Affordable CGL insurance Hong Kong protects your business against legal liability (third party) claims, or suits arising out of personal injury, property damage and advertising injury in connection with your premises, business operations or supply of products. Therefore, it has a broad scope of cover to protect your business against claims made by the public.

For example, if a client visits your office for a meeting and slips on a wet floor and injures themselves, or if a child is injured by a faulty toy you sold, they may sue you. You can claim CGL to offset any legal fees.

In other jurisdictions, this may be called business liability insurance or, if broken down further, public and product liability insurance. In Hong Kong, we commonly see the General Liability terminology adopted.

There is no general requirement for either an individual or an organisation to hold affordable CGL insurance cover in Hong Kong, but many organisations with which you sign standard contract terms will require evidence of third-party liability cover before awarding contracts.

For example, strict liability applies if you have exposure and customers in the US. This means that the victim does not need to prove fault on the part of the producer.

The level of cover you will need depends on your industry, the work your business does, the type of products you sell, and whether your clients require you to have a certain level of cover.

A commonly requested limit would be US$ 2,000,000 for any one occurrence.

You can structure this cover as standalone cover or in a packaged policy alongside other liability covers, such as professional indemnity and Directors’ & Officers’ insurance.

The pricing will be driven by the coverage’s structure and underwriting considerations. Depending on the insurer, the premium can also be adjustable or non-adjustable, so you must have a specialised broker to give you the best solution for your business.