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Cash flow is a universal concern among SME owners. When an unfortunate event hits, the associated financial and asset losses will not only add to their woes but may also force them out of business.

That’s why every SME needs to invest in a safety net and be adequately prepared for risks that can threaten the business.


Besides taking preventive steps, it is critical to have the right protection to safeguard against unforeseen losses and quickly get your operations back to business-as-usual after a disaster. Understanding your risks and the protection you need is key.


Fire, Flood and Water Damage

Damage caused by perils named above are the most significant risks for Hong Kong SMEs, Business Package Insurance is essential for protecting your business property against loss or damage caused by fire or lightning.


Beyond that, flooding has become more common in recent years, putting more businesses at risk. Similarly, you would also want to protect your business against accidental water damage arising from burst pipes and sprinkler leakages.


Examples of other threats and expenses that can be covered under Business Package Insurance*:

  • accidental or bush fire
  • explosion and combustion
  • damage caused by vehicle impact
  • cost of cleaning up and removing debris


By insuring against these events that can lead to extensive damage, it helps your business to recover and prevents substantial cash outflow from repairing and rebuilding your business property and assets.


Business Continuity (also known as business interruption)

Among other inconveniences, disruptions of all types can lead to income losses for businesses. Having coverage for business continuity means that when your business operations are affected by incidents such as fire and flood, the following losses or additional operating expenses may be covered:

  • loss of profits/revenue and rental
  • costs for setting up temporary offices
  • employees’ overtime wages
  • purchase of replacement equipment


Not only will this absorb some of the financial losses, it also provides supplemental income that can help your business return to the same operating level before your loss occurred.


Public and Employer’s Liability

Adverse events can happen not just to the business, but also to customers, employees and others.


Another risk that should be on your radar is the accidental bodily injury or property damage that your business could inflict on a third party (e.g. a customer or vendor) or a staff. For example, a customer who is injured after falling on slippery floors could file a medical compensation claim against the restaurant. Or an employee could sue the employer over health issues that arise from over-exposure to hazardous chemicals at work.


As a policyowner of public and employer’s liability insurances, you’ll be covered when you are legally liable for the compensation of the injury and/or damage caused, as well as any cost related to the claim filed against your company.


You can never truly plan for the unexpected. But investing in insurance for your business can provide a cushion to soften the impact disasters have on your cash flow, operations and business continuity.


Choosing the appropriate coverages can be daunting, especially when you require protection against different exposures. That’s why you need a fuss-free and cost-effective solution that gives you the flexibility to choose the type of protection you need and the level of investment you wish to make.


Find out how to choose the best SME insurance solution and answers to other questions you may have about protecting the business you have worked so hard to build.


*Some of these are complimentary, while others are additional coverages that can be included as part of your Business Package Insurance policy at a small cost.

©2023 Chubb. Coverages underwritten by one or more subsidiary companies. Not all coverages available in all jurisdictions. Chubb® and its respective logos, and Chubb.Insured.TM are protected trademarks of Chubb.


Disclaimer - All contents of the article is intended for general information/guidance purposes only and not intended to be an offer or solicitation of insurance products or personal advice or a recommendation to any individual or business of any product or service.  This article should not be relied on for legal advice or policy coverage and cannot be viewed as a substitute to obtaining proper legal or other professional advice, or for reading the policy documents. You should read the policy documents to determine whether any of the insurance product(s) discussed are right for you or your business, noting different limits, exclusions, terms and conditions apply in each country or territory, and not all cover is available in all countries or territories.

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