Business Disruption – Practical Recovery Checklist

As civil unrest continues to make headlines around the world, the cost to the insurance industry increases week after week. The ongoing unrest in Hong Kong is now the third largest event (behind Typhoon Mangkhut and Hato)* to hit the pockets of Hong Kong insurers in terms of total amount of claims paid. That said, simply buying property insurance cover does not guarantee a full recovery of any loss your business has suffered. The purpose of this checklist is to provide some guidance as to simple risk management measures to potentially minimize the size of any loss and actions to take in the unfortunate event that your property is damaged.

Good Risk Management Practice

• Inspect the fire alarm, detectors and extinguishers to ensure they are working in good order, and the escape routes / emergency exits are identifiable and not blocked.
• Ensure the employees are aware of the evacuation procedure and any emergency plan. Retain employees’ updated emergency contact details.
• If possible, ensure vehicles are stored in car parks when not in use. Ensure vehicles are locked and the engine is off at all the times when leaving the vehicle unattended. 
• Ask employees to refrain from taking any actions which may provoke further unrest, e.g. take photos / videos.
• Keep inflammable and / or toxic chemical materials, e.g. portable LPG cylinders, gasoline, in safe locked places before leaving properties unattended.
• Minimize the cash and valuable stored in properties.
• Maintain and keep on hand the list of contractors and supplies for reinstatement work and replenishment of stock. In event your business and premises are affected.

Read our practical recovery checklist to learn more.

*Source: South China Morning Post, Hong Kong business affected by vandalism and arson during protests seen filing up to HK$600 million in insurance claims, by Enoch Yiu, 28 Oct, 2019.