Insurance Industry News

What should a broker do for you?

27/01/2011 in Business, Insurance Industry News, Private Clients

So what does an insurance broker do? How do we earn our income, regardless of whether it’s a fee or commission or perhaps, both?

Your broker is your professional contact throughout the entire process. From the initial stages through to the renewal review the following year. Below are the key services you should be receiving from a broker:

• Understanding you and/or your business – what risks do you face?
• Establishing your fears or concerns?
• Agreeing a realistic budget to work within
• Establishing how the broker will be renumerated?
• Discussing which insurers the broker will be approaching? Is it a full or partial market review?
• Following the review, expect your broker to present their findings and explain why they are recommending a certain insurer or product
• Your broker will clearly set out the premium breakdown and the payment options available
• If you proceed with cover, expect your broker to handle the administration; most policies can be arranged electronically
• Once the policy is in force, your broker should handle any adjustments or queries mid-term; some may make a small administration charge for doing so
• Should you be unfortunate enough to suffer a loss, speak to your broker and expect a very personal and professional service. There should be no need for you to talk to the insurance company unless there are exceptional circumstances
• Approximately 4 weeks before your renewal, expect a call from your broker to discuss any changes to your risk
• Your broker should carry out a review of the market and put forward their recommendation for the next period of insurance
• The whole process then starts again!

As one of a small number of Chartered Insurance Brokers in the UK, Macbeth is an elite broking firm. If you’ve not used a broker before, or if you’re broker isn’t providing you with the above services, then why not complete an enquiry form to try a professional broking experience?

All for one?!

23/11/2010 in Insurance Industry News, Motor Fleet Insurance

As you may know, the team at Macbeth “love to talk” and, we’ve come across a re-occuring subject this year which is proving incredibly important to our clients and prospects; TIME!

A good networking friend of mine has a tag line which he uses regularly when describing his financial services business - “time has never been so valuable”, and this certainly seems to be the case for our clients, whether it relates to business insurance or private client insurance.

We all have to endure increasingly busy and stressful lives. Pressure at work and at home means that certain tasks remain on your ‘to do’ list which seems to just get longer and longer! Arranging or renewing insurance policies may well be one of those tasks? If it is, then you need a broker who will take the strain and let you get on with running your business, or your life.

Recently, I was introduced to a local plumbing and heating company who had never heard of Macbeth despite walking past our office on hundreds of occassions (note to myself – improve signage!!) He had a successful business but he was being weighed down with paperwork and wanted to reduce some of that burden so that he could focus on the business. Purely by chance, some of his commercial insurance policies were due for renewal shortly so he asked if I could quote? He had a public and employers’ liability policy and nine individual commercial vehicle policies, all due at different times of the year! Yes nine!

The following week, our client spent an hour with me in my office talking through the various insurance policies. I managed to obtain a more competitive quotation for the public and employers’ liability, with wider cover, saving him £500! I then set about trying to establish a motor fleet insurance policy to cover all of the vehicles. A few days later, I arranged cover for a new single fleet policy covering all the vehicles with wider cover and for the same premium as he was paying for nine individual policies. Now our client has one motor fleet policy, one premium, one renewal date and one set of insurance documents to file. He also has one local broker providing him with a first class, 24/7 service and, in his own words “I wished I’d met you years ago”.

If you want to save time, money and hassle then speak to one of our client managers who will be delighted to help make your life, a little easier.

Flood Advice

18/11/2010 in High Value Homes, Insurance Industry News

A number of insurers that we deal with have warned us to expect flood claims as the situation in the South West worsens.

I thought I would share some practical advice for those at risk.

Pre-flood advice

• Be prepared to evacuate your property and think about where you can go for safety -will the route be passable?

• Know how to turn off your gas, electricity and water mains supplies

• Prepare a flood kit of essential items such as a broom, spade, mop and bucket; domestic detergent and disinfectant; rubber boots, gloves and protective clothing; waterproof torch and radio; bottled water for drinking.

• Agree where you will go and how to contact friends and family

• Think about what items you can move to a safe place for later and what are essential items for you to have now

• Create a list of important numbers including Floodline 0845 988 188

• You can sign up for Floodline Warnings Direct by calling Floodline on 0845 988 188 or by visiting the Environment Agency website.

Advice during a flood

• Safety comes first! Think about evacuation before it is too late to move. Make sure you follow any advice or instructions provided by the emergency services.

• If floodwater is about to enter your home, turn off the gas, electricity and water supplies if it is safe to do so. DO NOT touch sources of electricity when standing in flood water.

• Gas and electricity supplies should remain switched off until a qualified professional has checked the system thoroughly. Wiring, appliances and pipe-work should also be inspected for safety and efficiency.

• Keep listening to local radio for updates or call Floodline on 0845 988 1188

• Move irreplaceable personal or sentimental items, such as photographs – as well as portable items – to an upper storey or higher location in your property to prevent loss or damage.

• Also check your garage to see if any items can be moved.

• If possible, raise ground floor furniture on blocks or bricks to minimise the risk of damage.

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

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