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Sarah Clements

Ship Security and How to Prevent Piracy at Sea
Ship Security and How to Prevent Piracy at Sea 1000 667 James Hallam

A pirate attack is one of every ship operator’s worst nightmares. A single incident can endanger lives, disrupt your supply chain, and result in millions in losses.

In this post, we outline key security measures ships can implement to help prevent piracy at sea. Be sure to consult the International Maritime Organization (IMO) guidance on maritime security and piracy for further best practices.

Be sure to read the International Maritime Organization guidance on maritime security and piracy too.

What are the Risks of Piracy?

Pirate attacks may be less frequent now than they have been in previous decades. But piracy remains a real risk in certain waters, including parts of the Indian Ocean, the Strait of Malacca, and the Gulf of Guinea.

Whether it is a hijacking or an instance of armed robbery, any kind of pirate attack can jeopardise your operations in a number of ways:

  • Threat to crew safety, with a possibility of kidnapping, ransom, or even murder.
  • Severe operational delays as a result of hijacked, detained, or damaged vessels.
  • Significant financial costs following ransom payments, rerouting expenses, damages to vessels, and potentially higher insurance premiums.

How Do Modern Pirates Operate?

Understanding modern piracy techniques is your first step to securing your ships against the threat of piracy:

  • Pirates are rarely opportunistic. They will take the time to identify vulnerable targets which they know will offer maximum rewards with minimal resistance. So, if you do not implement measures to manage this threat, pirates may find out, and they may target you for this specific reason.
  • Pirates tend to use small and fast vessels that allow them to approach their targets quickly and quietly.
  • Pirates will attempt to take control of your ship by force. They will make use of guns, knives, or even crude improvised weapons.
  • Once onboard, their goal may be to steal cargo, take hostages or hijack the vessel for ransom.

How To Prevent Piracy at Sea with Ship Security Measures

Below we will explore some measures that will help you prevent piracy at sea. Remember that pirates may run covert reconnaissance missions to identify vulnerable targets. So as well as helping you to protect your crew, your ship, and your cargo in the event of an attack, these measures may also act as a strong deterrent. 

  1. Situational Awareness Training For Your Crew

Invest in specialist training for your crew on identifying and responding to any suspicious behaviour, or unidentified vessels. Everyone onboard should know what sort of things to look out for, and they should know how to report any potential threats. And you should have policies in place for how you act upon these reports.

Part of your response should be to relay distress signals with regional and international security organisations, and with other vessels in the area. This communication should go both ways, too. If vessels share real time information with each other, then pirates may have less of a chance to isolate vulnerable ships for attacks.

  1. Onboard Armed Security

If you will be sailing through waters where there is a known risk of piracy, then it might be worth investing in armed security personnel for your voyage.

The mere presence of armed personnel can deter pirates from even attempting an attack. Remember: Pirates are rarely opportunistic, and they will actively seek out vulnerable targets. A vessel with onboard armed security is, by definition, not vulnerable.

If you are considering hiring armed security for your voyage, take the time to familiarise yourself with local and international laws and regulations, to ensure that everything is safe and above board.

  1. Extra Security For Your Vessel

A pirate attack will invariably begin with an attempt to board your vessel. The right security systems can make it difficult, or even possible, for anyone to board your ship without your permission.

Razor wire or electric fences can deter pirates from attempting to board, while extra secure doors and windows can make it more difficult for them to take control should they manage to get onboard.

You could also ensure that your vessel has a safe room to which the crew can retreat if pirates do manage to board. This can help prevent the attack from escalating into a hostage situation. The safe room should be equipped with communication systems to allow you to send distress signals.

Are You Covered For The Risks of Piracy at Sea?

A single pirate attack can lead to substantial losses. If you operate in high-risk waters, you may face increased premiums for maritime insurance.

To safeguard your operations, consider specialist coverage, including:

  • War Risk Insurance – Protects against losses from acts of war, terrorism, and piracy in designated high-risk zones.
  • Kidnap & Ransom (K&R) Insurance – Covers ransom payments, crisis response, and related costs in the event of crew abduction.

Everard Insurance Brokers, the specialist marine division of accredited Lloyd’s broker James Hallam Limited, can help you secure comprehensive protection against piracy and related risks—so you and your crew can recover swiftly from any incident at sea.

Learn more about our dedicated marine insurance services.

Cruise Ship Responsibilities to Left Passengers
Cruise Ship Responsibilities to Left Passengers 1000 563 James Hallam

In October 2025, there were reports that a woman had been found dead on a Great Barrier Reef island having been left behind by a cruise ship.

For some, this raised some serious questions: What sort of responsibilities does a cruise ship have regarding passengers who, for whatever reason, get left behind? And if something happens to the passenger after having been left behind, is the cruise line liable?

How Often Do Cruise Ships Leave Passengers Behind?

Cruise ships almost never leave passengers behind. Cruise ships tend to have robust systems in place to record all passengers that embark or disembark.

However, rare that it is, sometimes passengers do get left behind. In many cases, this is due to negligent actions on the part of the passenger: A failure to stick to agreed boarding and disembarking times. In these cases, the passenger will be liable for anything that occurs afterwards, including any ongoing travel or accommodation expenses.

Yet there are some cases when a passenger may get left behind as a result of negligence on the part of the cruise line. And in these cases, if something goes wrong after the passenger is left behind, the cruise ship may be liable for all damages.

When Would A Cruise Ship Be Liable For a Left Passenger?

  • If the cruise ship fails to communicate the itinerary, or if they neglect to tell passengers about changes to the itinerary.
  • If there are errors in the ship’s records. This could mean that the crew may not immediately notice that a passenger has not returned.
  • If the cruise ship takes no action to recover the passenger, then they may be liable for any subsequent losses. In the example we linked to above, the ship returned to the island where the passenger had gone missing a few hours later, to launch a search operation.
  • If the passenger misses the ship’s departure because they are getting treatment for an injury caused by the ship’s crew, or by an affiliated tour operator, then the ship may be held liable for any subsequent expenses incurred.
  • If a passenger, or a group of passengers, miss the departure time because they are detailed by an activity organised by the cruise line, then the cruise line will be liable for these passengers.

Cruise Ship Policy for Supporting Left Passengers

Cruise ships should have policies in place for preventing left passenger scenarios with registers, roll calls, and clear lines of communication. They should also have policies for how they respond to instances of left passengers.

If it is an emergency situation, and it is practical to do so, then the cruise ship may choose to return to recover the left passengers – as they did in the example we linked to above. But this recourse should be reserved for situations where there is a real threat to the left passenger’s wellbeing.

Beyond this, the cruise line should make it clear to all passengers that:

  • They are personally responsible for ensuring that they get back to the ship in time for departure following an excursion.
  • Left passengers may be able to rejoin the cruise at the next port of call. But you should highlight that, in most cases, it will be the passenger’s responsibility for organising and funding their journey to the next port.

You should make these policies and procedures as clear and transparent as possible. And you should ensure that all passengers sign a declaration confirming that they understand their responsibilities, along with the ship’s duty of care to them.

Does Your Insurance Cover Left Passengers?

As we have seen, there may be some situations where the cruise line will be held liable for any expenses or other issues that arise after a passenger is left behind. But even if the cruise line is not liable, a left passenger may still choose to make a claim against you. So you may face costly legal fees, along with potential compensation payments, following any instance of left passengers.

Everard Insurance Brokers are the specialist marine division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure that your maritime insurance covers you for the risks and expenses associated with left passengers.

Learn more about our dedicated marine insurance services.

What is Sea Freight and Why Is It Important?
What is Sea Freight and Why Is It Important? 1000 749 James Hallam

The term “freight” can cause some confusion, as it can have different definitions in different contexts.

Freight Definitions

In the UK, “freight” can refer to the transport of goods by any means, whether it is road, rail, air, or sea. In the US, “freight” often refers particularly to the transport of goods across land, usually by trucks. The term “sea freight” or “ocean freight” might be used to specify the transport of goods over water.

Beyond this, there is a unique definition of “freight” used in certain marine insurance contracts.

In this post we will specify exactly what “freight” might mean in an insurance context, and explain why this distinction matters.

Freight and Marine Insurance

A marine insurance policy will typically include Hull and Machinery cover. This will cover a vessel, including its hull and machinery, for losses resulting from collisions, grounding, fire, and other risks.

In a Hull and Machinery Insurance policy, the term “freight” does not refer to the ship’s cargo, or to the cost of moving goods. Instead, “freight” refers to the earnings a shipowner expects to receive for transporting the goods. If the ship is lost or damaged, the shipowner could lose the ability to earn this freight.

Though Hull and Machinery Insurance policies will often cover freight, it is often necessary for shipowners to take out separate Freight Interest Insurance. In the event of an accident at sea, a dedicated policy will ensure that shipowners are covered not just for any damages to their vessel, but also for any loss of freight income.

Definition of ‘Freight’ in Insurance vs Logistics

In Hull and Machinery Insurance, the term “freight” refers to a shipowner’s anticipated earnings from the carriage of goods, rather than the goods themselves.

In the world of logistics, the term “freight” often refers to the cargo or the transport charges.

To avoid underinsurance and gaps in cover, it is important to understand this distinction. Check the wording of your Hull and Machinery Insurance policy carefully, to ensure that it covers you for “freight”. Otherwise, you could face significant financial losses if an incident at sea prevents the completion of a voyage.

The Importance of Maritime Insurance for Sea Freight

Freight insurance covers the risk of losing the right to collect freight charges due to insured perils such as total loss of the vessel or cargo, or circumstances preventing delivery.

Freight remains a vital component of marine insurance because:

  • It protects carriers and freight forwarders against loss of income.
  • It supports contractual obligations under trade terms like CFR and CIF, where freight is part of the sale price.
  • It reflects the historical principle that marine insurance should safeguard all maritime interests—ship, cargo, and earnings.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited.

We can help you ensure you have the insurance you need to cover you for sea freight, whether you use an FCL, a LCL, or a RORO system.

Find out more about our dedicated marine insurance services.

 

 

Fam Trips for Travel Agents: What to Look Out For
Fam Trips for Travel Agents: What to Look Out For 1000 667 James Hallam

A familiarisation trip, also known as a fam trip, allows travel agents to seek out potential new destinations and experiences for their customers while networking with other travel professionals.

In this post, we will discuss some key things you should look out for on your fam trips. We will also explore the insurance implications of fam trips, to help you and your staff stay safe and secure while making the most of the experience.

What is a Fam Trip?

A fam trip is a dedicated excursion for travel agents, usually organised by tour operators, tourist boards, hotel and resort groups, and cruise lines. Often, these groups will organise a fam trip when they have a new package or property to promote. But established destinations may also run a fam trip when they want to improve their experiences or increase awareness among travellers.

How Does a Fam Trip Work?

There are a number of different types of fam trips:

  • Hosted fam trips. This means that the tourist board, resort, hotel, or cruise line will take care of everything. They may partially fund the trip, or they may even fully fund it. Joining such a trip is often by invite only.
  • Self-funded fam trips. You will have to contribute to the costs of such a trip, but you will usually get a significant discount for travel or accommodation. If this results in more bookings in the future, a self-funded fam trip could ultimately provide a significant return on your investment.
  • Virtual fam trips. Rather than travelling in person to a destination, you will join live tours online, and take part in Q&S and other sessions remotely.

What Happens on a Fam Trip?

Most fam trips work in essentially the same way: You will be invited to personally experience the travel experience, whether in person or virtually. There might be a guided tour, or you might be free to inspect things in your own time. Throughout, there will be opportunities to ask questions, and there will likely be hosted dinners and networking events too.

The Benefits of a Fam Trip

  • Increase your portfolio and your expertise. You will be able to offer your customers a broader range of destinations and experiences. And as you will have sampled these locations yourself, you will be able to offer expert advice that could encourage more customers to book.
  • Marketing opportunities. You will be able to take lots of photos and videos which could help you create compelling blogs, email campaigns, and social media content.
  • Networking opportunities. You will meet travel operators, sales reps, suppliers, and other travel agents. Expanding your network in this way could lead to further opportunities in the long-term.
  • Opportunity to identify possible future risks. You’ll be taking the same trips as your customers, so take time to identify any risks they could face that could lead to cancellations or issues you might be able to mitigate.

What To Look Out For on a Fam Trip

Here are some tips to help you make the most of a fam trip:

  • Make sure you are sufficiently prepared. Research the area in advance, including the weather, popular local sites, and important local customs. Also make sure you bring everything you need, including appropriate clothing, notebooks, electronics, and chargers.
  • Ask lots of questions. This will show you are curious about the destination, and genuinely engaged in the experience, which may make suppliers more willing to work with you. It might help to plan your questions in advance, so that you are never floundering for anything to say.
  • Brief your staff. If you will not be taking the fam trip yourself, make sure that whichever employee or employees you send are fully briefed on what you expect to achieve from the experience.
  • Record as much as you can. Take lots of notes, photos, and videos. The more you document, the easier you will find it to create powerful content afterwards.
  • Be nice. Be as polite and courteous as possible with everyone you meet, whether they are a host, a supplier, a sales rep, or another travel agent. Be sure to formally thank your hosts afterwards too, and to follow up on any connections you make.
  • Be transparent. When talking about your experiences, whether in a blog, an email, or on social media, make it clear that you travelled to the destination at the host’s invitation. Tag or link to the hosts directly wherever possible. Your hosts will appreciate the publicity, and your customers will appreciate the transparency.

What Are The Risks of a Fam Trip?

  • Squandered opportunities. If you do not make enough of an impression, or if you do not take enough photos or gather enough information, you may struggle to generate any business as a result of your fam trip.
  • Damaged reputations. If something goes wrong on the trip – if you miss an appointment or inadvertently offend a host or another individual, for example – then it could damage your reputation in the wider travel industry. You may struggle to find further travel or networking opportunities as a result.
  • Damaged trust. If you do not properly disclose the fam trip arrangement when creating content or talking to customers, it may damage the trust they place in you, which could affect your sales.
  • Missing potential issues. There might be issues that cause certain activities or accommodation options to be impractical for your customers. It’s important to use this trip to identify potential hiccups, safety risks or accessibility issues that might impact your customers later down the line.
  • General travel risks. Finally, there are the risks associated with any business travel: Lost baggage, accident and injury, delayed flights, and so on.

Taking the time to prepare for your fam trip will mitigate most of these risks. But when it comes to the general travel risks, it is important to ensure you are fully covered for anything that might happen.

Are You Insured for Fam Trips?

Whether you make the fam trip yourself, or you send an employee or a group of employee, it is important to ensure you have appropriate cover in place should anything go wrong:

  • Employer’s liability insurance. You have a legal duty to get employer’s liability insurance to cover your staff for any accidents or injuries they sustain on the job. If you send employees on fam trips, be sure to tell your employer’s liability insurance provider. A fam trip is not considered “clerical” work, so your insurer will need to be aware that your employees may need cover for certain additional risks.
  • Travel insurance. You will also need a dedicated business travel insurance policy, which should ideally be a corporate group business travel policy. A general “off-the-shelf” holiday travel insurance policy will not provide the cover you need, as these packages will typically not cover you for any time spent working.

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We have provided specialist business insurance for tour operators and travel agents for over 20 years.

We provide a one stop shop service for the travel industry, and over 700 travel agents and tour operators depend on us for dedicated business insurance services. Also, we act as the trusted insurance advisor to ABTA and AITO.

Find out how we can help you today.

Do I Need a Landlord Licence?
Do I Need a Landlord Licence? 1000 667 James Hallam

Chancellor Rachel Reeves recently caused controversy when it emerged that she had broken housing rules when renting out her family home. It seems she had failed to obtain a “selective” rental licence when renting out her London home.

This news prompted many to wonder about the specific rules for letting out property in the UK: Do you always need a landlord licence? And if not, when exactly do you need one?

What is a Landlord Licence?

A landlord licence is exactly what it sounds like: A document that gives you the legal right to let property in the UK.

The type of licence you need will depend on the type of property you are looking to let, as well as your location.

When Do I Need a Landlord Licence?

If you are letting property in Scotland or Northern Ireland, then you will need some form of licence or registration no matter what kind of property it is. In England and Wales, it all depends on what sort of property you want to let.

Types of Landlord Licences

Broadly speaking, there are three types of landlord licences:

  • Mandatory HMO Licensing
  • Additional Licensing
  • Selective Licensing

What is Mandatory HMO Licensing?

An HMO is a House in Multiple Occupation. This is a situation where unrelated tenants live in the same property, with their own private rooms, while sharing facilities such as kitchens and bathrooms.

Since 2006, it has been a legal requirement in England and Wales to apply for an HMO Licence when letting out a property to five or more unrelated tenants. This applies to any property where these unrelated tenants form two or more households. And to get your licence, your property will have to meet all applicable HMO standards in terms of room sizes, safety measures, and so on.

Usually, an HMO licence will last for five years. But if the council has any particular concerns about your property, then your licence may be shorter. Depending on your specific location, and the specific size of your property, an HMO Licence may cost between £600 and £1,200.

What is Additional HMO Licensing?

As we mentioned above, it is a legal requirement in England and Wales to get an HMO Licence for any property let to five or more unrelated tenants who form two or more households. In some areas, local councils require you to get an HMO Licence for smaller shared houses too, where three or more unrelated tenants form more than one household in the same property.

Check your local council’s licensing laws to find out whether you will need a licence for your property, depending on its size and the number of tenants.

What is Selective Licensing for Landlords?

Some local councils designate areas where all privately rented homes require a licence. This is known as Selective Licensing, and councils usually introduce this measure to regulate the rental market in high-density neighbourhoods.

Depending on the council, a licence can cost between £400 and £900 per property. If you fail to get a licence, you may face a fine of up to £30,000. On top of this, the court may impose a Rent Repayment Order, which would require you to pay up to 12 months of rent back to your tenant.

How Do I Find Out If I Need a Landlord Licence?

As we have seen, if your property is based in Scotland or Northern Ireland, then you will likely need a licence to let any private property. In England and Wales, if you are renting out an HMO to more than five people, then you will certainly need a licence. But beyond that, it depends on your local council’s specific rules.

Head to your local council’s website, and look for their Housing or Private Renting section. Many councils have online tools where you can enter your property’s postcode, and they will instantly tell you if any Additional or Selective Licensing laws apply to your area.

If you are still in doubt, then contact your council directly.

Note that, even if you do not need a landlord licence for your property, you will still have to meet a number of legal responsibilities as a landlord.

Get the Cover You Need For Your Property

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your property.

Whether you let a single private property, or you have a portfolio of properties, we can help you get the specialist insurance you need as a landlord at a competitive price.

Find out how we can help you today.

What To Look For In Cyber Insurance Cover
What To Look For In Cyber Insurance Cover 1000 666 James Hallam

Every business in every sector should take cyber security seriously. Cyber insurance will offer essential protection during a cyberattack, while also giving you the cover you need to recover from an attack.

Be sure to read our guide to why your business needs cyber insurance.

In this post we will list some key things to look out for in a cyber insurance policy; to help you ensure you get the cover and the support you need for the cyber security risks you face.

Make Sure You Get A Dedicated Cyber Insurance Policy

First, it is important to choose a dedicated, standalone cyber insurance policy, rather than just relying on existing insurance products for cover.

The only way to ensure that you have all the cover you need is to invest in a dedicated cyber insurance policy. This is one area where you simply will not be able to get by with a standard business insurance package.

Does Standard Business Interruption Cover Cyber Attacks?

A standard business interruption insurance policy, for example, won’t cover you for any of the risks associated with a cyberattack, including loss of income while you are unable to trade following a breach. It also won’t cover any legal fees or other expenses that may arise as a result of the cyberattack.

Pay Attention to the Policy Wording on Cover Limits and Exclusions

In particular, you need to pay attention to the policy’s cover limits, and to any specified exclusions.

Cover Limits
The cover limit is the maximum amount your insurer will pay out should you ever make a claim on your cyber insurance policy. A single cyber breach could cost your business thousands. But some cyber attacks carry a much bigger cost. Jaguar Land Rover, for example, recently faced £50m in losses per week as a result of a cyber security breach.

With this in mind, it is best practice to pick a policy offering limits on an ‘any one claim’ basis rather than ‘in the aggregate’. A policy on an ‘any one claim’ basis would be reinstated for each separate claim, meaning you would be covered if you suffered more than one cyber breach during the year you are covered.

Specified Exclusions
Also pay attention to any cover exclusions or conditions. These will vary from policy to policy. It is important to ensure that the policy’s exclusions will not result in any potential gaps in your cover.

Ongoing Support is Everything

The main reason why you need to get a dedicated cyber insurance policy is because only a standalone policy will offer ongoing support during an incident. In fact, when comparing cyber insurance policies, the support you will get during an incident may be a more important consideration than the final settlement you would receive following an incident.

A good cyber insurance policy will include a dedicated support helpline that you could call for support in the event of a cyberbreach or a ransomware attack. This may include assistance in notifying your clients and customers about the breach, and in advising them in action they could take to protect themselves.

The cyber insurance policy may also offer certain risk assessment services. These could help you strengthen your systems in order to make a cyberattack less likely to occur in the first place.

Adequate cover is important. But when it comes to cybercrime, you will need more than a cash settlement following a claim. You should be able to rely on your cyber insurance policy for immediate support the moment you realise that something has gone wrong.

Get Tailored Cyber Insurance For Your Business

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you find the cyber insurance you need at the best possible price.

Get in touch for a free quote today.

How Driver Shortages Affect Haulage Risk Management
How Driver Shortages Affect Haulage Risk Management 1000 666 James Hallam

The UK’s commercial motor industry has been dealing with a driver shortage for some years now.

In this post we will take a look at the current state of the UK’s HGV driver shortage, before exploring how this might affect risk management in haulage firms. We will then discuss some strategies for managing a driver shortage in your business.

The Current State of the HGV Driver Shortage

The Road Haulage Association (RHA) recently released figures suggesting that the UK may have lost over 117,000 qualified drivers over the past 12 months.

This figure is based on the number of driver qualification cards (DQCs) that have lapsed in this period. And the RHA has pointed out that the data shows that many drivers in their 30s and 40s have left the workforce, not just retirees.

The RHA also mentioned that their figures are “supported by anecdotal evidence”, with numerous fleets reporting that they are struggling with driver shortages.

How Can Driver Shortages Affect Haulage Risk Management?

When there is a general shortage of drivers, any existing drivers will face increased pressure, which can cause a range of issues for haulage fleets.

Increased risks of accidents
This could increase the risks of accidents as a result of:

  • More pressure on drivers which can increase driver stress and fatigue, as they may feel the need to work longer shifts so as to meet demanding deadlines.
  • Regulatory issues, as drivers may feel compelled to exceed their drivers’ hours.
  • Recruitment of younger drivers. As they are less experienced on the road, younger drivers may be more likely to be involved in accidents.
  • Encouragment of older and retired drivers to return to the workforce. This too could affect your risk management, as older drivers may have slower reaction times than younger drivers, or they may have certain medical conditions that could affect their abilities to safely operate HGVs.

Increased staff loss
Overstretched drivers may even choose to leave the workforce if the job becomes too demanding, which will make a bad situation even worse.

Increased insurance costs
To cope with a driver shortage, we can see that fleets will often recruit , the more you may have to pay for your haulage fleet insurance.

How to Address the Driver Shortage in Your Business

  • Recruitment and Training – Outreach programs, apprenticeships, and internships can help you attract the next generation of HGV drivers. Invest in extensive and ongoing training for all new and existing drivers to ensure that every driver in your fleet meets all necessary road safety standards.
  • Driver Wellbeing – Prioritising driver wellbeing can make recruitment easier, while also helping to reduce staff turnover. Introduce initiatives to help your drivers manage stress and burnout, which can contribute to effective risk management. Creating a culture of open communication between drivers and managers can make a huge difference to driver wellbeing, while also helping to improve your overall operational efficiency.
  • Invest in Technology – Advanced telematic and fleet management systems can help you plan more efficient routes and rotas, while also giving you real-time insights into driver behaviour. You can minimise downtime and ensure that no driver ever feels the strain. And if you ever spot any potential issues with any drivers, vehicles, or routes, you can take action as soon as possible.

Get Dedicated Haulage Insurance From James Hallam

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your fleet and your drivers.

We can help you with effective haulage risk management through getting you a comprehensive haulage insurance package that can cover your business at a competitive price.

Find out how we can help you today.

How Businesses Can Save Energy Over Winter
How Businesses Can Save Energy Over Winter 1000 667 James Hallam

Between 2021 and 2024, the average energy prices for UK businesses increased by over 90%. Prices fell a little towards the end of 2024, but they were still 75% higher than they had been at the start of 2021.

In this post we will explore some ways that businesses can save energy over winter, a period when short days and low temperatures have traditionally forced businesses to increase their energy usage.

Conduct an Energy Audit

To begin with, conduct a thorough energy audit for your business. This involves assessing how much energy each process consumes. Doing this may help you identify some areas where you can reduce your energy consumption.

As part of this, you might review your energy bills from previous years. This could help you pinpoint the key days or weeks in which your business was using the most energy. And if you have not done so already, you could invest in a smart meter, which could provide more immediate insights into how much energy your business is using at any given time.

Quick and Easy Ways to Reduce Business Energy Use

There are many “quick wins” that could help you make significant savings on your business’s energy use over the winter:

  • Replace as many lights as possible with efficient LEDs.
  • Use motion sensors in corridors, bathrooms, and other areas with comparatively low footfall, to save you from having to light them at all times.
  • Ensure that all windows and doors are kept closed when the heating is on. If you cannot afford to get new insulated windows and doors, you can reduce the amount of heat that escapes with curtains and draft excluders.
  • If you have a thermostat, do not place it in an area where the heat might fluctuate. Keep it away from anywhere there might be a draft, and do not place it near any machinery that could generate heat. This will prevent the heating from coming on when it is not needed.

Get Your Staff Onboard with Saving Energy

Your staff can actively support you in helping to cut your energy costs, so long as you communicate just what you are trying to achieve, and why.

Ways to encourage staff to help save energy and reduce bills:

  • Appoint an energy efficiency champion, who is in charge of looking for ways to reduce energy consumption, and for getting other staff involved.
  • Try to make it a competition, with incentives for reducing energy consumption, rather than reprimands for wasting energy.
  • Use signs and posters to encourage staff to save energy wherever possible. For example, you could put small stickers next to light switches in bathrooms or storage rooms to remind staff to turn out the lights before they leave the room.

Do I Have to Put the Heating on In the Workplace?

The HSE specify that you should maintain a minimum temperature of 16°C in the workplace, or 13°C in environments where staff may carry out physically demanding work. You can read their full guidelines on workplace temperature.

This means that you do not necessarily have a legal duty to keep the heating on round the clock. However, you should still aim to keep your staff as comfortable as possible when they are at work. Intentionally keep your workplace cold during the winter and the result will be unhappy or uncomfortable employees. This could result in some costly mistakes, and it could even increase your staff turnover.

But if you want to save energy over winter, you could encourage your staff to wear additional layers on the colder days, and to only turn the heating on as a last resort. And wherever possible, you could encourage your staff to work from home. This might be a win-win situation for you and your staff: They could avoid a tiresome commute on a cold and dark winter morning, while you might be able to make savings on heating the workplace.

Ways to Save Money on Business Energy Use in the Long-Term

Above we mentioned how a smart meter could help you review your energy use through providing more accurate insights into how much energy your business is using at any given time. A smart meter could also lead to more accurate energy bills, as rather than paying for your estimated usage, you will only ever pay for the energy you use.

Often, utility companies will offer additional discounts if you set up a Direct Debit to spread the cost of your bills.

In the long-term, you could look to invest in additional insulation for your business. You could also aim to replace your systems, equipment, and machinery, including your boiler, with more energy efficient models.

Finally, if you want to save money on business expenses, you could review your business insurance package.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. Talk to us and we can help you ensure you are getting the cover you need at the best possible price.

Find out how we can help you save money today.

Defective Products: Legal Responsibilities of Manufacturers & The Role of Insurance
Defective Products: Legal Responsibilities of Manufacturers & The Role of Insurance 1000 667 James Hallam

If you are a manufacturer and you inadvertently produce some defective products, then you have certain legal responsibilities in how you respond to the issue.

In this post we will explain your legal responsibilities when it comes to defective products, and discuss the role that insurance can play in helping you fix the issue.

Legal Responsibilities as a Manufacturer of Defective Products

Under The Consumer Protection Act 1987, manufacturers are liable for any harm caused by faulty or defective goods. Under this legislation, manufacturers would be held legally responsible for any losses or damages arising from faults or defects, regardless of whether you were originally at fault.

It is against the law to sell defective products in the UK. As a result, suppliers and retailers may also face claims of negligence in cases involving defective products. But in any case, the ultimate liability would always come down to the manufacturer.

When is a Product “Defective”?

A defective product is any product that does not function like it is meant to. We might also refer to products as “defective” when they have the potential to damage an individual’s property (e.g. if it carries unintended fire risks); or if they have the potential to cause illness, injury, or even death (e.g. if a food product accidentally contains traces of allergens or other harmful substances).

The defect might be found in the product’s design, or it might arise due to a manufacturing error. For instance, if a machine or a piece of equipment on your production line is not working like it should, the final product might not operate as expected.

The defect might also be found in the product’s packaging. It might contain misleading instructions, for example, or it might not properly warn of certain potential risks in using the product.

What Are The Penalties For Distributing Defective Products?

You will face severe legal, financial, and reputational consequences if you accidentally produce a defective product, and you fail to adequately respond:

  • Legal action from customers, suppliers, and retailers.
  • Fines from regulators.
  • Personal injury claims and other legal action.
  • Bad reviews and long-term damage to your brand’s reputation.

How Manufacturers Should Manage Defective Products

  • Set clear terms and conditions. Outline exactly how you will manage returns, refunds, and repairs. This will help manage expectations which could ultimately help you avoid disputes.
  • Respond quickly. You need to act as soon as you become aware of the defect, whether you notice it yourself, or you receive a complaint from a supplier, a retailer, or a customer. At this point it is important to collect evidence and keep records of all communications, as you may ultimately have to demonstrate how you managed the issue.
  • Offer the correct response. Your exact legal responsibilities may differ depending on the particular situation you are facing. You need to follow the law when it comes to offering refunds, repairs, or replacements. For more information, check the Consumer Protection Act and the Sales of Goods Act.
  • Review your quality controls. If you accidentally manufacture a defective item, you should thoroughly review your processes, including your quality control systems, to determine just how this defect came about. This will help you avoid producing any further defective items in the future.

Reducing Defects in Manufacturing

  • Quality control is everything. You should implement robust quality control procedures at every step of the manufacturing process. These procedures should be capable of identifying errors as soon as they arise, so that you can address any potential issues immediately.
  • Train your employees. Your employees should know how to spot any potential issues that could lead to defects, and they should know how to respond effectively.
  • Set policies and procedures. You should know in advance exactly how you will respond to a defective product issue. Make sure you understand your legal requirements in responding to different types of defects, whether it is a harmless design flaw or a serious error that could potentially cause harm. The better you understand your legal responsibilities, the faster and more effectively you can act when you need to.

The Role of Insurance in Product Defects

Specialist manufacturing insurance can include product liability insurance. This can cover you for all the expenses that may arise should you manufacture a defective product, including product recall fees, the costs of notifying suppliers, retailers, and customers, and any potential legal fees or compensation payments that may follow.

Read our full guide to what manufacturing insurance can cover.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance brokers. We are committed to protecting your manufacturing business, and we can help you ensure you are fully covered for all risks relating to defective products.

Find out how we can help you today. 

How To Protect Your Shop Against Theft Over Christmas
How To Protect Your Shop Against Theft Over Christmas 1000 667 James Hallam

Shops across the UK lose millions to theft throughout the Christmas period. In this post, we will discuss how you can protect your shop against theft over the busy Christmas season.

Be sure to read our full guide to stopping shoplifters and preventing retail theft.

Is Shoplifting More Common Over Christmas?

Figures emerged in December 2024 revealing that more than 650 shoplifting offences a day had gone unsolved over the previous 12 months. This represented a 38% increase in the total number of unsolved shopping offences in the same period five years previously.

Why is Shoplifting More Common at Christmas?

Shoplifting offences may be more common over the festive period for a number of reasons:

  • Increased footfall – During the busy Christmas shopping season, shops may experience higher footfall than they do at any other time of year. This chaos can provide a lot of cover for opportunistic shoplifters.
  • Staffing issues – Existing staff may be more tired and stressed than usual. Temporary and seasonal staff may not have the training or the experience to identify and respond to shoplifting. And managerial staff may be too overstretched to provide any effective oversight.
  • Stock issues – Shops tend to increase their stocks over Christmas, and it is common to see large quantities of valuable products left in locations where it might be easy for shoplifters to steal them without being noticed.

How To Protect Your Shop Against Theft Over Christmas

To begin with, conduct a thorough security audit to ensure there are no vulnerabilities that shoplifters might exploit:

  • CCTV – Do you have full CCTV coverage of your entire shop floor? How often do you review your CCTV footage?
  • Visibility – Can staff see the entire shop floor from the checkout? If there are any blindspots, could you use mirrors or rearrange shelves to improve line of sight and help staff keep tabs on customers?
  • Signage – Could you increase the signage in the store to notify customers of your security procedures? A simple sign reading “CCTV in operation” could be enough to deter some thieves.
  • Keeping products secure – Do you have secure locations for securing and displaying high value items? If you will be increasing your stock over Christmas, will you have the facilities to securely accommodate a greater volume of valuable products?

Staff Briefing and Scheduling

Inform Your Staff of the Risks
Make sure that every member of staff fully understands the increased risks of shoplifting over the festive period. This should extend to everyone, whether they are permanent or temporary, and whether they work on the shop floor or in the stockroom.

Increase Staff Numbers
When it comes to staff rotas, if possible, you should ensure that no member of staff ever works a shift by themselves. A single member of staff will not be able to monitor the entire shop floor. Plus, shoplifters often work in pairs, where one will distract your staff while the other lifts items out of sight. The more staff there are on duty, the harder shoplifters will find it to work unobserved.

Extra Security Staff
Many shops employ temporary staff over the Christmas period to cope with the increased footfall. To prevent shoplifting, you should consider adding additional security personnel to your workforce during the festive period. Identify in advance the days that are likely to be the busiest, and ensure that you have the greatest security presence on duty at peak times.

Consider Your Store Layout

If you will be decorating your shop for Christmas, make sure your decorations do not create any new blindspots that shoplifters could exploit.

Take care when displaying products on the shop floor. If you currently keep any high value items in locked cabinets, for example, you should continue to do so over Christmas. If you want to display greater quantities of high value items on the shop floor, you could display empty boxes which staff could exchange for the real thing at the point of sale.

Introduce New Policies Where Necessary

If you familiarise yourself with some common shoplifting techniques, it could help you to outline new policies to help you mitigate the risks.

Increased Self-Service Staff
For example, in stores with self-service checkouts, one technique is for shoplifters to scan a barcode of one item in order to pay a lower price for a considerably more expensive product. You could deter this behaviour with an increased staff presence at the self-service tills, along with mandatory bag and receipt checks before customers leave the store.

Large Bag Policies
Also, it is common for shoplifters to carry big bags, or to push large prams, into which they can easily drop items without notice. You could introduce a policy limiting, or even outright preventing, customers from bringing large bags or oversized prams into the store.

Communication and Enforcement of Policies
Whatever new policies you introduce, make sure you communicate them as clearly and early as possible to all customers, while making it clear just why you are enforcing such restrictions. Signage can help, as well as well-briefed security staff who could calmly and politely explain to customers why they are not allowed in the shop with larger bags.

Review Your Retail Business Insurance

Finally, as you approach the festive period it might be a good idea to review your retail business insurance, to ensure it will cover you for the increased risk of theft over Christmas. For example, if you intend to increase your stock levels over Christmas, you may have to raise your cover limits accordingly.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your shop, over the Christmas period and beyond. We can help you get specialist retail shop insurance, which can help your business bounce back from any significant losses.

Find out how we can help your shop today.

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