Outcome:
The Insured appointed panel solicitors to assist with managing the claim against them. The Policy was triggered and paid for defence costs of HKD117,000. The claim was settled at a mediation for HKD319,800 which was also indemnified by the Policy.

Payment: HKD319,800 plus HKD117,000 in defence costs

Need PI Insurance for your business in Hong Kong? We can help find the best insurance covers for expats.