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Shop Package Insurance
Comprehensive Shop Insurance
All-Risks Property Insurance · Business Interruption · Money Insurance · Third-Party Liability · Employees' Compensation Insurance
The comprehensive shop insurance policy is designed specifically for retail and service businesses, offering multiple layers of protection under a single policy—ranging from "All Risks" property coverage (for renovations, furniture, machinery, and inventory) to coverage for business interruption expenses, loss of money on the premises, and third-party liability, as well as optional employees' compensation insurance—to comprehensively address day-to-day business risks.
Coverage
Scope of Coverage
This insurance is specifically designed to cover the risks associated with operating a shop; a key advantage of such comprehensive policies in recent years is that they provide multiple types of coverage under a single policy.
"Comprehensive" Property Protection
Coverage extends to damage or loss involving renovations, furniture, shop machinery, computer equipment, and inventory caused by accidents such as fire, water damage (burst pipes, overflowing water tanks, or rainwater ingress), theft, typhoons, and landslides, with a maximum indemnity of HK$100,000 per item of equipment.
Business Interruption Protection
If the shop's normal operations are disrupted by a covered accident, compensation is available for "additional expenses" incurred to resume business (such as renting temporary premises). The coverage period is 12 months from the date of the accident, with a maximum annual indemnity of HK$1,000,000.
Financial Guarantee
Losses of cash, cheques, and cashier's orders resulting from fire, burglary, robbery, or armed robbery are compensable under the terms of the policy; coverage extends to money on the premises during business hours, money in transit, money kept inside or outside a safe, and crossed cheques.
Third-Party Liability Coverage
Legal liability for bodily injury to third parties or damage to their property arising from negligence during business operations (including legal costs) is covered up to a maximum of HK$10,000,000 per incident, with no aggregate limit during the policy period.
Extension of Tenant's Liability
Covers the legal liability of the policyholder (as a tenant) for damage to the insured property (shop unit) caused by negligence.
Food Poisoning: Further Information
This insurance provides coverage if a visitor falls ill after consuming food or beverages supplied by the policyholder at the insured premises, and the incident is confirmed to have been caused by the policyholder's negligence.
Items Covered by the Money-Back Guarantee
- Cash kept on the premises during business hours
- Money in transit within Hong Kong, escorted by the insured employer or an authorized employee.
- Cash kept in the store's safe or strongroom outside of business hours.
- Cash kept on the premises outside business hours but not in a safe or strongroom.
- Crossed cheque
The compensation limit for each item is determined by the policy terms. Please contact our company’s consultants for details.
Optional Add-on: Employees' Compensation Insurance
- Under Section 40 of the Employees' Compensation Ordinance, employers must take out employees' compensation insurance for their employees; otherwise, they are prohibited from employing anyone—whether full-time or part-time, permanent or temporary.
- Covers the employer's liability to pay compensation for employees' work-related injuries, occupational diseases, or death.
- For fewer than 200 employees: minimum coverage of HK$100,000,000 per incident; for more than 200 employees: HK$200,000,000.
- Premium rates are determined based on the industry and the nature of the employee's work: premiums are lower for low-risk roles such as clerical work, and higher for manual labor positions.
- The premium is calculated by multiplying the total annual budgeted salaries of employees declared by the employer (including cash wages, accommodation allowances, overtime pay, bonuses, etc.) by the premium rate.
- For most comprehensive shop insurance policies, "Employees' Compensation Insurance" is offered as an optional add-on coverage.
Learn more about workers’ compensation insurance →
Main Exclusions
Key Exclusions
Applies to the entire policy
- Illegal activities
- Injury caused by nuclear energy or radiation
- Any incident resulting from war or civil unrest
Regarding Property Protection
- Wear and tear, depreciation, and loss of value resulting from normal use
- Damage or loss caused by insect infestation, weather changes, mold, the restoration process, or design flaws.
- Damage or loss caused by electrical or mechanical failure
- Damage to fragile items (excluding damage caused by fire or theft)
- Damage or loss discovered during routine inventory counts
- Other consequential losses and applicable deductibles
Regarding Third-Party Liability Coverage
- Any employee (covered by employees' compensation insurance)
- Product liability
- Omission of professional advice or services
- Damage to or loss of property in the care, custody, or control of the insured.
- Personal injury or property damage caused by the vibration or removal of supporting columns or walls.
- Fines or other consequential losses and applicable deductibles
Regarding Employees' Compensation Protection
- The Policyholder's liability for the employees of its subcontractors.
- Accidents occurring outside the covered area (usually referring to Hong Kong)
- The injured or sick person is not an "employee" as defined under the Employees' Compensation Ordinance.
- Any fines
Partner Insurers
Partner Insurance Companies
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Claims Guide
Claims Guide
In the event of any incident that could give rise to a claim, please notify our Claims Department immediately; we will provide full assistance throughout the process of filing the report with the Labour Department and handling the claim with the insurer.
Notify the Claims Department immediately.
Please contact our Claims Department immediately after the accident, or provide your policy number, policyholder's name, and contact telephone number via email. Failure to notify us promptly may result in the insurance company refusing to process the claim in accordance with the policy terms.
Preserving Evidence and Reporting to the Police
Complete the claim form and provide a detailed account of the incident. In cases of theft or malicious damage, report the matter to the police immediately and provide the police case reference number; take photographs for record-keeping purposes before carrying out repairs, and do not dispose of damaged property without the insurance company's consent.
Assessment and Compensation
The insurance company may appoint an independent loss adjuster to investigate and determine liability for the claim. Once the compensation amount is agreed upon by both parties, a release of liability document is issued; the claim payment is made upon receipt of the signed release from the client.
Documents Required for Property Damage Claims
- Completed and signed claim form
- Receipts and purchase documents for damaged property
- Quotation from Repairer / Contractor
- Color photographs of the damaged property and the scene.
- File numbers and addresses of departments such as the Police Force and Fire Services Department
- Letter of authorization signed by the client (enabling the insurance company to request information from the department)
- Duration and details of the business interruption, and receipts for additional expenses.
- Account records and police reports regarding financial losses
Points to Note Regarding Third-Party Liability Claims
- You should notify the insurance company and complete the claim form as soon as possible, regardless of whether a claim has been received.
- If anyone is injured, record the injured person's name, age, contact number, address, and details of the injury.
- For incidents involving property damage of a criminal nature, the police must be notified immediately, and the police case reference number must be provided.
- You must not admit liability, enter into any agreement, or promise compensation to anyone without the written consent of the insurance company.
- Record details of eyewitnesses at the scene, and take photographs of the surroundings and any damaged property.
- If there is a property management company for the insured premises, please submit the incident report issued by that company.
- If you receive a letter or summons from a third party, lawyer, police department, or another insurance company, do not reply yourself; instead, submit it to the insurance company immediately.
Important Notice: Please ensure that damaged property is retained; do not dispose of it without the insurance company's consent. Additionally, do not admit liability or promise compensation to any third party without obtaining written permission. A delay in notification may result in the insurance company refusing to process your claim in accordance with the policy terms.
The Claims Department will contact you immediately.
Please provide the policy number, policyholder’s name, and contact telephone number, and we will immediately initiate the claims process for you.
FAQ
Frequently Asked Questions
Q1: What is the difference between comprehensive shop insurance and standalone fire insurance?
Standard fire insurance typically covers property damage caused only by specified perils, such as fire. In contrast, comprehensive shop insurance provides multiple coverages—including “all-risks” property protection, business interruption, money, and third-party liability—under a single policy; it also allows for the addition of employees’ compensation insurance, thereby better addressing the overall business risks faced by merchants.
Question 2: Can both inventory and renovations be insured?
Yes. Renovations, furniture, shop machinery, computer equipment, and inventory are all covered. Damage or loss resulting from incidents such as fire, flooding, theft, typhoons, or landslides falls within the scope of coverage, with a maximum compensation of HK$100,000 per item of equipment.
Question 3: If the shop suspends operations due to an unexpected incident, what can be claimed?
Under the business interruption coverage, claims may be made for “additional expenses” incurred to restore normal business operations—such as the cost of renting a temporary shop—for a period of twelve months following the incident, with a maximum annual indemnity of HK$1,000,000.
Question 4: Will insurance cover a customer who slips and gets injured in the store?
In the event of bodily injury to a third party caused by negligence during business operations, legal liability (including legal costs) is covered under third-party liability insurance, with a maximum limit of HK$10,000,000 per incident and no aggregate limit during the policy period.
Question 5: If a shop hires only part-time employees, is it still required to purchase workers' compensation insurance?
Yes, it is required. Section 40 of the Employees’ Compensation Ordinance stipulates that employers must take out employees’ compensation insurance for all employees—whether full-time or part-time, permanent or temporary—and are prohibited from employing anyone without doing so.
Question 6: Is cash kept in the store outside of business hours covered by insurance?
Coverage is provided, but limits are generally determined by the method of storage: higher limits apply to cash kept in a safe or strongroom, while lower limits apply to cash not stored in a safe; the actual coverage amount is subject to the terms of the policy.
The above information is for general reference only; the actual scope of coverage, indemnity limits, and exclusions are subject to the terms and conditions of the policy.