Survival guide for businesses during typhoon season

We’re all too familiar with typhoons in Hong Kong. They are a regular occurrence and the worst typhoons can be terrifying. Typhoon season is from May through September, but historically, the highest frequency of major typhoons has occurred in the month of September.

In 2018, Typhoon Mangkhut became the most powerful storm in Hong Kong since records began where winds reached 250 kilometres per hour. The severity of the storm caused the shutdown of the city for the entire day, forcing residents to stay indoors for over 10 hours under a No 10 warning signal, as high-rise buildings swayed, office windows were blown out with documents whirling through the air, scaffolding was blown off skyscrapers, roads were blocked by severe flooding and thousands of fallen trees. The typhoon even forced Hong Kong to shut down its stock exchange, while 889 flights were cancelled leaving thousands of passengers stranded at the airport with no transportation back to the city. Along the shorelines, wind and wave action ripped out beaches, battered homes, and tossed boats around like toys. Some of them ended up where they shouldn’t be.

So what can businesses do to prevent or limit typhoon damages?

Shutters – install and cover all of your ground-level windows with permanent shutters or plywood, cut to fit and ready to install. You likely won’t be able to install shutters as the storm is headed your way, so this is a forward-thinking tactic to consider. Adhesive tape fixed to large window panes in exposed positions will reduce damage and injury by broken glass.

Flood Barriers - create a barrier against storm surges, such as using sandbags placed across the bottom of doors on the outside of the building to prevent water from entering. These barriers won’t be helpful against the highest of storm surges, but they can save your business’s interior from damage to goods and/or a complete renovation in the case of smaller storm surges.

Office - move desks, files, equipment, and furniture away from un-shuttered windows. Papers, drawings, etc. should be placed inside files or desks. Important papers and documents blown onto the streets can take a long time to reinstate and be open to confidentiality and privacy concerns.

Electronics – unplug and wrap office equipment, such as photocopy machines and computers, in plastic to protect against water damage or power-surge damage.

Back up electronic devices - this step is critical for businesses. Data should be stored off-site, in case physical computers or devices are damaged or inaccessible due to a typhoon.

Evidence - take video or pictures of your business before and after the typhoon. These pictures compared to your before pictures can concretely document damage and loss for insurance claims.

Communications - create a method for communicating with employees before, during, and after the typhoon. Many times, emergency plans need revising during the storm due to unforeseen circumstances. Demonstrating concern for your employees also increases their loyalty and commitment to the business.

Company vessels - bring boats and yachts into typhoon shelters and the harbour and properly moored. If you do not take “all reasonable and practicable precautions to prevent loss or damage”, your insurance claim may be void.

Ensure you have adequate insurance coverage

Above all else, business owners must have the right property and casualty insurance in place. According to statistics from 59 insurers, compiled by the Hong Kong Federation of Insurance, which account for more than 80% of Hong Kong’s market share, there were around 32,000 claims costing insurers HK$2.9 billion (US$370 million) from Typhoon Mangkhut.

In many cases, people may not understand the details of their policies and make assumptions before a typhoon strikes. To avoid complications, it is best to review all the language of the plan and acquire additional coverage if it is needed. Howden Insurance Brokers are available to assist in understanding your coverage limits, the protections afforded to you under your insurance policies, and how to make claims in a worst-case situation which can be vital following a major Typhoon.

With the amount of damage Hong Kong has seen caused by typhoons, it is extremely important to be prepared. Do take precautions, and don’t mess with typhoons. Sometimes the warnings are over-rated, but they should always be heeded – so much better safe than sorry.