Defence

Where did my money go and how can I get it back?

Just because you have a financial loss, doesn’t mean your insurance will pay up, so understanding what is and what is not covered is crucial in business, #becauseaccidentshappen to nice people all the time.

The first concept to understand about insurance, is that it centres around specific events, such as:

  • Fire
  • Lightning
  • Explosion
  • Earthquake
  • Aircraft
  • Impact
  • Riot and Civil Commotion
  • Storm, Tempest or Flood
  • Escae of water or oil from fixed equipment
  • Collapse of aerials
  • Theft or Attempted Theft
  • Subsidence, Ground Heave or Landslip

Even where cover is give including “Accidental Damage” or even on an “All Risks Basis” there must be a specific event, leading directly to the damage or loss. This is called the proximate cause.

Cover never includes deterioration over time, because of a lack of maintenance. If your roof gets old and leaky, or an old boiler ceases to function, don’t expect the insurers to pay. It is your responsibility to keep the property in a good condition.

Likewise, any damage caused by a “gradually operating cause” is also excluded, for instance pollution damage over several years from the local steel works.

Fundamental exclusions applying to the whole policy will always include:

  1. War
  2. Radioactive Contamination
  3. Sonic Bangs
  4. Changes in the Water Table
  5. Electronic Risks

Want some advice or guidance that is #openhonesttransparent, give us a call on 029 20 470 375 or email info@severnbay.com

Have a great day

 

Factory Fire

The Big Three!

When considering continuity provisions for any business, we look at all the events that could interrupt the income stream of the business and prevent it from delivering its prioritised products and / or services, regardless of whether they can be insured or not.

Those that can be insured are and provision is made, but active plans will also exist for continuation after those events, along with all those things you can’t insure, including supply chain, competition, commercial risks, staff problems, contractual and legal issues to name but a few.

Of course, a comprehensive insurance programme is required, and is one of the core elements of any risk management or continuity provision.

Its three main considerations will always be:

  • Damage to Valuable Property / Assets
  • Loss of Profits following physical loss or damage
  • Legal & Financial Liabilities

There are of course many other insurable risks, and a qualified professional adviser will always look at the exposures in your business and design a programme to cover all of the potential insurable threats that have financial consequences for it.

If you want to discuss your exposures and how they can be mitigated, under a variety of different circumstances, please feel free to contact me directly, on 029 20470 375 or email nigel@severnbay.com

Always happy to have a completely obligation free chat to discuss Continuity, Insurance or Risk Management.

After all #accidentshappen to nice people all the time.

Have a great day!

Good News!

Good news!

I suppose with all the bad things going on in the word right now, it would be easy to forget all the positive aspects and the wonderful things that are also occurring.

We are blessed on this Saint David’s Day, to be living in God’s own country.

Wales is a beautiful land, green and pleasant, with cool valleys, fast flowing rivers and mountains. Yes, real ones!

We have a warm and generous people, always friendly and a real spirit of community. In business too we work “together” not against one another. Some forge ahead on their own, and that’s OK, but most successful business work to create an environment and support, that all businesses need.

This week I’m working on a large muti chain retail business, which has been based in Wales for over 140 years, as well as an award-winning chocolate manufacturer, who I guarantee you will never have heard of, even though their products are in many large retailers, such as Waitrose, Hotel Chocolate and Thorntons.

It so happens that the food industry is a big sector for us, we understand it well, we understand the challenges and are able to source first class solutions to meet their needs, so they can #justkeep going even when the worst events occur, #becauseacccidentshappen to nice people al the time.

Let’s look on the good side of life today and remember, it doesn’t matter if the glass is half full or half empty, the important thing is that it is refillable.

A Dewi Sant

And Saint David

 

 

 

Don’t break your business, the courts won’t care, and ignorance is never a defence!

Last week we talked about the one of only two legally mandatory insurances in the UK, cover for third party injury or damage whilst driving a road registered motor vehicle. Today we talk about the most important legally binding insurance, Employer Liability (EL) cover.

As a business owner it is the one piece of insurance cover you must get right, but not for yourself, more importantly for your employees, who if seriously injured may require an amount of money to look after them for the rest of their lives or if killed, families who may need long term support.

Currently our largest outstanding claim is over £650,000 and that was a guy in his late 50’s so loss of earnings wasn’t even the largest part of it. These claims can easily run into millions.

Under the 1969 Compulsory Insurance (Employers Liability) Insurance Act, cover must be in place for no less than £2,000,000, but in practice all insurers give cover up to £10,000,000 as standard, so the extent of cover is not an issue.

Now the important point, when must you have Employers Liability cover!

If you have a business where there any employees, even for one minute, of one day, of a year, or if you have volunteers or even self-employed sub-contractors, who do not have their own businesses and EL cover, you are responsible for them when they are working for you, especially in manual activities, construction and the like. You must have the cover.

The only exceptions are unincorporated businesses where there are partners and no other employees, volunteers or sub-contractors or in a limited company, where there is only one director and no other directors, officers or other employees. As soon as a limited company has two directors, who are employees of the limited company, cover must be in place as soon as the business is registered at Companies’ house.

Let’s be serious here. The penalties for failing to have the correct Employers Liability cover in place are fines of up to £2,500 per day or up to 6 Months in jail.

If you are starting a business, or registering a limited company, then get advice from a professional, #becauseaccidentshappen to nice people all the time.

We are always here to help and support our clients, just message me here or call and talk to a professional on 029 20 470 375.