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Haggie Dev

Wording of Some Insurance Policies May Allow Claims on Coronavirus Closures
Wording of Some Insurance Policies May Allow Claims on Coronavirus Closures 1920 1280 James Hallam

Businesses have been advised to seek advice if they think their insurance policy could cover the enforced closure caused by the coronavirus outbreak.

David Noble, director of hospitality and leisure, explained that insurers will not have intended to cover the current situation, but that the writing of some policies may produce circumstances where a claim can be pursued.

He explained: “It was not the intention of the insurance industry to cover the Covid-19 pandemic that resulted in the closure of the UK hospitality industry. Insurance companies had suffered large losses during the Sars outbreak, so policy wordings were written to try and limit insurers’ exposure to global pandemics. If they had priced for such an event, insurance premiums would not have been affordable.

“It was, though, insurers’ intention to cover, where purchased, business interruption losses for outbreaks of infectious diseases on the premises or in close proximity to the premises. The government making Covid-19 a notifiable infectious disease triggered this cover in some policies. However, there were very few reported losses of this nature because shortly after the government closed hotels, restaurants, bars and pubs.

“While this triggered possible claims in some policies that extend to cover ‘non-damage denial of access’ to premises following the ‘closure by a public authority’, most policies contain a version of a pandemic exclusion. The words differ from one insurer to another and, in some cases, from one wording to another with the same insurer. For example, an insurer might have a specialist scheme arrangement for a particular class of business.

“Some wordings suffer from poor draughtsmanship, so it can be argued that the [pandemic] exclusion is not obvious, and in some cases it has been missed out completely. In these circumstances, it will be difficult for insurers to repudiate claims, despite what some have been saying in the press.

“My advice is, in the first instance, speak to your insurance broker. They can advise you on what cover you have. If you are not satisfied, seek a legal opinion, but if that is not a viable financial option at the moment, speak to a loss assessor. The good ones will give you an honest opinion on your cover and only charge on success.”

Read the full article by Emma Lake in The Caterer here.

Seventeen Group Results Year Ending 31st December
Seventeen Group Results Year Ending 31st December 1920 1280 James Hallam

Seventeen Group announce a 12.5% increase in revenue from £16,369,740 to £18,450,559.

An expected reduced profit before tax at Group level being entirely due to the increased amortisation charges incurred following acquisitions.

In terms of revenue growth £1.3M related to acquisitions made in 2018 the most significant of which were Rupert Burgoyne Limited in February 2018, and specialist marine broker Everard Insurance Brokers Limited, in July 2018.

The balance was organic with significant new business across James Hallam and Touchstone Underwriting. Touchstone is now writing over £27 ,00 0,000 gross premium.

A new financing partner in 2019 has seen the Group continue to expand, with the recent acquisitions of Graybrook Insurance Brokers Limited and WPS being testimony to the company’s ambitious long term development plans.

Commenting on the results, Group CEO Paul Anscombe said “2018 represented a very solid performance by the Group. The acquisitions made in 2018 and earlier years have integrated exceptionally well and feel very much ‘part of the family’. Now with annualised revenues in excess of £22 ,000,000 Seventeen Group is seeing an increasing number of opportunities to grow and we are in an excellent position to capitalise upon this as a long established and completely independent insurance business”.

Blackstone Consultancy Challenge
Blackstone Consultancy Challenge 1920 1280 James Hallam

Leading London-based intelligence and security company Blackstone Consultancy will trek the Sahara Desert to raise money for the Children’s Air Ambulance.

The six-day trek in November will see the team battle daily temperatures up to 38 degrees and camping out in the desert with night-time temperatures of just minus four. The team want to raise £20,000 for the Children’s Air Ambulance. The charity flies critically ill children across the UK to the specialist care they need. Blackstone Consultancy’s aim is to raise enough money to buy a new incubator. This device sits in the rear of the helicopter and gives the greatest possible chance of survival to the critically ill child.

The trek will see the team start in M’Hamid-El-Rhozlane, walk over the cliffs of the southern Drâa towards the first dunes of Ait Oumir, before trekking along the banks of the Drâa catching sight of L’erg Zaher, the highest dunes in this region.

The team will comprise of Simon Giddins, Rob Bates, Tom Tahany and Rufus Caldecott, as well as Simon Bennett from Cloud Ten. The team have kindly been sponsored by Cigna, Ecclesiastical, Geos360, The London Resolution, Pella Resources, James Hallam, Graphite Capital, Edenfells and Hampden & Co.

Managing Director Simon Giddins said the trek would be ‘challenging’ but for a worthy cause.
He explained that the team annually complete the ‘Blackstone Consultancy challenge’ raising both awareness for good causes.

He added: “Each challenge represents a new charitable cause, our intention is to rotate from veterans’ charitable concerns, to children and finally women’s charities. The charities we choose reflect us and our core values. Veterans causes is for our background as former soldiers, children’s charities because we are all fathers or uncles and women’s charities because we are all husbands and sons.

“These are charities and causes we feel incredibly strongly about. Business is doing well, and we feel that it is important to give something back, not only is it part of us being a socially responsible company, but it feels good to do something good as well.”

Plans are already underway for the team’s 2020 challenge in support of Breast Cancer Now, Britain’s biggest breast cancer research charity.

Seventeen Group acquires WPS
Seventeen Group acquires WPS 1310 776 James Hallam

Seventeen Group has acquired Plymouth based Walker Persson & Spargo Ltd effective from 28th June 2019 for an undisclosed sum. WPS was established in 1968 and are a leading independent broker in the South West. They are Chartered Insurance Brokers and members of the UNA Broking Alliance. In addition to handling corporate and personal lines business on both a regional and national level, WPS handles schemes and affinity based clients across a number of sectors.

The business employs over 40 staff and generate a Gross Written Premium of £17million. WPS is led by Directors Steve Rowlands, Steve Harvey and Colin Watts, all of whom are remaining with the business along with the wider WPS team. The business will continue to trade as WPS from the existing Plymouth premises.

Speaking on behalf of WPS, Steve Rowlands Managing Director comments: “We are very proud of the business we have built in Plymouth and have received fantastic support from our staff, clients and insurers over the years. It was therefore of paramount importance to us that we identified a purchaser for our business who were committed independent brokers and ambitious to continue our growth plans in the South West. We have known James Hallam and Seventeen Group for many years and are confident that we can offer an exciting future for our clients, staff and trading partners.”

Seventeen Group Chief Executive Officer Paul Anscombe adds: “WPS are a highly respected firm whom we know well. I have been truly impressed by their desire throughout our negotiations to grow their presence in the South West and to maintain their focus on client service. There are significant opportunities for Seventeen Group to develop our specialist sectors into the South West and to invest in the existing strengths of WPS. The joint opportunities will be in broking, underwriting and risk management.

Seventeen Group were supported by Beechbrook Capital in this acquisition. Beechbrook Capital is a specialist lender providing innovative and flexible financing solutions to support fast growing SMEs across northern Europe.

Tim Johnston, Investor Director at Beechbrook comments: “We have thoroughly enjoyed working with Seventeen Group and we are delighted to be the new funding partner for this market-leading business. We very much look forward to supporting the group with its further growth plans over the coming years.”

James Hallam announce new Director of Partnerships
James Hallam announce new Director of Partnerships 1920 1280 James Hallam

James Hallam Limited, the broking subsidiary of Seventeen Group, has announced the appointment of Roy Standish as Director of Partnerships with effect from 22nd July.

The role aims to strategically direct James Hallam’s Partnership programme for Authorised Representatives (‘AR’s’) and to develop new Partnership opportunities for the future.

Seventeen Group CEO Paul Anscombe comments: “We see a growing demand for entrepreneurial insurance professionals to create new ventures and to take control of their futures. With the UK broking market undergoing an unprecedented level of consolidation, there is a significant opportunity to build capital value in insurance with the support of James Hallam, which is a long established UK broker committed to independence. Roy is uniquely placed to develop Partnerships given his extensive knowledge of the UK broker market.”

Roy Standish has spent his entire 30 year plus career with Eagle Star/Zurich, having latterly been Sales & Distribution Director. Speaking about his appointment Roy adds: “After a long and happy career at Zurich I was determined to plot a new course in insurance which both used my skills and offered the prospect of enjoyment in supporting a wide variety of business opportunities within the insurance sector. I have known Seventeen Group for many years and so it is a very natural fit for me. I know that a number of high calibre insurance individuals and firms are seeking greater support to achieve their objectives and we will be well placed to assist them.”

Seventeen Group announce acquisition
Seventeen Group announce acquisition 1920 1280 James Hallam

Seventeen Group has announced that, effective 18th June 2019, it has acquired Graybrook Insurance Brokers Limited based in Essex for an undisclosed sum.

Formed in 1972 by founder Bill Hulse, Graybrook is a specialist medical malpractice and Professional Indemnity broker focusing on schemes for clinical organisations and associations.

Seventeen Group is a privately owned insurance Group which includes James Hallam insurance brokers, Touchstone Underwriting and 4Sight Risk Management. As part of James Hallam is a specialist team within the healthcare sector, ‘Pro Med’, headed by Charly Winder. Graybrook and ProMed will integrate to create a leading medical sector insurance team within the UK and international market.

Commenting on the deal, Bill Hulse highlights that “joining forces with James Hallam was a natural step for Graybrook given the many similarities between the two organisations. We care passionately about our clients and are now able to offer a broader range of services as part of James Hallam and Seventeen Group. All of my team will remain with the business and we look forward to working with ProMed and the wider James Hallam team in the coming years.

Seventeen Group Chief Executive Officer Paul Anscombe adds “We are delighted to welcome Graybrook into our Group. It is rare to see the level of knowledge and care that Bill and the team have achieved and the acquisition gives us a wonderful opportunity to bring together two highly experienced medical malpractice teams under one roof”.

Seventeen Group were supported by Beechbrook Capital in this acquisition.

Beechbrook Capital is a specialist lender providing innovative and flexible financing solutions to support fast growing SMEs across northern Europe. Tim Johnston, Investor Director at Beechbrook comments: “We have thoroughly enjoyed working with Seventeen Group and we are delighted to be the new funding partner for this market-leading business. We very much look forward to supporting the group with its further growth plans over the coming years.”

Be Aware – 18th Edition IET Wiring Regulations Launched
Be Aware – 18th Edition IET Wiring Regulations Launched 1920 1280 James Hallam

Last year saw the publication of the 18th Edition IET Wiring Regulations. The regulations apply to the design, erection and verification of electrical installations; and additions and alterations to existing installations.

Also known as BS 7671:2018 Requirements for Electrical Installations, these changes were issued on 2nd July 2018 and came into effect on 1st January 2019. The period between publication and application gave a 6-month window for electrical contractors and others responsible for installing and maintaining electrical installations to become familiar with the new regulations.

Whilst there are many small changes from the previous 17th Edition, some of the significant updates in the new 18th Edition cover include:

  • Protection Against Electric Shock – changes to regulations relating to protective equipotential bonding and those relating to disconnection times.
  • Protection Against Thermal Effects – of particular relevance to fire, a new regulation has been introduced recommending the installation of arc fault detection devices (AFDDs) to mitigate the risk of fire in final circuits of a fixed installation due to the effects of arc fault currents.
  • Protection Against Voltage Disturbances – stipulating that transient over-voltage protection has to be installed when (amongst others) the consequences caused by over-voltage results in interruption of commercial or industrial activity.
  • Inspection and Testing – this has been revised to align Inspection and Testing requirements to other revisions within the 18th Edition.
  • Energy Efficiency – recommendations for the design and erection of electrical installations with local production and storage of energy to optimise the use of electricity. These are listed in a new appendix.

This doesn’t mean that existing electrical installations installed in accordance with earlier editions of the wiring regulations are now unsafe or require upgrading, but any new installations, alteration or additions made from 1st January 2019 onwards will need to comply with the new regulations.

It is always recommended to hire contractors who are members of a trade body such as NICEIC when choosing an electrical contractor to inspect and test electrical installations within your premises. Many commercial insurance contracts contain a fixed wiring electrical inspection condition and generally stipulate use of an NICIEC contractor.

For more information, please contact us on 01923 298435.

Cyber & Data Risks Insurance
Cyber & Data Risks Insurance 1920 1280 James Hallam

Each year when completing a review of their insurances, most businesses will look at uninsured exposures with their insurance broker. Most of these can be reasonably ignored following simple cost-benefit analysis, but cyber is more difficult in that the associated risks and their potential cost to a business are still developing. It is anticipated though that the frequency and severity of such incidents will continue to rise, mirroring the experience of North America where cyber risks are given a higher regulatory and boardroom prominence. In the US it is now estimated that over 75% of corporate businesses purchase cyber insurance.

  • Different businesses will be exposed to cyber risk in different ways; some are reliant on their website to drive turnover, some rely on a hosted accounting or billing system to operate whilst others hold sensitive client data or intellectually valuable data on their systems. There are a multitude of scenarios that leave a business exposed to internal and external electronic threat. The failure of an IT network could be debilitating and a good first step is to identify and take steps to mitigate external and internal IT risks. These include:
    data theft or data loss
  • hijacks where hackers gain control of a system and demand a ransom to restore service
  • bot scams where viruses are used to take over large numbers of computers
  • basic human error (internally generated risks should not be overlooked and continue to be the most common proximate cause to a cyber loss)

Notification costs following the loss of third party data is now a major concern for EU business following GDPR. Safekeeping of data is the responsibility of the customer facing entity, notwithstanding that a third party processing company may have been the party that lost the data and/or contractual terms making a third party responsible for notification. This means if you are hacked and lose your customer data (names, addresses, credit card numbers etc.) you will need to report the loss to the data commissioner, possibly pay PCI fines, pay the cost of notifying your customers that they are at risk, pay for advice to manage their risks and pay PR costs to manage the potential damage to your brand and reputation. All of these risks can be insured and cyber insurance will additionally cover fines and penalties associated with regulatory investigations due to a privacy event.
The other major threat to a business may be the loss of a website and a resultant loss of revenue. Again, this can be insured.

  • The cyber insurance market has been developing at a rapid pace over the past five years as experience has been gained by insurers. Areas of cyber-risk that can now be insured include:
    replacing, restoring or recreating data that has been corrupted or destroyed by network failure or first/third party intervention
  • loss of data and notification management costs
  • criminal threat or extortion to release sensitive information or bring down a network unless demands are met
  • loss of income and extra expenses resulting from when a network is interrupted by attack. Covers criminal hackers, malicious insiders and denial of service (DOS) attacks, (including extortion monies)
  • payment fraud (deception of the insured’s customers into transferring over funds)
  • public relations expenses and crisis management
  • disaster recovery activation costs
  • fines and penalties where insurable by law
  • use of leased / rented external equipment
  • use of third party services
  • additional staff expenditure and overtime payments
  • terrorism risk, including ideological risk (LulzSec, Anonymous etc)

James Hallam Insurance Brokers have been placing cyber risk in the London market for over fifteen years. We source cover to insure against all of the above threats and, in addition, we can protect against risks that the majority of cyber insurers omit. For example, our favoured market will also provide:

  • the provision of first party cover on an “each and every claim” basis, ensuring that policyholders aren’t restricted by a policy aggregate and that the full benefits of cover are available each time a crisis strikes, even if they experience multiple cyber incidents in the same policy period
  • full retroactive cover as standard, meaning that policyholders are covered for breaches they discover during the policy period, even if it first occurred long before. Symantec has reported that the average time to discover a breach is 205 days, making this a particularly important feature
  • an extensive in-house incident response capability to ensure that cyber incidents are dealt with quickly and efficiently in real time. Initial response services are offered with no deductible payable by the insured
  • broader cover for senior executive officers who are regularly targeted in cyber attacks, covering theft of personal funds of individuals as well as those of the company
  • if a suit is brought against directors and officers following a cyber attack, the policy provides affirmative cover in the event that their management liability policy doesn’t respond
  • incident response costs are provided in addition to the policy limit
  • no excess is applied to the initial reporting and investigation costs
  • full systems failure is covered, including resultant business interruption
  • full Supply Chain is covered, including Technology suppliers (and non-Technology suppliers if named)
  • Cryptojacking and Botnetting are included under the definition of Cyber Crime
  • Additional Extra Expense coverage is included for costs above the normal operating expenses of a business
  • Hardware Replacement coverage is included for computer hardware or tangible equipment damaged as a result of a cyber event

Some points to consider when discussing Cyber Risk with your clients

Dealing with a ransomware incident is rarely a simple matter of the ransom payment being made and the business in question automatically regaining access to their systems and data. Even after a ransom payment has been made, and assuming the system can be successfully decrypted, the ransomware can have the unintended side effect of severely impairing the functionality of one or more of a business’s vital systems.

The use of legacy systems can significantly increase the risk of a cyber loss. Generally speaking, legacy systems are not only far more vulnerable to attack, they are also much more susceptible to dysfunction following a cyber attack.

The importance of having data re-creation cover is becoming increasingly apparent. Many cyber policies only provide cover for the cost to recover or restore data from back-ups, but not the costs to re-create or re-enter lost data from scratch. The bulk of the costs to a claim can come from the labour costs associated with manually re-entering data, and brokers should be sure to check that their clients have this important cover in place.

Almost all modern businesses have some form of cyber exposure. Even if a policyholder does not solely rely on their computer systems to carry out work, they will still have an office function that playing a key role in the running of the business. When the computer systems in an office are affected by a cyber event it will almost certainly have a negative impact on the overall business operation and having a cyber insurance policy in place will provide a valuable safety net for the company.

James Hallam can place cyber insurance in the London Market for business domiciled almost anywhere worldwide so please feel free to get in touch if you would like us to assist you and your clients.

Watford Workshop Strikes it BIG with £25,000 Grant
Watford Workshop Strikes it BIG with £25,000 Grant 1288 864 James Hallam

James Hallam, Watford’s very own specialist insurance brokers is delighted to announce that its nominated charity, the Watford Workshop has been awarded a fantastic grant of £25,000 by the Aviva Community Fund.

The cheque was presented to them by Phil Bayles Managing Director Aviva Intermediaries and Will Greenwood OBE.

The Aviva Community Fund is designed to help and improve the delivery of locally based community projects through a series of grants with this year’s total prize pot totalling £261,000.

This year, over 180,000 votes were cast to identify projects that could best benefit their local communities and in total, 81 finalists were shortlisted to receive grants of between £500 – £25,000.

The Watford Workshop was nominated by James Hallam’s’ Watford Office and was one of just three national finalists to receive the highest award of £25,000.

“It was important for us to nominate a community project that reflected our business ethos” says Paul Trainor, Divisional Director of James Hallam. “As soon as you walk through the door you can see how the Workshop is transforming lives and making a real difference to our local community.

The Watford Workshop is designed to increase the self-confidence and social skills of adults with learning difficulties and disabilities. Real work experience and skills training helps to improve both their self-esteem and qualifications and as such improve their opportunities for mainstream employment.

What will the grant be used for?

The Watford Workshop is a hugely valuable local community asset but like similar community projects is heavily oversubscribed. Its ability to deliver its program and meet demand is severely restricted by the limitations of its building. The grant will go towards the building of a brand new mezzanine floor, thereby increasing the Workshop’s capacity and ability to help even more local people.

“The awarding of this grant is a really significant moment for the Workshop” say Linda McIntyre CEO of the Watford Workshop.

“We would like to thank the Aviva Community Fund for this most generous grant and of course James Hallam’s nomination and continued support”.

Credit Insurance Can Be Essential To Your Business
Credit Insurance Can Be Essential To Your Business 1920 1280 James Hallam

2019 is set for a significant increase in business failures since those following the Global Financial Crisis of 2008.

Insolvencies will occur for reasons not seen before such as stress on cash flow due to stockpiling, delivery delay and failure to recognise the effect of tariff and regulatory changes.

  • All business sectors are likely to see margins and their ability to pay promptly squeezed
  • Several high profile insolvencies have occurred in 2018 and companies in many sectors are issuing profit warnings – even the on line retailer ASOS
  • The Office for National Statistics quarterly release shows insolvency  increases in Q3 2018 of +8.9% sequentially on Q2 and +19.3% on Q3 2017
  • This demonstrates a fragile economy with definite potential for more business failures in 2019

Suppliers of goods and services need up to date financial information to ensure customers are able to pay their invoices and the security of knowing unpaid debt is covered by insurance. Not only does a credit insurance policy provide debt collection and indemnity for non-payment following insolvency or protracted default but also REAL TIME FINANCIAL INTELLIGENCE

A ‘buyer’ of goods and services failing to meet debt obligations or with a weakening financial position will be alerted to credit insurers in advance of information becoming public. This critical data enables a credit insured company to review their exposure with vulnerable customers and minimise potential for bad debt

Credit Insurance offers a solution – let our experts speak to you about the benefits this can bring to your business

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