Risk awareness is paramount when shopping for the right cybersecurity policy for your business.
As “work-from-anywhere” becomes the norm, insurance providers in Asia have started revisiting current policies and integrating more cover for remote teams and increased digital interactions between team members.
For risk managers, we recommend noting these four considerations when selecting a cover:
1. Identify your business’ specific risks.
Start by making evaluating your weak points online. The nature of these risks will be essential in determining the right type of cover for you. Remember that insurance policies will differ based on your industry.
Unlike other types of insurance, deductibles in a cyber insurance policy are based on a specific timeframe, usually 72 hours, instead of an amount.
Look for an insurance policy that specifically covers potential damages from, say, cloud-based storage of payment information, customer data, or other sensitive information.
How secure are financial transactions such as wire transfers? Check if the policy will cover your risks in case you’re a third-party vendor for payments.
2. Does your business practice BYOD (Bring Your Own Device)?
Again, with more businesses shifting to remote offices or a hybrid work set-up, it’s very likely that employees will be taking company-issued devices with them. In case of loss or theft, will your cyber insurance policy cover the potential cost of, not just the device, but more importantly, the information saved in those devices?
Do you trust your team to manage sensitive data as they would their own? Have they been educated to practice security practices?
3. The value of the insurance and triggers
Do the maths to get the average cost of one stolen record with sensitive or confidential information and multiply that by the number of sensitive records you have in storage plus a projected number of growth in the next two years (at least). That is the amount your cyber insurance should cover.
On top of the value amount, make sure to ask what will trigger the insurance. Will the policy take over only with a deliberate attack, or will any type of breach like an unintentional human error trigger it?
4. Consider buying cyber insurance from a one-stop-shop
Unless you already have a firm helping you secure your system, might we recommend getting a policy from an insurance provider that can also provide cybersecurity? Partnerships between insurance companies and cybersecurity firms have become more common in the Asian market.
Cybersecurity companies may offer a service that audits a company’s current capabilities so they can make policy applications easier for insurance agents. It is a mutually beneficial partnership that will give all parties involved an advantage and it will make it easier for businesses to cover all their bases in one go.
One-stop shops may also offer custom policies with add-ons that can fit your need. We can help you find the best ones so feel free to inquire here.
Email us or chat with us for more questions about personal and business insurance for expats in Hong Kong.
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?
- 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.
- LIFE INSURANCE
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.
- 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.
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.
- 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.
- HOMEOWNER’S/RENTER’S INSURANCE
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.
2020 changed the course of cybersecurity and the way we look at cyber insurance. Increased online interactions in both personal and business facets have highlighted possible points of attack on data which can lead to significant loss and security threats.
1. Increased scrutiny on claims and security in phone apps and software
There will be a greater emphasis on explicit details about cybersecurity measures such as employee online security awareness training, dark web monitoring, and verified back-ups (or how a provider stores and secures backup data).
Businesses can also expect cyber insurance providers to conduct network scans to see and experience how secure an app or software appears. Having these basic security measures in place will help cyber insurance providers determine the cost of premiums for a business.
2. Some industries may have a harder time finding insurance cover
Some of these industries are:
– SMBs with a high record count (e.g. medium-scale medical practices)
– Companies that move large amounts of money like manufacturers
– Organizations with historically poor security (e.g. local government units)
This does not mean cybersecurity will be completely inaccessible to these types of industries. It does imply that these groups will have to pay more or will need more effort to find a cover for them.
3. Specific features may be amended or taken out
Many cybersecurity insurers are making changes to help cover areas that may be more prone to risks or they may recommend add-ons for new security requirements.
Check the value of ransomware payments if it matches your business’ needs. Policy limits may be lowered so double-checking this feature is a must.
4. Higher premiums are inevitable but will be a NEED
The end of finding the cheapest cyber insurance came early this year when there was a global shift in how businesses should be looking at cybersecurity and the huge impact of hacking. Acting too late this 2021 will result in higher premiums in the future.
Most companies only think about cyber insurance after falling victim to an attack. Remember that your history as a business plays a significant factor in how much your premium will cost in the end.
Of course, there will still be good deals, especially from the venture capital side.
5. Validation of increased expenses in cybersecurity
This means is companies will have to really look at their liability insurance policies and include cyber insurance as an essential. Zero dollar deductible policies or cheap policies won’t cut it anymore.
Increased budget for the IT department will certainly become a trend with an emphasis on tools for better security measures as well as company training for online safety awareness.
This increased expense is a positive change for both business and consumer in the long run.
We will continue to see more shifts in the cybersecurity and cyber insurance space now that businesses have seriously considered pivoting to hybrid work set-ups. Stay tuned to see our analyses.
Need help finding cybersecurity insurance for your business in Hong Kong? Get in touch with us today.
A survey by the Royal Society for Public health has some insightful findings on the effects of remote work on employees’ overall health.
These information can be viewed as opportunities for employers to revisit their business pivot strategies as more and more organizations move towards a more remote setting.
While the vaccine rollout in Hong Kong is ongoing, COVID-19 still raises several liability concerns for customers or employees who may become sick due to alleged negligence by an organization.
For these types of concerns, it’s necessary to take the following insurance considerations into account:
– Commercial liability insurance— protects your business from financial loss should you be found liable for personal harm (like a customer getting sick) caused by your product or services, or due to business operations in the case of employees. This general liability insurance can cover costs correlated with bodily injuries, damage to third-party property, personal injuries, medical expenses, litigation and more.
In the time of COVID, commercial liability insurance should provide coverage and allow organizations to defend claims. For a claim to be valid, the claimant would have to claim that the virus was contracted due to the organization’s or business’ oversight and detail how, when and where they got sick—all of which may be difficult to prove.
– Directors and officers (D&O) insurance— Shareholders can sue a business in case there’s a failure to respond competently to COVID-19 concerns. Specifically, shareholders may dispute that Directors and Officers failed to plan for adequate contingency plans or detail how the pandemic could affect the company’s finances.
It should be noted that most D&O insurance excludes cover for bodily harm but may offer some protection depending on specific accusations. That said, it’s important for businesses to examine the scope of their D&O insurance to verify that they are covered in the event of such events.
EMPLOYEE’S COMPENSATION INSURANCE
In events when an employee makes a claim that they contracted COVID-19 at work, a number of employee compensation factors come into play. For workplace illnesses, most policies only pay out benefits if the disease in question is occupational in nature. This may imply that communicable diseases are generally excluded from most employee compensation policies.
However, a policy may be triggered if the illness came about during the course of employment. Generally, these scenarios are reviewed on a case-by-case basis but could include instances for:
> Healthcare workers who contract COVID-19 at the hospital where they work.
> An airline employee contracts COVID-19 from a passenger.
> A hospitality employee gets COVID-19 that can be linked to a large event at their place of work.
Poor insurance cover or the lack of any type of cover that specifically addresses your business’ liability with COVID will deter you from making meaningful recovery this year. Although there is some positive outlook on financial recovery in Asia, this should not be the time to loosen one’s sense of cautiousness.
Need to update your company’s liability insurance? Get in touch with us today.
What You Should Know About the Revised Compensation Items Under the Employee’s Compensation Ordinance in Hong Kong
A Resolution was passed at the Legislative Council meeting last March 17th, 2021 to change the levels of compensation of nine (9) compensation articles under the Employee’s Compensation Ordinance. This is a compulsory provision and all employers must comply.
Employers will have additional liability starting April 15, 2021.
What you should know:
> Your insurance provider will have to charge an additional premium estimated at around 2% of the initial cost up to the end of your Employee Compensation Insurance policy.
> Additional gross premium will be acquired.
> Additional gross premium less than HK$200 will be waived
> Employees’ Compensation Insurance Levies & Premium Levy (if applicable) will be charged on top of additional gross premium
Items under the Employees’ Compensation Ordinance
The increased levels of compensation will enhance the protection for employees injured at work or sufferers of occupational diseases as well as family members of deceased employees or persons who die of work injuries or occupational diseases.
For more information about how the new ordinance will affect your current policies, get in touch with us today.
The projected loss from cyber attacks worldwide is forecasted to be in the trillions in 2021. With many companies shifting to virtual offices – some even permanently – malware, phising, and other forms of data breaches will most likely increase. However, data shows that there’s an alarming gap between the need for tighter cybersecurity and the number of organizations that understand its importance.
The infographic below provides impactful statistics and proposals to shorten the gap.
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
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.
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.
Case Study 2
Insurance Broker | 5 Staff Members | HKD3.9M turnover
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.
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
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.
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.
We’re seeing an emergence of new physical and mental problems now that companies have moved to remote work or a hybrid of in-office and work-from-home set-ups.
This infographic shows data on recently conducted surveys among workers in Hong Kong, Singapore, Malaysia, Japan, and the UK.