Professional indemnity insurance in Hong Kong (also called professional liability insurance) protects all types of professionals (ie. realtors, insurance brokers, engineers, architects, doctors, and consultants) against lawsuits from clients alleging negligence in the performance of their professional duties.
The market for professional indemnity insurance in Hong Kong is massive. Here at Trusted Union, it’s one of our most popular products as professionals of all kinds see the need to protect themselves against trigger-happy clients and their lawyers.
We have other articles outlining the covers provided by professional indemnity insurance in Hong Kong but to summarize, it pays for any damages awarded against your business by the courts as well as the costs of legal defense (including lawyers fees). Your professional liability insurance policy would kick in to pay for the defense and damages. Other ancillary expenses include paying to deal with regulatory and licensing issues as well as any interest accrued until the amount of damages is paid.
Many professionals recognize the risks of operating without this type of insurance. And for others, it’s a condition of their regulatory body for licensing. For many regulated professionals like insurance brokers, realtors, and medical professionals, their regulatory body requires that they carry professional liability insurance prior to getting their licensing to do business approved.
Many professionals recognize the risks of operating without this type of insurance. And for others, it’s a condition of their regulatory body for licensing. For many regulated professionals like insurance brokers, realtors, and medical professionals, their regulatory body requires that they carry professional liability insurance prior to getting their licensing to do business approved.
Another reason why Hong Kong’s professional indemnity insurance market is so large is the vast number of professional services firms located in the city. Whether it’s local homegrown firms or large multinationals, many professional services firms have a presence in the city widely referred to as the “Gateway to the East”. For many consultants and professionals, an office in Hong Kong is a foothold to reach the vast and rapidly growing Asian market.
Although still far behind automobile insurance (which is mandatory in Hong Kong) and property insurance, all of these contribute to making professional indemnity insurance in Hong Kong one of the largest insurance sectors by premium.
According to the Hong Kong Insurance Authority, liability insurance premiums in Hong Kong for 2018 reached a staggering HK$13.1 billion dollars. This represents an increase of 22.3% year over year while overall premiums only increased by 5.2%.
We believe this rapid growth is being driven not only by an increasing number of lawsuits and an increased willingness by courts to award large damages, but because more and more professional services businesses are educated on the benefits of professional indemnity insurance in Hong Kong and the risks of operating without it.
Professional indemnity insurance in Hong Kong not only protects the business you’ve painstakingly built over the years, it also helps you win more business by showing prospective customers that your business is stable and has been vetted by a reputable insurer.
To learn more about professional liability insurance and how it can help your business, get in touch with a licensed liability insurance specialist at Trusted Union for a free risk assessment and quotes that meet your business and budgetary needs.
