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Supported_Living_InsuranceTo be clear on which health care sector supported living insurance is aimed at, it is worth clarifying that it covers the domiciliary care and supported living service providers and is targeted at agencies and companies providing care at home.

Care homes insurance covers owners of buildings used for residential care of the young, vulnerable and disadvantaged members of our society.

With the growth in our ageing population and, in a lot of cases, resident’s preference to remain in their own home, a whole range of support services are needed through local homecare services, local authorities and agencies. These services can include:
  • Housekeeping and domestic work
  • Cooking
  • Nursing and healthcare
  • Carers respite service
  • Personal care
  • Gardening and repairs
Home health care is one of the fastest growing sectors in the health care industry and organisations providing these services face many risks whilst carrying out their daily tasks.

Due to the very nature of their working environment, travelling and working at different locations and in potentially unsafe households where risks are difficult to control, insurance cover with a wide range of benefits is required.

A “one size fits all” approach may not give you the most suitable insurance cover. This is where an insurance broker such as CLA will be able to research several providers and tailor a policy that is most appropriate for your business.

Employers liability insurance, public/product liability insurance and professional indemnity insurance are essential.
  • Other insurance cover you would expect include:
  • Business interruption
  • Mistreatment
  • Legal expenses
  • Personal accident and fidelity guarantee
  • Computer and business equipment
Call us for a quotation for your bespoke insurance requirements on 0121 321 4600.
 
 
Construction_insuranceConstruction projects are prone to disputes due to their complexity and levels of uncertainty not usually found in many other contractual agreements.

Weather, labour, technical problems and defects can all play their part in taking your project into potential construction disputes with your clients.

Your construction insurance will cover you for a range of risks for the duration of the project such as:
  • professional indemnity,
  • public liability,
  • product liability,
  • latent defects, bond insurance and guarantees.
However, there may be elements within the construction contract that will need close attention to ensure your construction insurance remains valid.

Contractual notice requirements
A good example of this is contractual notice requirements. Construction contracts often include a “time bar”. Claims need to be made within the specified time and if you are disputing a claim, you will have to act within a certain period.

When entering into a contract, you need to be aware of these time frames and from a construction insurance perspective, check that any particularly stringent or onerous time bar clauses are allowed within your insurance policy.

Do you know what “The Protocol” means?
Claims at pre-action stage, before formal proceedings are issued, can use “The Protocol” to determine the conduct of construction claims. The intention is to resolve disputes early without the need for court proceedings.

A recent revamp in 2016 streamlined the process and though it is no longer compulsory, the submissions are less comprehensive meaning there are fewer steps to be followed before court proceedings are issued. As a result, you will need to engage early in the process and respond quickly to any claims made against you.

If you do find yourself involved in a claim, act quickly and notify your construction insurance company as soon as possible.

CLA provide support for all our clients involved in the construction industry:
  • Architects
  • Surveyors
  • Property developers
  • House builders
  • Civil engineers
  • Building trades
  • Building products manufacturers
Call 0121 321 4600 and speak to one of our Account Managers for more information.

 
 
 
 
21st March 2018

Family fleet insurance

You may think that as a family you would not qualify for fleet insurance; however, you may be surprised to learn that if you have two or more cars on your drive you are eligible for family fleet insurance.

Family_fleet_carsMost families today end up having more than two cars on the drive as older children learn to drive and are staying in the family home longer.

There are many multi-car policies offering a variety of insurance cover. However, if you own a high-performance car, classic car or luxury saloon car, you may need specialist car insurance not available through the usual online insurers. You may also need motorcycle and horsebox insurance.

If one of the cars you own is worth around £30,000 or more, you could benefit from our family fleet insurance by including other members of your family under one policy.

There are huge benefits to be gained if you can combine all family members on one insurance policy:
  • Insurers offer a discount (could be up to 20%)
  • One renewal date and premium
  • One set of forms to complete
  • Individual’s no claims discount maintained
  • Individual flexible cover, eg. fully comprehensive or 3rd party mix
  • Cover for driving in Europe
  • Fast track claims service
  • Ability to create your own bespoke cover
  • No obligation pre-cover surveys
With this cover, you have all the advantages associated with high net worth insurance for private clients such as a courtesy car to match your own, legal advice and fast claims settlement through our dedicated claims managers.

You can also insure your home, overseas travel and pets all under one straightforward plan.

To find out how much you could save on your family’s car and home insurance, call CLA Risk Solutions, your local insurance brokers Sutton Coldfield, for a free quote. 0121 321 4600.
 
 
 
Residential and non-residential care homes face a wide range of risks due to the very nature of the work they carry out and the vulnerability of their residents.

With many high-profile stories in the media and concerns over health and safety, care homes are under pressure to deliver support to an increasing number of the most vulnerable members of our population.

Care_Homes_insuranceThe social welfare sector including private and public care providers, charities (not for profit organisations) and social enterprises provide care and support to the young, vulnerable and disadvantaged members of our society.

Because of the nature and diversity of risks involved in this sector, an insurance broker is well placed to provide the expertise and advice needed to cover your responsibilities to your employees, vulnerable residents and members of the public.

As well as your building and contents insurance, your cover will need to include some of the more challenging aspects of support such as abuse, breach of professional duty and medical malpractice. Accidental cover for your employees, voluntary workers and visitors will be necessary to protect you against claims that could damage your reputation and funding.

Care and health consultancy
Identifying the challenges and risks involved in running a care home plays a vital role in managing and minimising the effects these may have on your organisation.

A consultant will be able to help improve your management systems and identify any areas of weakness. This can have a major impact on reducing incidents and in some cases reduce your insurance premiums by demonstrating your commitment to maintaining good working practices.

Health and safety support and risk assessments can be carried out and improvements made to reduce incidents and comply with legal requirements.

Care homes insurance cover
Insurance is available for a wide variety of care homes:
  • Children’s homes
  • Rehabilitation units
  • Residential units for learning disabilities/autism
  • Special schools (residential and non-residential)
  • Mental health residential (non-secure)
  • Supported living
  • Foster care
The scope of cover can include third party responsibilities, employee liability, asset protection, cyber and data risks, legal expenses, book debts, deterioration of stock and inspections.

For a complete breakdown of cover and to find out more about what the consultancy includes, please call one of our team on 0121 321 4600.
 
 
If you or your business is found to be in material breach of health and safety law, you will have to pay for the time it takes the Health & Safety Executive (HSE) to identify the breach and help you put things right. This includes investigating and taking enforcement action and is called ‘Fee For Intervention’ (FFI).

HSE_Intervention_FeeIf it transpires that you have not broken the law, then you won’t pay anything. Dutyholders who comply with the law, or where there is no material breach, will not be charged FFI for any work that HSE does with them.

FFI applies to dutyholders where the HSE is the enforcing authority. This will include:
employers
  • self-employed who put others at risk
  • public and limited companies
  • general, limited and limited liability partnerships
  • Crown and public bodies
What the law says
The Health and Safety and Nuclear (Fees) Regulations 2016, link to external website say that a fee is payable to HSE if:
  • a person is contravening or has contravened health and safety laws; and
  • an inspector is of the opinion that the person is or has done so, and notifies the person in writing of that opinion.
What is a material breach?
A material breach is something which an inspector considers serious enough that they need to formally write to the business requiring action to be taken to deal with the material breach. If the inspector gives you a notification of contravention (NoC) after their visit, you’ll have to pay a fee.
The NoC must include:
  • the law that the inspector considers has been broken
  • the reason(s) for their opinion
  • notification that a fee is payable to HSE
Where an inspector simply gives you advice, either verbal or written, you won’t have to pay anything for this advice.

How much it costs
It currently costs £129 an hour. The fee will include the costs covering the time of the entire original visit. The total amount recovered will be based on the amount of time it takes HSE to identify the breach and help you put things right (including associated office work), multiplied by the hourly rate.
Your fee may include the inspector’s time:
  • at your business or workplace
  • preparing reports
  • getting specialist advice
  • talking to you after the visit
  • talking to your workers
The fee can vary depending on:
  • how long the original visit was
  • the time the inspector spent helping you put things right
  • the time it took the inspector to investigate your case
  • any time we spend on taking action against you
Find out more
The Guidance on the application of Fee for Intervention (FFI) document (also available in Welsh) sets out the general principles and approach of the scheme. It includes examples of material breaches but does not cover every scenario where FFI might apply.

Inspectors will apply this guidance and their enforcement decisions will be based on the principles of HSE’s enforcement decision-making frameworks – the Enforcement Management Model (EMM) and the Enforcement Policy Statement (EPS).

The Guidance on the application of Fee for Intervention (FFI) document (also available in Welsh) sets out the general principles and approach of the scheme. It includes examples of material breaches but does not cover every scenario where FFI might apply.

Some Management Liability or Directors and Officers insurance products provide cover to protect against FFI.

If you would like to discuss your own Management Liability Insurance or D&O policy then please contact us on 0121 321 4600 or send an email to info@clarisksolutions.co.uk
One in three companies have experienced a cyber incident in the past 12-months, according to Bridging the Cyber Risk Gap, the latest research from insurer Chubb.

As a direct consequence of this, a significant majority realised they were less prepared than they had hoped. In many cases, that lack of preparation will not have been around companies’ digital defences, instead the problem will have been with their own people.

Few firms in the UK understand or address effectively the human element of their cyber risk. Around 70% of cyber security breaches result from phishing attacks, and a growing number from broader social engineering by criminals.

This does not include the number of cyber breaches that result from simple human error, without malicious intent. Here are a few easily recognisable scenarios:
  • Cyber_Risks_from_employeesthe employee who emails important data to someone they did not intend;
  • the employee who falls for a scam email;
  • the employee who opens a link in an email without verifying the sender’s address;
  • the employee who goes online and inadvertently downloads malware onto a company computer;
  • and the employee who accesses company information from their own device and introduces malware.
The above are a combination of simple human error, ignorance or – more worryingly – sophisticated attacks known as ‘spear-phishing’ in which information gleaned from social media or a company’s own website is used to dupe an employee into doing something or following a link which exposes the company to risk.

All firms should undertake a holistic audit of their cyber exposure. In each area, pre-loss planning can minimise the likelihood or effect of an attack. The areas are: awareness, protection, detection, response, and resilience.

Awareness involves understanding in detail the business environment, what risks exist and what regulation applies to a firm in the event of a cyber breach.

For protection, companies need to implement a ‘best-in-class’ cyber hygiene, including proper datahandling protocols, identifying a responsible information security officer, implementing technology or buying protection against identified risks.

Detecting intruders as quickly as possible is key to limit the damage attackers can do. This includes both technology-led solutions and offering incentives to staff to raise the alarm quickly if they see or do something unusual.

Companies need a 24-hour response system that allows rapid action, including notification of those affected after an attack, as well as cleansing the system of malware.

Often referred to as business continuity, resilience is about the long-term protection of revenue, and includes communication to clients about resumption of business, rapid restart planning, and pre-planning to find alternative routes to market in the event of a complete shutdown.

Cyber-crime and fraud prevention can seem complicated, but they needn’t be. Start by putting simple, everyday steps in place to ensure you and your customers are well protected.

If you are uncertain about how to protect your business from cyber-crime, contact us on 0121 321 4600 or send your enquiry to info@clarisksolutions.co.uk

Thanks to Post Magazine; Lauren Webb, London cyber underwriting managerand Nick Bellamy, principal cyber risk engineer and technology industry practitioner at Chubb.
Prestige_car_insurance_for_supercarsThere are car owners and there are car enthusiasts. As one of the Directors at CLA (Risk Solutions), I fall into the latter category. When I’m not driving my own car, I am watching motorsport or visiting motor events around the country.   Our prestige motor insurance provides a personal service tailored to the needs of our high net worth clients.

As specialist car insurance brokers, we understand the requirements of our luxury car owners and the insurance policy cover you need for your treasured vehicle or vehicles.

Whether you have a high-performance supercar, luxury saloon or a timeless classic, we will be able to provide the level of insurance needed to protect your vehicle whether it is driven every day or in storage waiting for that sunny day to go for a spin.

These vehicles are very often bought as financial assets that increase in value over the years. It is important to have adequate insurance cover in place that reflects the current value and replacement costs of these valuable cars that can be worth hundreds of thousands of pounds.

CLA can arrange valuations to ensure you receive the full replaceable value of your car together with a range of other benefits that you will find invaluable and not available from your standard car insurance policy, for example:
  • Cover for high value prestige cars over £100,000
  • Insurance cover for all uses; commuting, business, personal and in storage
  • Drivers between the ages of 17 to 85 (subject to experience)
  • Modified or imported vehicles
  • Drivers with a history of accidents and convictions
  • Overseas trips cover
  • Similar value courtesy car provided
  • Any repairs carried out by a garage of your choice or an approved garage
  • Multiple vehicle insurance
  • Dedicated claims contact
Multiple car cover
You can add as many cars as you like to your prestige car insurance policy for yourself and include other members of your family. This will save you money compared to individual policies and simplify the management of your family’s fleet with a single policy renewal date.

To find out more about our high net worth client insurance policies and arrange a meeting to discuss your requirements, please call Adrian on 0121 321 4600.
If an employee is injured or becomes ill as a result of the work they do for you, they can claim compensation from you.

Meeting your health and safety duties is easier than you think. Providing you have taken reasonable steps to prevent accidents or harm to your employees (and the injury or illness was caused after 1 October 2013), you shouldn’t have to pay compensation. However, if a court finds you are liable, employers’ liability insurance will help you to pay any compensation for your employees’ injuries or illness.

Though there were fewer prosecutions taken in 2016/17, the statistics show an increase in fines to £69.9 million from the 2015/16 total of £38.8 million. New sentencing guidelines in England and Wales were introduced in 2016. Twenty large fines accounted for £30.7 million of the new figure.

Key figures for Great Britain (2016/17)
  • 1.3 million working people suffering from a work-related illness
  • 2,542 mesothelioma deaths due to past asbestos exposures (2015)
  • 137 workers killed at work
  • 609,000 injuries occurred at work according to the Labour Force Survey
  • 70,116 injuries to employees reported under RIDDOR
  • 31.2 million working days lost due to work-related illness and workplace injury
  • £14.9 billion estimated cost of injuries and ill health from current working conditions (2015/16)
Above taken from http://www.hse.gov.uk/statistics/ and http://press.hse.gov.uk/2017/britains-annual-injury-and-ill-health-statistics-released/

How insurance premiums are calculated
Your insurance premium is calculated by insurers by assessing the risks associated with the type of work being carried out. For example, if you employ mainly office based personnel, your premiums will be lower than for manual workers because the risks are generally lower.

Other factors include type of industry, previous claims history, number of employees and factors that may improve your risks such as management systems you have in place.

Generally, your employer’s liability insurance will cover you against compensation for injury, disease, damage or death together with any related financial losses incurred by the claimant. It will also reimburse the Department for Work and Pensions for any benefits paid out during the claim.

Liability_Insurance_for_health_and_safety_proceduresHow to reduce your employers’ liability insurance premium

Providing you can demonstrate that you have an effective Occupational Health and Safety management system in place, insurers can usually reduce your premiums. An effective management system will help to minimise the risk of injuries and diseases and the risk of a successful claim being made against your organisation.

You may need the support of an external consultant if you do not employ your own health and safety personnel.

CLA have partnered with Health and Safety Assist to provide access to your own safety management hub and expert advice via an online portal. This will help you to manage your entire health and safety processes, action plans and audit trails with documentation all in one place.

Join Health and Safety Assist to improve your health and safety management and reduce your insurance premiums.

For more information visit our web page http://www.clarisksolutions.co.uk/health-and-safety-assist or call one of our account managers.

 
Despite feeling the strain from the uncertainty caused by Brexit, the UK construction industry is continuing to grow. However, with the impact of Brexit, we could see a speed towards offsite construction and robotics. We look at how this is this going to affect the insurance requirements of companies in this sector.

With uncertainty arising as a result of Brexit and a shortage of skilled workers in the construction industry, firms have begun to innovate, turning towards technological advances such as offsite construction and the use of drones onsite. CLA are well aware that with ever-changing and developing technology in this sector, the associated risks will also evolve alongside these advances. As construction industry insurance specialists, we are well placed to advise our clients on the implications this new technology will have on their insurance requirements.

Setting aside these new evolving risks, the construction industry continues to operate within high-risk environments. The risks are myriad: working onsite, working at height, working in different environments each day, working under different supervision and direction and injury can be easy to come about. In 2016 3% of workers sustained a work-related injury which contributed to 2.2 million days off that year (Health and Safety Executive report).

Furthermore, those in the industry are often working on third-party sites and in premises where they are exposed to third-parties and their property. Employers’ liability insurance is a legal requirement and most businesses will be aware of this, but they might not fully understand their potential exposure from injuring a third party or damaging their property when working on a private dwelling house or a shop. This is particularly common for smaller businesses.

The other area of risk, highlighted in our previous article, is the fact that your insurance will not cover the cost of an HSE investigation or subsequent fine. www.clarisksolutions.co.uk/2017/12/05/hauliers-and-construction-companies-ignore-health-and-safety-risks-at-their-peril

It’s a niche and complex area. You need specialist underwriters and specialist risk managers that are up to date with the industry and understand the pace and speed of change.

Drone_over_building_siteRobotics
Machine rather than man will be constructing the buildings of tomorrow, with robots taking on the manual tasks, driverless bulldozers and diggers supporting them and drones flying overhead to monitor progress and carry out site inspections.

It may sound a bit sci-fi but these forms of technology are already being used on many building sites. For instance, in its Global Construction Survey 2016, 42% of respondents said they used drones to monitor construction status.

Whilst the commercial benefits of drones are clear, there are still concerns around mid-air collisions or loss of control, plus the potential for refusal of third party claims involving drones operated by, or on behalf of an insured business. *

Adoption of these technologies in the construction sector has a number of advantages. As well as helping to address the skills shortage by removing the risk of human error, it will also reduce the number of worksite accidents.

Source: KPMG, Global Construction Survey 2016, Building a technology advantage 1

* CLA can provide drone insurance as part of our Aviation and Aerospace product suite.

We can also provide the following support for the construction industry to help keep you fully covered during this period of growth:
  • One-call access to expert advice: Delivered by specialist construction risk control surveyors and our provider’s in-house inspection engineers team.
  • Flexibility: Our experts in London, Manchester or Birmingham can offer 24 separate covers under one module policy.
  • Specialist construction claims service: Expert engineering, property and casualty claims teams and expert construction loss adjusters will oversee construction claims.
  • Legal services: Offering more ways to manage costs through legal risk and compliance solutions, with a specific focus on HSE legislation.
Health_and_SafetyTwo recent cases of accidents in the workplace resulting in court cases being brought against companies and directors by the Health and Safety Executive highlights the increased risks to employees in these sectors.

The cases below are just two examples of the many court cases and fines imposed on companies in breach of health and safety regulations.

The first case involved an HGV driver who suffered fatal injuries while coupling the HGV tractor unit to a trailer.

**Speaking after the case, HSE inspector Jessica Churchyard said “This tragic incident led to the avoidable death of a young man, and was caused in part by the failure of his employer to implement and monitor safe systems of work to prevent vehicle runaways.
“This death could have easily been prevented if his employer had acted to identify and manage the risks involved, and followed the industry guidance.”


The second case resulted in the amputation of a demolition worker’s left arm and right hand.

**HSE inspector Rohan Lye said after the hearing: “If the company and its director had taken basic steps to decide how to do this routine task, and what control measures to use, they could have prevented this devastating incident resulting in an employee suffering life-changing injuries.”

In the first case involving the HGV driver, the company was fined £170,000 and ordered to pay costs of £6,268.80.

In the second case, the company was fined £150,000 and ordered to pay costs of £9,523.04. In addition, the company director was sentenced to ten months imprisonment, suspended for two years and ordered to complete 200 hours of unpaid work.

Insured risk
In both cases the companies would have had to pick up the fines. Your Employers’ Liability insurance policy will generally (depending on your policy wording) cover you for:
  • Employee compensation
  • Employee and criminal proceedings defence costs
  • Court attendance compensation
Even if you have Directors and Officers insurance as well, neither will cover the cost of an HSE investigation or resulting fines or time in prison.

How to minimise your risk of prosecution
As the two quotes above from HSE inspectors imply, both incidents could have been prevented if the employer had implemented effective risk management and approved codes of practice.

To protect your business, you will need to manage your safety documentation, training records and risk assessments etc. Every business has most of this in place but very few can easily and quickly put their hands on it and rely on it being up to date.

Our partnership with health and safety specialists “Health and Safety Assist” can help you with this.
Their online portal is a secure resource and provides access to your own safety management hub. The portal will help you simplify and efficiently manage all of the documents necessary to meet your health and safety responsibilities and comply with the relevant standards for your business sector.

There are also a host of added benefits that you can exploit as the portal becomes more bespoke to your business. It could lead to reduced insurance premiums by demonstrating you have proper management of your workplace risks and compliance with health and safety legislation.

To find out more about how working with Health and Safety Assist can save you money, protect you from prosecution and a hefty fine or prison sentence, please contact one of our team.

**Contains public sector information licensed under the Open Government Licence v3.0
Business insurance provides cover for specified risks. The insured receives compensation for a specified loss such as theft or damage, in return for the payment of a premium.

Your insurer will calculate your premium based on the risk of an insured event happening to your business.

If you can show that you have minimised the risks and put in place procedures to reduce the possibility of a claim, there is a good chance you can lower your insurance premiums.

Health and Safety Assist
Health_and_Safety_to_businessWith insurance premiums rising due to an increase in claims over the last 10 years, anything you can do to demonstrate that you have minimised some of the risks to your business may help you to save money on your premium.

In the same way, insurers can offer lower premiums to fleet owners who install CCTV cameras in their
vehicles, proper management of your workplace risks and compliance with health and safety legislation can provide the same benefits.

How does it work?
These days there is increased pressure on businesses to meet a variety of health and safety requirements and accreditations such as CHAS, Safe Contractor or ISO. Together with the growing claims culture in the UK, it is more important than ever to manage your health and safety risks.

Health and Safety Assist is an online portal giving you access to your own safety management hub and support from an experienced team when you need it.

The service includes:
  • Reminders of anything/everything that needs to be done saving you time and money.
  • Tasks and “to do” lists managed centrally and allocated individually.
  • Your questions always answered at a time to suit you.
  • The system will keep all information (conversations, activities, documents, tasks, events) in a structured format in one secure place that is always available.
  • All your documents and administration in one place with easy (multiple) access.
  • Extended Risk Management benefits across your business.
  • A boost to business insurers and a real positive for underwriters.
The portal provides:
  • Document storage.
  • Action plans.
  • Sector related documents.
  • Accident incident and claim management support.
  • Personal calendar.
  • Task management and discussions.
  • Live chat “Ask the Expert”.
  • Audit trail.
  • Secure access.

Protect your business from the claims culture
If you have had to deal with claims from employees, face a claim investigation or a reduced claim pay-out from your insurer, you will benefit from the Health and Safety Assis consultancy and portal.

Their experienced team of risk managers and health and safety consultants will help you set up management systems to minimise the risk of a claim and, if a claim is made, will be there to support you.

Other benefits
Some of your customers may require you to gain health and safety accreditations before they consider you as a supplier. Typically, blue-chip corporates and government departments will expect you to have accreditations and a risk management policy in place.

Health and Safety Assist can support you with:

  • Risk management.
  • Insurance Risk Underwriting and Surveys.
  • Insurance Claims and Accidents.
  • Incident Investigation and Reporting.
  • Protection against the Insurance Claims Culture.
  • Site Risk Profiling and Reporting.
  • Contract and Tender Submissions.
  • Support with Authorities.
With a robust health and safety system in place, through our partners, CLA will be able to source the most suitable liability insurance policy for your needs. Insurers will be able to offer reduced premiums because you will be able to demonstrate that you are managing your risks and helping to reduce your exposure to claims.

To find out more about how working with Health and Safety Assist can reduce your insurance premium and help you to win more business, please contact one of our team.
It is crucial that the correct and most suitable business interruption (BI) cover is in place for your organisation. Insufficient BI cover can result in your business not receiving a full indemnity which can significantly impact on your ability to recover following a loss.

Business_Interuption_InsuranceThere are three main types of business interruption cover: loss of gross profit, loss of gross revenue and increased cost of working.

Each of these covers operates in a different way and there are several reasons why they might be best suited to your particular circumstances.

We explain the differences between these three types of cover and discuss how we can help you choose the most appropriate cover for your business.

1. Loss of gross profit
A gross profit basis is the most common choice of business interruption insurance in the UK. This covers the loss of net profit following a reduction in turnover, standing charges and any increased cost of working.

Gross profit’s key distinguishing feature is that you can specify certain costs to deduct in order to arrive at their final sum insured. These deductions are known as variable costs or ‘uninsured working expenses’ (UWEs), and comprise costs that vary in direct proportion to the reduction in turnover. So, if turnover is reduced by 30% that cost will also be reduced by 30%.

The intention of UWEs is to enable you to not insure costs that will cease in the event of a loss. By insuring on a gross profit basis, any UWEs are excluded, reducing the exposure base to which a BI rate is applied, which means your premium is likely to be less.

However, incorrectly specifying UWEs is a common source of underinsurance, as many customers do not undertake the proper processes required to identify them.

Who is it suitable for?
The gross profit basis was initially developed for customers with many directly variable costs, such as those in the manufacturing and retail sectors. However, as business models have changed, it is no longer the case that these business types are always best suited to a gross profit basis of cover.

Using generalisations about business types is not the correct approach to take, you need to think carefully about what would happen in the event of a loss – which costs would cease and which would continue?

2. Loss of gross revenue
If, having carefully considered loss scenarios there are few directly variable costs, then a different basis of cover, such as loss of gross revenue, may be more suitable. A gross revenue basis covers the reduction in turnover following a loss and any increased cost of working. This could help avoid some of the inherent difficulties in calculating a gross profit sum insured and reduce the risk of underinsurance.

To calculate a gross revenue sum insured, you simply need to know the total turnover of your business for the length of the indemnity period. This avoids many of the intrinsic pitfalls in the gross profit calculation and can help provide a more accurate sum insured where a gross profit basis would bring few or no additional benefits.

Who is it suitable for?
Traditionally, gross revenue has been considered most suitable for the service industry, including businesses such as accountants, solicitors and hotels.

This is because the majority of these businesses’ costs, such as staff and IT, will not reduce in direct proportion to turnover in the event of a loss. These businesses will therefore typically have very few UWEs, giving them less incentive to opt for a gross profit basis, which may leave them exposed if an inaccurate sum insured is calculated.

As mentioned previously however, generalising should be avoided and we would assess your business according to how your particular business operates.

3. Increased cost of working
As detailed above, increased cost of working cover is included within both the gross profit and gross revenue bases, where it is subject to an ‘economic limit’. However, it can also be arranged in isolation, in which case it will not be subject to an economic limit.

Increased cost of working is essentially the bare bones BI cover. It provides the customer with cash to cover reasonable additional expenses that will help the business recover following a loss.

Definition: Increased cost of working
Additional costs incurred in order to prevent a further reduction in turnover.
    These might include:
  • Staff overtime
  • Hiring temporary staff
  • Sourcing alternative premises including rental costs
  • Installing new/temporary means of communication
  • Removal and storage fees
  • Advertising ‘business as usual’
  • Costs of sensitive waste disposal – linked to documents or IT equipment containing sensitive data.
  • Security and fire protection costs – involved with making the damaged location and any temporary location secure
Who is it suitable for?
This basis is only suitable for customers whose business continuity planning and management is such that they will be very resilient to a loss; for example, businesses that are able to easily minimise the impact to their business and might simply require some additional cash to put an established recovery plan into action.

Large multinationals often choose an increased cost of working basis as they might be relatively unaffected by a loss at a single location, have large cash reserves to rely on and may be able to absorb lost capacity in other areas of the business.

How we can help
Business interruption insurance is complex, we will be able to advise you on the best cover for your business.
Do you fund your fleet through vehicle financing?

The Finance & Leasing Association has recorded an increase in vehicle funding to record levels of more than 80% of businesses now funding vehicles on a form of leasing arrangement. The figures also show an increase in the number of used vehicles that are now leased as the automotive sector seeks to maintain market share.

When a total loss happens, it is worth considering the protection the Consumer Credit Act gives to a Limited Company.

Fleet_gap_insuranceBelow is a summary of whom the Consumer Credit Act protects:
  • Private individuals
  • Sole traders     
  • Partnerships of up to three partners

Who the Consumer Credit does not protect:
  • Limited companies
  • Local authorities
  • Charities
  • Partnerships of four or more partners
An early termination of a lease agreement following a total loss can result in lenders applying punitive terms, leaving you with a financial short fall. A liability which can be protected by arranging Fleet GAP insurance.

Fleet GAP is a simple annually renewable policy that in the event of a total loss pays the difference between the motor insurer's total loss settlement and the greater of the outstanding finance, the early termination charge or 25% of the motor insurer's settlement, whichever is the greater.

For example: Your vehicle is involved in an accident and is not viable for repair. The insurance will pay out £30,000. However, the amount owing to the leasing company is £35,000, leaving a shortfall of £5,000.

By taking out Fleet GAP insurance, the top up payment would be £7,500 (25% of £30,000). The calculation is based on either:

The difference between the insurer's total loss settlement and the amount owed on finance/lease
OR
25% of the total loss settlement from the insurer.
Whichever is the greater calculation.

Available for cars, vans, trucks and agricultural vehicles, Fleet GAP is easy to arrange backed by A rated security. As a BIBA endorsed scheme it is a valuable protection for any business operating vehicles.
16th October 2017

GDPR - are you covered?

Cyber_Security_and_GDPRCyber crime is evolving so rapidly that the law is scrambling to keep up. The General Data Protection Regulation (GDPR) harmonises all the data protection laws across Europe.

The EU has finalised its new data protection legislation to close some of the loopholes that have allowed so much cyber crime to go unreported.

The new directive comes into effect from 25th May 2018. It applies to any business that holds personal data or processes data for a client firm.

It requires your firm to demonstrate you have appropriate data-processing controls in place, to notify the authorities if you have a breach and make sure you have consent for all the data you hold.
Your business can be fined up to 4% of annual global turnover or €20 Million for breaching the regulation.

All companies and firms like yours will need cover. This is already leading to increased interest in cyber insurance and without GDPR compliance, your cover may not be valid.

Key points
One of the main points in the GDPR is the way companies collect and gain consent to use a person’s information such as name, a photo, an email address, bank details, posts on social networking websites, medical information or a computer IP address.

“Consent must be clear and distinguishable from other matters and provided in an intelligible and easily accessible form, using clear and plain language. It must be as easy to withdraw consent as it is to give it. Explicit consent is required only for processing sensitive personal data - in this context, nothing short of “opt in” will suffice. However, for non-sensitive data, “unambiguous” consent will suffice.”

*Taken directly from the GDPR website.

Cyber risk insurance
Any company storing information electronically faces the very real prospect of a hacker or even an employee gaining unauthorised access to their data.

Whether information is stored on a company server, individual PC, in the cloud, or on your company website, if a breach occurs, you will need the protection that cyber security insurance can offer to counter the impact this can have on your business.

You can mitigate the risks by taking out cyber insurance. However, you would be wise to improve risk management and comply with the GDPR to keep premiums as low as possible and ensure your cover remains valid.

CLA have also teamed up with Ilicomm who can provide a complete vulnerability assessment that can reveal as yet undiagnosed problems and highlight any weaknesses. They provide a free scan, subject to qualification, so that you can test drive their service for yourself.

What does cyber insurance cover?
Cyber insurance is designed to provide the support and protection you will need from some of the financial consequences of a cyber attack and includes:
  • Mitigation of the financial impact of data leaks
  • Advice and support for your IT department
  • Managing the risk of any adverse publicity
  • Protection from third party claims against the company
  • Regulatory fines for data breaches
  • Loss of profits while recovery is taking place
  • Professional fees
  • Breach coaching
The support is provided by a cyber incident response team and policy holders can also benefit from assistance after a data breach, to help restore systems and firewalls.

If you would like to arrange a free scan from Ilicomm, please contact one of our team on 0121 321 4600.
Employers_Liability_InsuranceEmployers’ Liability insurance is compulsory for any business that employs staff. Following the recent changes to personal injury law that came into effect on 27 February 2017, you may want to consider whether you currently have the right level of cover.

While the statutory minimum is £5m and today’s policies tend to start at £10m, many customers will need a higher limit to adequately meet their needs.

You will find our 6 steps (below) for choosing Employers’ Liability a useful guide.

Rate change highlights need for review
Work-related injuries regularly involve issues of long-term care and loss of earnings. In such circumstances, lump sum settlements can be awarded with the intention of compensating claimants over a long period of time.

As these sums can be invested, a ‘discount rate’ is applied to offset prospective investment returns and ensure claimants are not under- or over-compensated.

Since 2001, this rate has been set at +2.5%, meaning settlements were reduced in expectation of positive investment returns being made.

However, on 27 February 2017, the Lord Chancellor dramatically reduced the rate to -0.75%, meaning settlements will now be increased to reflect expected negative returns.

£10m on a single claim is now plausible
The reduction in the discount rate has immediate implications for the potential size of future personal injury settlements.

The following 6 points should be considered when determining a suitable level of cover:

1. Multiple Claimants
The EL indemnity limit applies to each claim individually. However, work related injury claims can often involve multiple employees.

A claim, or series of claims arising out of a single cause, are considered to be one loss; therefore, thinking should always be framed in terms of whether a limit is sufficient to sustain multiple claimants arising from the same incident.

2. Concentration of staff
Employees are often concentrated in one area, for example in an office or on a building site. In these circumstances, one incident has the potential to harm multiple people.

The more staff concentrated in one place, the higher the limits of indemnity customers should be considering.

Individual claims are now reaching £10m. If multiple staff are potentially at risk you need to be questioning whether your cover is sufficient.

3. Nature of activities
The largest EL claims tend to involve injury as opposed to death, with claimants suffering long-term loss of earnings and the need for continuous care.

You should therefore consider whether customers are engaged in any activities with a higher risk of injury, such as working at height.

4. Hazardous locations
Certain locations are more susceptible to incidents and more likely to involve multiple people.

Common examples include offshore locations, railways and airports.

5. Inner limits
Most EL policies include some common limitations. For example, incidents arising from terrorism or offshore will typically be limited to the statutory minimum of £5m.

While these don’t impact the majority of customers, inner policy limits need to be considered depending on your company’s activities.

6. Future circumstances
EL claims can arise years after the alleged incident – in the case of work-related diseases, this can even be decades later.

Between buying a policy and a claim being settled, a lot can change to affect final settlement values.

The recent change in the personal injury discount rate is a perfect example of this. You’ll want to factor-in some contingency for prospective claims inflation.

Options for increasing limits
You should talk to your broker or insurer if you think higher limits are required.

Sometimes a more economical option is to source an excess of loss policy, which delivers the required capacity above your primary limit. Your advisor will be able to recommend the best option for your company.

How we can help
CLA’s insurance providers can also help customers prevent incidents occurring and significantly reduce the size of claims that do occur.

To find out more or discuss options for increasing limits of indemnity, please speak with one of our team.
Adding on-board CCTV to your vehicle or vehicles (if you are a fleet owner) provides many benefits to you, your business and the welfare of your employees.

FastView360-Product-Box-Mock-Up.1dad498979dc5c347165473d677db323A CCTV system can:
  • Help to prevent theft and vandalism
  • Improve vehicle safety
  • Stop fraudulent insurance claims
  • Protect your fleet and employees
  • Help young or inexperienced drivers reduce insurance premiums
  • Save you money on costly insurance claims
Cost savings and return on investment
Improvements in technology and an increase in the use of cameras in vehicles is bringing down the cost of installing mobile CCTV systems in all types of vehicles. Whether you own one vehicle or a fleet of cars, vans, HGVs, coaches or plant machinery, installing a CCTV system will improve vehicle safety and security, which could save you thousands of pounds each year.

Insurance companies are also seeing the advantages gained by their customers using on-board CCTV to help reduce claims. If a claim is made, it is much easier to establish who was at fault and settle the claim faster, keeping their administration costs to a minimum and your premiums lower. Some insurers are already offering non fleet operators a 10% reduction in premiums to organisations using a CCTV monitoring system.

Fleet managers can view video footage instantly. This allows them to deal with incidents quickly to protect the business against fraudulent insurance claims. They can minimise disruption and costs by arranging vehicle recovery, replacement vehicles or repairs. Fastview 360 also provides the location and speed of the vehicle.

Fastview 360 superfast vehicle monitoring
CLA (Risk Solutions) has partnered with Fastview 360 to provide our clients with a CCTV system that will provide:

3G & 4G live streaming
Superfast connectivity delivers high quality, real-time remote viewing from your PC, tablet or phone.

Continuous HD recording
Clear, reliable HD recordings which are easy to review and locate incidents. No need to reformat SD cards or miss vital evidence.

GPS vehicle tracking
Built in GPS gives data about speed, direction, route and event location.
Combining exact location with the camera footage gives 100% evidence reliability.

360° view of your vehicle
HD Cameras can be installed to capture a 360° view, ensuring that every angle is covered in the event of an incident. The Hard Drive (either 1TB or 2TB as required) can accomodate up to 8 cameras if required.

Insurance benefits
The system delivers a proven reduction to loss ratio and aids mitigation of whiplash / personal injury claims. It provides concrete evidence about an incident which increases the speed of a claim settlement.

Driver focus and attention
Knowing that the system is installed improves driver focus which in turn results in fewer accidents. Drivers with smart phones can connect to cameras via wifi at no extra cost, so are able to view any night time disturbance outside the vehicle from the safety of the cab.

Products are available on a buy or lease basis. Only the highest quality camera systems are used which can be trusted to provide you with clear, reliable footage of any traffic incident minutes after it occurs.
The camera systems are easy to use and reviewing footage is simple and quick. Up to 2 months’ worth of vehicle data storage is available, so there are no additional costs for servers based at offices to store vast amounts of data that is not required.

Cameras are easy to fit and can be installed by your own workshop in around 3 hours, so you won’t have to take your vehicle/s off the road to suit outside contractors.

To find out more please contact one of our team on 0121 321 4600.
24th August 2017

Prestige cars seen in London

Prestige_car_insuranceThere are more billionaires in London than in any other city in the world. It is therefore not surprising that expensive supercars can be regularly seen on the capital’s streets.

London must be one of the most difficult cities to negotiate in any car, let alone a low slung super car trying to manoeuvre through narrow streets and road furniture. You are going to need specialist insurance to ensure you are fully covered for every eventuality.

You don’t have to be one of the world’s super-rich to own an expensive car these days, though anything over £100,000 is still going to place you in an exclusive section of the population. Prestige cars need prestige car insurance to ensure they are fully covered for a variety of insured risks.

Specialist car insurance will provide additional services over regular car insurance. For example:
  • Personal attention from expert claims handlers
  • Premium courtesy cars
  • Access to specialist repairers
Add high net worth insurance
Along with your luxury high value car or cars you will probably have an expensive home, outbuildings, jewellery and other possessions that need to be insured. It is often more cost effective to include all of these items under one insurance policy.

High net worth insurance will often include a multitude of other benefits such as travel insurance, holiday homes cover for property in the UK and abroad, antiques and collections, items stored outdoors and your children’s possessions whilst away at university.

Other benefits include a valuation service, security advice and access to approved repairers for cars, jewellery and antiques.

With so much to discuss and proper valuations to be arranged, you will need to talk to an expert who can find the most suitable cover for all your possessions.

Insurance brokers like CLA have a team of dedicated account managers to guide you through the maze of insured risks to ensure you are always protected.

 
The supreme court has ruled that the Employment Tribunal fees paid by employees, if they want to take their employer to court, are illegal.

Employee-Tribunal-FeesHow will this affect your business?
Since the introduction of Employment Tribunal fees in 2013 there has been a 79% decrease in cases being brought. ACAS conciliation service think there will be a large increase the number of cases brought in future. Their records show that 2/3rds of the employees they advised did not proceed with their claim because they would have to pay tribunal fees.

Now these fees have been dropped, you may need to consider how to improve the management of employee relationships in future, to avoid a tribunal claim.

What can you do to protect your business from a claim?
Along with reviewing your HR procedures, you should also check insurance policies to see what sort of cover you have in case one of your employees brings an Employment Tribunal claim.

On your commercial insurance policy, you need to check that you have a Legal Expenses extension. This will cover you for all types of claims including unfair dismissal, discrimination and TUPE claims.
The Legal Expenses insurance will cover your defence costs and any settlements or awards made by the court.

Alternatively, if you have Directors and Officers insurance, this will cover defence costs if you are involved in court cases with employees as well as shareholders, regulators and other organisations.

Employment tribunals can be complicated and therefore time consuming and costly. Making sure you have adequate cover to defend your case will help to mitigate the risk of a costly court case to your business.

Employees in future will have nothing to lose by making a claim against their employer even if they only have a slim chance of winning.

To discuss the best options to protect your business, please call us on 0121 321 4600.
Home-insuranceComparison sites are a great way of saving you time and money. However, cover varies widely and the cheapest quote may not give you the replacement value needed if something happens to your home or belongings.

No single comparison site covers the whole market, so it is worth checking with a couple of them to get a broader view. After checking three of the sites, you still need to go back and see if your current supplier can beat the best quote.

Comparison sites are prone to making assumptions to speed up the search process, so double check the cover before you buy as it may not be suitable for you. This all adds up to a lot of work for you. You may find it easier to use an insurance broker that can look at the whole market for you and get the best cover for the lowest price.

There are three basic types of home insurance:
Buildings insurance covers the structure of the building and the fixtures and fittings. If you have a mortgage, buildings insurance is mandatory to get your mortgage agreed.

Take care not to ‘over cover’ your buildings insurance. It’s only the rebuild value that insurers need, not the resale value. You should also consider the cost of materials, labour and architects and the cost of somewhere for you and your family to stay during the rebuild. A broker can calculate your total rebuild value for you.

Contents insurance covers your belongings. Even if you rent, you should have a contents policy, it is unlikely your landlord will cover you. Be realistic about what your belongings are worth otherwise you may be underinsured if you have to make a claim. Go through each room in your house and work out how much all your furniture, crockery, white goods, clothing, books, toys, jewellery and miscellaneous items would cost to replace.

Combined buildings and contents insurance is recommended for homeowners. Before taking out a combined policy, check the excesses, as some insurance companies have separate excesses for each area of insurance cover. This could affect your finances, if you have fire or flood damage and have to claim on your buildings and contents insurance.

If you decide to take out separate cover with different insurers, you may find they disagree over liabilities when you make a claim. An insurance broker can manage this on your behalf if you have taken out cover through them.

If you do decide to use comparison sites to save money on your home insurance, be aware that some insurance companies are charging more interest than credit cards for monthly payments. Interest charges range from 16.5% to 33.2% for monthly payments.

If you would like us to look at the whole market for you, contact us on 0121 321 4600 or request a call back.
Cyber-securityCyber security may sound like a technical problem, but as we saw recently with the NHS attacks, preventing it is a management challenge.

It starts with carrying out a risk assessment and answering, ‘how would our business cope if we came in one morning and our computers didn’t operate?’ ‘What is our backup plan and who could we rely on to help us fix it if we had an attack?’

When you have a grip on your operations, remember your business has a responsibility to staff and customers to secure the data they use in the organisation too. The Data Protection Act requires personal data is secured and used appropriately.

Why should you do this? Because the threats from cyber criminals, hackers and identity theft are very real. When you understand the extent to which your business will be affected and what it could cost you, it becomes easier to justify the resources you’ll need to put in place now to prevent it.

Computer security for small businesses should be multi-layered, using desktop security products such as anti-virus, anti-spam and firewalls, and network intrusion detection, and hardware technologies such as security tokens, disk encryption and biometric fingerprint recognition.

But above all, it is about management. Define and train your staff on a security policy, including using strong passwords that include numbers and letters; not sharing or displaying passwords; and only opening email attachments from reliable sources. Encourage your staff to use the web responsibly, and stay vigilant when outsiders are in the office. Monitor access to the network, including memory sticks and other plug-in devices, which can be used to steal company information.

Protecting your business against phishing, vishing and smishing
  • Be cautious of how much information you reveal about your company via social media platforms
  • Do not assume a caller is genuine because they know information about you or your company – fraudsters are skilled in collecting enough information to sound convincing
  • Do not open emails that you suspect could be spam
  • Never enter any personal or security information on a site accessed through a link in an email
  • Never open attachments from senders you are unsure of
  • Be cautious of callers who attempt to gain information from you – “I want to check a payment you made today”. Rather than, “I want to check a payment of £5,000 you made today in favour of XYZ Ltd”. The former may be trying to get you to divulge information that can be used against you later.
  • If you are suspicious, terminate the call
  • When ringing back to verify the contact, use your usual contact number, not one provided in the suspect correspondence
  • On sites that require you to input sensitive information, look for “https” in the website address – the “S” stands for “secure”
  • Ensure there is a padlock symbol in the URL address bar – this shows that your selection is secure
  • Remember that your bank may ask you for some information, but will never ask for your full password or PIN, provide you with details to make a payment, or request that you grant them access to your systems or PC
  • Familiarise yourself with what your bank will and won’t ask you if they wish to verify payments
Protecting your business against invoice fraud
  • Make your staff aware of this threat
  • Check notifications and invoices received carefully to see if the document looks like a counterfeit
  • Check that the email address the message comes from does not look odd, such as by ending in”.org” when it should end in “.com”.
  • Always call your supplier, using contact details you have on file (not those supplied in the message – that will be the fraudster) to confirm any changes before effecting them. Ensure that you validate the exact bank detail changes you should be making, in full
  • Consider setting up single points of contact with the companies you pay regularly
  • Consider adopting dual control procedures for any changes in payment information
  • Use leveraging technology that ensures invoices are matched with purchase orders, flagging any rogue invoices
  • Regularly conduct audits on your accounts
Cyber risk insurance
Insurance is an essential part of your cyber security strategy to help you to recover quickly after a breach and cover the costs involved such as:
  • Bringing in experts to support your team
  • Managing any negative press coverage and crisis containment
  • Third party liability
  • Repairing and restoring systems following an attack
  • Extortion costs you may have to pay following a ransomware demand
  • Legal advice
  • Business interruption costs
Vulnerability assessment – preventing an attack before it happens
CLA have partnered with cyber security specialists Ilicomm, who can offer a vulnerability assessment.

Their vulnerability assessment programme will not only reveal as yet undiagnosed problems, but will highlight weaknesses and recommend the explicit technical controls required to mitigate the risk to an acceptable level.

To find out more about cyber security and how to protect your business please call, or request a call back and one of our account executives will contact you.