Press Release
Shanghai Business Review: Safeguarding Your SME
05.30.2008
Publish on: Shanghai Business Review-Volume 5 :Issue 6
Provided by RSA Group
Setting up a business in China necessitates dealing with a huge amount of paperwork and reams of red tape that include numerous filings with the various government bureaus. New offices, renovations and other set-up requirements will demand a great deal of attention and time. For many new companies, budgets can also be quite tight.
Under such circumstances, obtaining insurance policies might not be at the top of the business agenda; in fact, awareness of the packages that cater to the needs of small companies appears to be quite low in Shanghai. Small- and medium-sized office packages usually cover items such as furniture and fittings, office equipment, including computers and laptops, and the physical property occupied by the business.
Gamut of Mishaps
The basic property and business interruption (BI) protection component will cover the costs of having to work offsite. For example, in the case of a fire, the property cover will meet repair costs and if the original office is not usable for a period of time 每 alternative premises may incur additional rental and fitting out costs. These expenses will be reimbursed under BI insurance and, if full BI cover is taken, will also include loss of income. Even new buildings in the city often have teething problems that can lead to a host of inconveniences, such as cases of water damage due to poorly fitted pipe connections and electric short-circuits in dual heating and cooling air conditioners, which are often overused, causing fires.
The office package also includes liability coverage for incidents of injury at the company＊s work place. Such incidents can occur when someone 每 a courier or client, for example 每 trips and falls over. The company＊s liability as a tenant to their landlord and to other occupants within the same property is also covered. In addition, there is a money insurance component covering losses from break-ins and cash being stolen, or while in transit to or from the company＊s bank.
Small office packages are suitable for offices of ten to 20 people. But some packages take into account business expansion, and the policies can be expanded alongside the size of the office and business. Such a feature could be especially suitable for representative offices of foreign companies. Such packages also suit other types of small businesses, including professional practices run by lawyers, architects or accountants. Do note, however, that these packages do not include professional indemnity insurance.
Covering Hardware, Software
Many relatively small offices actually have quite a lot of high-value property on their premises. Gadgets like Blackberries and personal digital assistants, and office equipment like fax machines, scanners, computers, and printers can be expensive and, for a company just starting out, this will represent a substantial loss if they are stolen or destroyed.
In cases where essential equipment is destroyed, claims can be made not just for the hardware, but also for the cost of reinstalling computer systems and software, reconstituting files and recovering lost data.
But the policy will not reimburse extended costs that might arise from the loss of business due to the damage. There is also no coverage for viral infection in computers and the resulting loss of data.
Recent news reports and anecdotal evidence point to an increase in the number of laptop thefts in Shanghai, while industry professionals have also reported an increase in claims for laptop loss from within office premises and especially while travelling.
Currently, claims for loss due to burglaries or violent crime remain quite low in Shanghai, but can be more common elsewhere in China. In Shanghai, cases of theft appear to be more opportunistic 每 usually being committed by itinerant visitors, especially in offices where construction or renovation work is progress. In a real-life example, office doors left open resulted in laptops being removed by a deliveryman, who just happened to be passing. Shanghai is known to be relatively safe and break-ins are rare, but buying into that unconditionally can result in complacency, breeding carelessness. Cases of pilfering by itinerant persons are actually fairly common.
Insurance packages for small shops, similar to those for small offices, are also available and typically also include some business interruption cover. One advice to facilitate the process of making claims is to keep a list of items/asset register, with corresponding photographs, serial numbers or other identifying documentation. Such information can make the process of replacing those items much easier 每 even if you cannot ultimately prevent losing them.
For further information, please contact:
Angus Robertson,
Director, Property and Technical Insurance,
7th Floor, AZIA Centre, 1233 Lujiazui Ring Road
Pudong New Area, Shanghai 200120 PRC
Tel: (+86) 21 6888 1999 x130
Fax: (+86) 21 6888 5552
Email: angus.robertson@cn.rsagroup.com
Website: www. rsagroup.com.cn
