May 2023 Insurance Articles

Five myths about cyber insurance

In this digital age, it’s never been more essential to have the right cyber insurance in place. It’s hard to think of a business that does not have some kind of online presence or uses a computer in some form at some point. There are many misconceptions about cyber insurance and more than that, it is largely misunderstood.

What is cyber insurance?

Cyber insurance covers your business from threats such as data breaches, including sensitive information, cyber-attacks, and hacks on your computer systems.

What does cyber insurance cover?

A good cyber insurance policy can cover you against the costs of investigating cybercrimes, restoring stolen or lost data, restoring, or replacing damaged computers and other affected hardware, damage to your business’s reputation, extortion payments demanded by hackers, and costs of notifying affected third parties, loss of income and legal costs if your customers decide to take you to court.    

Myth 1

You don’t need cyber insurance because your business has invested in IT security. 

No matter what systems you have in place your business is never 100% safe from cyber-attacks and if they occur the costs can spiral to eye-watering levels. Hackers and cyber-attacks are constantly evolving and finding new ways to destroy your business.

Myth 2

You don’t hold any sensitive information therefore you don’t need cyber insurance.

Cyber-attacks are not all about sensitive information you may or may not hold about clients or customers. It can be as much about damage to your systems or fraudulent funds transfers. Cyber insurance covers you against the interruption of your business. 

Myth 3

Your business is too small to be targeted.

Hackers are not choosey and small, medium-sized and large businesses to organisations and charities are all targets. According to the cyber security breaches survey released in April 2023, there were approximately 2.39 million instances of cybercrime in 12 months.* In essence cyber attackers target the vulnerable not just the valuable. 

Myth 4

Cyber insurance is already covered by other existing policies. 

There may be some common ground in certain areas of your insurance policies, which is why it is vital that you speak to your broker and get the details of your coverage right. Leaving your business, company, or organisation vulnerable is like leaving the front door of your premises open, and the cost of spending a bit more time with your broker could prevent potentially millions in costs.  

Myth 5

Cyber insurance is expensive. 

With many businesses taking out cyber insurance the costs of a premium have become competitive. A premium will be based on many factors from the risk class of the insured, revenue, and business sector to the type of coverage. The cost of cyber insurance is extremely low compared with the potentially astronomical levels of turnover that could be lost due to your business grinding to a halt. Worse still being wiped out. If you are a business owner, the last thing you want is for years of hard work to be destroyed in seconds. 

Get a quote and tailor your cyber insurance policy perfectly to all your business needs with our expert team today.    

 GOV.UK*

Is your pension secure?

Enjoying your retirement in a way that gives you the financial freedom to do the things you want largely depends on your pension plan. It takes years of hard work to build up your pension, and it's for this reason that you may worry about keeping it safe. We have all heard horror stories in the news, from pension scams to companies going bust to the banking crisis. Another big concern is running out of money. This is why an increasing number of people choose an annuity.

What is an annuity?

An annuity provides you with a regular, guaranteed income for life, and it can be tailored to your individual needs. You can pay into it in a lump sum or over time, allowing you to receive regular income straight away or in the future.

Different types of annuity

Lifetime annuity 

As the name suggests this type of annuity will guarantee you an income for the rest of your life and is not linked to any investments. There is no risk and it's ideal if you’re worried about your money running out. Whatever you are planning for your future you will be able to budget for it. A good option is to purchase an annuity that is index-linked, so it will increase each year to meet rises in inflation.

Fixed-term annuity 

This guarantees you an income for a set period which is typically between 1-40 years. Your provider will invest the money you pay into your annuity, at the end of the agreed term you will receive what is known as a maturity amount. This is calculated by the amount you pay plus any growth in investments, less any funds you have taken out. This is also a good way to leave something to loved ones if you die before the term of your annuity ends.

Enhanced annuity 

Also known as impaired life annuity, this will allow you to prepare for your future exceedingly well if you suffer from certain health conditions or have an occupation that reduces your life expectancy. You will be required to provide medical information about your condition, and in return, you can arrange a higher retirement income to ensure the right level of financial security for your future.

Investment annuity 

The advantage of this type of annuity is that it is not purely based on investments. Part of your income will be guaranteed and the rest of it invested. This means you can have the best of both worlds, and you could increase your income significantly if your investments perform well while receiving a minimum guaranteed amount if things go not so well.

Purchased life annuity

This form of annuity allows you to use a tax-free lump sum to buy an annuity or you can create this type of annuity with money that is not in your pension pot. This guarantees you an income for life so you can reduce the time you spend worrying about the financial aspects of your retirement.

FSCS – Financial Services Compensation Scheme 

The good news is that your future is protected by the FSCS which protects pensions that are defined as long-term insurance contracts such as annuities. There is no limit to compensation levels, unlike other forms of pension protection. However, whichever option you choose it’s imperative that you speak with your provider to know in detail exactly where you stand.

Are you looking forward to a secure and comfortable retirement? Get in touch with our friendly team to discuss your options.

Top tips for insuring your prestige car

Finding the right car insurance is important for many reasons, and if you are insuring a prestige car, the stakes are even higher. The last thing you need or want is to incur extra expenses that could have been avoided by spending a bit more time paying attention to the finer details of your policy. You don’t want to pay over the odds for the right policy, but you do want to get the policy your car deserves.

Security

Cars at the prestigious end of the market often come with high levels of security as standard, but there are ways to improve this. And if you do, you could bring down the price of your policy significantly. Parking your car off the road or in a garage at night will also reduce the cost of your premium. Aftermarket alarms, trackers, brake and clutch locks, and wheel clamps are some of your options.

Mileage

You may not choose to drive your sports, luxury, or rare classic car every day, preferring to drive something more practical. This will help reduce your mileage and your premium costs.

Consider add-ons carefully 

There are many add-ons available and, in many ways, they are worth looking at more closely if you drive a prestige car, here are a few: 

Insure your no-claims bonus If you hope to own a prestige car one day or are already lucky enough to be the proud owner of a car that is a little more special, then either way it’s always a good idea to insure your no-claims bonus. The cost of starting again for prestige cars can be considerably higher than for less desirable cars.

Windscreen cover These are a lot more expensive to replace on prestige cars, in some cases running into thousands, so, if you are in the habit of claiming for cracked windscreens but you don’t want to make a claim and ruin your no-claims bonus. The solution is to add windscreen cover.

Breakdown cover This will take care of towing your car to a garage as you will not want to abandon it on the roadside if it suffers a breakdown.

Car key cover The entry systems for your prestige car can be very expensive to replace due to its complexities and multiple functions.

Legal cover This will cover you against legal costs if you need to claim for uninsured losses. It will also cover your legal costs if you end up in court and need to make a claim or if another driver wants to claim against you.

Advanced driving courses

The chances are your prestige car is not lacking in the power department. Completing an advanced driving course could be, with some insurers, the road to a cheaper premium.

Pay attention to the detail

Whether you bought your car brand new or used it will most likely be equipped with upgrades or optional extras. It’s important to tell your insurer about these. With alloy wheels on some prestige cars costing thousands, it’s worth checking.

Allow your broker to get the best deal for you  

Talk to your broker, who will do what they do best by finding the right tailored policy that suits your needs with the right level of add-ons and at the right price. Whether you drive an old classic, an ultra-quick sports car, or the ultimate in luxury, your broker will find a specialist insurer so you can get maximum enjoyment with minimal worry. 

Get a quote from our dedicated team today and get the best car insurance for you.

Which home insurance add-ons do you actually need?

No two homes are the same, and add-ons can tailor your policy so that your home’s insurance needs suit you down to the ground. In some cases, you may want to swap the things you don’t need on your policy for the features you do need at no extra cost. The cost of repairs caused by damage to your biggest asset, filled with your precious possessions, could be life-changing without the right level of cover.

Home emergency cover

This type of cover is all about getting you out of a very sticky situation quickly and less about insuring your home, as the name may suggest. Instead, you are covered for emergency electrical, plumbing, and pest control problems. The cost of getting these highly sought-after skills to remedy these problems at short notice can be extremely expensive. So, if you live in an older house, this is ideal.

Accidental damage 

This may already be an integral part of your policy. That said, the devil is in the detail and it’s always best to check what you are and are not covered for. For example, your standard content coverage may include accidental damage to your TV but may not include damage to furniture caused by infants. So, tailor this to your family's needs.

Personal possessions cover

If you are out of the house a lot, most of your possessions will be covered by your standard contents policy. But if you want to go a step further, a good add-on will include insuring your portable items, such as your mobile phone, laptop, watch, or handbag.

Legal expenses

If you end up in court because someone had an accident in your home, the legal costs can run into the hundreds of thousands. You might consider this highly unlikely, but with an increasing number of people taking the opportunity to make a claim, it’s worth considering. Again, some insurers may provide this as standard.

Cycles cover 

Many insurers will cover the cost of replacing the contents of your shed. But just because your bike is stored there does not mean that it will automatically be covered. If you have a particularly nice selection of bikes, you will most likely have to insure them as add-ons.

Download cover 

If your tablet, laptop, or mobile device is unfortunately stolen, then you may have valuable content stored on them. The cost of replacing this can be expensive when you start to include the cost of music, films, ringtones, games, TV programmes, software, and games.

Protected no-claims cover

Like your car insurance policy, this allows you to protect your no-claims bonus. This is particularly useful if you have lived in your home for a few years, want to save some money, and need to make a claim.

Talk to your broker

It may feel sometimes like you are being sold something you don’t need, but add-ons should not be considered an afterthought. Rather, they are worth serious consideration. They could save you a lot of money. By talking to your broker and considering factors such as the age of your home, they can find the best policy for you.

Find the right home insurance policy by browsing our website and selecting the options that meet your home’s needs best.

Why does your business need key person insurance?

Several things can go wrong and seriously hamper or even destroy your company or organisation overnight. Insuring against damage to buildings, injuries to the public or employees, and damage to equipment is very well known and is in place in virtually all businesses. Less known is key person insurance, which, if not in place, could bring about a lot of financial damage or even spell the end of your business.

What is key person insurance?

Designed to reduce the impact on business profits if a key person dies or is diagnosed with a critical illness, key person insurance is crucial to cover the cost of replacing essential people in your business.

Who can take out key person insurance? 

A key person can range from business owners to company directors that are crucial to the daily operations of your business. However, many employees that affect revenue can also be insured as a key person. For example, an employee who is imperative in the technology of your business or a high-performing salesperson. Business owners, company directors, and key employees can be covered but if you are self-employed you cannot take out key person cover. 

What does key person insurance cover? 

Key person insurance can get your business out of very precarious situations and you could claim for the following:

Loss of profits

If your business profits are affected by the death or critical illness of a key person then you will be compensated.

Recruitment costs

Key people are not necessarily irrepealable, but the cost of rapidly training or recruiting new employees can be costly.  

Loss of contracts 

If the loss of a key person means a loss of a contract for your business, then your business will be compensated.

Goodwill 

Damage to your brand and good business name affects the level of the business’s profitability and if this becomes altered by the loss of a key person you can claim. 

Loans 

If any outstanding loans cannot be repaid, due to the worst happening to your key person in your business.

Suppliers and customers 

If your business is adversely affected and profits are impacted by suppliers and customers losing confidence in your business.  

How does key person insurance work? 

This type of insurance is very similar to critical illness insurance or life insurance. You simply pay a premium and receive a payout on the death or proven critical illness of the key person or people. You can insure several of your team as a key person. It could be a shrewd policy to take and help you spread the risk if the worst should happen.

It’s hard to find the right people

In today’s competitive business world where finding, training, and recruiting the right team is not easy. If you have to do so suddenly due to the death or critical illness of an individual who is vital to the survival of your business, the impact is even greater. By talking to your broker, you can create a safety net for your business by tailoring a policy at the right premium. This will help to protect your huge investment of time, money, and energy. 

Browse our website to get your key person insurance in place today. 

With 12 venue closures a day, don’t allow your hospitality business to become another statistic*

It’s no secret that the hospitality business is difficult to succeed in. The entire industry, from pubs, hotels, and restaurants to bars, bistros, and B&Bs, is going through some extremely difficult challenges. COVID was more than enough for all hospitality businesses, but with current levels of food prices remaining high, rising energy bills, and a chronic shortage of staff, many businesses are barely hanging on. That’s why having the correct level of insurance in place is vital to your business’s survival, and in the current climate, it has never been more important. Even if your business is performing exceptionally well, you don’t want anything to ruin all your hard work.

Contents Cover

The last thing you need is for your equipment to become damaged or stolen. Meaning you must fork out thousands to replace it. The fixtures and fittings of your premises are just as important. Insure everything from plates to light fittings and help secure your business.

Employers’ Liability Insurance

You don’t want expensive legal fees if one of your team members falls and injures themselves. One slip of a knife or heavy lifting deliveries can cause serious injury. You don’t want compensation claims to cause your business to go down the drain. Accidents in the hospitality industry are frequent, so it’s a case of when they happen, not if.

Product Liability Insurance

With so many paying customers suffering from allergies to certain ingredients and the permanent risk of food poisoning or illness from the consumption of food and drink, it’s essential to have this cover in place. A broken piece of glass found on a plate of food could be enough to end your hospitality dreams.

Public Liability Insurance

Injury to guests, visitors, and other third parties can also lead to expensive legal costs, and your business could close. With your doors open to so many people enjoying your venue, this type of insurance is intrinsic to the hospitality industry.

Business Interruption Insurance

This is another fantastic feature of modern insurance. If your venue closes due to fire, storm, or flood damage or suffers a major breakdown of essential equipment, you can claim for shortfalls in profits. Increases in costs due to these unforeseen circumstances can also be compensated. This means that your business can close while refurbishment or repairs are carried out, then reopen again and not disappear overnight while still maintaining healthy profit levels.

Tailor your policy by talking to your broker

Your broker will spend time getting to know your business’s individual requirements so that you can get the cover that allows you to sleep soundly at night at a price you are happy to pay. In the frantic world of hospitality, there are never enough hours in the day to get everything done. That’s why it’s important to allow your broker to do all the hard work for you. A good broker will search through the thousands of products available at a great price. Then all you have to do is concentrate on developing your business, safe in the knowledge that you have the right cover in place.

Browse our website and find the right deal to protect your business today.