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
Health & Safety
Discover how to help your business before your neighbours suffer a catastrophe
Did you know insurance claims don’t always get paid when health and safety investigations are underway? There are four companies being prosecuted for H&S failures following the Buncefield fire of 2005. Have their claims for loss of profit and damage settled quickly and swiftly? Imagine the neighbouring businesses had assumed that they didn’t need to arrange their own cover because the site was “bound to have insurance”. A lot of people I’ve helped over the years originally thought they didn’t need insurance for that reason.
At the very least it will take ages for the case to be heard and a successful prosecution could lead to the insurance companies recovering their losses from the companies concerned. I expect that this case will be a watershed much as the Piper Alpha disaster of distant memory.
It is common for health & safety to be maligned yet the small concerns that businesses feel need little attention are often the areas that lead to bigger problems. Health & Safety is about having a robust system for identifying hazards and reducing their impact. If every business did that there would be no need for the “sledgehammer to crack a nut” approach that stifles common sense.
So ask yourself, is your business safe enough to work in? Is it safe enough for your child to work in? If you hesitate to say yes you may not have done all that is reasonable. And if you haven’t done what’s reasonable you’re probably not complying with legislation. And your insurance is dependent on that.
Top tip: Visit the HSE website and search for what you need.
See our top tips section for simple ways to help yourself today.
Insurance Myths – Part 4
To claim or not to claim
I’m often told that businesses have been advised not to make insurance claims because premiums will go up. This is certainly true in some cases yet I feel that analysing trends is the most appropriate way to work out if an incident will lead to a premium increase.
Insurance companies want to make profits. If you have been with an insurance company for 3 years and made two small claims you are still profitable. If the claims were for similar reasons the insurance company would rather nip the trend in the bud than increase premium. Small incidents can lead to larger losses if lessons are not learned.
There are complicated calculations to be done by the underwriters who work for insurance companies because premiums are sometimes broken into sections. If a series of claims are for flood, that part of the premium may have moved into the red and an adjustment can be made to the rate or the excess.
What’s best for both parties is to eradicate the incidents so organisations that are proactive will secure the most competitive rates for the long term. Premium stability is the mark of good rapport between customer, adviser and insurer.
A new insurance company means new policies, terms, conditions, exclusions and warranties. Chopping and changing to improve premiums can sometimes mean your new insurance company takes a hit in the first year. Terms are likely to deteriorate at renewal.
TOP TIP: Discuss every incident especially “near misses” with your adviser. They may have experience of risk prevention strategies which can prevent recurrence. These can prevent minor problems leading to preventable losses which are usually followed by increased costs.
See our top tips section for simple ways to help yourself today
Insurance Myths – Part 3
Here’s some handy tips to combat workplace stress
Not all employers’ liability policies cover all types of stress claims because stress is not an illness or an injury.
Stress is a modern buzzword for allsorts and you probably have a very simple way of helping anybody in your organisation that might be suffering but you might not know about it. Part of health and safety relates to identifying and addressing stress and insurers know that the cost of looking after employees is significantly reduced if proactive assistance is provided. So they give you help lines, usually for free (some even have free phone lines).
All you need to do is create a plan to identify those that are at risk and enforce it, here’s a handy guide http://www.hse.gov.uk/stress/standards/downloads.htm. Provide information and advice to employees, including the help lines, keep a record and plan to review your procedures at least annually. I’m happy to help guide you to the appropriate adviser.
TOP TIP: The help lines are confidential and numbers can be placed on notice boards, in company handbooks or handed to those with symptoms of stress, definitely in private.
