Business Insurance

How to protect risks to cashflow with insurance

Posted by 7 June, 2017 (0) Comment

PROTECTING CASH FLOW2

This blog is about protecting cash flow, especially if those that owe money go bust.

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What if a buyer goes bust?

With the global recession and Brexit, business owners are having to consider the impact this could potentially have on their business.  What if a client goes bust?  If a company is owed significant amounts of money from clients, it is a major risk to cash flow.

Gareth came to us with these questions and more.  He knew exactly what he wanted from an insurance.   Dealing with imports he needed peace of mind that he had cover if stock went missing.  He also needed to know that his invoices were covered if products didn’t reach the consumer. We took time to completely understand Gareth’s business to a granular level.

What if they don’t want to pay?

Business Owners need confidence that they are going to get cover that matched their needs and not be sold an off the peg insurance that doesn’t quite do the job.  After negotiating with underwriters we carefully selected the options that matched Gareth’s broad requirements.

One option included protection against protracted debts or liquidations relating to companies that had been invoiced. It often helps with obtaining quicker payments, from companies that are happy to share the debt, when the risk of a default is backed by credible protection.

What are the risks when reducing risks?

Following up with a meeting to go through the small print and fully explain terms, conditions and exclusions is a must.  We tell it like it is, the good and the bad so our clients can make informed decisions.

The devil is in the detail and it is often a surprise to everyone, including us, when it is interpreted based on a particular business. It’s our duty to actually recommend protection that fits each client and the most appropriate has to meet their needs, rather than provide the dreaded false sense of security.

 

Wrap up; Small print can be seen as an enemy yet there’s a lot that can be learned from it. Read our blogs on the different types of policies available. I used to be surprised at the number of people that told me that they had already covered everything, then sent me documents riddled with exclusions. I now know it is a common occurrence in our sector.

Top tip; Some people find out when it’s too late.Review your debtors regulary and watch out for slow payers and avoid companies that are shown as risks on credit checks

Categories : Accountants Insurance,All Risks Insurance,Business Insurance,Company Insurance,Customer Service,Legal expenses insurance,Liability Insurance,Litigation expenses insurance Tags : , , , , , , , , , , , , , ,

Power (back) to the people?

Posted by 4 May, 2016 (0) Comment

 

 

Have the EU given data Power (back) to the people?

 

This blog is about data protection, how the laws are used against us and how the new broom will try and take miscreants to the cleaners .

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Data protection

 

It has always miffed me when the data protection act was used against me, especially when I know it was designed for me…to actually protect me. And you of course. I’m referring to the times when, with no malice in mind, I have been refused access to bank accounts, utility bill payments and more with the comment “It’s against our data protection policy to” help you.

I know that some of the people that have told me this were on a work avoidance programme (known as WAP when I worked in corporate’s). Their colleagues confessed in the bar. I now know privacy “defence” is used against us when it suits the data controller.

Thanks to this video showing how defences fold when a little “social engineering”, also known as lying, is used to break an individual’s defence down. The video shows how hackers (in 30 seconds) get access to personal or private information with a little trickery involving children of all things. Thank God the children aren’t real. It left me wondering why I can’t access my information when others can.

 

Plan of the insurers

 

Perhaps this is why European legislation fines companies 4% of turnover (not profits) following avoidable breaches. Even more interesting are the requirements to notify interested parties of a breach within 4 days of it happening. Since the old act was introduced, times have moved on and technology has increased the speed of such change. Surprisingly enough, insurers do have a plan. Not the Insurer’s you’ve heard off.

There are a new breed offering services as well as covering fines, legal costs and clean up costs. Having said that, very few of our data breach enquiries end up with insurance policies being required. It’s usually education that reduces risk. If you think that’s what you need get in touch to get a free trial (it’s on us). Because I have no doubt that we will adopt the EU data act, sooner or later. If we are not in Europe there will be greater scrutiny in weaknesses in the offerings of UK Plc.

It will become a business imperative to have the highest threshold of data security in the World. If the Panama Papers haven’t made people think carefully about what they have that’s important, private or confidential, nothing else will. Once the high risk data has been secured in your version of fort knox, you can then secure the next level of lower risk data and so on.

 

What now?

 

So you may well start preparing now. Or you could wait for the authorities to point the finger and aim their inspectors at someone else. These issues are extremely rare. The new breed of data inspectors will be targeted to find breaches so they can fine people. Now that the £35 per year Data Protection Register annual charge is being scrapped, the DPA will only get paid if they manage to raise funds through fines.

Data breaches will be a lot easier to spot than health & safety breaches so anticipate people with an axe to grind to start blowing the whistle. I also anticipate the forces that drove the compensation culture (whiplash anyone) will be a problem for those that don’t meet the regulations. I have no doubt that Data Protection inspectors will offer low paid workers (like cleaners) fees for “introducing them” to parties that have weak security. It will cost them nothing, they have a degree of protection from being disciplined when the whistle is blown, if it is for the “greater good”. If it were a Panama Papers employee that went rogue, I doubt they would suffer a severe penalty.

Wrap up; The people that were behind whiplash claims being made fraudulently or exaggerated have moved on. At the moment there are chasing ambulances (an American term) straight into the A&E departments. This because it is easier to exaggerate or commence a fraudulent injury claim when there is no car involved. It’s only a matter of time before they move sideways into data.

Top tip; As for the referendum, have a plan for staying and another for going. Keep both simple.

Categories : Accountants Insurance,All Risks Insurance,Business Insurance,Company Insurance,Contractors Insurance,Customer Service,General Requirements,Health & Safety,Intellectual Property Insurance,Solicitors indemnity,Uncategorized Tags :

Contracts, Consultants and indemnity‏

Posted by 11 January, 2016 (0) Comment

Jason really was amazing, he managed to find insurance cover for me as a consultant valuation surveyor when no one else could. He  kept me informed of progress continually. I  would thoroughly  recommend him.”

                                –  Robin Smith, FRICS

Getting your contracts in order

 

Robin called me saying “I need urgent assistance”. I’ve won a contract yet they’re asking me for insurance and nobody can provide me with what’s needed. This is something we deal with every week because a lot of insurance providers have placed their products on the Internet and don’t have the facilities to give advice as to what fits.

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The contract wasn’t complicated or onerous yet it was specific. The type of work to be carried out was slightly unusual yet the problem wasn’t the work it was the availability of cover. Robin also had a deadline to meet and so the frustration in finding red herrings all over the Internet was understandable. There were many providers that said they could offer the cover Robin needed but as soon as he scratched the surface they turned and ran in the opposite direction.

 

Insurance and contracts are usually at odds

 

Another challenge for Robin was that the contracts told him the terms and conditions of undertaking the project yet the insurance available has to be compare to the contract to ensure they dovetail. There are clauses in contracts that relate to insurance and there are clauses in insurance policies that relate to contracts.

Most insurances available via the Internet are no good when compared to contracts. The fact that so many insurance providers allow people to buy insurance without speaking to anyone is brilliant. Especially when you need something in a hurry. It’s not so brilliant when you need to speak to somebody and find that the Internet and, in particular the website that you found it on, doesn’t take your calls.

 

Whatever next?

 

Sometimes those awarding the contract start reading the insurance themselves and asking questions. Being cynical, they often ask these questions when they are due to pay an invoice. I’m not saying that they use this as a tactic to delay payment yet, if the insurance doesn’t meet the requirements, they will delay payment.

This happens most often when small businesses are working with a large company with an in-house legal team. They accept the insurance documents and only start checking the details when they are due to pay. This is so common we make sure that the insurance stacks up before it’s issued rather than suffer the pain of the late payment at a later date.


Wrap up
; Temptation to accept a contract with a large company is great. The offer may seem fantastic yet their requirements can offer the water down the profitability.

Top tip; Make sure you check the cost of the insurance before you negotiate your fees or payment terms. You might need insurance for a contract yet you don’t want to end up with zero profit.

Categories : All Risks Insurance,Business Insurance,Company Insurance,Contractors Insurance,Design Insurance,Intellectual Property Insurance,Legal expenses insurance,Liability Insurance,Patent Insurance,Trade,Trademark Insurance,Uncategorized Tags : , , , , , , ,

Say it but don’t blame me

Posted by 2 May, 2015 (0) Comment

Sometimes it’s best to help your prospects understand what you offer that your competitors don’t rather than trying to highlight the inadequacies of your competitors. This is specially the case when the comments you make are in public especially when your competitors get angered easily and or have very deep pockets or in-house legal teams. This article explains what happens when someone is unhappy  with what you say about them, how to avoid it and what you can do about it.

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I have a client who has produced software that is absolute outstanding and reduces the amount of time you and I spend waiting for organizations to answer our calls. It also reduces the number of staff call center require and I think it’s a product that provides everyone with a benefit. They have nearly 1 million subscribers to their app so they must be doing something right.

There was a time, before they appeared on “Dragons Den”, that they were looking to generate a buzz about their business. They talked to a marketing consultant and eventually persuaded to use a marketing expert who’s specialized in generating PR for technology based businesses. It all sounds great, everything heading in the right direction.

 

We didn’t say that did we?

 

The marketing expert had decided to seed the press and other relevant forums with explanations about the different waiting times that people experience when calling well known companies. In theory these companies were not competitors to our clients. They were irked even angered, to find them self at the top of a table highlighting which companies leaves callers on hold for the longest time. The angriest was a particularly large company in the health industry and they decided to issue a letter asking our client to explain exactly where they got their information from and asking them to remove any reference to that company from the public domain. This was an understandable reaction to an article that was supposed to improve the profile of this client yet it just sort to anger a party they didn’t needed to anger and caused many other problems internally. The initial panic should never be underestimated when you get a letter from a in-house lawyer because they have so much time on their hands to deal with such issues.

naturally my first question to my client was had they actually made the points that the in-house lawyer objected to. Their answer was it wasn’t us. Yet when I used Google I found the article was credited to them. At which point they said it was an outsourced marketing expert who had put these articles together. I asked if the marketing expert had provided evidence of their insurance. Blank looks all round. I asked if the marketing expert’s research had been checked by my client. More blank looks. I asked if the marketing expert had used an specialist to research the details they were using. The blank looks continued.

 

Shall we tell them it wasn’t us.

 

This was the comment my client made next and I asked them if they thought that would send the complainant off towards the marketing company and they realized that was probably never going to happen. If that were the case, everyone would simply say someone else did it in our name and no one would ever seize or desist when the lining someone. Fortunately they didn’t need to have this conversation because we had already provided them with a legal defense if allegation of liable defamation or breach of confidentiality were leveled at them yet they still had learned a valuable lesson about suppliers. These days very few businesses are self contained. Nearly every company I know relies on a employee or another organization to help them deliver their product or services. However not all such businesses are as careful as they should be and you can either be guilty by association or considered guilty because something is done under your umbrella.

Top Tip:
Check your suppliers carefully if they have insurance and it is fit for purpose you can give them a free rain, which makes your life easier.

Wrap up:
If they don’t have insurance you shouldn’t be dealing with them. Because at best, your insurance premiums will creep up as your suppliers make mistakes. That’s like buying car insurance and allowing the worst driver you know and drive even though they are already banned.

 

 

Categories : Business Insurance,Company Insurance,Liability Insurance Tags : , , , , ,

No-one will sue me or blame me

Posted by 27 December, 2014 (0) Comment

Business is easier to do when people are getting on yet it pays to keep everyone happy when relationships start to falter. This article is about money, the fact that it talks when opinions differ and why it is a foreign language for some.

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I’ve had an idea…..but I can’t do it on my own

 

Inventors are not just stuck in sheds. Some of them are hugely creative and have big idea after big idea. I am contacted by inventors when they want to protect an idea they’ve created. Most of them are in “start-up” mode and it takes time for the income to pour in.

However, they still need services to help them lift off and it is not uncommon to reach bartering agreements or agree profit or equity shares with those that help them out. Wonderful isn’t it? In an ideal World, yes, in the real World it depends. Recently, I’ve been contacted by two different companies who both had similar issues with such agreements . They were both being taken to court when such “contracts” had gone sour, they were very loose unwritten agreements.

We can’t agree about everything

 

But it pays to sit down and agree the basics. The first indication that something was going wrong was the receipt of a legal document outlining a case of a service provided that hadn’t been paid for. In each case the inventor thought they had “come to an agreement” yet the complainant asserted that nothing had been written down and they expected a prompt realisation of profits, which is rare. Both inventors were upset as well as being annoyed. One was being asked for £40,000 in fees for work they had “ordered”. The other was being invoiced for £18,000 fees for time spent “assisting” the start-uo.

Even after the first legal notice was issued, the inventor contacted the person that was “owed” the £40,000 and came to another agreement. They were somewhat surprised to learn, soon after, that the complainant had obtained a judgement against them and bailiffs were chasing them for money they didn’t have. Sometimes, the courts do odd things. Launching an appeal has proved fruitless for at lease one company facing a wind up order. Their business was closed down by a judge before the appeal date arrived. It is beyond belief.

You owe me, I sue you

 

Eventually, the money was found yet it had been earmarked for marketing so the launch had to be delayed in one case. The debts were paid when they may not have been legally liable to pay them. They were forced to settle because they didn’t have the resources to defend themselves.

Defending yourself doesn’t have to be ridiculously costly but it does take up time. High quality legal resources have to be paid for. It’s not only about what you sign, it’s about what you agree.  Verbal agreements are often considered binding by one party and failure to defend a corner means louder voices are likely to be heard. The balance between defending and paying up doesn’t always leave defendants between a rock and a hard place. I have plenty of clients who have successfully defended  spurious allegations.

Wrap up; Contracts aren’t always big documents and verbal agreements are often taken seriously. It’s really difficult to juggle all the tasks when unexpected legal issues arise. Not to mention the upset if you don’t know where to turn.

Top tip; Do not ignore issues that are on the “too difficult list”. They have a habit of resurfacing  and investor shareholders hate that too. It is not fair but the deepest pockets usually win.

Categories : After The Event,Business Insurance,Company Insurance,Design Insurance,Domian name protection,Intellectual Property Insurance,Legal expenses insurance,Liability Insurance,Litigation expenses insurance,Patent Insurance,Trade Secret Protection,Trademark Insurance Tags : , , , , , , , , , , , , , , , ,

Serviced Offices- The Possibility of Data Pilferage

Posted by 30 August, 2014 (0) Comment

An interesting thought on the the possibility of data pilferage and how easy it may be for someone who services your office.

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So how many of us think our serviced offices are secure?

 

Work finishes, you tidy up and go home. Thousands, perhaps millions of us do this every day. Next day, you have a clean place to work. Magic!

But what happens in between. The magic is not automatic. People do arrive and clean. But how do they get in?

Keys of course, the same keys as you use to lock the door behind you and open it in front of you. Oh no, you might say, we don’t pay for the cleaners…..we do it ourselves. The cleaners might not know that.

Not a problem for most yet when the IT is down or the phone bill is up, people start asking questions

A massive phone bill will be noticed. The issue is the unnoticed. Data pilferage is on the increase. Cleaning companies don’t pay their staff a living wage so they’re susceptible to offers of bribes or worse. Imagine that, the lowest paid workers in the entire EU and they’re wondering around our offices unaided.

Of course the massive company that you pay for cleaning recruit the best. They’re recruitment process is second to none. That’s why they “lost” security guards just before the Olympics. Because they are so well organised. Fail.

Check your insurance!

 

If you are looking for insurance on a serviced office, check that the security requirements don’t mean your doors have to be locked before they pay for a break in. Or keep the cleaners out by sticking a hotel style “not today thank you” sign on your door.

Wrap up: Those offering you office space will tell you what they want you to hear in order to select their space so ensure you dig deeper to find out about the insurance history of the premises.

Top tip: The locks on offices ain’t London are woefully inadequate when compared to the locks insurance companies require. If it needs to be replaced, get the landlord to replace it before you sign on the dotted line. Use it as a bargaining chip.

Categories : After The Event,All Risks Insurance,Business Insurance,Company Insurance,Design Insurance,Domian name protection,General Requirements,Intellectual Property Insurance,Legal expenses insurance,Liability Insurance,Litigation expenses insurance,Patent Insurance,Solicitors insurance,Trade Secret Protection,Trademark Insurance Tags : , , , , , , , , , ,