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Insuring commercial property can be complex.
Commercial buildings come in all shapes, sizes and material construction. They generally need specialised heating, lighting and ventilation systems and the flexibility to cater for a variety of businesses or tenants.

Commercial_Property_InsuranceInsurers will assess multiple factors when they are calculating premium costs. A commercial landlord or property owner will need to provide details such as:
  • Location and any risks such as flooding
  • Type of construction and materials
  • Fixtures and fittings
  • Security
  • Type of industry using the building
Underinsurance
One of the regular mistakes made when insuring commercial property is assessing the full rebuilding cost. When calculating the sum insured for building and contents, it can be easy to undervalue the full rebuilding and replacement costs. This will leave you with a shortfall if you need to claim for a total rebuild if the property is destroyed.

Often, commercial property insurers will work on a pro rata “condition of average clause”; for example, if you are claiming for a partial loss of 100k out of your insured value of buildings and contents of 200K and you are underinsured by 50% (the full rebuild value is 400K), you will only receive an amount minus the percentage you are underinsured (50% of 100K = 50K). This could have serious financial consequences when you come to make a claim.

Property owner’s liability
Commercial property owners will need property owner’s liability insurance to protect against claims from a third party due to an accident resulting in injury or damage to their property.
The amount of cover will be determined by the type of business and the risks involved.

Business interruption and loss of rent
Following the total loss of a commercial building through fire, flood or another event, it may take some time to rebuild or repair the property. During this time, you will be losing rental income and you may have to find alternative premises for your tenant.

The amount of insurance cover will depend on your type of property and how long rebuilding work is expected to take. Calculations will include time taken for clearance, planning permissions, rebuilding and replacement of fixtures and fittings. This will determine the indemnity period (12, 24 or 36 months).

Legal cover
This is usually offered as an add-on to your commercial property policy and covers your legal costs if you are involved in disputes for non-payment of rent, data protection or employment etc.

Insurance broker
An insurance broker will be able to help you assess your individual requirements and provide an accurate valuation to ensure your building is adequately covered.
24th July 2018

Surgeries insurance

Surgeries_InsuranceRunning a modern surgery, whether it’s doctors, dentists, veterinary or any other type is difficult enough without having to worry about adequate insurance cover.

Finding the right insurance policy to cover your surgery should be evaluated with care to make sure you are covered for the right replacement value and risk. Every practice is required by law to have employer’s liability insurance if staff are employed. You should also consider public liability, buildings and contents, business interruption and legal expenses.

Insurance brokers such as CLA can provide advice on property valuation, contents, legal expenses cover and any other insurance you may need such as business interruption.

Public liability insurance
Dealing with the public brings a multitude of risks and any business that is exposed to a claim for compensation should consider this cover a necessity, even though it is not a legal requirement. Defending a claim, even if not successful, can be very expensive.

Surgeries are often a higher risk than most business premises. A constant stream of patients, sometimes vulnerable or animals in pain can present volatile situations. A simple fall in surgery, personal assaults or damage to a patient’s property while on call are typical claims that can be covered.

Often included as part of your business insurance, public liability insurance can also be arranged as a standalone policy. Cover is generally for £5million; however, we recommend surgeries need up to £10 million depending on their local authority’s requirements or business risk.

Other cover can be arranged separately, if needed, for medical malpractice.

Buildings and contents insurance
Valuing your surgery to ensure sufficient cover is available for rebuilding may require an expert valuation to take account of special permanent fixtures you may have installed.

Contents cover will include medicines, vaccines, medical equipment, furniture and personal belongings. You will want to be adequately insured to be able to replace all these items at today’s prices. Regular valuations are recommended to include items brought in temporarily to deal with seasonal requirements such as flu vaccines.

Business interruption insurance
Often overlooked, business interruption insurance can be added to your policy to cover loss of revenue if an insured loss results in your surgery being closed for repairs.

If you experience a fire or flood for example and are unable to open your surgery for months while repairs are carried out, business interruption insurance will cover costs relating to the incident. Closure means loss of income, temporary relocation costs, storage or removal fees which are all covered.
Business interruption insurance will provide the financial support to keep your surgery operating and financially secure while repairs are carried out.

Legal expenses
Always worth considering because legal fees to defend disputes, including tax investigations by HM Revenue and Customs, can be very expensive. We recommend this cover because a single dispute can put a surgery in serious financial distress.

Surgeries Insurance
Insurance for surgeries requires specialist knowledge and experience for dealing with the specific claims incurred by a busy practice. CLA can provide advice and support when it comes to making a claim to ensure you keep your surgery protected to enable you to maintain your service to patients whether human or animal.
Many business owners are not aware of business interruption (BI) insurance or understand the benefits it provides. It is therefore easily missed when insuring your business against risks. If you use an insurance broker, they will usually assess whether this additional cover is needed for your business and offer it as an addition to your buildings and contents policy. However, if you use one of the online comparison websites, it would be natural to think your buildings and contents insurance would cover most eventualities.

Business interruption insurance is not necessary for all businesses but is crucial for some; for example, if you have equipment and machinery that is difficult to replace or carry a lot of stock that will take time to re-manufacture, this type of insurance cover could mean the difference between business survival and failure.

How does business interruption insurance work?
Cover is available as an add on to your buildings and contents insurance. If an insured risk affects the running of your business, or causes extensive damage to the buildings, machinery, equipment or stock, resulting in your business having to shut down for a period, the insurance will cover the financial losses, for example:
  • Loss of revenue due to closure.
  • Increased costs of working such as temporary relocation or equipment hire.
  • Additional employee costs for overtime or hiring temporary employees.
  • Temporary storage costs and removal fees.
  • Safety and security at temporary accommodation.
  • Loss of income from rent.
  • Long term effect of loss of sales and customers.
If your business is not in a position to recover quickly from a major incident, then business interruption insurance fills the gap.

For example:
Business_Interuption_InsuranceA fire engulfs a large section of your premises and damages equipment and stock. Your buildings and contents insurance will cover the repairs and replacement of equipment and stock, but this may take months to complete.

Flooding or water damage repairs can take months to make the building habitable again and unless you can easily relocate and hire machinery and equipment, your business could fail during the time it takes to start trading again.

Each business must assess their own level of risk and whether a major incident would be manageable without the financial support that business interruption insurance provides.

This is where an insurance broker can help. Talk to CLA (Risk Solutions), your local insurance broker in Sutton Coldfield to get a quote for how much it would cost to add business interruption to your buildings and contents insurance. Call 0121 321 4600

 
 
CCTV cameras are becoming more widely used by fleet operators as the systems improve and justification for use becomes more viable.

Criminal gangs running crash for cash scams and companies chasing no win no fee claims for motor injuries can cost businesses dearly in lost time, increased insurance premiums and injuries to employees. These incidents are on the increase and providing your driver is not to blame, installing CCTV cameras could save fleet operators thousands each year. Motor vehicle fleet operators (private and public-sector) are considered a good target for criminal gangs because they are required to have insurance cover for all their vehicles.

A recent case brought to court by transport company Abellio involved a couple who were claiming for serious injuries sustained in a crash with one of the company’s busses.

Subsequent CCTV footage found that the bus was only travelling at 5mph and the court ruled against the claimants. Abellio reclaimed all their costs in a high court action that saw the couple fined and given prison sentences.

An on-board CCTV system will also guard against theft or attempted theft and criminal damage by using the cameras as a visual deterrent and providing evidence for the police and insurance companies.

CCTV systems
There are a huge variety of systems on the market and the choice you make will depend on your priorities.

At a basic level, a single dashcam with an SD card to store the footage will be enough to record a front view; however, two cameras to cover the front and rear are a better option. Dual cameras are also available to cover interior and exterior of the vehicle, if needed.

The quality of camera and size of memory card are important factors. Most units provide continuous recording and will automatically overwrite old files as new footage is recorded so you don’t have to keep reformatting the memory card. A minimum size of 128GB of storage is recommended depending on the quality of the camera, how many cameras are installed and number of driving hours per day. However, there can be problems with on-board storage and memory cards such as tampering and losing or forgetting to install the memory card.

A better option is remote connectivity using 3G/4G live streaming. This option delivers high quality, real time viewing to a PC or mobile phone. Setting up a multi-camera system to give front, back and side views will provide the maximum protection.

Fleet_motor_insuranceMotor fleet insurance
Vehicle fleets include all types of vehicle from company cars and vans, HGVs, public transport and emergency services, waste disposal vehicles and taxis.

Fleet insurance policies are designed to cover all vehicles in the fleet under one policy. Cover includes the usual added benefits of courtesy cars, legal assistance and breakdown cover.

Fleet GAP insurance can be added to policies to cover any shortfall between the insurer’s market valuation and the vehicles replacement value; essential if your vehicles are leased.

Your insurance can cover any of your drivers to drive the insured vehicles in your fleet and you should include public liability insurance for any claims made against your drivers for negligence.

Fleet insurance is complex. To get the right cover and keep your insurance premiums to a minimum, you will need an experienced insurance broker such as CLA to guide you through the maze of options and policies available and find you the most cost-effective insurer. For example, if you have a CCTV system installed, some insurers may be able to offer a discount. We can offer advice on CCTV systems to help protect your drivers and vehicles, through one of our business partners.

Call 0121 321 4600 or go to the motor fleet insurance page on our website and use our “Fleet Calculator” to get an estimate for your fleet insurance.
 
 
 
Insuring all your valuable possessions such as homes, cars, and pets (and travel insurance) under one insurance policy is the modern way to save time and money for all your insurance needs.

Insurance_for_high_net_worth_clientsThe point where a portfolio of insurance products becomes more viable than individual policies is applicable to more people than ever before.

If you have a car worth £30,000 or more, a reasonably high value home and enjoy worldwide travel for business or pleasure, this type of policy is for you.

You can also include your pets under the same policy and items such as horse boxes and trailers together with second homes in the UK, either buy to let or holiday homes.

The policy can be tailored to your requirements and, as you would expect, you will have access to advice when setting up your policy and fast claims handling when you need it from our support team.

What can you expect?

Home insurance
In most cases buildings insurance is unlimited. Possessions are covered for all risks including accidental loss and damage anywhere in the world for up to 60 consecutive days.

Car insurance
Cars covered can include classic, sports, luxury saloons and other prestige vehicles. You can insure all the cars in your household as a family fleet providing at least one is worth over £30,000. European driving cover for 90 days is included as standard.

Pet insurance
Flexible cover for all your pets with claims paid directly to your vet to simplify the process. Up to £8,000 is paid towards vet’s fees for each pet insured and complimentary treatment such as acupuncture, aromatherapy, homeopathy, physiotherapy, osteopathy and hydrotherapy is included up to £1,000.

Travel
Worldwide cover for you and your family for business and pleasure. Emergency medical expenses, delays, cancellations and access to a personal service when you need it most, in an emergency.

One policy for your lifestyle
With one policy renewal date and optional interest free monthly payments, renewing your multiple insurance policies could not be easier.

Call CLA on 0121 3121 4600, your insurance brokers in Sutton Coldfield, to discuss your portfolio requirements with one of our account managers.

 
 
UK citizens are being bombarded with nuisance calls by unscrupulous companies chasing no win no fee claims for injury from motoring accidents, holiday illnesses or injury at work.

Their arguments are sometimes so convincing that usually law-abiding citizens are tempted into making an insurance claim for an injury or illness that was less serious or never sustained. Let’s not fool ourselves; to make such a claim is fraud and the courts are starting to clamp down on this behaviour.

Insurance_fraudA recent case involved a couple who claimed to have sustained serious injuries when their Volkswagen Bora collided with a bus run by transport company Abellio.

Following subsequent CCTV footage of the crash, it was found that the bus was not travelling at more than 5mph and a medical expert argued that the crash could not have caused the injuries they were claiming for.

The bus company took the couple to the high court for lying about their injuries and the result was a fine of £6,000 court costs and prison sentences for the couple.

The government is also concerned about the increase in claims, particularly the soft tissue injury (whiplash) claims. Under the new laws introduced in 2017, measures have been implemented that will reduce the number of claims and limit financial compensation. This will help reduce the insurance premiums for all motorists.

Insurance fraud
Fraudulent claims for insured loss fall into many categories; these are some of the most common:

1.Motor insurance fraud
Deliberate harsh breaking to induce an accident, often carried out by organised criminals to obtain vehicle damage and personal injury compensation. Sometimes multiple non-existent passengers are claimed to have been injured.

2.Application fraud
Not providing all the facts about claims history or penalty points when filling in an insurance form to obtain a reduction in premium.

3.Commercial liability fraud
Every business in the UK must have Employee Liability Insurance unless they are a sole trader. Fraud can be committed by the insured company and third parties. Claiming for a fictitious injury or exaggerating an injury or loss are the most common.

Reducing insurance fraud
The insurance industry invests £200 million each year to identify fraud*.

Insurance fraud is a serious crime which can have a major impact on perpetrators such as difficulty obtaining future insurance, increased premiums, damage to employment prospects and possible criminal conviction.

Insurers are committed to combating insurance fraud to keep insurance premiums down for honest policyholders.

If you are not sure what to fill in on your insurance form or what you can legitimately claim for after an incident, talk to your insurance broker who will always be able to provide you with the right advice.

*source https://www.abi.org.uk/products-and-issues/topics-and-issues/fraud/
 
 
 
 
 
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.