Company Products
The following insurance policies are most common insured in Hong Kong in which the first 5 belonged to Employee Benefits Insurance concerned by the company HR Department while the others are mostly concerned the Company General Liability which are the interests of the Financial Controller or Administration Manager:
EMPLOYEE BENEFITS INSURANCE
1. Group Medical Insurance
Group Medical Insurance is insured for company employees and dependants including spouse and children who are full time of students.
The costs of private healthcare in Hong Kong is the highest among Asia and some cases even higher than some developed European countries. The benefits level of group medical insurance have almost become the third most important consideration after career prospect and salary.
Serving as an important benefit and incentive to employees, the premium of a group medical insurance accounts for nearly 70% to 80% of the total insurance premium paid by a company. It is therefore very cruicial for HR and management to consider how to implement a proper and beneficiary policy for both companya and employees.
There are numerous types of group medical insurance policies available in Hong Kong and it is not easy to find out which and how are the best for a company. Here are some considerations worth to note:
1) When to offer the cover, immediately available or upon probation, what are the impacts, both to the company and the employees ?
2) How to cover employees with long term assignment working overseas ?
3) How to match and cover the benefits of expat employees seconded to Hong Kong from overseas offices, particular from PRC ?
4) How to provide appropriate level of inpatient benefits in Hong Kong ? Particular for an employee with a expat term of contract ?
5) How to provide appropriate level of outpatient benefits ?
6) How to provide appropriate level of dental benefits ?
7) How to provide appropriate level of maternity benefits ? Whom to be provided ?
8) How to provide appropriate level of Health Check benefits ? When to provide ?
9) How to provide appropriate support in health care and treatment arrangement for expatriate employees newly arriving Hong Kong ?
10) How to balance this important compensation & benefit with appropriate cost control system and avoid employees abuse the benefits ?
An experienced servicing insurance brokers should provide Annual or Semi-Annual Insurance Briefing to client employees and could provide valuable input of the above questions to management.
2. Group Life Insurance
Group Life & Accidental Death and Dismemberment Insurance which is very often insured together with the Group Medical Insurance. The most commonly questions encountered by HR or management are:
1) How many types of cover available in Hong Kong ?
2) What are the most common benefits level insured in Hong Kong ?
3) Is Medical Examination good to the company or bad to the company ?
4) Except premium costs, what considerations are important in choosing the most appropriate provider ?
5) How to insure Key Man insurance in relation to Group Life Insurance ?
3. Group Business Travel Insurance
Group Business Travel Insurance is the third kind of employee benefits insurance that would be very often insured together with Group Medical and Life insurance. It is covering the risks of business travel overseas, particular and uniquely for the overseas emergency evacuation assistance, loss of personal effects and travel inconvenience. The following questions are the most common ones to be asked:
EMPLOYEE BENEFITS INSURANCE
1. Group Medical Insurance
Group Medical Insurance is insured for company employees and dependants including spouse and children who are full time of students.
The costs of private healthcare in Hong Kong is the highest among Asia and some cases even higher than some developed European countries. The benefits level of group medical insurance have almost become the third most important consideration after career prospect and salary.
Serving as an important benefit and incentive to employees, the premium of a group medical insurance accounts for nearly 70% to 80% of the total insurance premium paid by a company. It is therefore very cruicial for HR and management to consider how to implement a proper and beneficiary policy for both companya and employees.
There are numerous types of group medical insurance policies available in Hong Kong and it is not easy to find out which and how are the best for a company. Here are some considerations worth to note:
1) When to offer the cover, immediately available or upon probation, what are the impacts, both to the company and the employees ?
2) How to cover employees with long term assignment working overseas ?
3) How to match and cover the benefits of expat employees seconded to Hong Kong from overseas offices, particular from PRC ?
4) How to provide appropriate level of inpatient benefits in Hong Kong ? Particular for an employee with a expat term of contract ?
5) How to provide appropriate level of outpatient benefits ?
6) How to provide appropriate level of dental benefits ?
7) How to provide appropriate level of maternity benefits ? Whom to be provided ?
8) How to provide appropriate level of Health Check benefits ? When to provide ?
9) How to provide appropriate support in health care and treatment arrangement for expatriate employees newly arriving Hong Kong ?
10) How to balance this important compensation & benefit with appropriate cost control system and avoid employees abuse the benefits ?
An experienced servicing insurance brokers should provide Annual or Semi-Annual Insurance Briefing to client employees and could provide valuable input of the above questions to management.
2. Group Life Insurance
Group Life & Accidental Death and Dismemberment Insurance which is very often insured together with the Group Medical Insurance. The most commonly questions encountered by HR or management are:
1) How many types of cover available in Hong Kong ?
2) What are the most common benefits level insured in Hong Kong ?
3) Is Medical Examination good to the company or bad to the company ?
4) Except premium costs, what considerations are important in choosing the most appropriate provider ?
5) How to insure Key Man insurance in relation to Group Life Insurance ?
3. Group Business Travel Insurance
Group Business Travel Insurance is the third kind of employee benefits insurance that would be very often insured together with Group Medical and Life insurance. It is covering the risks of business travel overseas, particular and uniquely for the overseas emergency evacuation assistance, loss of personal effects and travel inconvenience. The following questions are the most common ones to be asked:
1) Why a company needs to buy group travel insurance ? Why not ?
2) With more than at least 14 different benefits items in a business travel insurance policy in the Hong Kong market, how to choose the best one ?
3) What benefits level are appropriate ?
4) Should mobile be covered ? What is the impact to company ?
5) How to insure and cover the pre-existing illnesses ?
4. MPF
MPF is a compulsory legally required Retirement Plan in Hong Kong under Cap. 485. Very often we encountered the following questions from HR:
1) Whom should be covered ? Should an expat seconded from overseas offices need to be covered ?
2) With more than 10 services provders avaiable in Hong Kong, how to choose ?
3) Should we change the service provider if the investment performance is below average ?
2) With more than at least 14 different benefits items in a business travel insurance policy in the Hong Kong market, how to choose the best one ?
3) What benefits level are appropriate ?
4) Should mobile be covered ? What is the impact to company ?
5) How to insure and cover the pre-existing illnesses ?
4. MPF
MPF is a compulsory legally required Retirement Plan in Hong Kong under Cap. 485. Very often we encountered the following questions from HR:
1) Whom should be covered ? Should an expat seconded from overseas offices need to be covered ?
2) With more than 10 services provders avaiable in Hong Kong, how to choose ?
3) Should we change the service provider if the investment performance is below average ?
5) How to offer voluntary contribution to keep talented employees ?
5. Employees Compensation Insurance
EC is a compulsory legally required insurance in Hong Kong under Cap 282. The following questions are mostly asked by HR:
1) Whom should be covered ? Should an expat seconded from overseas offices need to be covered ?
2) Should our employees seconded to overseas office needed to be insured ? How ?
3) Should the company director needed to be insured ?
4) How to calculate the Annual Wageroll to insure ?
5) What additional extensions needed to be insured ?
CORPORATE GENERAL LIABILITY INSURANCE
6. Motor Insurance
If a company has provided its director or senior employee a company car, the third party motor insurance is legally required to insure under Cap 272.
1) Nothing stirs your emotion like your company car collision with a third party, what should the company do ?
2) What NOT should be done ?
3) What procedures are likely to take for a comprehensive motor claim ?
4) How long a satisfactory claim settlement or compensation be lasted if no bodily injury incurred ?
5) Should every own damage of the motor be reported to the insurer ? If not, what should be considered ?
7. Office Liability Insurance
Office Liability Insurance covers the company's assets of office contents, stocks and portable and the public liability incurred in the office premises.
Though Office Liability Insurance is Not a legitimate required insurance, it has been nearly a MUST cover insured by all companies in Hong Kong. The most commoly questions of how to insure are:
1) Should we cover company asset of Smart Phone or Tablet ?
2) What extensions of our property cover needed to be insured ?
3) How to insure the Landlord request third party liability cover ?
4) How to extend the company third party liability cover from within office to outside office, even on worldwide basis?
5) How to extend the director third party liability cover in their capacity ? such as attending Social or Sports function ?
8. D&O - Directors & Officer Liability Insurance
As the New Companies Ordinance under Cap. 622 came into force on 3rd March 2014, companies in Hong Kong are more willing to insure D&O policy.
D&O insurance policies offer liability cover for company managers to protect them from claims which may arise from the decisions and actions taken within the scope of their regular duties. Such policies cover the personal liability of company directors and officers as individuals (Side A cover), but also the reimbursement of the insured company in case it has paid the claim of a third party on behalf of its managers in order to protect them (Side B or Company Reimbursement Cover). Listed stock companies can also obtain cover for claims against the company itself for a wrongful act in connection with the trading of its securities (Side C or Securities Entity Cover).
Why do companies purchase D&O cover ? It is because Directors and Officer can make mistakes and they are personally legally liable with unlimited liability and can be involved in costly litigation. It is even worse for those independent non-executive directors. Furthermore, the D&O cover would advance payment of Defence Costs which are of huge amount ususally more than several milliion dollars.
The core purpose of a D&O policy is to provide financial protection for managers against the consequences of actual or alleged "wrongful acts” when acting in the scope of their managerial duties. That said, it is no longe need to prove that the person acted "knowingly and wilfully". The D&O policy will pay for defense costs and financial losses. A company needs to ensure that its directors and officers have the room to make decisions. D&O insurance supports good corporate governance by making the risks of these decisions manageable and transparent. When a claim is made, D&O cover gives the plaintiff a certain degree of financial security.
9. PI - Professional Indemnity Insurance
PI - Professional Indemnity Insurance is designed to provide protection to a professional individual or entity (other than a financial institution) for civil liability claims resulting from a loss arising from professional services that are offered to its clients or customers. The threat of potential claims and litigation is very real in today's business environment and can potentially bankrupt businesses, small or large.
Covered person: Both the professional body or entity and its employees and it is mostly insured by Accountants, Advertising Agencies, Architects and Engineers, Educator in schools, Universities and private Colleges, Medical professionals such as Physiotherapists, Nutrition Consultants, Chinese Medicine Practitioners or Management Consultant.
Covered act: Any act, error, omission arising from the professional services or business provided. The cover includes the conduct of any person for whom the insured is legally responsible.
Covered person: Both the professional body or entity and its employees and it is mostly insured by Accountants, Advertising Agencies, Architects and Engineers, Educator in schools, Universities and private Colleges, Medical professionals such as Physiotherapists, Nutrition Consultants, Chinese Medicine Practitioners or Management Consultant.
Covered act: Any act, error, omission arising from the professional services or business provided. The cover includes the conduct of any person for whom the insured is legally responsible.
Covered loss: Civil liability loss which the covered person is legally liable, including defence and investigation expenses (legal and professional), and amounts awarded by a court as damages or agreed to in a settlement.
SPPI - Single Project Professional Indemnity Insurance is a special type of cover that is not insured on an annual basis but on the duration of a single project.
It is specially designed to provide protection to Design Professionals such as Architects, Engineers, Construction Managers and contractors against claims that may arise from professional services provided by them in connection with a single construction project. This policy typically covers the entire project from design up to and beyond the final handover of the project to the owner. It covers claims by project owners and financiers.
Covered person: Any professional connected to a construction project. This also includes the EPC contractors if they are responsible for activities such as design, survey, project management, testing, commissioning, even if these activities are subcontracted to others.
Covered act: Any wrongful act in rendering, or failure to render professional services in connection with the construction project. This includes the conduct of any person for whom the insured is legally responsible.
Covered loss: Defense costs and amounts awarded by a court as damages or agreed to in a settlement.
Cyber Insurance is designed to provide protection to any entity or professional body from privacy infringement liability, network security
Covered loss: Defense costs and amounts awarded by a court as damages or agreed to in a settlement.
10. Cyber Insurance
Cyber Insurance is designed to provide protection to any entity or professional body from privacy infringement liability, network security
liability, media liability, cyber extortion, data asset loss and business interruption in the conduct of their business.
Key Coverage Features:
• Covered person: The insured entity, management, employees and independent contractors who are natural persons whilst performing
duties on behalf of the insured entity.
• Covered act: Unintentional infringement of the privacy policy of the insured entity, breach of the relevant privacy ordinance, failure to prevent a third party from unauthorized access to the computer system, denial of service attack, failure of network security, defamation in the provision of media services, infringement of copyright or domain name in the provision of media services, cyber extortion and corruption or destruction of the data in the computer system by malware or hacking.
• Covered loss: Civil liability loss which the covered person is legally liable, including defence and investigation expenses (legal and professional), IT consultants expenses, incident response expenses, crisis management costs, system recovery costs.
• Covered loss: Civil liability loss which the covered person is legally liable, including defence and investigation expenses (legal and
11. PIP - Personal Information Protection Insurance
PIP Personal Information Protection is designed to provide protection to any entity or professional body from privacy infringement liability claims arising out of the collection, processing and use of personal information in the conduct of their business.
Key Coverage Features:
• Covered person: Both the insured entity and its employees.
• Covered act: Infringement of any right to privacy, breach of the relevant privacy ordinance, failure to prevent a third party from unauthorized access to the computer system, including hacker attacks, computer virus attack and theft of electronic data.
• Covered loss: Civil liability loss which the covered person is legally liable, including defence and investigation expenses (legal and
professional), notification expenses, crisis management costs and amounts awarded by a court as damages or agreed to in a settlement.
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