Factsheet

The Root Cause – Keeping a Sensible Distance

01/12/2011 in Factsheet, High Value Homes, Property Insurance

The Root Cause - Keeping a Sensible Distance

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.

How do insurers calculate the premium for directors and officers insurance?

03/02/2011 in Factsheet, Management Liability Insurance

There are a number of different rating factors that insurers take into consideration when calculating the premium for directors and officers and management liability insurance.

The main rating factor is the financial information of the company, as limited companies are compelled to file annual returns with Companies House, the underwriters can obtain this data readily within the public domain.  For companies that are less than 2 years old the underwriters will normally require sight of the management accounts and possibly the business plan.

Another rating factor will be the industry that the company is in; areas for concerning for insurers are companies involved within financial services sector, sports clubs, bio-tech and pharmaceutical companies.

Insurers will also need to know if there are any planned mergers or acquisitions or if any redundancies are likely. If the company has any turnover from the US or has assets there, this will have a bearing on the premium.

Finally, the chosen indemnity limit will affect the premium. The lowest indemnity limit is normally £100,000. Most companies with generally have any indemnity limit of between £500,000 and £1,000,000.

If you would like further information or a quotation for director and officers liability cover, please contact Tony Gibbs on 0118 9452944 or complete one of our enquiry forms.

What is management liability insurance?

03/02/2011 in Factsheet, Management Liability Insurance

80% of small and medium sized businesses do not protect themselves and their directors and officers against personal claims against them although the list of potential and actual causes of claims is growing rapidly. These range from corporate manslaughter, health and safety, environmental and other governmental or regulatory actions to claims from employees, creditors, suppliers, shareholders and customers. Increasingly the management of businesses is being personally bought into the litigation process on the ‘someone must take the blame’ culture. A limited liability company no longer protects management from unlimited liability.

There has always been a range of covers available but often from differing insurers with potential gaps and conflicts between each one. A new concept has recently been introduced called Management Liability Portfolio Insurance which brings together the three main risks faced. These are;-

• Directors and Officers Liability Covers
• Employment Practices Liability Covers
• Corporate Legal Covers

The policy covers the legal costs of defending the business and its management against a whole range of actions from corporate manslaughter, pollution and environmental problems, to employee and regulatory authorities’ actions. It also pays the costs or financial losses from a number of events such as employee dishonesty, lack of data protection, employee claims, those from other shareholders and many more.

With solicitors widening the net of potential defendants on ‘catch all’ basis, it makes sense to have one insurer and policy covering everyone’s interests. This approach protects the management and the business against a wide range of expenses and damages which could potentially cripple them financially. For further information or a quotation, please contact Tony Gibbs on 0118 9452944 or complete one of or enquiry forms.

How to insure your jewellery & watches

08/10/2010 in Factsheet

Be confident about your cover

Whether you already have expensive jewellery or are about to acquire some; it’s important that you have the correct level of cover. First ask yourself if you want or need specialist cover? If the value of your jewellery is modest (basically less than £5,000) perhaps the limited cover provided by a basic, standard policy will be adequate. However, when high values are involved, more specialist insurance cover should be bought.

The important step is to discuss the coverage options with your broker. Discussing the cover will allow you to understand exactly what you are covered for and how a loss will be paid. Does it cover mysterious disappearance (when you know the property is gone, but can’t pinpoint when and how the property was lost) and other causes of loss? Do you need to specify any item’s on the policy schedule or are they automatically insured? Is cover automatically provided outside the UK?

Establishing the correct value

Answering this question may, initially, be quite simple. If the jewellery has just been purchased, the receipt or certificate from the retailer will form the basis of establishing the insured value.

Obtaining a valuation that affirms your jewellery’s current value is an excellent way to ensure that your property is properly protected. Insurers will generally request that expensive item’s are valued every 2 years to ensure that the insured value remains accurate.

Of course, it’s prudent to be sure that the valuation is from a competent valuer and it’s your responsibility to find out a valuer’s competency. There are several professional jewellery associations such as the National Association of Goldsmiths that can give you information on valuers and appraising methods. And, of course, talk to a potential valuer to see if they know their stuff and how willing they are to explain their work to you. All of these items are important, especially since you have to pay a fee for a valuer’s services.

How to make a claim

So, you’ve arranged quality insurance cover with an exceptional insurer but what happens in the event of a claim?

Well, high net worth insurer’s will provide you with complete flexibility over how to settle your claim and you can expect matters to be resolved extremely quickly. In the event of you suffering a loss, most standard home insurance providers will push you into using one of their approved suppliers for the simple reason that they have negotiated large discounts. In comparison, high net worth insurer’s will allow you to use your own chosen company to repair or replace damaged or lost item’s which is vital if you have had bespoke jewellery designed and made. In some circumstances, insurers will also consider providing cash settlements without deduction.

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

Changing insurance brokers is a simple process and provides you with peace of mind that you are receiving the best deal, both in terms of cover and price. If you would like to obtain a quotation from Macbeth, please telephone Paul Macbeth ACII, Managing Director on 0118 945 2944 or email paul.macbeth@macbeths.co.uk

Fine Art and Antiques Factsheet

08/10/2010 in Factsheet, Fine Art and Antiques

Insuring fine art and antiques requires a specialist insurance policy from a specialist company.

Our insurers include individual collectors, dealers and exhibitors as well as museums and galleries. We also offer insurance cover specifically designed for professionals in the world of fine art, such as auctioneers and valuers.

Cover:

1. Our broad coverage means all your possessions are automatically covered wherever you are in the world, including for breakage.
2. Agreed value approach – you can be reassured that your possessions are covered to the agreed insured value without quibble. In the event of damage or a loss, you will receive payment for the exact amount listed for the item – with no deductions.
3. Specified cover means you can agree on an insured value for individual valuable items. In the event of a loss, you will receive the exact specified amount with no deductions.
4. If an item is damaged, our insurers will pay to restore it as perfectly as possible. Plus we will compensate you for any loss in original value due to the damage.
5. Some items cannot be replaced like-for-like. So you have the choice of replacing an item with something similar from your own supplier, or keeping the full cash settlement.
6. We only require valuations for very expensive items and Macbeth has negotiated preferential rates with leading valuation companies.
7. If you lose one item of a pair or set, you can choose to receive the full replacement cost of that pair or set if you provide us with the remaining piece.

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

What to look for in a new high net worth broker

08/10/2010 in Factsheet, High Value Homes

Most high net worth policyholders prefer to use a broker to handle their insurance requirements. To get the best value and most appropriate insurance to protect your home and possessions, your choice of broker is important.

An insurance broker will help identify and present your risks, suggest improvements for reducing your premium, obtain bespoke quotes from insurance companies and assist you in making claims.

Ask questions to ensure the broker has enough experience in high value home insurance, such as:

• Will the broker provide help and support when you make a claim?
• Can the broker find the most appropriate cover for your needs?
• What experience does the broker have in this area?
• What recommendations or references can the broker offer that show they can help you?
• Will the broker help you obtain valuations or advise you on improving your security?
• Does the broker provide you with an emergency out of office hour’s telephone number?

A specialist high net worth broker will take time to talk with you and identify your needs. They will then create a bespoke presentation of your risk and send to insurers. If they understand your risk they are more likely to know the most relevant insurers to approach. The more time a broker spends talking with you, the more accurate and competitive the quotation will be.

The UK’s largest insurance industry body is the British Insurance Brokers Association (BIBA). BIBA members treat customers fairly and work to achieve your best interests so they will:

• Ask you about your insurance needs so they can search for a suitable policy
• Make your choices clear by telling you the range of products they offer
• Explain any professional advice they give to you – clearly and honestly
• Make sure you understand what is, and is not, covered by your policy

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

Changing insurance brokers is a simple process and provides you with peace of mind that you are receiving the best deal, both in terms of cover and price. If you would like to obtain a quotation from Macbeth, please telephone Paul Macbeth ACII, Managing Director on 0118 945 2944 or email paul.macbeth@macbeths.co.uk

When did you last review your contents sum insured?

Statistics show that up to 70% of UK homeowners are underestimating the value of their personal possessions by as much as 30%.

Most people are reluctant to increase their contents cover, thinking the premium will shoot up. But the extra cost is often less than you’d expect – and well worth it if it means you’re properly protected. It also ensures that your claims are paid in full without deduction.

It is important to remember that you insure for the full replacement cost of your contents and not the market value at the time of a loss. Remember to include items such as CD’s, clothing, sportswear & sport equipment such as golf clubs or skiing gear. Surprisingly, the average sum insured for clothing in high net worth homes is £20,000.

Our asset calculator has been designed to help you calculate your sums insured.

Besides listing what you own, it’s also good to do the following:

*   Take photographs of any valuable or unique possessions
*   Keep your purchase receipts for valuable items
*   Obtain valuations for expensive items of jewellery, watches and other precious possessions such as fine art and antiques

It may seem like a lot of work, but you’ll be happy to have this gold mine of information to assist your insurer in giving you protection against loss of your possessions.

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

Changing insurance brokers is a simple process and provides you with peace of mind that you are receiving the best deal, both in terms of cover and price. If you would like to obtain a quotation from Macbeth, please telephone Paul Macbeth ACII, Managing Director on 0118 945 2944 or email paul.macbeth@macbeths.co.uk

Business Combined Factsheet – Ten Top Business Insurance Tips

08/10/2010 in Business Combined, Factsheet

In the currency economic climate, many businesses are looking to reduce cost.  Tony Gibbs, Sales Director for Macbeth Insurance Brokers has some useful tips to ensure you get the best value in respect of your business insurance.

1. Use a broker – using an independent insurance broker will ensure that you get a fair representation of the market, rather than quotes from a single or limited number of insurers.
2. Review annually – make sure that your broker is reviewing your insurance on an annual basis
3. Make sure that you provide the renewal information to your broker in good time.  If your turnover and wages have reduced, this should be reflected in your premium.
4. Insurers like good risk management.  If possible, provide your broker with a copy of your health and safety policy document.
5. Check the financial rating of the insurer you are using.  Your broker should be advising you of the insurer’s financial rating.  Careful consideration should be given to using an insurer without a financial rating or based outside the UK.
6. If you are unlikely to make small claims, consider a higher excess as a way of reducing your premium.
7. If possible, have a business continuity plan in place.  This is likely to reduce any business interruption claim and could qualify for a premium discount from your insurers.
8. Paying premiums on a monthly direct debit can be a means of improving cash flow.
9. Check that any sub-contractors that you are using also have the relevant insurance in place.  This could be a condition of your policy as well as qualify for a reduced premium.
10. Don’t cut down on cover.  Although it may be tempting to reduce cover in harder times, this could prove to be a false economy in the event of a claim.

Employers’ Liability Factsheet

08/10/2010 in Employers Liability Insurance, Factsheet

Employers’ Liability Insurance can be a particularly difficult issue; in fact a recent survey revealed that over 210,000 small and medium sized businesses in the UK are breaking the law by operating without such cover. That means there are possibly around 1.8 million employees that have no cover in the workplace.

If you are an employer in the UK, you are responsible for the Health and Safety of your employees while they are at work. If you employ anybody in your business – even if they are part-time or casual staff, you must purchase Employers’ Liability insurance.

Employers’ Liability insurance is compulsory. The Government first introduced the Employers’ Liability Compulsory Insurance Act in 1969. This ensured that all employers had the protection of a minimum level of insurance cover against claims from employees, should they seek compensation following injury or illness as a result of their work.

The introduction of the Employers’ Liability (Compulsory Insurance) Regulations in 1998, resulted in a legal minimum cover of £5 million, although the more usual limit of indemnity offered by insurers is £10 million.

Employers’ Liability policies cover injury that is caused during the period of insurance. Consequently, when injury or disease manifests itself years after the original cause, for instance an industrial disease, there is a need to identify the Employers’ Liability insurers dating back to the when the original cause occurred.

You should display your Employers’ Liability certificate in a prominent position within your usual place of work, as you may need to produce it on demand. Failure to do this may result in a fine from the Health & Safety Executive. In addition, the certificates should be retained for a period of 40 years so you must ensure that adequate storage procedures are in place.