UK Business Insurance: What Types Do You Really Need?

Generally speaking, in the UK there are three types of business insurance; Public liability, Product Liability and Employers Liability Insurance.

Of the three, only Employers Liability Insurance is required by law; and this only applies if you have any 'employees' working under your direction. Although you may not consider yourself to have any employees, you would do well to check as the definition of an 'employee' to insurers is very, very wide. Some individual cases where successful claims were made were highly tenuous and can include family members or friends working under you for very short periods of time. So consider freelancers, contractors, sub-contractors, interns or anyone doing paid work, even if it's only as a favour. To be more certain of your own position, contact your accountant or HMRC.

By law, the minimum legal coverage your business should have should be up to £5,000,000; although many business insurers will provide up to £10,000,000 in cover and others will combine both employers liability cover with both public and product liability into one comprehensive policy.

The slightly less essential public and product liability covers protect you from more general incidents. If you offer products or services, such insurance cover should protect you from any claims that result from illness, injury or damage caused by your products or services, such as a customer injuring themselves whilst using your product or perhaps someone claiming food poisoning as a result of your catering services. Some authorities and committees will require that you have some form of cover when working with them to protect themselves, this is common for businesses that use a tender process as part of their supplier selection process. This is perhaps a problem to service providers; those who sell an isolated product usually have a fair idea of the risks involved, services however are often tailored to particular circumstances and clients, and they have a tendency to change over time. So if you design websites for example, a client could misuse the solution you put in place, ruin their site and their brand, and later blame you for a lack of training.

Although these cases are rare, they do occur. It's because of this rarity that many businesses neglect to insure themselves, but the problem is that when they do get sued, the costs are never small when the claim is successful. It's like playing on a monopoly board where Mayfair has three hotels, it's unlikely that you'll land there... But when you do the costs can lose you the game, or bankrupt you in real terms.

The same applies to Public Liability. This protects you from the public at large, should they fall down some stairs in your premises, scald themselves using a tap or should they trip over your doormat, you're covered. Many businesses believe that they shouldn't have to pay out for their customer's stupidity or lack of bodily coordination, but the simple fact is that if they injure themselves on your premises and make a claim, you stand to lose a lot of money if you're not insured; relying on their goodwill and their acceptance of their own clumsiness and lack of awareness is unlikely to get you very far.

That said, it is prudent to take out this cover anyway. Many smaller businesses could never afford to pay the damages resulting from a claim, but they may well find a commercial business insurance policy to be within their grasp. As the English proverb goes, it's better to have it and not need it, that to need it and not have it.

For a quote or advice, contact a specialist Business Insurance Broker.

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Business Insurance - The Mistakes You Should Avoid at All Costs

It's funny that while authorities advise people to practise safety measures, business lessons encourage the opposite. Entrepreneurship always advances risk-taking measures because enterprise development is partly about gambling a person's future and finances on trade. The result is many business owners are willing to throw out all precautions out the window and end up without business insurance. If you employ the happy go lucky stance in your restaurant business, it's time to look closely why you need coverage.

Myth #1 - My business does not need it

Many restaurant owners believe they could get by without restaurant insurance. These individuals often think that as long as they are careful in handling equipment, nothing will ever go wrong. If you believe in the same thing, you are taking in too much risk.

While you can be very cautious on cooking equipment and other kitchen systems, you cannot guarantee others will follow your lead. One careless mistake and you can have a fire-damaged dining place. If someone forgets to close the place properly, thieves would end up stealing your cash and other valuables. Once this happens, you end up with more losses than you can imagine. Worse, such losses are preventable only if you have restaurant insurance.

Myth #2 - Insurance premium is the same for all

If you believe that business insurance coverage is the same as all others, think again. Different industries have specific coverage guidelines assigned to it. This difference matters when it comes to cost.

Other factors such as business insurance history and precautionary measures also count. For instance, if a business has many claims due to incidents it got involved in, premiums set for this company could be higher. The insurance firm will be meticulous in approving the business as a client because of its poor records.

If a company, however, employs various safety devices and mandate safety training for all employees, insurance firms may see this as a positive move. The situation becomes even more favourable if the business does not have any untoward incident.

A high deductible also plays an important role in business insurance. If you pay a high deductible, you pay a lower monthly premium. Paying low deductible means getting higher monthly premium to balance things.

Myth #3 - I can buy policies from anywhere

While some companies expand their business scope, you should still buy some things from specific merchants. For instance, it's wiser to buy travel insurance from insurance companies rather than buy it from travel agencies. If the travel provider suddenly closes, your policy disappears with it.

If you're buying business insurance, why buy it from an organization that only does it on the side? The risk-return trade-off can be great, but remember if something goes wrong, you may end up with nothing. You could end up losing the money you paid and your business if you do not receive compensation.

Business insurance is a big step towards protecting your company. Doing it the right way can get you assurances, while doing the opposite will have repercussions. To make sure everything will run smoothly, examine your needs and look at possible offers today. The earlier you make these steps, the sooner you get your coverage.

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Fleet Coverage: A Cost Saving Option for Small Businesses

During these challenging economic times, small business owners constantly look for ways to cut overhead costs. If the business owns and uses more than four vehicles, the cost of fleet coverage tends to be less expensive than purchasing individual policies for each vehicle. Additionally, by having all the company's vehicles covered by one policy, there is less administrate time and cost consumed by managing the premium payments and insurance policy.

Types of Fleet Coverage Available

Comprehensive and Collision Insurance: Similar to standard single vehicle personal car insurance policies, fleet comprehensive and collision insurance covers damage to the coverage to the insured vehicle in the event of an accident, vandalism, weather or theft. Most finance companies require this type of insurance for vehicles for which they have provided financing and specify the minimum limits of liability coverage required for the policy. Some of these policies also cover medical expenses for the driver and passengers in the event they are injured in an accident while in the covered vehicle.

Some insurance companies offer roadside assistance riders in the event the covered vehicle has a breakdown while in use. It is important to determine if this type is need because many times the warranty on new cars, trucks, and vans provides this coverage. Additionally, some policy riders are available to provide a temporary replacement vehicle in the event a covered vehicle is out of service due to an accident or mechanical breakdown.

Liability Only Coverage: Liability only coverage, mandated in every state, covers damage to another vehicle and the medical expenses of the passengers in the vehicle in the event that the driver of the covered vehicle is found to be at fault in an accident. It is important to check to see what the minimum limits of liability coverage are required by the state.

Considerations for Fleet Coverage Insurance

When looking to purchase fleet insurance, it is important to check the reputation of the insurance agent from which the coverage is purchased. Other areas to investigate are the amount of time the insurer has been in business and their customer service policies. Many discount insurance companies offer extremely low rates, but are nowhere to be found in the event a claim is filed. If the cost of the policy is an issue, it is much better to go with a fleet insurance coverage company with a higher rate and then take advantage of the available discounts.

Many insurance companies offer discounts for alarm systems, housing the vehicles in a garage overnight and for continuing driver safety education. Additionally, it is important to check driving records of those who are going to drive the vehicles to ensure the drivers do not have multiple tickets and accidents on their record as these incidents on the person's Department of Motor Vehicle Records will result in higher premiums. Limiting the number of people who are driving the insured vehicles will also help to keep premiums lower.

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Reported Trends in Cargo Theft: How Not to Get Caught Out This Holiday Season

Statistics compiled from CargoNet and its associated partners as part of a larger survey in America show that consumer electronics, food and clothing are the three most stolen types of cargo; whilst truck stops and rest areas are among the locations that are most frequently targeted as part of organized cargo theft. During the Christmas period, more cargo of these types is being shipped, giving organized cargo thieves greater opportunity.

Theft from these locations accounts for almost a third of all cargo theft incidents, according to statistics published by Chubb. These are then followed by modal yards and unsecured locations such as drop lots and parking areas near hotels, motels and restaurants. This adds weight to the advice that Marine Cargo Insurance Brokers have been giving to shippers and business people all season. You you should always know where your cargo is and you must ensure that if any part of the transportation of your goods is subcontracted to another party, that your security requirements are signed off upon.

The reason for this is that once part of the transportation process is sub contracted, this area of work can then be sub contracted further until you have no idea as to who is responsible for your cargo and neither will you be aware of the security standards and safeguards that they have in place.

One such example was cargo container 307703 which arrived on the western edge of Genoa. It was found to contain a cylinder housing a slowly alchemizing pellet of Cobalt-60, which irradiated everything in the vicinity up to over 25 meters away. The history held for the movement of this container was sketchy and the records show that it had gone missing for a period in Saudi Arabia.

In signing off on your security requirements, the companies that are contracted to transport your cargo accept all liability if their security standards are found to deviate from your requirements. So in the event of theft or cargo loss due to their negligence, you will be covered by them. If their own security standards meet the requirements of both you and your Cargo Insurance Policy, then in the unlikely event that something untoward should happen to your goods, you should be able to make a successful claim.

For goods that are travelling over long distances, a more comprehensive insurance policy should be in place. Marine Cargo Insurance provides cover for cargo moved by air and sea, whilst Goods in Transit Insurance covers those goods moved over land. So for those shipments that travel over land, by sea and by air, a combination of both policies ought to be in effect.

The problem when shipping cargo, is that over longer distances, many transport types may intervene and it is when cargo changes hands that it is at its most vulnerable. Recently, a shipment of televisions was stolen in California; but because the shipper had taken the necessary precautions and knew where their cargo should have been, the local police were then able to limit their surveillance to 140 suitable storage locations. Combined with information received from CargoNet, the investigation led to the recovery of the goods valued at over $1million, as well as the recovery of items from seven other thefts including clothing, electronics and household items.

It just goes to show that taking these preventative measures really does make a difference. With the advent of CargoNet back in 2010, more actionable information can now be handed to the authorities when incidents like this arise, making it harder for organized cargo thieves. Unfortunately, CargoNet is primarily an American initiative and so for those shippers that do not regularly ship to the US, it is still highly important that pre-emptive action is taken. Securing confidential cargo information, conducting employee background checks and ensuring that you are covered with comprehensive Marine Liability Insurance and Goods in Transit Insurance is key. If you are unsure of what sort of cover is best suited to you, you need to speak to a specialist Marine Insurance Broker

Maintaining cargo security continues to be a focus, particularly with the threat of terror attacks being ever present. Yet, as the industry progresses its work with the authorities and shippers better educate themselves on their own cargo security, the industry can expect future reductions in their own cargo losses.

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Small Business Insurance: Covering Your Mobile Devices

The way we do business and communicate with one another has changed drastically over the past decade.

Once, where a simple Filofax would have sufficed, we have seen an evolution in the way we work; field agents began to adopt the PDA, the first laptops began to appear... and then we saw an explosion in mobile technology that has resulted in ever more advanced and expensive devices gracing the messenger bags and briefcases of business people across the country, from Notebooks, to tablet devices all the way through to smart phones.

What many business people forget however, is just how much all these devices are worth. For the better equipped employee, we might see a notebook or laptop, an iPad and a Smartphone of some sort... and already we're looking at a total cost of between £1000 and £1500. What's more, is that these devices are carried around every day, bouncing around inside bags, used on the trains, carried through the wet British weather in less than waterproof cases and covers.

There are few businesses that could lose a number of these devices and chalk it up as an insignificant loss. For smaller businesses, equipping just one employee in this fashion may cost at a significant proportion of their profits. As such, it is important to have these devices covered against the usual consequences of ownership, potential theft, loss, accidental damage... All of these things can, and do happen.

To make things even more difficult, many insurers will have complex clauses that define 'accidental damage' and other such mishaps in such a way, that if you were to damage your beloved iPad you may find you are still not covered, because of insufficient device protection for example or because of the nature of the accident.

It is important therefore to shop around for the business insurance that best covers you, your field agents and your costly mobile devices. Take the time to understand the level of protection you have to avoid any unexpected expenses and bother. Talking to an expert business insurance broker can help, where they will trawl the market to find you exactly the kind of cover you need to ensure that your employees can continue to work, whatever happens. Failing that, you could always pay the full amount for continual replacements if you choose not to take out an insurance policy, if you can afford to do so you're doing remarkably well in such tough economic times!

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Intellectual Property - A Growing Concern for Many Types of Businesses

A few weeks ago, a prospective client approached our company seeking Intellectual Property Coverage. He did not fully understand the coverage but was adamant that a policy be issued as quickly as possible. Of course this raised some red flags. Upon further discussions, it was noted that his software company was being sued for copyright infringement from a US based company. Since there was a pending litigation in place, we were unable to assist in providing coverage and suggested he contact law firms that specialize in Intellectual property disputes. This unfortunate incident could have been avoided if his current insurance broker and the client took the necessary time to fully understand the business model and possible exposures. The policy issued to this client was a standard CGL policy covering premises liability and specifically excluded trademark, patent and copyright infringement. In today's fast paced & uncertain economic environment, intellectual property suits involving infringement of trademark, copyright and patents are being filed and litigated at alarming rates with crippling costs to both parties involved.

So what exactly is Intellectual Property? It can be broken down as follows:

Industrial property - includes inventions (patents), trademarks & industrial designs Copyright - includes literary & artistic works such as articles, novels, drawings, paintings, designs.

These exclusive legal rights allow the owners of intellectual property to prosper from the property they have created, thus allowing a financial incentive for the creation and investment in their intellectual property. However, many new start-ups in addition to small and medium sized companies do not fully understand their benefits or potential implications. These organizations may have very valuable rights but are unable to use them effectively while others are unintentionally violating intellectual property rights of others without being aware of costly legal ramifications.

Some important terminology was used above and should be explained further.

Patents - Cover new inventions including process, machine, manufacture or any new and useful improvement of an existing invention.

Trade-marks- Provide exclusive rights to word(s), symbols and designs to distinguish goods or services from others in similar marketplace.

Copyright - Only the copyright owner, often the creator of the work, can produce, reproduce, or grant permission to others to do so.

As technology moves ahead at lightning speed, it has made it increasingly easy to reproduce countless types of materials that are subject to copyright. Companies must be very careful not to infringe on the rights of others. Penalties for trademark, patent and copyright infringement have become very costly and will damage the reputation of these companies on a world wide scale. Up until the mid 1990's, the primary assets of most companies was their building, equipment, stock etc. Not anymore. Although these items still are very valuable, intellectual property, computer data, customer information are just as valuable and could lead to financial hardship if they are not protected with proper security measures and specific insurance coverage's.

When dealing with the various forms of IP, it is advisable to seek out a lawyer/law firm that specializes in copyright, patents, trademarks, or trade secrets. They should fully understand your business model and your technology as well as you do while being able to explain the legal issues in this complex field in clear, practical language that you can understand.

Another important way to protect IP is to obtain Intellectual Property Insurance. This coverage protects companies for copyright, trademark or patent infringement claims arising out of the company's operation. An Intellectual Property policy will pay the costs to defend you if someone tries to claim the rights to the same business model, process, or application. As long as the company is not aware of any pending litigation, infringements or violations, one can apply for insurance to protect your trademark or patent. Very few standard insurance policies protect businesses from loss or damage to their intellectual property. Similar to seeking out a prudent lawyer, it is just as important to seek out a company that specializes in this type of insurance. Make sure the policy is not limited to your specific province or state but rather on a worldwide basis. With more and more insurance companies entering this market, it should be rather easy to obtain a policy that fits your exposure.

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