OVERVIEW OF INSURANCE PRODUCTS AND SERVICES
The following is a summary of some of the different types of insurance coverage that Insurance2day can arrange, this list is not exhaustive therefore should you require quotations for any other types of insurance please contact Insurance2day on 01384 442 165 to discuss matters further.
Business Travel – Single trip or annual cover
Travel cover can be arranged for one off trips or annually to include personal trips for Directors, their Spouse/Partner and unmarried Children under 18 in full time education at no extra cost. In addition to Annual Business Travel cover many companies choose to extend cover to include Group Personal Accident cover.
From SME packages to bespoke policies covering: trade contents, business interruption, stock in transit, all risks, money, liabilities and optional covers, such as buildings.
Commercial Legal Expenses
Insurance to pay legal costs including solicitors’ and barristers’ fees, court costs, expenses for expert witnesses, attendance expenses, accountants’ fees and employment compensation awards, subject to policy terms and conditions.
Most Commercial Legal Expenses policies include:
• Employment Disputes and Compensation Awards
• Legal Defence
• Statutory Licence Protection
• Property Protection
• Bodily Injury
• Tax Protection
• Legal Advice Service
• Tax Advice Service
Computer All Risks policies are designed to insure computer equipment whether stand alone personal computer, networked systems or mainframe installations and have optional extensions in respect of cover for the reinstatement of data following a claim and increased costs of working.
Contractors All Risks
Where site work is undertaken a Contractors All Risks policy can be arranged to cover the actual Contract Works in progress, Own Plant/Equipment, Hired in Plant/Equipment and/or Employees Tools.
Trade credit insurance protects the money due for goods and services already supplied to a customer. Effectively any payment risk passes to the insurer. The credit insurer pays out in the event that a customer can’t pay, as a result of insolvency, political risk, exchange rate fluctuations and a host of other factors. The insurer will then pursue the customer itself for payment.
Cyber & Data Breach
Cyber and data breach insurance plugs the gap common in many standard insurance policies when it comes to online protection from email, internet and IT networks abuse or misuse. It’s recommended for any business with an internet presence that sends and receives information by email, downloads documents or holds personal or sensitive data.
Typical covers include:
– Staff misuse of company email (for which you are responsible), or the content on your website or blog, that defames or libels a third party
– System damage caused by viruses or malware you may have transmitted (unknowingly) via email or the internet
– Security breaches that give unauthorised access to confidential data
– Financial losses caused by the failure of a company website, the collapse of your internet provider or the work of computer hackers
Directors and Officers
In today’s increasingly litigious society, being a company director carries risk, given the set of duties and responsibilities that come with the role. If it is believed the director has breached these or has failed to safeguard the interests of a variety of stakeholders, they can find themselves in court facing legal action.
A claim doesn’t even have to reach court for a director to find him or herself out of pocket. Where a regulator or a body such as the Health & Safety Executive or HM Revenue & Customs suspects a failing within a company, it can launch an investigation. This can be costly and time consuming.
A Directors and Officers policy affords protection against personal liability incurred as a result of any covered wrongful act committed in this capacity.
A Director’s personal assets are at risk if they breach their duties as a Director or if they are in breach of an Act of Parliament, including:
The Companies Act 2006
The Employment act 2008
The Corporate Manslaughter and Corporate Homicide Act 2007
The Equality Act 2010
The Public Interest Disclosure Act 1998 (Whistleblowing)
The Bribery Act 2010
The Health and Safety (Offences) Act 2008
Or if they face an investigation from regulators, including:
The Financial Conduct Authority
The Health & Safety Executive
HM Revenue & Customs
The Department for Business Innovation & Skills (Formerly the DTI).
A Director’s personal Liability is unlimited.
Examples of the Directors and Officers claims include;
– Claims from shareholders (e.g. drop in share price or mismanagement)
– In the event of insolvency if allegations of wrongful trading claims from creditors (e.g. if the Director or Officer knew or ought to have known that there was no reasonable prospect that the company would avoid going into insolvent liquidation)
– Prosecution by regulatory agencies (HSE, HMRC, Dept of Trade and Industry – wrongful trading).
Environmental liability insurance (ELI) can covers the cost of restoring damage caused by environmental accidents, such as pollution of land, water, air, and biodiversity damage, arising from both common law claims, and claims arising from UK and EU legislation.
Business face various scenarios in which normal business activities may cause environmental damage.
For example, damage caused by:
• The property’s current land use or the historical use of the site
• A malfunction of holding tanks e.g. an oil tank
• A product being transported
• Poorly operating drains causing run-off of oil in water supply
• Dust arising from construction work
ELI provides cover for:
• Both sudden pollution and gradual pollution
• First party (own site) clean up costs imposed by regulatory authorities
• Third party liability including impact on property value
• Nuisance claims
• Legal costs and expenses
Employment Practices Liability
Protection for a company against claims by employees for breaches of employment conditions or regulations. For example – unfair dismissal, racial discrimination, age discrimination, unequal pay.
Employment Practices Liability – Examples of Employment Tribunal Claims:
• Gross Misconduct: A service & support engineer was ‘on call’ on the night of the company Christmas party. He became drunk and unfit to carry out his role. He was drunk but explained that he had arranged for a co worker to cover his shift (though this was not agreed by management). The dismissal was not considered ‘Unfair’ but it was viewed as ‘Wrongful’ as the employee was not dismissed until a month after the incident. The service & support engineer was paid over £8,000
• Redundancy: An insured lost a major contract and made an employee redundant without following correct procedures. The employee was paid £8,000
• Racial Abuse: A employee was subjected to racial abuse, including racially abusive terminology and racially motivated songs. Each incident was reported by the employee but no investigation or action was taken. The tribunal determined that the employees concerns were not addressed and found in his favour. Compensation awarded for psychiatric illness and injury to feelings. Total claims costs £12,000
Engineering inspection contracts for the following types of plant (amongst others) which require a periodic inspection in order to comply with various pieces of legislation:
• Pressure Plant e.g. steam boilers, air receivers, pressure vessels, steam receivers and air conditioning and refrigeration plant over 25KW.
• Lifting Plant e.g. passenger / goods lifts, cranes, lifting machines, fork lift trucks, chain blocks, certain excavators and lifting tackle.
• Power Presses Mechanical presses fitted with fixed or moveable guards.
• Local Exhaust Ventilation Dust or fume extraction equipment used for the extraction of hazardous substances.
• Electrical Wiring Inspection is seen as an essential part of the requirement to prevent, as far is reasonably practicable, the risk of injury arising from electricity at work.
A full breakdown of the legislative requirements is available on request.
Insurance protection that cover policyholders for losses incurred as a result of fraudulent / dishonest acts of its employees.
Financial Loss, Product Guarantee & Product Recall
Financial Loss Insurance, covers claims for financial losses of a third party and differs from public/products liability, where cover is restricted to legal liability for injury and/or damage to property, and therefore there is no cover for pure economic loss (loosely referred to as ‘financial loss’). Neither injury nor damage to property is required to trigger financial loss cover.
If you unwittingly supply a defective product, your client may look to make a claim against you for their ‘pure economic losses’ and such a claim would only be indemnified by insurers if you have financial loss cover in force. As previously noted, a public/products liability policy would only respond where there has been actual injury or damage to person or property.
Product Guarantee Insurance, covers the costs of replacing/reworking/ recovering products that have failed to perform their intended function, due to faulty design, manufacture, installation etc, after handover to a customer.
Product Recall Insurance, covers the costs incurred in recalling products where their continued use or consumption may cause the Insured to incur a legal liability, either by reason of the products having failed to perform their intended function, or the possibility that their use or consumption could cause bodily injury and/or property damage. The trigger on a product recall policy may either be actual property damage/injury, or the threat of property damage/injury.
Finance Gap Insurance covers the difference between an claim pay out and the amount left to pay on a finance deal thus eliminating the risk of negative equity.
Group Personal Accident
Group Personal Accident benefits are paid direct to the Employer who can choose to:
• Continue to pay the wages
• Cover the cost of an employment agency for a temp until the permanent employee returns to work
• Cover the cost of retraining a new employee if an employee is permanently injured or has suffered a fatality
Whilst Employers Liability insurance covers situations whereby there is negligence by the employer, cover under a Personal Accident policy is non negligent and payment under a Personal Accident policy is far quicker.
Intellectual Property Insurance
If your business relies on patents, trademarks, copyrights, or designs, you might want to consider protecting yourself with Intellectual Property (IP) insurance. Intellectual Property Insurance protects your intellectual property from infringement or from competitors misappropriating your ideas. Intellectual Property is ‘intangible’ comprising of a wide range of documented, written or recorded knowledge, ideas and problem-solving techniques. Insurance can be arranged to cover the expenses incurred in suing a third party for infringement.
Key Person Insurance
Key Person insurance can help protect your business in the event that you, or key employee, were to be badly injured or killed. This can be especially important for small businesses, as the loss of a key person could result in the financial failure of the business.
Let Property – residential and commercial
Specialist property insurance cover for residential and commercial let properties, in addition cover for unoccupied properties can be arranged subject to special terms and conditions.
Loss Recovery Insurance
Loss Recovery Insurance is an insurance policy which provides and pays for the cost of an independent, expert loss adjuster to assist in the preparation, negotiation and settlement of claims.
Marine Cargo / Transit
Cover for goods imported, exported and UK inland transits. Cover can be arranged on an annual policy or for single shipments as and when required.
Annual policies can be extended as required to cover exhibitions, tradesman’s samples/tools and/or stock storage.
Cover can be arranged on either a traditional fleet or mini fleet basis, for private cars, commercial vehicles and/or HGVs, owned by or leased / hired to a company. A minimum of 2 vehicles is required and polices can be transferred from No Claims Bonus rated to fleet rated, as appropriate.
Pension Trustees Liability
Effectively Directors & Officers cover for the trustees of a company’s pension scheme. The policy provides cover for damages, costs and expenses incurred responding to claims made against pension plan trustees, the company and any sponsored pension plan.
A Performance Bond may issued to Contractors to guarantee against the failure of the other party to meet obligations specified in a contract. It is designed to protect the main contractor if the sub contractor fails to construct according to the specifications in the contract, the project/property owner is guaranteed compensation for any monetary loss.
A Bond is arranged generally as a percentage of a contract value and as an indemnity to the main contractor at the sub contractors own expense.
Professional Indemnity insurance protects companies against loss arising from claims made and reported to the insurers during the policy period by reason of any insured neglect, error or omissions committed in the conduct of the insured’s business. Traditionally, Accountants, Surveyors, Engineers, Solicitors and Architects have arranged cover however any business that gives advice or provides a design service would be prudent to arrange cover to protect their business against loss/circumstances incurred as a result of unwitting negligent acts, errors or omissions.
Even where design work is subcontracted to specialist design engineers there is a contingent liability. If a claim arose, it would be directed to the company in the first instance, to then be subrogated to the negligent design engineer, however, what if the design engineer had failed to pay their insurance premiums? or correctly insure the scope of works undertaken? or maintain run off cover if ceased trading?
Professional indemnity insurance policies in the UK operate on a ‘claims made’ basis. This provides cover for claims made (and reported to the insurer) during the period of insurance cover only. The policy will incorporate a retroactive date which effectively excludes claims arising from things done, or that ought to have been done, prior to this date. Once a policy has expired there is no cover in force in respect of claims that may arise even if the claim relates to work undertaken during the period of policy cover.
Following the aftermath of 9/11 insurers introduced new war and terrorism exclusions to their standard policy wordings. If required terrorism cover can be arranged and will either be quoted as an extension to the current policy or as a separate policy which would run in conjunction with your existing policy. Since standard insurance policies exclude losses arising from terrorism, cover can either be arranged on a stand alone basis or, in some instances, as a policy extension.