2 years back in 2019, Hong Kong saw months of protests against what citizens perceived to be China interference in its politics. What began as peaceful protests ultimately turned violent, with clashes often between protesters and the police. Public properties such as MTR stations, schools, government buildings were vandalized and even private properties weren’t spared either; Mapletree North Asia Commercial (NAC) Trust had one of its building affected as well. Its Festival Walk mall in Kowloon Tong was damaged extensively during the protests; with shattered glass panels and fire set to its Christmas decorations, resulting in the mall having to be closed off for renovations.
The total amount claimed from the insurers were reported to be HK$334.3 million (S$58.3mil); with HK$84.3m allocated for property damage and HK$250m for revenue loss due to business interruptions.
This illustrates the importance of having the necessary insurance in place for when it matters most. Without the insurance, the trust would have incurred a huge loss for the year and shareholders of the company will no doubt be unhappy about it. Without the payout, it can potentially be the deciding factor as to whether a company continues to stay in business or have to fold up. What’s more important in this case is that this was an unforeseen event, few or no one could have expected that the mall would be hit by vandalism from the protests one day. It highlights the main role that insurance has to play in the running of a business: to provide coverage against unforeseen situations and circumstances, and to provide it when a business needs it the most. Contact MAKinsure today to look into your company’s insurance coverage and ensure that it’s up to date.