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Patent & Intellectual Property (IP) Insurance, Licensing Agreement Liability Insurance, IP Insurance for IP Valuation, Collateralization and IP-Backed Financing
- Patent & Intellectual Property Insurance:
- Covering the defense of intellectual property infringement claims, with contract indemnities, and even pursuit of infringers
- Intellectual properties can include patent, industrial design, trademark, copyright and trade secrets (know-hows)
- Licensing Agreement Liability Insurance:
- Covering the licensee for an unintentional breach of their license agreements, which can range from sponsorship agreements and brand collaborations, to endorsement deals and naming rights
- IP Insurance for IP Valuation, Collateralization and IP-Backed Financing:
- IP Insurance can help to enhance the protection of IP assets, which can be separated from the business and sold in case of financial distress, and the IP collateralization structure
- IP insurance covers the potential costs of infringement litigation, and could become increasingly important for traditional banks that seek to insure themselves against the risk derived from IP-backed lending
Commercial Legal Expenses Insurance
- Commercial Legal Expenses Insurance:
- Covering the insured business against the potential costs of legal action brought by or against the policyholder. It also includes free access to telephone legal advice services provided by an independent lawyer for advice on any Hong Kong business legal matters at no additional charge
Fine Art & Valuable Items (Specie) Insurance
- Fine Art and Collections Insurance:
- Covering all risks of physical loss or damage on premises, in transit or
being exhibited for fine art, personal jewellery, collectibles, wine,
antique, sculptures, musical instruments, comic art, rare books,
stamps, coins and more. Target insureds include individual or
corporate collectors, fine art dealers and galleries, exhibitors,
museums, auctioneers, banks and financial institutions.
- Jewellers’ Block Insurance:
- Covering all risks of physical loss or damage on premises, in transit or
being exhibited for jewellery, watches, precious stones and metals.
Target insureds include wholesalers and retailers, manufacturers,
diamond dealers and traders.
Cyber Liability Insurance
- Cyber and Privacy Liability:
- Covering virus and hacking liability, electronic data breach liability, physical or paper record breach liability, electronic media liability, and may even include media liability
- Cyber and Privacy First Party Liability:
- Covering incident response, privacy breach notification and mitigation costs, system and data rectification costs, business interruption, cyber extortion, cyber theft, telephone “phreaking”, etc
- Can be extended with:
- Covering regulatory investigation and fines, public relation services, and court attendance compensation, and more
Contingency Risks & Entertainment Insurance
- Event Insurance:
- Combining covers for event cancellation, event liability, personal accident, and commercial property insurance to protect the potential loss due to the relocation or cancellation of the event.
- Over-redemption Insurance:
- Covering the financial exposures when the anticipated response of special promotions and service offerings is greater than the original targeted level. This cover applies to on-pack and in-store promotions, loyalty program, gift card programs, paper and electronic coupons, etc.
- Prize Indemnity Insurance:
- Covering the value of prizes offered in a wide range of prize competitions, such as hole-in-one competitions, contractual bonus liability, lottery jackpot, mathematical games, sports prediction games, online and land-based casino games and more.
Financial Institutions & Fintech Companies Professional Liability Insurance
- Financial Institutions Professional Indemnity:
- Targeting at financial institutions who are NOT traditional banks, investment advisors or insurance companies.
- Covering errors & omissions (E&O), directors & officers liability (D&O) and crime. Cyber extension and kidnap and ransom (K&R) extension can be considered.
- Investment Management Professional Liability:
- For investment managers. Covering errors & omissions (E&O), directors & officers liability (D&O) and crime. Cyber extension and kidnap and ransom (K&R) extension can be considered.
- For those investment managers holding funds in the EU, this policy can be extended to be compliant with the Alternative Investment Fund Managers Directive (AIFMD).
- Fintech Professional Liability:
- Covering E&O (both financial and tech liability), D&O, Crime, Cyber, Employment Practices Liability (EPL) and Sub-contractors Liability.
Transaction Liability Insurance
- Transaction Liability Insurance:
- Covering any financial loss arising as a result of inaccuracies in warranties and indemnities made in share and asset purchase agreements, including warranty and indemnity (W&I) insurance, tax liability insurance and contingent liability insurance.
- Research & Development and Clinical Trial Insurance:
- Covering a financial loss associated with an unintentional breach of contract, or an accidental or negligent act or omission from the providing of services, patent defense against infringement claims, products liability, general liability, clinical trials and even cyber and privacy.
- Medical Devices:
- Covering manufacturers and sellers of medical devices against products liability, professional indemnity/ errors & omissions, general liability, clinical trials and patent defense against infringement claims.
Programs for International Schools – Local or Regional
- Group international health insurance programs:
- Covering international private medical insurance for expatriate staff and teachers and their dependants.
- School liability insurance:
- Covering the school and all its employees from management liability, educator liability, employment practices liability, schooling liabilities and even vicarious liability for consultants, contractors, subcontractors and agents.
- Group personal accident insurance for students:
- Providing group personal accident insurance for students on 24×7 basis
- Other general insurance, employees’ compensation insurance and employees’ benefits plans
Regional Programs (HK, China, SE Asia)
- Corporate insurance program across HK, China and/or SE Asian countries:
- Can be properties, marine cargo, trade credit and/or other liability insurance programs.
- Can be international health/ life/ disability insurance for expatriate staff and their dependents.
- Having local servicing brokers working as partnering brokers on the ground.
- DIC cover can be arranged to cover the differences in conditions among different local policies.
- BrokersLink network of reputable insurance brokers.
Setting up Captive Insurance Companies
- Many years of hands-on experience:
- We have many years hands-on experience in setting up captive insurance companies overseas.
- Requirements on captive insurers set up in Hong Kong:
- To incentivize the establishment of captive insurers in Hong Kong, regulatory facilitations are offered to captive insurers including reduced minimum capital and solvency margin requirements, exemption from the requirement for maintaining assets in Hong Kong to match local liabilities, and exemption from the requirement for valuing assets and liabilities in accordance with the statutory basis.
- Tax concessions to captive insurers set up in Hong Kong:
- To further promote captives in Hong Kong, there is also a 50% concession in the profits tax rate on insurance business of offshore risks from the year of assessment 2013-14 onwards. Commencing from the year of assessment 2018-19, these profits tax concessions are extended to cover profits of captive insurers arising from onshore risks.
- The new amendments in the Insurance Ordinance expands the scope of insurable risks of captive insurers set up in Hong Kong:
- The Insurance (Amendment) Bill 2020 was passed by the Legislative Council on 17 July 2020. The new Ordinance seeks to amend the Insurance Ordinance (Cap. 41) to expand the scope of insurable risks of captive insurers set up in Hong Kong and maintain Hong Kong’s competitiveness as an international insurance hub and risk management center. The Government and the IA are now proceeding with the preparatory work for the commencement of the new Ordinance.
- Standard reinsurance broking activities:
- A reinsurance broker is an intermediary individual or firm who is paid a fee or commission to find and place new business on behalf of both the insured client and insurer. In the case of reinsurance, the insured client is an insurance company looking to acquire protection or reinsurance from another larger insurance company for a specific risk.
- Through the extensive network of PSC Insurance Group companies and BrokersLink members.
- Reinsurance broking with insurance products development:
- Actively participating in development of new insurance products for a local insurer while arranging the transfer of risks to a reinsurance company on fronting or quote share basis. Reciprocally, knowledge and skills will be transferred from the reinsurance company to the local insurer.
Future Focus: Participation in issuance of Insurance-Linked Securities (ILS) in HK
- The new amendments in the Insurance Ordinance sets up the insurance-linked securities (ILS) regime and provides a framework allowing issuance of ILS in Hong Kong through a special purpose vehicle:
- ILS are risk management tools that allow insurers/reinsurers to raise capital by offloading insured risks to the capital markets through securitisation.
- Given a rising trend of catastrophic events caused by climate change and urbanisation, the global issuance of ILS has grown substantially in recent years but currently the risk exposure of such ILS is mainly confined to the United States and Europe. It is necessary to make Hong Kong a more conducive domicile for ILS to capture potential business opportunities expected to arise in Asia.
- The Insurance (Amendment) Bill 2020 was passed by the Legislative Council on 17 July 2020. The new Ordinance seeks to amend the Insurance Ordinance (Cap. 41) to provide for a new regulatory regime for the ILS business. The Government and the IA are now proceeding with the preparatory work for the commencement of the new Ordinance.