Archive February 2011

Higher premiums for the ladies?

23/02/2011 in Prestige Car Insurance

Major changes could be afoot which will have a dramatic effect on motor insurance premiums. The European Court of Justice (ECJ) has finally announced that it will deliver judgment in the Test Achats case on 1 March 2011. This case challenges the legality of a European Directive which permits insurers to use gender as a risk factor when setting premiums and benefits under policies.

The implications are immense and would effectively mean UK insurers would no longer be allowed to use differential pricing of insurance policies for men and women in comparable situations.

Women under 21 especially could be significant out of pocket as their premiums offer differ by many hundreds of pounds from their male counterparts.

I’m interested in your thoughts.

First company Corporate Manslaughter ruling results in £385,000 fine

19/02/2011 in Management Liability Insurance

Last Thursdays, Cotswold Geotechnical Holdings was fined £385,000 following its conviction for corporate manslaughter which came earlier this week.

The conviction by jury follows a lengthy trial into the death of Alex Wright, a young geologist employed by the company, on 5 September 2008.  Mr Wright is believed to have died whilst investigating soil conditions in a deep trench, which collapsed and killed him.

Following the ruling there is likely to be an influx of further claims and settlements are likely to increase.

Macbeth can provide advice to directors who are worried about the consequences of this ruling.

Advice on reporting professional Indemnity claims

16/02/2011 in Professional Indemnity Insurance

If you become aware of any claims or circumstances which could lead to a claim being made, you must notify your insurers immediately and in writing. Failure to do so could prejudice your position. Notifiable circumstances cannot easily be categorised. Many situations can be recognised as potential claims before they actually become formal legal actions. You should look carefully at the notification provisions of your cover and be sure to follow them.

Danger signs include:

1. A verbal complaint from a dissatisfied customer or a threat of “taking the matter further”.

2. A letter of complaint alleging neglect, error or omission.

3. A customer refusing to settle or delaying settlement of an account for an unreasonable length of time.

These are indications of the type of circumstances that might arise but are not fully exhaustive.

If you are in any doubt as to whether a particular situation constitutes something that should be notified to your insurers, it is probably best to notify it in order to keep your interests protected.

Apart from notifying your broker immediately when you become aware of a “circumstance” you should be careful not to prejudice you or your Insurers’ position. This means that, ideally, you should do nothing.

If you must say anything, say that you are “looking into the problem” or some such holding remark or letter. Sometimes, what you can see as a very sensible step to take might, with hindsight, appear to have made the situation worse. This might leave you without insurance if the move was not sanctioned by your Insurers.

You should inform your broker immediately if there are changes to your business. Arrangements can then be made to amend your cover, if necessary. Failure to do this could lead to an uninsured loss. Only you know everything about your business, so the responsibility for full disclosure of information, both before and after cover commences, is yours. You should therefore check the accuracy of the information that you have provided.

For more information about professional Indemnity insurance, please contact Tony Gibbs on 0118 9452944.

Manual Handling – Advice for the cleaning sector

16/02/2011 in Cleaning Insurance

Our experience is that most claims in the cleaning industry sector are Employers Liability Insurance claims relating to manual handling. This includes any transporting or supporting of a load (including the lifting, putting down, pushing carrying or moving) by hand or by bodily force.

Lifting and carrying is the second most common cause of injuries for employees and causes some of the most serious and long-lasting injuries such as back pain and work-related upper limb disorders (WRULDs). Under the Manual Handling Operations Regulations 1992, employers have a legal duty to eliminate, if possible, lifting and carrying tasks which can cause injury. Where this cannot be done they must do a detailed assessment and reduce the risk to the lowest reasonably practicable level.

The weight of the load is not the only factor they must consider. The size and shape of the object; the height it has to be lifted; the ease with which it can be carried; the amount of twisting and stretching involved; the stability of the load; the space available; the suitability of the person; and the frequency of lifting are all equally important.

• Are there jobs, which involve dangerous or awkward lifting on the premises?
• What causes the risk of injury – the size, shape or weight of the load; the area where lifting is done; the ability of the worker; the frequency of lifting, etc.?
• If mechanical aids, trolleys etc., are provided to reduce the risk are they regularly maintained and suitable for the job?
• Does your employer provide training relevant to the handling jobs involved?
• Is racking and shelving where goods are stored secure and well maintained?
• Are ladders, kick steps, etc., suitable for the job and well maintained?

Deliveries to the back of premises should be made as close to the cellar or storage point as practically possible. Limit lifting as much as possible, especially for expectant mothers or any young persons, using trolley’s or hoists if provided for heavy items.  In many premises, roll cages are used to deliver goods. Many accidents occur when handling these cages:

• Are cages overloaded or badly packed when they reach the shop?
• Are loading bays and passageways free from obstruction?
• Are cages well maintained and replaced when damaged?
• In particular are the wheels in good condition?

Monitoring must take place to ensure the effectiveness of these measures and reassessment must be carried out where and when necessary.

Employees must make full and proper use of any system of work intended to reduce the risks of injury from manual handling activities.

Manual Handling Assessment and Associated HSE Guidance

According to the guidance, assessments should

• be suitable and sufficient
• be carried out by a competent person
• be kept up to date and revised where there has been a significant change or in the light of experience
• include a record of the significant findings
• take into account the tasks, the load, the working environment, individual capability and other factors

Good risk management will result in fewer claims and ultimately cheaper insurance premiums our clients in the cleaning industry. For more risk management or insurance advice, please contact Tony Gibbs on 0118 9452944.

Various questions should be continually asked about wastes

16/02/2011 in Recycling Insurance

1. Are containers lidded where required?

2. Are containers carefully stacked to avoid the danger of overbalancing during transport?

3. Is the driver (of the forklift truck, waste collection vehicle, etc.) aware of the hazards of the material being transported?

• Wastes awaiting disposal should be stored in a secure designated area which minimises potential harm to the environment, employees, disposal contractors and property, and which is properly supervised and regularly inspected.

• It is preferable that hazardous and non-hazardous wastes are stored separately. Safe access and egress must be provided both for the placing of wastes into storage and for the removal of wastes by transport and disposal contractors.

• All stored containers must be accessible so that they can be checked for leaks and deterioration in the fabric of the container. This checking is easier if the wastes are stored in rows or bays within a building or compound and not scattered in many locations around the site.

• All storage areas should be covered with a hard-standing material, resistant to corrosion and suitably impervious, to prevent percolation of waste or contaminated rainwater into the ground and potential contamination of groundwater in the event of a spillage.

• If hazardous liquid wastes are stored, the area should be bunded (i.e. surrounded by a well-constructed bank) to prevent run-off in the event of a spillage

• If flammable wastes are stored, then a no-smoking policy must be enforced.

For further information about insurance and risk management for waste & recycling companies please contact Tony Gibbs on 0118 9452944

Protecting Your intellectual property online

16/02/2011 in Cyber Liability Insurance

Online exploitation of intellectual property is rising according to new study

The UK is in the grips of a cybercrime wave with many businesses unaware of how their

brand is being used online following the release of a report investigating the serious issue of ‘brand jacking’.

The latest Brand jacking Index demonstrated an increase in the number of businesses falling prey to incidences of ‘brand jacking’ – when a third party registers a domain name that infringes upon or otherwise violates the rights of a trademark owner.

With many businesses unaware as to how to protect their Intellectual Property (IP) online, cybercriminals are able to buy relevant domain names and abuse the brand image for their own gain. Macbeth is asking businesses to review the value of their brand online and evaluate what cover they have to pursue those who infringe their IP rights?

Your brand is your good name, it is the embodiment of your reputation and drives business to your door, so any misuse of your brand online could have significant financial consequences. Yet, very few organisations make any attempt to protect themselves from such financial loss.

Each week, nearly 3500 domains are hijacked from rightful owners, any business could easily fall victim to brand and domain theft, which if left unchecked, can seriously impact the value of its trademark, as well its bottom line.

2008 saw significant rises in the incidences of cybercrime including ‘cyber squatting’ (registering a brand based domain name with the aim of selling it on to the brand owners at a profit) which rose by 18% and false association (registering a domain name similar to an existing brand in order to misdirect users who have typed a website address wrongly).

The Brand jacking Index states 440,584 instances of cyber squatting were identified in the fourth quarter of 2008 and 86,837 instances of false association. However, no less than 80 percent of the websites identified as fraudulent or abusive in 2007 were still online in 2008 with the majority of these hosted in the UK, the US and Germany.

Incidences of ‘phishing’ (sending bogus emails designed to mislead recipients into revealing passwords, credit card numbers and other sensitive information) are also increasing.

If an individual is successfully ‘phished’, they may be duped into divulging sensitive details such as passwords and bank account details The same is true for businesses, however the consequences can be more severe with not only an organisation’s sensitive information accidentally divulged, but also that of its customers. If a company is not actively working to protect its customers’ private information, it will be liable to prosecution.

As the Internet has transformed into a central component of daily life, so online brand fraud and abuse has grown steadily, devaluing IP, damaging hard-earned reputations and eating into profits. But those companies that take a proactive approach to protecting their assets and digital liabilities are those which are most successful in responding to this threat.

For more information on internet liability and cyber liability insurance, please contact Tony Gibbs on 0118 9452944.

Basic security & maintenance advice for businesses

16/02/2011 in Business, Business Combined, Factsheet

Be careful about cutting back on security and maintenance

In times of recession, crime increases dramatically. Some commentators anticipate a doubling of burglaries and fraud and computer crime is expected to grow substantially.  Arson by disgruntled ex-employee’s increases and expenditure on health and safety and risk management tends to reduce as costs are contained. The cumulative impact of all these pressures is likely to increase

claims and premiums for businesses affected and in the worse scenario result in withdrawal of insurance cover or a demand to substantially increase precautions at high costs.

At a time when business owners need to concentrate on retaining and growing customers and keeping the profit and loss account positive, distractions to deal with the results of crime etc are unwelcome and if possible avoided.

Now is the time to revisit plans, check them and reinforce the message to be especially careful.

Actions should include a review of:-

• Physical security at your premises, making sure that everything is working properly and staff have not become complacent in locking up etc. If there are any weaknesses in your security, it is a good time to rectify these. Good security can keep burglars out and stop arsonists getting in.

• Computer security, making sure that off-site duplication of data is being complied with, virus and hacking protections is robust and check that security at any outsourcer is being maintained.

• Internal systems, ensuring that audit requirements are being adhered to, stock control measures strengthened, references taken and spot checks made more regularly.

• Maintenance of buildings, plant, equipment and vehicles. Whilst some businesses might regard reducing these as a way of saving money, it is important not to let standards slip. Breakdown of key items could cost more in the long run and failure to carry out routine maintenance could cause difficulties in the event of a claim.  Please remember, policyholders are expected by Insurers to operate as if they had no insurance cover and not use insurance as a substitute for good practices.

If there are changes in security or other arrangements, please let us know so that we can notify your insurer to make sure your policy is not invalidated. Let us know immediately If you intend to leave any premises unoccupied or unmanned. You should also tell us if there is any change in your business activities, stock levels and profit expectations. We are, of course, more than willing to give any help or advice on any issue which may be troubling you.

Fleet Insurance – employers and duty of care

16/02/2011 in Factsheet, Motor Fleet Insurance

Employers are legally responsible for employees who drive whilst at work

Employers are legally responsible for employees who drive whilst at work. The employer’s responsibility also extends to ensuring that private vehicles used by employees on ‘company business’ are also operated in a lawful manner.

Management policy

1. Assign a senior manager with specific responsibility for managing driving at work.

1. Implement a Health & Safety policy, which incorporates a driving at work policy.

1. Routinely undertake record and act on the finding of risk assessments dealing with all aspects of driving at work including driver safety, vehicle safety and journey planning.

1. Ensure that every incident involving any vehicle driven on behalf of the company is recorded and that collective information is regularly analysed and action taken to reduce recurrence.

Driver safety

1. Provide a driver’s handbook that includes road safety guidance and sets out individual driver responsibilities, in support of the Company’s policies and procedures, e.g. what to do in the event of an incident.

Vehicle safety

1. Ensure that all employees driving on behalf of the company are initially vetted, inducted and regularly assessed, to establish that they are properly licensed, competent, suitably trained and medically fit to do so.

1. Ensure that when choosing vehicles to be used on behalf of the company, they are entirely suitable for their intended purpose and that utmost importance is placed on safety features.

Journey planning

1. Check whether a road journey is really necessary – and encourage the use of alternative modes of communication/transport where this is practical.

1. Ensure that necessary journeys are scheduled to a realistic timetable and are planned to take into account the essential need for adequate rest periods.

For further information on how good risk management can improve your fleet insurance premiums, contact Tony Gibbs on 0118 9452944.

Looking after unoccupied property

16/02/2011 in Property Insurance

The insurance implications of unoccupied premises

Unoccupied premises are an inevitable feature of the recession. The responsibility for these rests with the owner or the lessees dependent on the position at the time. Evidence shows that the prospect of damage or injury arising from empty buildings is high, even if only temporarily vacant, e.g. prior to sale or refurbishment.

Each year there are around 9000 fires in empty buildings. Other common problems include theft of contents or fixtures, vandalism, fly tipping and occupation by squatters etc. Empty buildings are also at risk of water damage due to inadequate maintenance/repairs, especially when coupled with infrequent site visits.

Owners have a legal ‘duty of care’ to third parties; such as authorised people entering the premises, whether they are employees, estate agents, surveyors, buyers, etc or even trespassers including children who may simply use the area as an unofficial playground.

Due to the increased risks involved, premiums charged by insurers are often higher than when they are occupied. In addition special terms are often applied with cover often limited to fire, aircraft, lightning and explosion. If a building owned or occupied by you is vacant even if temporarily, you should let your broker know immediately so that they can tell your insurers.

For advice on the best type of insurance for unoccupied properties, call Ben Butler on 0118 9452944.

Love is in the air

15/02/2011 in Jewellery and Watches, Private Clients

So, Valentine’s Day has been and gone, but what should you do to ensure that your precious piece of jewellery is properly protected?

Here are our 6 top tips:

1)      Don’t forget to notify your broker or insurers of any new acquisitions

2)      Ensure that you get a professional valuation at least every three years to ensure that your items is are not under-insured

3)      For safekeeping provide you broker with a copy of valuations and also take photographs of expensive items

4)      Have the clasps and settings of major items checked every year

5)      Have your jewellery cleaned professionally to avoid damage which could result in a reduction in value

6)      If possible keep items that are not being worn in a suitable safe

For more information about how to protect jewellery contact Paul Macbeth on 0118 9452944 or complete one of our enquiry forms.