Archive October 2010

Tips for businesses in the run-up to Christmas

18/10/2010 in Business, Insurance Industry News

Businesses should be aware of the additional risks they face in the run-up to Christmas. Why not follow these top tips:

• Make sure your sums insured are adequate for increased stock

• Don’t block intruder alarms, sprinkler systems or fire exits with piles of Christmas stock

• Make sure you have alarms, sprinklers or other security equipment in good working order particularly if you are closing premises for any period over the Christmas holidays

• If you’re taking on additional staff, carry out thorough background checks and provide adequate training

• Consider extra security to protect your staff against drunken behaviour and prevent theft

• Regularly remove cash from tills during the working day and place takings within a safe (preferably with a time delay) – this will reduce the amount of cash stolen should a hold-up attack occur

• If large amounts of cash need to be banked or collected on a regular basis, then the safest method is to employ a recognised cash carrying company

• Be aware of how much money your policy will cover while on site, off site and during transit

Safe in security

18/10/2010 in Case Study, Insurance Industry News, Security

The security industry has many different facets. From the installation of physical security and alarms to manned guarding, door security and close protection.

The insurance requirements will differ depending on the type of work that is being undertaken. For instance, a company that is installing alarms will need to have efficacy cover. Efficacy cover will provide an indemnity if an alarm fails to perform its intended function and as a result the customer suffers a financial loss.

A company that a providing manned guarding will also require efficacy cover in case a guard falls asleep whilst a work and fails to prevent a break-in. They may also have a requirement for fidelity cover, which covers theft by employee. Insurance against loss of customer’s keys is also recommended.

A security company that provide doormen for pubs, clubs and events will probably be more concerned about cover for wrongful address.

Macbeth have solutions for the whole of the security industry. For more information contact Tony Gibbs on 0118 9452944 or email tony.gibbs@macbeths.co.uk

Why is it so difficult to insure single items?

18/10/2010 in Insurance Industry News, Jewellery and Watches

Insuring single items of high value jewellery can be a real problem. Most ‘standard’ home insurance providers are unlikely to cover items of jewellery worth over £10,000.

The reason for this is that insurance companies like risks that are balanced and, if the level of jewellery is disproportionate to the general contents sum insured, it will fall outside the acceptance criteria of most insurers.

So if you have been to Graff, De Beers or Tiffany & Co and have purchased an expensive item, what do you do to ensure you have the right type of cover for a realistic price?

Macbeth have a number of solutions. If you would like more details about jewellery insurance, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk

Tyre Fires

18/10/2010 in Insurance Industry News, Recycling Insurance

A recent spate of fires in factories recycling tyres and rubber is making insurers even more wary when it comes to providing material damage insurance. Always considered a high fire risk the market for insurance is contracting even further.

From a liability point of view, thing are also not looking good to with environmental concerns especially relating to water runoff pollution claims, following fire brigade attendance.

Macbeth still have markets willing to quote for tyre and rubber recycling risk. For further information contact Tony Gibbs on 0118 9452944 or email tony.gibbs@macbeths.co.uk

Drastically Underinsured

18/10/2010 in Private Clients, Testimonial

Macbeth are a pleasure to deal with and stand out from the competition by taking the initiative. They treat your problems as theirs and even spot them for you; as Paul did when he realised we were drastically underinsured on our buildings cover. I have yet to find another insurance broker, in my years dealing with the top names in the industry, who offers Macbeth’s personal service, professionalism & expertise and who is so proactive. I would recommend Macbeth to everyone who has high net worth and complex business insurance requirements

Prestige Vehicle Cover

15/10/2010 in Prestige Car Insurance

If you have invested over £50,000 in a prestige vehicle you should be really considering the wider cover options available to protect your valuable asset.

Although the premium will undoubtedly be more expensive the cover benefits are vastly superior.

Most standard insurance companies settle claims based on the market value at the time of a claim. There are however some specialist insurers who provide cover on an “agreed value” basis so you know exactly where you stand in the event of a total loss claim.

Other benefits of high value car insurance are:

Fully comprehensive cover whilst driving any vehicle that you borrow

A like for like courtesy car

No deduction for wear and tear following a claim and full original manufactures part, this includes tyres

Replacement of child seats following an accident, even if there is no visible damage

Full European use

Some insurers will offer preferential rates for a combined prestige car and high value home insurance. For further details, contact Be Butler on 0118 9452944 or email ben.butler@macbeths.co.uk

Taken to the cleaners!

15/10/2010 in Cleaning Insurance, Insurance Industry News

Some cleaning contractors may be exposing themselves to risk that are not insured by choosing to take the most basis form of public liability cover.
Although these contractors will undoubtedly be paying a lower premium, they will be exposing themselves to some risk that can be insured under the range of policies more specifically designed for the cleaning industry.

A specialist cleaning contractor’s policy will generally include the following risks:

• Damage to property being worked on
• The security to customers premises (i.e. a cleaner fails to lock up properly)
• Loss of keys
• Misuse of customers phones
• The treatment risk in respect of carpet cleaning
• Theft by employees (this can normally be cover for an extra cost)

For more information on the various products available please contact Tony Gibbs on 0118 9452944 or email tony.gibbs@macbeths.co.uk

IT consultants facing increased legal action from ‘dissatisfied’ clients

15/10/2010 in Insurance Industry News, Professional Indemnity Insurance

Hiscox, a specialist insurer, has today warned that the economic downturn is likely to expose IT consultants to potentially costly legal claims for delivering a product or service that clients allege does not meet their expectations…

Listing a defective product or service from an IT supplier as being the top reason for a breach of contract claim, the insurer urges IT consultants not to over promise and focus on better scoping of IT projects from the outset, and tighter management of client expectations. Cases of breach of contract, where a company claims its IT supplier has failed to deliver a product or service in line with an originally agreed contract, made up more than a third (36%) of all the professional indemnity claims dealt with by Hiscox in the IT sector over a four year period (1). Of the largest 100 IT claims handled and paid at Hiscox, the main causes of claims were (2);·

68% claiming defective product or services – ‘it didn’t do what they said it would do’ 60% claiming inadequate project management

56% claiming inadequate initial scoping of the project According to Hiscox, breach of contract claims could increase during an economic downturn where companies, who may be short of money, look to make cutbacks and reduce investment. IT projects often come under cost cutting scrutiny and some companies decide that they can recoup some of their original investment, or get out of an existing contract, by claiming their IT contractor or company has not provided them with the IT system or service they were promised.

Sam Franks, specialist IT risks underwriter at Hiscox, commented: “The current economic downturn highlights the importance of IT suppliers, big or small, properly scoping a project from the outset to avoid costly legal action. It is critical that they set down in the clearest terms what they intend to deliver with realistic costs and timelines, and then by careful management of the contract and client expectations, ensure any potential room for misunderstandings or disagreements is minimised.

“Many IT companies also do not realise that their existing Professional Indemnity insurance may not provide adequate cover. It is absolutely critical that IT contractors and companies, from the one man band operators right up to the multi-million pound IT businesses, check that their professional indemnity cover provides for breach of contract. They should also notify their insurer immediately if they suspect there might be a problem, which often first shows itself through an unpaid client bill.”

Employers Liability Crackdown

15/10/2010 in Employers Liability Insurance, Insurance Industry News

The Health & Safety Executive (HSE) are cracking down on employers who are neglecting to insure their compulsory employer’s liability risks. The HSE can impose fines of up to £2500 for any day on which an employer is without suitable insurance. If they do not display the certificate of insurance or refuse to make it available to HSE inspectors when they ask, they can be fined up to £1000.

Recent statistic revealing that up to 20% of small business may be running the risk with no insurance. Unfortunately, lack of knowledge is no excuse as far as the HSE is concerned and they have already set up a telephone helpline where employees can report their employers’ if they believe they do not have the correct cover.

For further advice on employer’s liability insurance contact Tony Gibbs on 0118 9452944 of email tony.gibbs@macbeths.co.uk

Asbestos in Farm Buildings

15/10/2010 in Insurance Industry News, Property Insurance

Asbestos containing materials were banned in 2006 in all new builds.

In 2006, the Control of Asbestos Regulations brought together three previous regulations regarding the management of asbestos in buildings. These regulations banned the use of Asbestos Containing Materials in all new builds.
This regulation requires employers and others – “dutyholders” to have effective arrangements in force for the management of asbestos in buildings for which they have control.

This means that, even though you may not own your farm, you may still be responsible for managing the risks arising from the presence of asbestos-containing materials in your premises. This responsibility may arise through a Contract of a Tenancy Agreement e.g. a full repairing lease.

The Regulations require the dutyholder to:

• Investigate whether Asbestos Containing Materials are present
• Check their condition
• Carry out a risk assessment
• Prepare a written plan specifying the measures to be taken to manage the risk
• Inform anyone who might disturb the Asbestos Containing Materials, or who might work on the material, of its presence
What do you need to do?

Find – you must carry out a risk assessment of your premises. Draw a plan of your farm buildings and mark the presence of asbestos.

Identify – if you are unsure of the type of asbestos or you are proposing to carry out any work on the buildings, arrange for samples to be taken using a UKAS accredited laboratory.

Condition – you must check what condition the material is in. Decide whether the asbestos should be removed or sealed, taking into consideration its location and condition.

Remove – arrange for any removal to be undertaken only using a licensed contractor.

Inform – inform employees and contractors of the presence of asbestos and make sure they do not disturb it

Record – keep a register and check the condition of the asbestos regularly by inspecting it.

Other implications of asbestos in farm buildings relating to insurance

The Employers’ Liability (Compulsory Insurance) Act 1969 makes it compulsory for all employers to insure against liability for injury or disease to employees arising in the course of their employment. It is also a requirement to retain either a paper or an electronic record of your insurance for 40 years. Asbestosis and mesothelioma disease can be present for many years before manifesting themselves. There are over 3000 deaths every year as a result of asbestos related illnesses. A claim against a former employer can arise many, many, years after their employment ceased – do you hold Employers’ Liability Insurance? The removal of asbestos costs approximately 4 times the cost of removal of other building waste. If you had a serious fire today, would your sum insured on your farm buildings be sufficient to not only rebuild your farm buildings but also pay for architects and surveyors fees and the removal of asbestos?

Health and Safety Regulations state that all buildings containing Asbestos Containing Materials should be identified with an appropriate sign. In the event of a serious fire, the Fire Brigade would be unable to enter a building if there was a possibility of asbestos materials being present. Even with breathing apparatus, they would be helpless and would have to stand and watch your livelihood go up in smoke.