Business Interruption Insurance
Hong Kong’s dynamic economy, with over 130,000 SMEs (Hong Kong Trade and Industry Department, 2024), thrives on uninterrupted operations, but disruptions like typhoons, power outages, or supply chain issues can halt businesses in their tracks. Business interruption insurance provides financial protection by covering lost income, fixed costs (e.g., rent, salaries), and extra expenses during unexpected closures or operational delays. For example, a restaurant in Central forced to close for a month due to flooding could face losses of HKD 100,000 or more in revenue. This insurance is vital for SMEs, retailers, and manufacturers in Hong Kong, ensuring they can recover swiftly and maintain financial stability during crises.
Saving You Time & Money While Shopping For Insurance
Get Free Insurance Quotes
Fill out our inquiry form, and we'll identify the perfect policy to suit your requirements and lifestyle.
Emergency Hotline: +852 2530 2530
Business Interruption Insurance
Comprehensive Coverage
Compensates for lost profits, ongoing expenses (e.g., rent, utilities), and temporary relocation costs when a business cannot operate due to covered events like natural disasters, fires, or equipment breakdowns.
Economic Resilience
In Hong Kong, where 80% of businesses are SMEs vulnerable to cash flow disruptions, this insurance acts as a financial lifeline, especially during events like Typhoon Signal No. 8, which halts operations citywide.
Claims Flexibility
Covers losses for the restoration period (typically up to 12-24 months), with some policies offering extended coverage for prolonged recovery, ensuring businesses can rebuild without financial strain.
Business Interruption Insurance FAQs
Business interruption insurance covers financial losses from disruptions that prevent normal operations, such as natural disasters or equipment failures. It’s essential for SMEs, retailers, restaurants, and manufacturers in Hong Kong.
Common triggers include physical damage (e.g., fire, flooding), natural disasters (e.g., typhoons, earthquakes), and sometimes non-physical events like cyberattacks or government-mandated closures, depending on the policy.
Premiums depend on business size, industry, and coverage scope, typically ranging from HKD 3,000-15,000 annually for SMEs to HKD 50,000+ for larger firms with high revenue or complex operations.
Some commercial property policies include limited business interruption coverage, but standalone policies offer broader protection, including non-physical disruptions or extended recovery periods.
Notify your insurer within 7-30 days via their portal or hotline, providing financial records (e.g., profit/loss statements), proof of disruption (e.g., photos, repair invoices), and a detailed loss estimate. Claims are typically processed in 2-4 weeks.
Coverage for pandemics is rare and often excluded unless explicitly added. Supply chain disruptions may be covered if tied to a covered event (e.g., a supplier’s factory fire), but confirm with your insurer.
Payouts are based on lost net profits plus ongoing expenses during the disruption period, supported by historical financial data. Unlike property insurance, which covers physical repairs, business interruption insurance covers financial losses from downtime.
