More than a quarter (26%) of Hong Kong's businesses have suffered lost income due to a business interruption in the past year, research from QBE Insurance indicates.
A survey of SMEs and large corporations in the territory found that many companies are likely to seek business liability and professional indemnity insurance only after a disruption has occurred.
For example, of businesses experiencing customer fraud or fraudulent payments via the Internet, two thirds (65%) took action afterwards.
Likewise, 60% of businesses that had sensitive data stolen via the Internet and 46% that had business systems or computers hacked took action after the fact.
“What this means is that by waiting until after the fact to protect themselves, they are missing out on any compensation for the initial event and in the process potentially putting business stability in jeopardy,” QBE Hong Kong CEO Mark Walker said.
Besides business interruption, the most frequently encountered risks encountered over the last 12 months include equipment breakdown (23%); legal and regulatory compliance issues (21%); and staff injuries while working (20%).
The survey results indicate that 93% of Hong Kong respondents have some form of business insurance, but only 67% are aware of business liability cover and less than half (47%) have taken out this form of insurance.