Preparing to return to work
The Prepare, Inform, Prevent, Recover Approach
To assist you Cardinus Risk Management have developed the following guidance using the Prepare, Inform, Prevent, Recover (PIPR) approach.
Prepare:
Get ready to return to work and identify your return to work plan. This should include the following;
- Leadership team discuss and agree the business return to work programme
- Plan to prepare your building for occupancy
- Arrange to conduct a pre-occupancy inspection and arrange a pre-occupancy deep cleaning programme
- Train your Facilities Manager and cleaning teams on good hygiene matters and establish a daily cleaning schedule
- Review any service which may present a health issue and establish how you can minimise risk
- Test all emergency and life safety systems
- Agree who will return to work and consider the following:
- Workplace distancing and space availability
- Work routines to achieve workplace distancing
- Vulnerable or at risk staff
- Staff who have child or care responsibilities
- Travel arrangements to, where possible, reduce the need for public transport
- Establish workspace distancing protocols based on Government advice. This should be considered for the following:
- Staggered arrival and departure
- Building entrance and/or exit protocols
- Workspace
- Pantries and any space where food is prepared and eaten
- Meetings internal
- Meetings with clients
- Security and Emergency arrangements
You also need to consider the consequences of increased anxiety caused by how the return to work may lead to workplace aggression and/or violence.
And importantly, establish a protocol to respond to expected spikes in the outbreak. This will ensure a quick response if you need to send your team home, you can do this effectively without disruption to service.
Inform:
Establish a return to work program and establish who will communicate with staff. The more senior the person, the better.
Arrange a welcome back to work program for staff and managers, to inform them of the ‘new’ workplace protocols. This includes:
- Workplace distancing protocol and building cleaning arrangements
- Travel and arrival arrangements
- This is particularly important for those who cycle to work or use changing facilities
- Relaxation of car share program, if in place
- Follow Government advice on use of public transport
- Working arrangements including breaks
- Seating arrangements
- Workstation health and hygiene requirements
- Eating and drinking and use of fridges for personal food
- Ill-health reporting and staff support program
- End of day protocols, where an alternative team may be working on site
- Travel to and from client sites or meetings
- Vehicle hygiene requirements and checks
- And keep reinforcing your health and hygiene messages as ultimately, they will keep people healthy and safe.
Prevent:
Ensure that health and hygiene is managed and maintained by:
Identifying key touch points in the workplace and providing appropriate sanitation stations to allow hands to be cleaned
- Washroom cleanliness
- Determining cleaning frequencies which need to consider an initial clean of surfaces and HVAC system
- Cleaning to consider core activities and staff provided with appropriate PPE and be visible to staff during the working day
- PPE is recommended for psychological control, rather than a safety measure
- Ensuring statutory testing is undertaken safely
Reviewing:
- Food preparation and server areas to ensure workspace distancing can be maintained
- Deliveries
- Waste Arrangements included specific arrangements for PPE worn by cleaners and FM Staff
- Cycle to work arrangements and changing facilities where provided
- Reinforcement of workplace distancing protocols
Recover:
The business recovery is a key stage. Leaders should monitor the effectiveness of the return to work program to ensure that it remains effective and is supporting those who have returned to work. It can also be used to restore confidence in the business.
Review lessons learnt from the outbreak and ask for feedback. Critique what you’ve learnt and use this to improve.
Review and update your Business Continuity Plan. Most organisations will have had their plan activated by the outbreak so we would encourage you to learn from this.
Finally, review what you’ve learnt from the period of time people have been working from home. Are there positives to be had? We believe that lockdown has reconnected families and given people time look at what’s important to them, so it might be time to look at how teams work in a different way!
The above should bring some structure to your return to work program but, there’s lots more to consider and the Solihull Insurance Brokers team are here to help you return to work healthily and safely if you require additional support.
Plan written by Cardinus Risk Management
Welcome to our newest member of staff
I am delighted to announce that Karen Cartwright has joined Solihull Insurance Brokers. On a personal level, I have known Karen for nearly 10 years and I am delighted and proud that she accepted my offer to come on board and cannot wait to see where we can go as a team.
Karen started her role as Private Client Manager, 1st April and has already helped secure a number of clients by showcasing her knowledge and understanding of insurance products along with the demands and needs of High Net Worth clients enabling her to provide tailored solutions to match our clients requirements.
Karen specialises in advising, arranging and handling personal insurance for High Net Worth individuals.
Karen prides herself on the service she provides to clients, she is committed to looking after each client's needs fully, including handing of claims from start until a satisfactory settlement is made.
Having been trained as a High Net Worth Underwriter it provides Karen with an advantage when working with insurers on behalf of clients.
Karen specialises in insuring:
High Networth Homes
Bespoke Homes
Listed Buildings
Stately Homes
Second Homes
Classic Cars
Performance Vehicles
Bespoke Vehicles
Travel Insurance
Yacht and Small Boat Insurance
Karen Cartwright Cert CII - Private Client Manager
Guidance for schools, childcare providers, colleges and local authorities in England on maintaining educational provision
As a country, we all need to do what we can to reduce the spread of the COVID-19 virus.
That is why the government has given clear guidance on self-isolation, household isolation and social distancing.
And the most recent scientific advice on how to further limit the spread of COVID-19 is clear. If children can stay safely at home, they should, to limit the chance of the virus spreading.
That is why the government has asked parents to keep their children at home, wherever possible, and asked schools to remain open only for those children who absolutely need to attend.
It is important to underline that schools, all childcare settings (including early years settings, childminders and providers of childcare for school-age children), colleges and other educational establishments, remain safe places for children. But the fewer children making the journey to school, and the fewer children in educational settings, the lower the risk that the virus can spread and infect vulnerable individuals in wider society.
Schools, and all childcare providers, are therefore being asked to continue to provide care for a limited number of children - children who are vulnerable, and children whose parents are critical to the Covid-19 response and cannot be safely cared for at home.
Vulnerable children include children who are supported by social care, those with safeguarding and welfare needs, including child in need plans, on child protection plans, ‘looked after’ children, young carers, disabled children and those with education, health and care (EHC) plans.
We know that schools will also want to support other children facing social difficulties, and we will support head teachers to do so.
Parents whose work is critical to the COVID-19 response include those who work in health and social care and in other key sectors outlined below. Many parents working in these sectors may be able to ensure their child is kept at home. And every child who can be safely cared for at home should be.
Please, therefore, follow these key principles:
- If it is at all possible for children to be at home, then they should be.
- If a child needs specialist support, is vulnerable or has a parent who is a critical worker, then educational provision will be available for them.
- Parents should not rely for childcare upon those who are advised to be in the stringent social distancing category such as grandparents, friends, or family members with underlying conditions.
- Parents should also do everything they can to ensure children are not mixing socially in a way which can continue to spread the virus. They should observe the same social distancing principles as adults.
- Residential special schools, boarding schools and special settings continue to care for children wherever possible.
If your work is critical to the COVID-19 response, or you work in one of the critical sectors listed below, and you cannot keep your child safe at home then your children will be prioritised for education provision:
Health and social care
This includes but is not limited to doctors, nurses, midwives, paramedics, social workers, care workers, and other frontline health and social care staff including volunteers; the support and specialist staff required to maintain the UK’s health and social care sector; those working as part of the health and social care supply chain, including producers and distributers of medicines and medical and personal protective equipment.
Education and childcare
This includes childcare, support and teaching staff, social workers and those specialist education professionals who must remain active during the COVID-19 response to deliver this approach.
Key public services
This includes those essential to the running of the justice system, religious staff, charities and workers delivering key frontline services, those responsible for the management of the deceased, and journalists and broadcasters who are providing public service broadcasting.
Local and national government
This only includes those administrative occupations essential to the effective delivery of the COVID-19 response, or delivering essential public services, such as the payment of benefits, including in government agencies and arms length bodies.
Food and other necessary goods
This includes those involved in food production, processing, distribution, sale and delivery, as well as those essential to the provision of other key goods (for example hygienic and veterinary medicines).
Public safety and national security
This includes police and support staff, Ministry of Defence civilians, contractor and armed forces personnel (those critical to the delivery of key defence and national security outputs and essential to the response to the COVID-19 pandemic), fire and rescue service employees (including support staff), National Crime Agency staff, those maintaining border security, prison and probation staff and other national security roles, including those overseas.
Transport
This includes those who will keep the air, water, road and rail passenger and freight transport modes operating during the COVID-19 response, including those working on transport systems through which supply chains pass.
Utilities, communication and financial services
This includes staff needed for essential financial services provision (including but not limited to workers in banks, building societies and financial market infrastructure), the oil, gas, electricity and water sectors (including sewerage), information technology and data infrastructure sector and primary industry supplies to continue during the COVID-19 response, as well as key staff working in the civil nuclear, chemicals, telecommunications (including but not limited to network operations, field engineering, call centre staff, IT and data infrastructure, 999 and 111 critical services), postal services and delivery, payments providers and waste disposal sectors.
If workers think they fall within the critical categories above, they should confirm with their employer that, based on their business continuity arrangements, their specific role is necessary for the continuation of this essential public service.
If your school is closed, then please contact your local authority, who will seek to redirect you to a local school in your area that your child, or children, can attend.
We are grateful for the work of teachers and workers in educational settings for continuing to provide for the children of the other critical workers of our country. It is an essential part of our national effort to combat this disease.
Watch prices on the increases!
Over the mayhem of recent months you may have missed that Rolex has increased the price of its new watches in the UK by an average of 7.4% as of 1st January 2020.* A white gold Daytona is now an extra £1,500 to purchase and a 40mm Rolex Day-Date in 18ct white gold is expected to increase by over £2,000 from £28,850 to £30,985. According to a report from Watch Pro, this price rise was expected after several major watch brands hiked prices last year.
Last October OAK published an article looking at how watches have become highly collectable items due primarily to the fact they take up little space and incur no Capital Gains Tax on the proceeds of a sale. We also highlighted the huge increases some of these watches have seen in the past 20 years. Read more here.
Why is it important to have the correct valuations for jewellery and watches in place?
We recommend valuations are carried out every three years as often the price of, for example gold or precious gems, can fluctuate and having an item that has not been valued for several years may leave it exposed if a claim is made.
It may not be until a client needs to claim that they realise a shortfall may occur through a lack of an up to date valuation. Taking the time to acquire jewellery and watch valuations not only provides valid documentation that the client owns the item in question but also means if a claim is submitted the process can, hopefully be resolved for the client more swiftly and is much less distressing.
When insuring a watch there are a few details that insurers need to know.
- Has the item been bought to wear or is it for a watch collection?
- The make/model/serial number, details of any modification and a description of the item will need to be provided.
- In addition, we would like to know if the item has been purchased new by the insured, if not from where it was acquired.
- Does the client have the box and papers for the item?
- If it is valued in excess of our single article limit is there a valuation from The National Association of Jewellers, Fellows of the Gemmological Association or a brand authorised retailer.
Providing insurers with these details also ensures clients know what they insuring. Some watches are highly collectable and have long waiting lists so replacing a lost or damaged watch could prove problematic. It is therefore important that attention is drawn to this when such items are purchased.
*https://usa.watchpro.com/breaking-news-rolex-uk-hikes-new-year-prices/
Increasing cost of Motor Insurance
Not a day goes by where we don't hear someone complain about their motor insurance premium going up. There are a number of factors that this could be down to including the continuous rise in cost to fix our vehicles as the technology in them becomes more sophisticated - however, one main reason for the increase in premiums is the increase in numbers of uninsured drivers. Do you know someone that drives without insurance or tries to get around the system, well they are costing you money.
The Motor Insurance Bureau in cooperation with the Police are trying to crack on uninsured drivers. Please use the link below to get a greater understanding of the costs involved.
https://www.mib.org.uk/media-centre/news/2019/october/one-injured-every-20-minutes-police-launch-national-campaign-to-protect-the-public-from-uninsured-drivers/
Working safely with display screen equipment
As an employer, you must protect your workers from the health risks of working with display screen equipment (DSE), such as PCs, laptops, tablets and smartphones.
The Health and Safety (Display Screen Equipment) Regulations 1992 apply to workers who use DSE daily, for an hour or more at a time. We describe these workers as ‘DSE users’. The regulations don’t apply to workers who use DSE infrequently or only use it for a short time.
How to protect workers’ health
The law applies if users are, for example:
- at a fixed workstation
- mobile workers
- home workers
- hot-desking (workers should carry out a basic risk assessment if they change desks regularly)
Employers must:
- do a DSE workstation assessment
- reduce risks, including making sure workers take breaks from DSE work or do something different
- provide an eye test if a worker asks for one
- provide training and information for workers
Incorrect use of DSE or poorly designed workstations or work environments can lead to pain in necks, shoulders, backs, arms, wrists and hands as well as fatigue and eye strain. The causes may not always be obvious.
More DSE guidance
HSE’s leaflet Working with display screen equipment gives more information about how to comply with the Health and Safety (Display Screen Equipment) Regulations 1992.
You can find detailed advice on the regulations in Work with display screen equipment.
Advice on using DSE if you’re pregnant or have epilepsy is available.
Construction company fined after worker injured in fall from height
A Sheffield construction company has been sentenced for safety breaches after a self-employed general builder fell seven metres onto a concrete floor at a site in Sheffield.
Sheffield Magistrates’ Court heard how, on 11 April 2018, the builder was working for and under the control of Clear Property Solutions (SY) Limited. He had just finished installing a flat rubber roof on a dormer extension at the rear of the domestic property in Abbeydale Road, Sheffield, South Yorkshire. He was exiting the flat roof onto a scaffold using an untied unsecured folding ladder when the ladder slipped, and he fell onto the concrete floor below.
The 34-year-old builder sustained shattered heels and a fractured skull resulting in swelling and bleeding on the brain following this incident.
An investigation by the Health and Safety Executive (HSE) found that Clear Property Solutions (SY) Ltd had not completed any risk assessments or method statements or construction phase plan for this works. Operatives on the site were also not trained in work at height.
Clear Property Solutions (SY) Limited of John Street, Sheffield pleaded guilty to contravening Regulation 6 (3) of the Work at Height Regulations 2005. The company has been fined £30,000 and ordered to pay £1302.60 in costs.
After the hearing, HSE inspector Stuart Whitesmith commented: “This incident could so easily have been avoided by simply carrying out correct control measures and safe working practices.
“In this case the builder suffered life-threatening injuries which could have been avoided by installing guardrails around the perimeter of the flat roof, with a gate and secured ladder access.”
*information provided from HSE website.
Attention all landlords: ‘10 of the best’ available for you
Finding relevant and pertinent insurance protection for commercial and residential properties can be a struggle for landlords, but as your broker, we have access to market leading cover offering all that a landlord requires.
We can help landlords navigate what can be a huge issue – the potential trap of the sum insured and the insurance law of ‘average’. Now it is possible to steer clear of the pitfall of underinsurance, if an RICS-accredited chartered surveyor’s professional valuation is provided when policy cover is taken out.
This cover rightly lays claim to offering ‘10 of the best’ – elements that landlords have previously struggled to find in a commercial or residential landlords’ insurance policy, or for which an extra charge has typically had to be paid, making our exclusive option well worth considering.
Automatic accidental damage cover and subsidence cover are offered as standard – the latter being a real bonus after last year’s heatwave and drought.
Another key area ticking a landlords’ box is rental income protection, providing cover for lost rental income should damage occur before a new tenant moves in. Any costs incurred in housing them elsewhere will also be picked up as per the policy details.
There is not only protection for fixtures and fittings, outbuildings and annexes, but also for components of the property, such as walls, fences and car parks, and those more likely to be found in a high net worth rental property, such as a tennis court.
Scenarios such as flood, lightning and explosion are covered, along with theft cover and tenant damage protection. Whether property is damaged by a leakage of oil, or an infestation of vermin, we can ensure you will have cover for the agreed cost of repairs and reinstatement.
The exclusive arrangement to which we have access also protects landlords against outbreaks of infectious diseases within a mile of their property, which might render their properties impossible to access. Up to three months’ rent will be covered if that is the case.
Costs incurred via the legal obligation to recycle items that have been left at the premises by fly-tippers can also be claimed. Should a landlord with a portfolio of properties accidentally forget to name one property, that is seen just as a natural mistake.
Whilst landlords’ covers continue to focus on practical losses, such as the provision of replacement keys and modern-day issues such as unauthorised occupants and the utility bills they may rack-up, the world of landlord insurance is also embracing less tangible losses.
Reputational damage is one of these and our exclusive option offers up to £2500 of PR support to handle a media crisis and carefully manage a landlord’s image.
Such covers provide a real step-up for landlords who need wide-ranging coverage for their property. Discovering how this can protect your portfolio can be done in just one phone call, so contact us now.
Intellectual Property (IP)
What is it?
Intellectual Property (IP) is something unique which you physically create. An idea on its own does not count as Intellectual Property.
Having the right IP protection helps prevent people stealing/copying:
• Names of products/brands
• Inventions
• Design or look of products
• Written words or items made/produced
You own IP if you:
• Created it
• Bought it from the creator or previous owner
• Have a brand that could be a trade mark i.e. a well-known product name
IP can have:
• More than one owner
• Belong to individuals or businesses
• Be sold or transferred
How do you protect it?
Protecting IP makes it easier to take legal action against someone who tries to steal or copy your IP.
The type of protection depends on how the IP was created. Some protection is automatic and others have to be applied for.
Automatic:
Copyright – Written and literary works, art, photography, web content and sound recordings etc.
Design right – Shapes of objects
Protection for which you must apply:
Trade marks – product names, logos, jingles (application can take up to 4 months)
Registered designs – appearance of product including: shape, packaging, patterns, colours, decoration (application can take up to 1 month)
Patents – inventions and products, e.g. machine and machine parts, tools, medicines and software (applications can take up to 5 years)
by Aoife Woulfe, Tokio Marine Kiln, Syndicate 510, Lloyd’s of London (for the FiSure Newsletter, March 2017)
Insurance
Organisations spend millions of pounds on developing products, services and software which are often protected by Patents, Trade Secrets and Copyrights. They also spend hundreds and thousands of pounds on building the brands under which these products, services and software are sold, which are protected by Trademarks, Copyrights and Designs.
Following the substantial investment in the development and registration of IP, the battle is still not over. Organisations must be willing to make the additional financial investments needed to enforce these rights against competitors, utilising complex legal systems to do so where necessary. Businesses that manufacture, market or offer goods or services for sale, are also exposed to IP risk, be they competitors or just chancers, extending the scope of their IP rights so that they can either obtain an injunction, preventing the products being made/sold, or obtain financial compensation.
If all fields were equal, every company would have the necessary funding to support such enforcement actions or defend their businesses from competitors’ suits. This is not however how the business world works. Let’s take one such recent case as an example:
‘Company A is a London-based start-up in the process of securing second-round funding for an innovative App which operates as a personal assistant for busy professionals. One of the most interesting features of the App is the means by which it facilitates navigation to and from meetings. The App is tipped for big things and has not gone unnoticed by Company B, a global mapping service company. Company B issued a 104 page cease and desist letter alleging the use of named functions on Company A’s App would cause confusion with its own mapping service App, in which they had invested millions of dollars promoting. In this case, Company A had no other option than to back down and change the name of its App, as it could not afford to fight the case.’
David v Goliath cases like this one are becoming more common as industry leaders attempt to stifle innovative fledgling companies before the start-up has even considered itself as a ‘competitor’. It doesn’t stop there: the media is dominated by competitor versus competitor IP lawsuits, as demonstrated in the ongoing titanic battle between Apple and Samsung. Making the situation ever more perilous, IP lawsuits do not come cheap. The World Intellectual Property Office (WIPO) estimates the average cost of an IP lawsuit in the US to be between US$3m and US$10m. The question then arises – how can companies, be they large or small, fend off such attacks on their IP, while protecting their balance sheet from sizeable representative fees and the considerable liabilities awarded by the courts? One option is Intellectual Property Insurance.
Solihull Insurance Brokers offer IP insurance cover which can be tailored to clients of all sizes from all industries. IP Infringement Liability Insurance provides representative’s fees and expenses, and the liability where damages or settlements are incurred, in defending claims against alleged IP infringement. This coverage can also be extended to defend against proceedings brought against a third party licensing the insured’s IP, and with whom a contractual indemnity exists. Additionally, Small and Medium Enterprise clients may be interested in Enforcement (Pursuit) coverage, which can fund representative’s fees and expenses, assisting an organisation in enforcing their IP rights against those they perceive to be infringing. These new instruments are just a snapshot of the extensive IP offering from specialist insurers. Other options for coverage include claims against the ownership, validity or title of an organisation’s IP or contractual disputes including non-payment of royalties and breach of contract.
Whatever the chosen strategic option, as the world continues to become increasingly focused on the intangible, it is important that there is a strategy in place to meet the ever-growing exposure. If an organisation loses its ability to produce its products or supply its services due to a competitor’s IP challenge via legal proceedings, they are unlikely to survive without the funding to fight back.
To discuss your insurance risk please contact Harrison Law on 01675 446546 or email hlaw@solihullib.co.uk.
Cyber - A Genuine Threat
Please don't think that if you are an SME you are safe!! Cyber crime is a real growing threat.
The criminals use automated scanning systems which fire all the time. It is not targeted attacks, once they find an open portal they will connect to it and see where it goes.
Target – A retail business in the USA were hacked via a Third Party Party website as their defences were not as sophisticated.
The Government hold Cyber crime up there with terrorism in terms of threat to the UK.
Cyber Crime is a real growing threat.
SME’s struggle to combat due to lack of resources and cost
Point of Sale (POS) attacks are most common and can be done through anything with an open internet portal, i.e. electronic tills etc
Anything with an IP address can be affected, even fridges have IP addresses which can be accessed and temperature manipulated etc…
Healthcare records are being targeted along with retail outlets.
Denial of Service attacks are for sale giving easy access to disgruntled customers/former employees etc…
Useful websites -
UK Cyber Security Strategy - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/60961/uk-cyber-security-strategy-final.pdf
CiSP – free tool for businesses www.cert.gov.uk/cisp
Action Fraud – www.actionfraud.police.uk - UK’s national fraud and internet crime reporting centre
Get Safe Online – www.getsafeonline.org – Free expert advice on staying safe online.
Cyber Street Wise – www.cyberstreetwise.com –
Government 10 Steps to Cyber Security - https://www.gov.uk/government/publications/cyber-risk-management-a-board-level-responsibility
Cyber Essentials Business Health Check - https://www.gov.uk/government/publications/cyber-essentials-scheme-overview - This will become mandatory for companies with government contracts!!!
Questions –
Do you know the value of your data?
Do you know where your data is stored?
Who has access to your data?
What would you do if you were subject to a data breach?
Who would you report a data breach too, are you obliged to report it?
For more information on how to protect yourself should the worse happen please call or email me 01675 446546 or hlaw@solihullib.co.uk
Directors & Officers Insurance - Who needs it and why?
The simple answer is everyone!
Common Misconceptions
‘’Isn’t D&O cover only for only for those running publicly traded or very large businesses?’’
‘’I’m never going to be in a position where I could be sued by one of my employees or stakeholders.’’
‘’It’s too expensive to consider on top of all of my company’s other insurance costs.’’
Just some of the reasons D&O Insurance should be in your budget;
Protection in case of bankruptcy or insolvency
If faced with bankruptcy or insolvency, creditors may pursue legal action against directors if they feel that they have not acted in their best interests.
Directors’ personal assets are at risk
If a director has been accused of breaching their duties, they are personally liable to defend the claim. Their personal assets are potentially at risk if they do not have adequate D&O cover.
Investigations by regulators are getting more and more common
Investigations and fines imposed by a regulator or body such as the Health & Safety Executive are one of the primary drivers of claims in the current UK business climate.
SMEs are just as vulnerable as large companies
SMEs are not exempt from D&O claims, they face exactly the same risks and regulations as their larger peers, but often do not benefit from in-house HR or legal teams.
D&O claims are NOT covered under any other liability policy
A common misconception is that alleged misconduct by directors or companies is covered under other liability policies such as Professional Indemnity.
Defending a legal action can be costly
Legal costs for defending allegations against the company or one of its directors can often run into tens of thousands of pounds.
Employment practice claims remain a large threat to directors
In an increasingly litigious society employment practice claims such as sexual harassment or wrongful dismissal can result in astounding settlements.
D&O insurance is more affordable than ever
A D&O policy can cost from under £500 per year, yet the total cost of a D&O claim can run into hundreds of thousands, if not millions of pounds.
Claims Examples
Directors & Officers Cover
Pollution
A manufacturer employed a waste disposal contractor to dispose of old oil. Contrary to the manufacturer’s expectations, the contractor dumped the oil in a field and then became untraceable. The Environment Agency brought criminal proceedings against the manufacturer’s directors and considerable defence costs were incurred to achieve their acquittal.
Civil Fines and Penalties
Under the Finance Act 2009, the Senior Accountant Officers (SAO) of large companies have a duty to take reasonable steps to ensure that the company establishes and maintains appropriate tax accounting arrangements. A duty is placed on the SAO to provide HMRC with particular documents on an annual basis, which meet certain requirements. The SAO of an insured company was fined £5,000 for not complying with their duty, as he did not provide the annual certificate to the HMRC.
Corporate Liability Cover
Corporate Manslaughter (Defence costs)
Four teenagers drowned after a disastrous canoe trip. Criminal proceedings for corporate manslaughter were brought against the manager of the company that organised the trip and a separate action was brought against the company.
Employment Practice Liability Cover
Employment Practice Liability
A team of female employees brought an action against their employer over claims that they were being paid less than their equivalent male colleagues. Their action was successful and the court awarded them compensation of £10,000 each.
7 top tips for arranging Business Interruption (BI) Insurance
Business interruption (BI) insurance provides a lifeline following a loss, supporting organisations financially until they make a full recovery. However, inaccurate sums insured and inadequate indemnity periods are a major source of underinsurance, jeopardising the chances of recovery for many businesses. The following tips will enable you to arrange the correct level of BI insurance.
1. Have a plan
Planning how to respond to potentially harmful events is vital for any business, and an essential first step in choosing the correct Business Interruption cover. Business continuity planning is a valuable exercise that helps increase an organisation’s resilience through anticipating potential losses and planning how best to respond. It is advisable to record key findings in a formal business continuity plan (BCP), which should remain under regular review and testing, and serve as a core risk management tool. For example, should a key supplier suffer a major loss, a good BCP might detail arrangements with alternative suppliers that could quickly meet urgent customer orders. In addition to boosting resilience, considering potential loss scenarios is the best way of identifying much of the information needed to set suitable Business Interruption cover levels. For example, without fully understanding how an organisation’s variable costs will change following a loss, it will not be possible to set an accurate gross profit sum insured (see tips 3 & 4 below). Equally, without contemplating potential worst-case scenarios, it will not be possible to choose a suitable maximum indemnity period (see tip 5 below).
2. Choose the cover that is right for you
There are three main types of Business Interruption cover:
• Loss of gross profit
• Loss of gross revenue
• Increased cost of working
Loss of gross profit is the most common form of Business Interruption cover, but does feature certain complexities that commonly lead to underinsurance if approached incorrectly. It is therefore important to fully understand how each type of cover operates and carefully assess which is best suited to an organisation’s particular needs. For example, loss of gross profit is specifically designed for manufacturing-type risks and recognises that a downturn in production will actually lead to some cost savings as well. These savings are known as ‘uninsured working expenses’, and form an important part of the gross profit sum insured calculation (see tip 4 below). For organisations with few, or no, uninsured working expenses, a gross revenue basis is likely to be the more suitable basis of cover. Business continuity planning will enable you to understand how resilient an organisation’s operations are, and the likely impacts following a loss.
3. Approach calculations properly
Business Interruption claims are settled by reference to specific formulas listed in the policy wording. As with all sums insured, it is essential to approach BI calculations correctly in order to avoid underinsurance. Calculating loss of gross profit sums insured is where many experience difficulties, and where underinsurance frequently originates. A leading reason is that an accountant’s definition of ‘gross profit’ differs considerably from the figure required for insurance purposes. The former deducts all production costs, whereas the latter recognises that some costs will continue following a loss and therefore need to remain in the sum insured. Not recognising this important distinction frequently leads to figures being provided that do not follow the calculation stipulated in policy wordings, resulting in significant levels of underinsurance.
Common pitfall – ‘Gross Profit’ definition
4. Take care with ‘uninsured working expenses’
Uninsured working expenses (UWEs) form a vital part of the insurable gross profit calculation. If insuring on a loss of gross profit basis, it is important to fully understand the meaning of UWEs and only specify costs that truly fit. UWEs are costs that vary in direct proportion to a reduction in turnover (i.e. if turnover reduces by 30% then that cost will also reduce by 30%). UWEs can often include items such as raw materials, production wages and freight. However, it should never be assumed that these costs are always UWEs. This is something that can vary between organisations, and needs to be identified via business continuity planning. Routinely subtracting certain items during the gross profit calculation is a common source of underinsurance. Another common error is to only think in terms of total losses, whereas the majority of losses are likely to be partial. For example, consider a factory that sends shipments via weekly containers. In the event of a total loss, where production stops completely, this cost should cease, as there are no products to ship. However, following a partial loss, it is likely that this cost will actually remain the same, as weekly shipments will still need to be made. Freight is therefore not a UWE for this organisation, as the cost will not vary in direct proportion to any reduction in turnover.
5. Maximum indemnity periods - be conservative
A maximum indemnity period (MIP) is the time following a loss during which Business Interruption claims can be made. If the MIP expires then claim payments will cease, even if the sum insured has not yet been exhausted. Setting an adequate MIP is therefore just as important as calculating an accurate sum insured. BI insurance is designed to support policyholders until they recover to the position they were in prior to a loss – i.e. return to their former profitability. A common source of underinsurance is to think that this is simply the time taken to reinstate damaged property. However, once an organisation’s property is reinstated, an equal or greater amount of time is often needed for activities such as recruiting staff, commissioning equipment and, vitally, winning back lost business. Additionally, there is a vast range of circumstances that can delay an organisation’s recovery. Not contemplating worst-case scenarios, either by not using proper business continuity planning or being too optimistic about recovery times, is a frequent source of underinsurance. MIPs should reflect the maximum time it could take a business to return to its former level of profitability based on worst-case scenarios.
6. Adjust sums insured in line with MIPs
A simple, yet common mistake, is to not alter sums insured in line with any changes to the MIP. For example, if changing from a 12 month to a 24-month MIP, then the underlying sum insured may need to at least double, as it is now applied to double the length of time. However, this is only a basic calculation, with further consideration needed to ensure sums insured remain adequate for the full length of the MIP (see tip 7).
7. Account for future trends
While cover may be adequate at inception, organisations do not remain static, with revenue and profitability changing over time. BI insurance is designed to put the policyholder back in the position they would have been had they not suffered a loss, and sums insured need to take account of future business trends in order to avoid underinsurance. For example, should an organisation suffer a loss towards the end of a 12 month policy period, and it then takes 24 months before they fully recover, that is 36 months after which the BI cover levels were initially set. If that business was growing at a constant rate of 20% per year, then it would have grown significantly by the end of those 36 months had it not suffered the loss. To ensure cover is adequate for the duration of the MIP, the sum insured needs to reflect both current and future circumstances, accounting for any anticipated business trends.
Property Insurance
Most businesses have some form of property insurance whether it is Buildings cover and everything in it or simple office contents/equipment or stock.
Whatever cover you choose, the following will help to avoid underinsurance and ensure policies deliver the level of cover required.
https://www.solihullinsurancebrokers.co.uk/s/Top-property-tips.doc
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