Many covers can be included in a package of insurance but there are often aspects that are overlooked or cover may not be sufficient. We are living in an increasingly litigious society and the cost of claims is increasing year on year which means that some levels of cover you currently have may not be sufficient. Below are some of the additional covers you may wish to consider along with covers that may already be included in your existing package of insurance but might be below the sufficient level of cover to meet your needs.
If you come into contact with the general public or third parties either at your premises or working at a client's site, you should consider having public liability cover in place. There is no legal requirement to have public liability insurance but it will protect you from claims that could be made against you for accidental injury or accidental damage where you may be deemed negligent. It's not uncommon for businesses or the local authority to ask for proof that you have a certain level of public liability insurance before they appoint you on a contract. For example, if you are working on a government contract, you will usually require a minimum of £5million or £10million in public liability insurance.
It's possible to have an additional layer of cover on top of your main insurance policy for a set term or on an annual basis.
A combination of an increasingly litigious culture and the increasing sums of money being awarded in personal injury cases means that your limits of indemnity may not be enough to cover a claim. The legal minimum level of cover required for Employers' Liability insurance is £5 million and most insurers will not offer a policy below £10 million. Employers' Liability claims are creeping higher and higher with some exceeding the £10 million mark. Therefore, we recommend considering increasing your levels of Employers' Liability cover on your existing policy or by arranging an additional layer of insurance.
Management Liability Insurance
It's not widely known that if a claim arises due to a decision made by a director, officer or member of the senior management, their own personal assets are at risk. This is a cover we recommend to a huge number of businesses because it's there to help with the cost of defending a claim and protect personal assets. Claims of this nature are not covered under any other liability policy and private limited company (Ltd) status gives zero protection which is why this policy is now an essential component of most commercial insurance portfolios.
Most successful businesses are reliant on a digital system of some description. This means that if they were targeted by a cyber attack of any kind, it could massively interrupt day to day trading. Not only can a cyber breach cost you money as you might not be able to trade anymore, but the cost of getting you back up and running along with any reputational damage could also be catastrophic. Most of the cyber attacks you hear about in the news are against massive companies but we have seen a marked increase in our own SME clients suffering from cyber attacks. Cyber insurance is there to ensure you aren't fighting against cyber attacks on your own and that you have support to get you back to business as usual as quickly as possible.
Business Travel & Personal Accident
A business travel policy is becoming one of our most popular commercial insurance policies. Travelling for business purposes is not uncommon, and neither is travel disruption! Whether it's a medical issue, legal problem or just a simple cancellation of a trip, it's important to ensure you have a robust business travel policy in place. Importantly, you won't need to complete a medical questionnaire for each of your employees or directors before the policy can go into force. There are also many additional benefits to having business travel insurance with one of the most attractive being that it can cover personal leisure trips for your directors and their families, even for winter sports and activities.
Commercial Loss Recovery
If you have a claim that is likely to exceed £5,000, your insurer is likely to utilise the services of a Loss Adjuster to analyse the claim and determine how much they should pay. In these situations, a loss recovery policy will pay the fees of a qualified loss adjuster to prepare, present and negotiate claims with your commercial insurance provider on your behalf. Not only does this protect your interests, but it also saves you time.
Resolving legal issues, however trivial they appear to be on the surface, can soon run into huge sums of money. With businesses facing a wide range of potential issues including employment disputes, debt recovery or tax enquiries, a commercial legal expenses policy can offer a cost-effective solution to help overcome a legal challenge. There are often some additional benefits to taking out a commercial legal expenses policy such as an employee helpline that provides over the phone counselling and support to any of your employees should they need it and is a great addition to your company's wellbeing strategy.
If you provide advice and guidance to others as part of your business activities, we strongly recommend considering including Professional Indemnity Insurance as a fundamental part of your insurance arrangements. A quality professional indemnity insurance policy can cover the cost of defending your business against allegations of professional negligence, such as giving poor or incorrect advice to a user of your services.
For example, if a client accuses you of giving poor advice and as a result, they suffer a personal injury, property damage or financial loss, they could pursue a claim against you for compensation. Having a professional indemnity policy in place will cover any payout awarded to them if the claim is successful as well as associated legal costs.
Rebuild Cost Assessments
If you need to make a claim on your buildings insurance and it is found to be underinsured, your insurer could reduce the amount they payout based on the percentage underinsured you are. Underinsurance is a huge issue in the UK with a large number of properties not being insured for the correct amount. This means that a huge number of property owners could find they don't receive the full amount they might be expecting for a claim, regardless of whether it's big or small.
Whilst we cannot set the sums insured for you, we use a service that will give you an RICS approved report, indicating the rebuild cost of your property and the time it will take to fully rebuild. An important factor that can contribute to underinsurance is whether or not VAT needs to be included in the sums insured but the report you will receive will be able to help you with this.
Alan & Thomas Risk Management Services
We have launched our Risk Management Services to help provide our clients with an easy, efficient and cost-effective way of managing all aspects of staff employment and workplace safety. It all starts with our self-assessment documents which help to identify where you are now, where you should be and most importantly, how you are going to get there. One of the most popular functions is the 'Ask the Expert' function which will give you the opportunity to ask any questions you might have, in as much detail as you would like, and you'll get a guaranteed response within 24 hours from an expert in the subject you are asking about. There is so much more included with the A&T Risk Management service, such as a full e-learning suite that you can assign to all of your employees but it's probably best for you to see for yourself. Click the link to find out more and request your own access.
Speak to us about one of these insurances
If you would like to discuss one or more of these insurance policies then please complete the form below and we will be in touch as soon as possible.