JULY INSURANCE

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A Brief Guide to Environmental Liability Insurance

Owning land as a business comes with certain responsibilities for your premises and local environment that aren’t covered by a typical liability insurance policy. Most businesses will have cover for damage made to premises or site as a result of a third party’s actions, but what happens when the local environment is polluted as a result of an accident?

Liability Insurance is a necessary cover for every business, but if you operate in a landfill site or an industrial plant, for example, it won’t cover damage to contaminated soil as a result of your daily activities, nor does it offer cover beyond compensation costs to an employee who suffers an injury or disease due to dangerous substance exposure.

This is where Environmental Liability Insurance comes in; it can help to cover the cost of repairing damage as a result of environmental accidents during your day-to-day activities.

Who is Environmental Liability Insurance for?
Typically, the cover is designed for businesses working in environments like:

• Industrial and manufacturing plants
• Former petrol filling stations
• Landfill sites
• Contaminated sites

Should you work in environments such as these, it’s essential that your business is able to evaluate and mitigate the environmental risks of your work.

What kind of accidents does it cover?
Incidents typically covered by Environmental Liability include but aren’t limited to:

• Clean-up costs as a result of an accident
• Sudden and gradual pollution
• Expenses and legal costs
• Third party liability, including any impact made on a property’s value
• Loss prevention costs
• Personal injury or property damage

Read our top tips for buying travel insurance

As we head towards the summer and the holiday season, if you’re planning on taking a trip or two, getting your travel insurance right could not only save you a headache but also a considerable amount of money.
To help make sure you’re suitably covered when you’re abroad, we’ve put together some helpful tips on some of the things you should consider.

Single-trip vs multi-trip
Depending on how many trips you plan on taking in a 12-month period, it’s worth considering whether it may be more suitable to purchase a multi-trip policy. If you’re positive that you’re only taking one trip this year, then a single-trip policy will, of course, be the best choice. However, if you’ve got two or three trips planned over the course of 12 months, a multi-trip policy could be considerably cheaper when compared to the collective cost of individual single-trip policies. This is especially true if your holidays are lengthy breaks or quite a far distance to travel e.g. outside of Europe.

The cover limits
Unfortunately, even when you're on holiday, things can go wrong. It’s important that you read the fine print and ensure you are adequately covered for certain eventualities such as illness, accident, injury or even cancellation of the trip. For medical expenses, most insurance experts would advise cover of £2 million, and for personal liability, it is recommended your cover limit is £1 million. While some policies may offer a higher limit for these expenses, this will most likely raise the price of your premium, so you should consider if the higher limit is excessive in order to avoid paying over the odds.

The excess
Following on from cover limits, checking the excess of your cover is also vital. The excess of your claim is the amount you will be required to pay before the insurer pays out. Some policy premiums will look cheap at first glance, but it may be due to a large excess. It is possible to adjust your excess on some policies to a price you feel you are prepared to pay, however, keep in mind that this will have an impact on the premium. It is also worth remembering that some policies will include separate excess charges dependent on the incident. For example, a mugging could fall under medical costs and loss of personal belonginings, and result in excess being charged for both, so take an extra bit of time to read through all the details.

Your baggage
Baggage cover means that you are covered if your baggage is lost, stolen or damaged, with the average policy paying out in the region of £1,500. Before you add baggage cover to your travel policy, it’s worth checking if your possessions aren’t already covered under your current home contents policy. You should keep in mind that many insurers will have a limit on the payout for individual items such as phones, laptops or cameras. At times, it can be quite difficult to claim for items lost when abroad so, if possible, keep any receipts or evidence that you took the item(s) with you.

What else should you consider?
Missed departure: A travel insurance policy will cover any additional expenses that are incurred by missing your flight, due to events outside your control.

Loss of passport: Covering you for additional travel expenses as a result of replacing a lost passport.

Delay: Covering you against any delays due to adverse weather, technical issues or industrial action, however, planned strikes will not be included.

Scheduled airline failure: Covering you in the event of the airline going out of business.

Cash: Covering you for loss of or damage to money held as cash.

Tradesman insurance can help workers across the industry

It’s common knowledge that the role of a tradesman is one of the riskiest and most diverse fields to work in. To properly protect your business, your employees, members of the public and yourself, it is necessary to secure an insurance policy that acts as an overall protection for your business. Find out more about how a Tradesman insurance policy can assist your business.

To qualify as a tradesman, you must be:
• A qualified professional in your chosen field.
• 16 years of age or older.

If you operate from business premises that you own or rent, then you should consider a different business insurance policy. A tradesman insurance policy will only cover those who work from home, outside or on their client’s property.

What does tradesman insurance cover?Every tradesman is different; with each professional needing different types of cover depending on their day-to-day work. Generally speaking, a tradesman policy can cover:
• Consulting.
• Quoting.
• Private Jobs.
• Working Abroad.
• Public Contracts.
• Working On-site.

What is included in a Tradesman insurance policy?
Here at XXXXXXXXXXXXXXXXXXX, we can tailor a tradesman insurance policy to suit your individual needs. Usually, a tradesman insurance policy combines different aspects of several other insurance policies.

Personal Accident
For the self-employed, sickness or injury can prevent you from working; putting a sudden end to your ability to earn a living. Personal accident insurance provides financial support in the event of a personal injury or death. You can control the level of cover depending on your level of risk.

Public Liability
Should you be responsible for a member of the public suffering an injury, loss or damage to themselves or their property via negligence on your part, then you could be financially liable. A public liability policy assists with the costs of a lawsuit for negligence.

Contract Work Cover
Sometimes you can’t prevent against every eventuality. Contract work cover provides protection against an uninsurable event that stops you from fulfilling a contract. For example, the structure of the building is damaged by a storm or flood. Be aware that contract works will only cover the parts of the building that you are working on, not the existing structure.

Employers’ Liability
No matter what type of business you run, employers’ liability is a legal requirement for any business, no matter the number of staff members. This cover will protect you and your employees should they be injured while on the job.

‘Own Plant’ cover and ‘Hired-In Plant’ cover
What’s a workman without his tools? Should your equipment be damaged or stolen, your business could experience some downtime. An own plant or hired-in plant policy (depending on whether you own or hire your equipment) provides financial cover for the equipment that your business desperately needs.

There are also several optional covers that you can add to a tradesman's policy, such as efficiency cover, work abroad cover, asbestos and specialist locations insurance. Speak with your adviser, who can assist you in customising your policy further.

ABI responds to new dual pricing proposals

The Association of British Insurers (ABI) has criticised plans to tackle dual pricing on policies with the introduction of an automatic upgrade rule. The Financial Services Consumer Panel (FSCP) had suggested a plan to the Financial Conduct Authority that involved a firm to automatically upgrade customers to a best-available insurance product or one of better quality, but the ABI has expressed its concerns regarding the proposal.

Dual pricing refers to the practice of offering cheap introductory deals and then seeing prices increase upon renewal, with the FSCP’s plan stemming from a super complaint from Citizens Advice in October 2019 that loyal customers were being overcharged for products such as home, travel and motor insurance.

“Pricing practices which can unintentionally penalise loyal customers deserve a well-considered solution,” offered the ABI’s Director of Regulation, Hugh Savill.

“The proposal put forward by the FSCP to automatically move customers onto other products overlooks the practicalities of underwriting and product choice. The ABI and its members are committed to working with the FCA and others on finding the right way forwards on the so-called loyalty penalty.

“Of all the sectors examined, insurers have already done the most to recognise the problem and take steps to address it.”

Price caps were suggested by the Competition and Markets Authority, but this was met with criticism with credit rating agency Fitch Ratings warning that it could depress profits across the industry, whilst destabilising the market.

At the time of writing, the industry appears to be no closer to reaching a consensus on how to approach the problems raised by dual pricing. This could lead to tighter regulations that tightly restrict what brokers can and can’t upsell to their clients.

Britain hits its lowest level of uninsured drivers since 2012

Given the effect that uninsured vehicles can have on car insurance premiums, the news that the number of drivers caught without insurance cover dropped significantly over the course of 2018 is certainly positive.

Motoring Research, quoting Freedom of Information Request to the DVLA (Driver and Vehicle Licensing Agency) by RAC Insurance, has revealed that the number of uninsured vehicles dropped by almost 40,000 last year, from 118,698 to 79,713. This is the first time that numbers have fallen in five years, with a 22% increase in 2016 followed by a 4.6% rise the following year.

This could partly be put down to a scheme led by the DVLA and MIB (Motor Insurers’ Bureau), which is able to catch uninsured drivers without them even being on the road. Data can be cross-referenced with the Motor Insurance Database’s record of UK motor insurance policies with DVLA records to identify offenders.

An average of 3,000 letters are sent out to drivers without proper insurance cover per day, with legislation passed in 2011 meaning that fixed penalty notices, £1,00 fines and the threat of your vehicle being crushed can all be used in the fight against uninsured motorists.

The benefit for insured drivers is clear; decreasing premiums. Already this year, premiums have experienced a drop due to the Civil Liability Act alongside lower numbers of new vehicle registrations. The hope is that such a trend will continue, with the projected number of uninsured drivers how sitting at its lowest level since 2012.

Car insurance premiums rose 33% over three years to 2018

Changes in Government policy appear to be having a direct consequence on drivers, with a new report stating that the cost of car insurance has increased by a third over the course of three years.

Comparethemarket.com’s findings have discovered that last year, drivers were paying on average 33% more to insure their car than they were in 2015. The average cost of an insurance policy has seen a direct increase of just shy of £200, from £551 to £735, with young drivers feeling the pinch in particular. 56% of younger road users claimed that they struggled with running a vehicle, with 49% confirming that they received financial help from a family member or another source in order to ease the financial cost.

The policy changes mentioned at the start of this article relate to the Government’s increase of Insurance Premium Tax and an alteration to the Discount Rate. However, this doesn’t tell the whole story, with further findings revealing that the Civil Liability Act passed in December of last year has started to turn the tide in the favour of drivers when it comes to the cost of premiums.

The Civil Liability Act, introduced to alter the way in which whiplash claims were calculated by introducing a new tariff for such claims, has enabled courts to increase compensation for claimants and making it harder for people to settle claims without sufficient medical evidence.

The above changes won’t be coming into force for another year, until April of 2020, but insurers have already begun passing the savings on to their drivers, with premiums falling on average from £790 to £727 in January and then to £690 in February, according to Which.

A lower level of car registrations has also had a potential effect on the lowered premiums, with 5.5% less cars registered year on year by The Society of Motor Manufacturers and Traders.

Landmark ruling sparks British cyclists to purchase cover

British cyclists will most likely be aware of the recent story involving Robert Hazeldean and Gemma Brushett, which has received significant media coverage in the last few weeks. Hazeldean was riding his bike in London in July 2015 when Brushett walked into the road whilst looking at her mobile phone, causing a crash which knocked both of them unconscious.

Witnesses offered their backing to Hazeldean, noting that Brushett walked out into the road on a green light and he tried to swerve and break to avoid a collision, but a court ruled in favour of the pedestrian in a landmark ruling that could cost the cyclist up to £100,000 in damages and compensation.

A crowdfunding campaign has raised over £50,000 to assist Hazeldean in paying legal fees and the damages due to Brushett. Still, the outcome of the case has seen a surge in cyclists seeking liability insurance to make sure they don’t suffer the same fate, even though cyclists are not legally required to be insured to ride on the road.

British Cycling has seen a surge in memberships, which offer access to expert legal advice in the case of such an incident alongside assistance in covering the cost of injury, whilst Cycling UK noted that its website crashed due overwhelming traffic as riders attempted to sign up for their liability cover.

Do cyclists even need insurance?
Put simply, no. It is not legally compulsory for British cyclists to have insurance in order for them to be out on the road, but it’s clear that this story has compelled thousands of cyclists to take the added precaution of liability insurance to provide vital piece of mind. Beyond the fact that cyclists are 15 times more likely to be killed on UK roads than those driving a vehicle as of 2017’s Government statistics, this recent ruling could spark a trend that sees cyclists blamed for traffic accidents when pedestrians walk out in front of them.

What can I do?
Liability Insurance offers assistance with your legal fees, assistance with paying potential damages and also offers help should you need to take time off work for any injuries that you sustain. If you’re interested in learning more, please don’t hesitate to contact us.

SME owners worried about affording insurance after Brexit

Whilst the immediate furore surrounding Brexit has calmed down with a further delay agreed with the European Union until 31st October, owners of SMEs (small-to-medium enterprises) are said to be concerned that a non-favourable exit from Europe could leave them without the financial leeway to afford appropriate insurance.

That’s what financial firm Premium Credit discovered with their research earlier this year, with their suggestion that there exists a link between the No Deal scenario and an inability to purchase insurance coverage for their business.

“Our research reveals that 61% of SMEs claim to use credit cards, loans, and premium finance to pay for their insurance,” offered Adam Morghem, strategy and marketing director for Premium Credit. “But this could increase dramatically if their cash flow is damaged as a result of a no-deal Brexit.

“SMEs could see the goods they buy becoming more expensive; they may have to spend more on stockpiling, and the cost of storing this could also increase. All of this could make it harder to pay for the essentials needed to run their operations – from paying staff salaries, rent, and insurance.”

There’s certainly an argument that not all SMEs will experience a debilitating effect in the outcome of a poor deal, but the concerns of being unavailable to afford insurance are certainly a concern for the industry. 5.6m small businesses are operating in the UK as of the start of 2018, employing a total of 16.3m people with a turnover of £2 trillion last year.

Whilst we appreciate the challenges of operating in an uncertain market, we would urge all SME owners to prepare for the worst potential outcome this October and attempt to save appropriately for their insurance. If Brexit does not curtail your income significantly, all it takes is a small mistake, such as an accidental fire or error during your daily operations for your enterprise’s ability to trade to be in danger, leaving you at risk of a crippling lawsuit.

The cheapest and most expensive UK cities for home insurance

Research conducted by Moneysupermarket.com has revealed the cheapest and most expensive places in the UK for home insurance, with some startling differences between the two.

Unsurprisingly, London and its surrounding areas feature prominently in the most expensive list, with home insurance for a property in the North West of the city setting you back an average of £251. This represents a gigantic 114% increase on the national average, meaning Londoners in this area can expect to pay over £100 for cover.

 

Location	Ave annual home insurance premium
North West London (NW)	£251
Central and West London (W)	£249
South West London (SW)	£241
City of London (EC)	£237
North London (N)	£235
Harrow (HA)	£227
Ilford and Barking (IG)	£212
East London (E)	£200
South East London (SE)	£199
Kingston-upon-Thames (KT)	£193

 

At the opposite end of the spectrum, the North of England offered the cheapest average cost, with Durham sitting atop the list with an average policy costing £117. Newcastle and Sunderland came a close joint-second. with £118.

 

Location	Ave annual home insurance premium
Durham (DH)	£117
Newcastle (NE)	£118
Sunderland (SR)	£118
Stoke-on-Trent (ST)	£121
Darlington (DL)	£121
Dundee (DD)	£122
Norwich (NR)	£123
Plymouth (PL)	£123
Galashiels (TD)	£123
Teesside (TS)	£123

 

Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “Home insurance prices have been on the rise for a couple of years now, with those in London facing the highest premiums, possibly due to higher burglary rates in urban areas. Meanwhile, extreme weather causing flooding and subsidence can impact insurance costs in places like Guernsey and the Shetlands.

“With higher prices and some insurance providers reserving their best offers for new customers, it’s worthwhile shopping around when renewing. This allows you to compare prices and get the best deal possible.”

UK and Singapore form agreement to tackle cyber crime

A new agreement has been announced between the United Kingdom and Singapore in an attempt to tackle the rise in cyber-crime.

The partnership, announced in London in mid-June, is in its early stages with regulators from both countries currently working towards a consensus of understanding to confirm the details of the partnership, but it’s certainly encouraging news for the cybersecurity industry across the country; the Bank of England’s governor Mark Carney noted a 40% increase in global cyber crime over the last three years, “making international cooperation essential to address this growing threat.”

“The initiatives we are working on – data flows and governance, cyber security, skills development, and green finance – will enable continued dynamism and stability in Singapore’s and London’s financial centres,” commented Singapore’s Senior Minister Tharman Shanmugaratnam. “I look forward to the continuing, active collaborations between our authorities as well as between our partners in the financial industry.”

The news comes at an encouraging time; 54% of UK companies are prioritising cyber attacks as the biggest threat to their business over the next year, but they lag behind their global counterparts with 42% of those surveyed unsure if their critical data is secure compared to the worldwide average of 52%. With the means of attack for cyber criminals becoming ever sophisticated and varied, the pressure is on UK companies and the industry at large to form a greater understanding of the threats posed by cyber-crime, whilst putting effective cyber liability insurance cover in place to offer vital cover in the event of an attack.

If you’re unsure of how to comprehensively cover your business from the effects of a cyber-attack, speak to one of our experts by contacting us today.