Archive for August, 2009
Insurers tighten their belts on business claims
Jason Cobine of insurance brokers Cobine Carmelson explains why insurance companies decline business interruption claims and offers tips on how accountants can secure the proper payment for their clients.
It’s not exactly news that insurance companies inspect paperwork relating to large claims with a fine tooth comb. In the current climate they may also be lowering their sights and taking a closer look at smaller businesses claims. Will your clients’ cash flow be affected if they suffer a claim? How can you help your clients check they have the cover they require? Read on for a handy hint that could potentially save your clients thousands of pounds. Read the rest of this entry
What is cyber insurance?
Twitter has experienced problems this week. Could it happen to you? What happens when your website is hacked or your e-commerce platforms compromised? Does your theft or loss of income insurance kick in?
The answer is that all three are unlikely yet there is something you can do to . Modern risks can be covered by contemporary insurance policies. Ever heard of cyber liability? It is an emerging form of cover designed to protect businesses in the virtual World. Read the rest of this entry
Landlords gas safety certificates – how to choose the right contractor
A plumbing and heating engineer has recently been jailed for carrying out gas work whilst not being registered. He had used another engineer’s registration after he was served with a prohibition notice. His work left innocent households with heating systems without hot water. Subsequent inspections determined the work was not up to “current standards”
Gas registration rules have changed and the body now approved is the Gas Safe Register. Approved engineers will supply a Landlords Gas Safety Certificate after checking your systems.
People are still killed in the UK because of faulty gas appliances. Landlords are responsible for the safety of their tenants and the HSE recommends checking contractors Gas Safe Register identity card.
It makes sense to use a local contractor. To find one, you can search the http://www.gassaferegister.co.uk/ For further information call the HSE Gas Safety Advice Line 0800 300 363.
Click here for our 7 top tips for property owners.
Protect profits before you’ve grown your business
I recently had a meeting with a gent who manages large construction projects and he was surprised to learn that you can insure loss of profits before a business starts trading. This is a little known cover that works well in retail, leisure and property based businesses. Especially if there has been a huge investment or pressure to start trading is intense.
Imagine a restaurant facing this scenario, a huge opening night was planned, it was in a beautiful setting alongside the Thames and great PR had lead to huge interest, both in the press and online. Opening night was planned with a guestlist to die for. A-listers were ready to sample the finest dining and the most opulent surroundings that London had to offer.
The owners were sure the opening night would give them the start they needed. The income targets set by the investors were understandably huge and the banks had grown impatient because the opening had already been delayed due to planning concerns and snags during the development.
Come the day of the opening last minute deliveries were being made when a gust of wind caught one of the spectacularly unique glass front doors and smashed it. Quite apart from the mess, this was the last thing they needed. The glass couldn’t be made or fitted in time so there was no alternative but to cancel the opening. Fortunately, the insurance adviser had the foresight to recommend cover for this scenario after asking the owners what would most affect their income and reputation.
The claim was for profit not earned from the proposed day of opening to the eventual day of opening. The opening went ahead at a later date and the claim was settled once all the information had been gathered by the claims department.
Top Tip: This insurance is not provided by the builder, that’s a common mistake. The builder cannot be held responsible for anything that happens after the premises have been “handed over” to the owners. And it’s probably unreasonable to expect them to pay for gusts of wind. Tell your insurance advisor about scenarios that will affect your business, especially if you have one “off items” that are critical to your operation.
See our top tips section for simple ways to help yourself today.
Have you got All Risks insurance?
The insurance definition of unattended items is a tricky one. Believe it or not this case history was made in the 1960’s when a sales rep left his car in a layby on A road. Then watched with disbelief as his car was driven off andhis samples were stolen. The judge ruled the items were unattended and not insured; are the same judges making the rules today?
The rule of thumb is whether or not you are close enough to the items to affect the outcome of a theft or other loss. If you don’t notice an item disappearing, cannot give chase or fail to intervene when an incident is occurring your policy may not pay out. Examples are laptops left in the luggage rack of a train, samples or equipment left in a hotel room, jewellery or cameras put in luggage kept in the hold, anything left in a vehicle or unlocked building.
Insurers are not likely to pay out if you cannot prove otherwise. I heard of a car boot being broken into at an airport and £7,500 luggage being stolen. Fair enough they were high rollers yet only £750 was offered in settlement. The original 1960’s case mentioned above followed the theft of diamonds left in the glove box of a car. They car was left for less than a minute. The diamonds were gone. The claim was declined.
Not all cases are this clear cut. As evidenced when sneak thieves rummage through bags on trains or at busy train stations. In theory, the owner was close enough to prevent the loss – yet they didn’t. They probably didn’t notice their property disappearing. Would you?
Top Tips: Always check the definition of unattended items in any policy covering items away from your premises. Interpret it in the worst case possible and keep a tight rein on anything you don’t want to lose. And check which policy you should claim from, your adviser will help you make the best choice. Visit our top tios page for more free information.
