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Sarah Clements

D&O and MLP: What’s The Difference?
D&O and MLP: What’s The Difference? 500 334 James Hallam

What is the difference between directors and officers (D&O) insurance, and a management liability policy (MLP)? Each can provide some cover for a company’s upper management and decision makers. But is there any overlap between the two? And which type of cover is right for your business?

What is Directors and Officers (D&O) Insurance?

D&O insurance provides cover for your business’s directors and officers in the event of legal claims made directly against them. If someone alleges that one of your decision-makers has acted wrongfully while managing the company, a D&O policy can cover their legal fees, along with any settlements or compensation that may be due following the claim.

Such claims could come from regulators, shareholders, creditors, competitors, or even from current or former employees. Plus, directors and officers may be held liable for a number of risks, including cybersecurity, data breaches, and losses arising from mergers, acquisitions, insolvency, and bankruptcy.

With this in mind, D&O insurance can act as an essential safety net, allowing your upper management to make key business decisions with confidence.

Read our full guide to D&O insurance, and why your business may need it.

What is a Management Liability Policy (MLP)?

MLP can include a form of D&O cover, along with cover for corporate legal liability, and for employment practice liability. The D&O cover can cover your upper management for allegations of breach of trust, defamation, insider trading, negligence, and other types of wrongdoing. Beyond this, MLP can provide additional cover for legal claims following alleged breaches of health and safety law, unfair dismissal, discrimination, harassment, pay inequality, employment contract breaches, and more.

MLP can also cover the costs associated with legal claims made against your company and its directors.

What’s the Difference Between D&O Insurance and an MLP?

Compared with D&O insurance, MLP offers much broader and more comprehensive cover.

In short, while D&O insurance will only cover your directors and officers for alleged wrongdoing, MLP provides additional cover for individual employees, and for the company as a whole.

D&O or MLP: What Sort of Cover Does Your Business Need?

D&O and MLP – is it a case of either/or, or does your business need both types of cover?

As many management liability insurance policies include some level of D&O cover, it might seem as though all businesses can get away with getting an MLP to cover all risks. However, a dedicated D&O policy can provide some tailored cover that may be beyond the scope of an MLP.

It all depends on the size and structure of your company. If you are running an SME, then the comprehensive cover provided by an MLP could indeed tick all of your boxes. Yet if your company is structured in such a way that your decision makers could be personally liable for claims of negligence and wrongdoing, you may also need the specialist, focused cover provided by a dedicated D&O policy.

Get Help Deciding What Cover Your Business Needs

If you cannot decide which form of cover is right for your business, or if you are having difficulty understanding the difference between D&O and MLP, talk to us.

We are an independent Lloyd’s broker, and since 1982 we have been helping businesses of all sizes get the cover they need at the best price. We will take the time to get to know your business, and the risks you are facing, so that we can advise you on your unique insurance requirements.

Get in touch for a free quote today.

8 Reasons Why Your SME Needs Cyber Insurance
8 Reasons Why Your SME Needs Cyber Insurance 500 334 James Hallam

Cyber insurance is tailored cover for the risks associated with cyber breaches and other forms of cybercrime. A cyber insurance policy can cover for the costs related to data recovery, legal fees, customer notification, and public relations efforts. It can also provide some cover for business interruption, allowing you to manage your overheads while you deal with the issue.

Read our full guide to what cyber insurance is, and what it covers.

Too many SMEs seem to think that cyber insurance is a niche product that is only necessary if you operate in certain industries. Yet all businesses, regardless of their size or sector, should consider cyber insurance. In this post, we will list eight reasons why.

1: Cybercriminals actively target small businesses

Think your business is “too small” to be of interest to cybercriminals? Think again.

Cybercriminals will not overlook your business because of its size.

One study found that cybercriminals are three times more likely to target SMEs over larger businesses. Another suggested that around 96% of all cyberattacks target SMEs.

2: Many SMEs are powerless to resist cyber attacks

One reason why cybercriminals target SMEs is because they know that smaller businesses are less likely to have robust cybersecurity systems in place. This means that, if they target you with a ransomware attack, for example, you will have no choice but to pay.

3: Cyber threats are getting harder to spot

Phishing is a very common form of cyberattack in which cybercriminals send a fraudulent email that claims to be from a trusted source. This could be a bank, a shopping platform, a manager, or a colleague.

Phishing messages trick the individual into sharing sensitive information, such as login details. This can give cybercriminals access to your systems while leaving you vulnerable to other forms of cyberattack.

Fake phishing messages are getting increasingly difficult to spot. There’s a growing threat of cyber criminals using AI modules to create phishing emails that are so realistic that they could fool even the most seasoned of cybersecurity expert.

4: Cybercrime carries a huge cost

The UK government’s cyber security survey found that, for UK businesses, the average cost of a single security breach was between £1,100 and £4,960. Would your business be able to bounce back from such an expense?

5: Cybercrime is getting more expensive

IBM recently surveyed 604 organisations and 3,556 cybersecurity and business leaders who had been hit by a data breach. They found that the global average cost of a data breach in 2024 was $4.88m. This is the highest it’s ever been, and it represents a 10% increase over the previous year’s figures.

6: A cyberbreach will cost you more than you might think

Following a cyberbreach, your business will take a significant financial hit. But the blow to your reputation could be much more damaging.

How many current and potential customers would you lose if you create the impression that you cannot be trusted to handle sensitive customer information?

And what if, in the investigations following the cyber breach, it is found that your business did not do enough to secure your customers’ sensitive data? This could imply you are in breach of GDPR, which could carry further fines.

7: Businesses can feel the impact of a cyberattack for years following the breach

A 2023 government survey found that 88% of businesses hit by a cyberattack were able to restore their operations within 24 hours of the attack. A separate study found that the average amount of downtime following a cyberattack was 24 days.

Yet some cyberattacks are so severe that recovery takes years. The Scottish Environment Protection Agency was hit by a ransomware attack in December 2020. As of February 2024, they were still rebuilding their systems.

Plus, it might be rare, but it does happen – sometimes a cyberattack is so severe that it sinks a business completely.

8: Cyber insurance can determine how effectively your business recovers from the attack

The amount of time it takes your business to recover from a data breach will depend on the severity of the attack, along with how effectively you can respond.

While cyber insurance will not protect your business from cyberattacks, it will at least ensure that you will have the means in place to respond to a breach.

With cyber insurance, you can get comprehensive cover for the costs related to data recovery, legal fees, customer notification, and public relations efforts. A cyber insurance policy can also provide some cover for business interruption, allowing you to manage your overheads while you deal with the issue.

Without a cyber insurance policy, a data breach could ruin you. But get the cover you need today, and you will have peace of mind that you will be able to bounce back from even the most severe of breaches.

Get Tailored Cyber Insurance for Your SME

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.

What is the Difference Between CIF and FOB in Shipping?
What is the Difference Between CIF and FOB in Shipping? 800 449 James Hallam

CIF and FOB are two different international shipping agreements determining who is responsible for goods during transit – the buyer, or the seller.

In this post we will outline the differences between CIF and FOB, and examine the insurance implications of each.

What is CIF in Shipping?

CIF stands for cost, insurance, and freight. In this arrangement, the seller takes on the following responsibilities:

  • Loading the goods onto the ship.
  • Covering the cost of shipping.
  • Arranging adequate marine insurance to cover the goods during shipping.
  • Acquiring all necessary documents, licenses, and inspections.

The buyer takes full responsibility for the goods from the moment they reach the destination port. This includes liability for any extra costs that may be incurred during the voyage, such as customs fees.

What is FOB in Shipping?

FOB stands for free on board. In this arrangement, the seller has very few responsibilities. Essentially, they are responsible for transporting the goods to the port, and for ensuring they are loaded onto the ship.

The buyer assumes full responsibility for the goods once the voyage begins. This means they are responsible for arranging transportation, for paying any additional shipping fees, for arranging adequate marine insurance for the goods in transit, and for unloading the goods at the destination port.

What is the Difference Between CIF and FOB in Shipping?

The key difference between CIF and FOB is who takes responsibility for the goods during shipping – the buyer, or the seller.

Under CIF, the seller is responsible for all the costs and risks of shipping, with the buyer only taking responsibility upon delivery.

Under FOB, the buyer takes responsibility for all costs and risks from the moment the goods are loaded onto the ship.

CIF or FOB – Which is Best?

Neither arrangement is necessarily “better” than the other. The arrangement you choose will depend on the nature of the trade agreement.

Pros and Cons of CIF for Buyers

PROS: The seller takes full control for all shipping arrangements, and other responsibilities. This invariably makes things more convenient for the buyer. But it can also make things more cost-effective for both parties – particularly if the seller has more experience with local customs

CONS: CIF can prove a lot more expensive than FOB. Plus, it can lead to communication issues, as the buyer may have to contact the seller should they ever need an update on progress etc.

Pros and Cons of CIF for Sellers

PROS: CIF allows sellers to use their chosen providers, which can help save money. They can also choose to include insurance and other related costs in the shipping prices they charge the buyer, which can make CIF the most cost-effective, and even profitable, choice for sellers.

CONS: Sellers take full responsibility for the goods until they reach their destination. If anything happens to the ship or the goods during the voyage, they could be liable for all damages or losses.

Pros and Cons of FOB for Buyers

PROS: In an FOB arrangement, the buyer can choose their own providers for many aspects of the shipment, from logistics to insurance. This can help them find the best prices, while giving them more control over delivery timeframes etc.

CONS: The extra responsibility can result in added pressure – more things to manage means more things that could potentially go wrong. As such, smaller or less experienced buyers may struggle with the process.

Pros and Cons of FOB for Sellers

PROS: FOB allows sellers to complete their sales much sooner. Once they have ensured that the goods are loaded, the seller has nothing else to worry about. From this point on, the shipment becomes the buyer’s responsibility.

CONS: Because they have less control over logistics, insurance, and other expenses, FOB arrangements can often result in lower profit margins for sellers.

Get Comprehensive Marine Insurance From James Hallam

James Hallam is an independent Lloyd’s broker. Everard Insurance Brokers are the specialist marine trading division of the James Hallam Group who are accredited Lloyds brokers.

Whether you are looking to cover a single vessel or an entire marine trade supply chain, we deal with a wide range of niche insurance providers, and we can arrange the cover you need at the best possible price.

Find out more about our specialist marine insurance services.

Common GDPR Challenges for Travel Agents and Travel Operators
Common GDPR Challenges for Travel Agents and Travel Operators 800 450 James Hallam

Since 2018, the General Data Protection Regulations (GDPR) have governed how businesses collect, store, and transfer personal data. These regulations apply to businesses operating in most European countries – regardless of whether they are members of the EU. This includes travel agents and travel operators.

In this post we will outline some common GDPR challenges for travel agents and travel operators, and explore how you can ensure your travel business stays compliant.

Please note that regardless of the industry you work in, data protection will always be a complex issue. This post will provide a general overview of some of the key principles of GDPR for travel agents and tour operators. But for a thorough guide to your data protection obligations, please consult the Information Commissioner’s Office.

The Importance of Consent and Withdrawal

Under GDPR, you must obtain explicit consent to collect certain customer data, for every specific data use case. Most businesses do this via pop-ups on their website.

You cannot ever infer a customer’s consent. The customer must give it willingly, and in full understanding of exactly what they are consenting to.

Also, customers have the right to withdraw their consent at any point. This means you must make it as easy as possible for customers to change their preferences.

What is Personal Data for Travel Agents and Tour Operators?

GDPR regulates personal data. So, what constitutes personal data, for travel agents and tour operators?

In the travel industry, personal data might include:

  • Passport details, including names, addresses, dates of birth, and biometric data.
  • Contact details, including emails and phone numbers.
  • Photos, and other identifying information.
  • Financial details, payment and billing histories, and other forms of sensitive data.

Your employees’ data is also protected under GDPR. Your HR department should take appropriate care when collecting and storing employee details.

What Personal Data Should Travel Agents Be Collecting?

When obtaining customer consent for data collection, you must be completely open and unambiguous. You must tell your customers exactly what data you are collecting, and for what specific purpose you are collecting it.

If a customer consents to your using their data for one purpose, you cannot then use this data for a different purpose. For example, if a travel operator requests a customer’s email address so that they can send them some digital tickets, they cannot then use this same email address for marketing purposes. You would need to seek the customer’s consent separately before you could add them to a marketing mailing list.

You must only collect customer data that you really need. For example, an airline will need to know a customer’s passport number. The airport car park will not.

Can Travel Agents and Tour Operators Share Customer Data?

Tour operators and travel agents may make travel and accommodation arrangements on a customer’s behalf. For this, they may need to share certain personal details with other organisations.

Businesses are allowed to share personal data with other organisations under GDPR. But once again, you will first need the customer’s explicit consent before you share their data. Plus, you may only share necessary information, and you must only do so for specific purposes.

For example, if a travel agent shares a customer’s email address with a hotel, this hotel cannot then bombard this customer with marketing emails.

How To Store Customer Data Safely and Securely

You must ensure that any personal data you collect is stored as securely as possible. You probably have certain security measures in place already. Locks on doors, windows, and cabinets play a huge role in data security. Passwords, antivirus software, and firewalls can help protect your data from digital breaches.

It is also important to train your staff on certain cybersecurity principles. All staff members should know how to spot a suspicious email, for example.

How Long Should You Store Customer Data?

A robust, and enforced, data retention policy is critical for GDPR compliance.

Under GDPR, you should not store personal data for longer than you need to. For example, a hotel might collect contact details from a customer to keep them informed about their booking. Once the customer has checked out, then the hotel no longer needs this contact information. So technically, under GDPR, the hotel should then delete this customer data.

However, GDPR does not set strict timeframes for storing customer data. The wording of the regulations simply requires businesses to ensure “that the period for which the personal data are stored is limited to a strict minimum.”

To ensure you stay compliant, you should commit to regular content audits. Periodically, you should review the data you store, and assess whether or not you still need it based on the purpose for which you collected it. Needless to say, you should then delete any personal data you no longer need.

How to Deal With Data Breaches

Cybercriminals know that travel agents and travel operators store huge amounts of valuable customer data. Because of this, around 72% of SMEs in the travel sector have fallen victim to cyberattacks in recent years.

Be sure to read our full guide to cybersecurity for travel agents and tour operators. Our guide outlines the common cybersecurity risks for the travel sector, while detailing some key strategies for keeping your business safe.

Following a breach, you may need to provide evidence that you took sufficient measures to keep your customer data safe. If you fall victim to a cyberattack, a dedicated cyber insurance policy can provide cover for customer data loss, and for system breaches. So, as well as helping your business and your customers recover from a cyberattack, cyber insurance also plays a huge role in ensuring your business stays compliant with data protection regulations.

Find out more about our cyber insurance for businesses as well as our comprehensive insurance policies for travel agents and tour operators.

For more information, call us on 0207 977 7856 or email Nic.Wheele@JamesHallam.co.uk.

Who is Responsible for Building Insurance on Commercial Property?
Who is Responsible for Building Insurance on Commercial Property? 800 533 James Hallam

Buildings insurance is vital for all businesses. If your business premises are not insured, then you may struggle to operate following fires, floods, and other incidents.

Yet who is responsible for arranging and paying for building insurance on commercial properties?

Whether you are a business owner, a leaseholder, or a freeholder, it can be confusing to determine your exact responsibilities when it comes to building insurance. So, in this post, we will answer some of the key questions that you might have regarding building insurance on commercial properties.

Who is Responsible For Arranging Building Insurance on Commercial Properties?

Apart from a few exceptions, the responsibility for arranging building insurance falls upon whomever legally owns the commercial property. If you are an owner-occupier, meaning your business owns your premises outright, then you will be responsible for arranging your building insurance, and paying for it, alongside the rest of your business insurance.

Who Is Responsible for Building Insurance if you Rent your Business Premises?

What if your business is just one of a number of businesses to rent space in the same building? In this case, more often than not, the building’s owner, freeholder, or landlord will be responsible for ensuring there is adequate building insurance in place to cover their occupants against all possible risks.

In some instances, the terms of the lease may stipulate that the head lessee is responsible for arranging building insurance, rather than the freeholder, subject to the freeholder’s interest being noted on the policy.

Who is Responsible for Paying For Building Insurance on Commercial Properties?

The property owner, freeholder, or landlord will not necessarily pay for the insurance they arrange. They may instead choose to pass on the cost of cover to their tenants as part of their commercial lease agreement.

So, if you are a business owner renting your premises, you may still have to pay for buildings insurance, even if you are not responsible for arranging it yourself.

If you are the sole business occupying the premises, then you will pay for all of the cover. But if you are one of several businesses occupying the premises, then you will likely only pay for a proportion of the cover.

What Does Commercial Building Insurance Cover?

In a commercial property, building insurance will cover the property’s internal and external structure, including all windows, doors, plumbing, electricals, stairwells, and so on. Typically, the insurance will provide cover for property damage – for any necessary repairs following fire, flood, subsistence, break-ins, and so on.

The commercial property insurance will typically not cover the building’s contents. So, if you are leasing office or warehouse space in a commercial property, you will almost certainly have to arrange for your own separate contents insurance policy, to cover your stock and equipment.

You will also have to arrange for certain additional forms of business insurance. This might include business interruption insurance, employer’s liability insurance, cyber insurance, and whatever else is necessary to cover your business for the various risks you face while conducting business.

How Does Commercial Property Insurance Work When Making a Claim?

Consider the following example: There is a fire at the commercial property where your business is based. It causes significant damage, so it becomes necessary to make an insurance claim.

Whomever legally owns the building, whether this is an owner-occupier, or a third party landlord or freeholder, will be responsible for making a claim on the building insurance policy. This will cover the necessary repairs for any damage to the building’s structure, or its permanent fixtures and fittings.

Yet any businesses based in the building will have to make separate claims on their own policies to get the cover they need for destroyed or damaged stock or equipment, for business interruption, for loss of income, for temporary relocation, and so on.

This is why it is important that everyone involved in a commercial property leasing agreement fully understands their responsibilities in regard to insurance, and the steps they will need to take in the event of a claim.

Insurance claims in commercial properties can get complicated. But with good communication between tenants, freeholders, leaseholders, insurers, loss adjusters, and whomever else is involved in the claim, the process can proceed as smoothly as possible.

Have You Got The Right Cover For Your Business or Commercial Property?

Whether you are a landlord, a leaseholder, a freeholder, or an owner-operator, we can help you make sure you have the right cover in place for your commercial property. As well as advising on your buildings insurance, we can also advise on the additional cover you might need to ensure you meet you are fully compliant and fully protected.

Find out more about our Real Estate Insurance and get in touch for a free quote today.

What Property Developers Need to Know About ESG in Real Estate
What Property Developers Need to Know About ESG in Real Estate 800 519 James Hallam

Growing numbers of property developers are starting to understand the importance of ESG in real estate.

In this post, we will explore what ESG means for real estate, while outlining some steps property developers can take to improve their practices.

What is ESG?

ESG stands for “environmental, social, and governance”. Think of ESG as a framework for conducting business as ethically and sustainably as possible. If a business commits to ESG, it means they are committing to adopting best practice in each of these three pillars:

  • Environmental – Taking stock of your businesses carbon footprint, and taking steps to increase energy efficiency and reduce waste.
  • Social – A focus on the human impact of your operations. This means looking after your people, and for anyone who interacts with your business, whether they are customers or other members of the public.
  • Governance – Assessing how your business is run internally, with a focus on factors such as regulatory compliance, executive pay, tax, financing, and more.

Why ESG Matters For Real Estate

The environmental pillar should be of particular concern for property developers. According to UKGBC, the real estate industry contributes to 42% of the UK’s total carbon emissions. Plus, a recent report found that 70% of UK commercial real estate stock falls below EPC rating B, and over 50% of UK homes fall below EPC rating C.

The government’s energy efficiency bill has set certain targets regarding EPC ratings. By as early as 2030, properties will need to meet certain minimum energy efficiency standards before they can be legally listed or sold on the real estate market.

This creates a pressing business case for property developers to commit to ESG. With such stringent regulations in place, the future of the UK real estate industry depends on it.

How to Improve Your ESG as a Property Developer

ESG is not a box-ticking exercise, and it is not the sort of thing you can do once and then forget about. It will require an ongoing commitment to achieving best practice in each of the three pillars.

In this post, we have focused on the environmental pillar of ESG. This is because the looming deadlines for minimum energy efficiency standards likely mean that most property developers will be particularly concerned about working towards economic sustainability.

It will not be easy. One study estimated that upgrading the UK rental housing stock to meet the minimum efficiency standards could cost around £18 billion. The cost of upgrading commercial stock could be even higher.

How to Begin Your ESG Journey to Best Practice

There are a number of ways property developers could work to achieve best practice in ESG:

  • Do not underestimate the importance of “quick wins”. Investing in advanced heat pumps for your entire property portfolio may be prohibitively expensive. But choosing energy-efficient lighting is not.
  • Conduct an audit of your own internal operations. Identify any key areas of improvement, and make them the foundation of a new set of policies and procedures focused on ESG.
  • Learn how to measure your performance on each of the ESG pillars. Invest in training wherever necessary to ensure that individuals across your business understand the part they need to play in reaching your goals.

Work With Other Organisations That Share Your Commitment to ESG

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We share your commitment to ESG, and we will support you in any way we can to help you achieve best practices across your property development business.

For example, running thorough risk assessments, and ensuring you have adequate insurance cover in place to protect your assets, is a core component of the governance pillar of ESG. We specialise in helping real estate businesses meet all of their insurance needs at the best possible price.

Get in touch to find out how we can help you.

Do Hotels Need Cyber Insurance?
Do Hotels Need Cyber Insurance? 800 564 James Hallam

If you run a hotel, then you know you need to get certain forms of insurance to cover your establishment against risks such as fire, flood, and theft. But does your hotel need cyber insurance? Is your hotel really so vulnerable to cybercrime that you need specialist insurance to cover you against the risks?

Short answer: Yes. Your hotel absolutely does need cyber insurance. In this post we will explain why.

What Are the Cyber Security Threats For Hotels?

Phishing Attacks

A phishing attack involves sending a message, usually via email, which appears to come from a trusted source, such as a manager, a colleague, a bank, or an online retailer. These fake messages can trick employees into providing sensitive information, such as login details. This can give cybercriminals access to your system, which can leave you vulnerable to other types of cyber-attacks.

Ransomware Attacks

With a ransomware attack, cybercriminals can encrypt your files remotely. You will be unable to access your online system until you pay a ransom. If you fail to make this ransom payment, the cybercriminals might simply delete your data, or they might choose to sell it to other cybercriminals. This will put you and your guests at significant risk of further financial exploitation.

Data Breaches

If cybercriminals gain access to your system, they may simply choose to steal your data outright. This could result in significant financial and reputational losses for your hotel, while leaving your guests vulnerable to identity theft and financial exploitation.

Why Do Cybercriminals Target Hotels?

There are a few reasons why cybercriminals might choose to target hotels.

Your hotel is unlikely to have sophisticated cybersecurity measures in place, and it is unlikely that you have trained your staff to recognise the risks of phishing emails, and other forms of attack. This means that it would be easier for cybercriminals to access your system. It also means that you will not be able to adequately respond to a cyberattack.

Also, hotels tend to store a lot of sensitive data on their systems, including guests’ personal details, and even their credit card numbers. This sort of data can be immensely valuable for cybercriminals.

Finally, hotels tend to offer cybercriminals multiple points of attack. From your online booking systems to the devices you use to check in your guests, cybercriminals will have a choice of vulnerabilities to test and exploit so as to gain entry to your system.

How Can Cyber Insurance Protect Your Hotel?

Investing in staff training and cybersecurity can protect your business from cybercrime. But while such investments offer strong prevention, cyber insurance provides a reliable cure.

In the event of a cyberattack, cyber insurance can provide cover for customer data loss, for system breaches, and for any legal fees you might face following the incident. In this way, cyber insurance is crucial for helping your business and your guests recover from the devastating effects of a data breach.

At James Hallam, we can provide you with comprehensive cyber insurance cover as part of a wider travel and tourism insurance package.

Find out more about our cyber insurance for businesses as well as our comprehensive insurance policies for travel agents and tour operators.

For more information, call us on 0330 024 0755 or email enterprisenb@JamesHallam.co.uk.

Commercial Combined vs. Separate Insurance Policies: Which is Best For Your Business?
Commercial Combined vs. Separate Insurance Policies: Which is Best For Your Business? 800 534 James Hallam

If you run a business of any size, then you will need adequate business insurance to cover you for the various risks you will face.

When it comes to business insurance, you have a choice. You can either get separate insurance policies to cover you for each individual risk you face, or you can get commercial combined insurance to cover you for a range of risks with a single policy.

In this post we will outline the pros and cons of commercial combined insurance, to help you decide which approach is best for your business.

What is a Commercial Combined Insurance Policy?

In short, a commercial combined insurance policy will give your business various different types of cover in a single policy. So, rather than getting separate policies for your buildings cover, your business interruption cover, your cyber cover, and so on, you can get a single combined policy to cover your business for a range of risks.

Read our full guide to commercial combined insurance. Our guide outlines how a commercial combined insurance policy works, and what it covers.

Advantages of Commercial Combined Insurance

The biggest benefit of a commercial combined insurance policy is the convenience. If you take out a single combined policy to cover your business for a range of risks, then there will be no need to shop around for separate policies. Plus, if you ever need to make a claim on your policy, there will only be a single number to call, and a single claims process to manage.

Commercial combined insurance policies can also be a lot more cost-effective than separate insurance policies. Some insurers offer discounts if you choose a combined policy instead of numerous separate policies. On top of this, if you have multiple policies, there may be certain overlaps in your cover. This could mean that you will end up paying more than necessary for your insurance.

Disadvantages of Commercial Combined Insurance

While most insurers will tailor your combined insurance policy to meet your exact cover requirements, there may still be some gaps in your cover. Check your policy wording carefully, including the cover limits, to ensure you are not at risk of underinsurance.

Also, commercial combined insurance policies may not include specialist cover for risks that are unique to certain industries. For example, businesses operating in the healthcare sector are unlikely to have all of their needs met by a commercial combined insurance policy.

Finally, while commercial combined insurance can be a more cost-effective choice than getting multiple different policies, you must not assume that you will automatically make savings through choosing a combined policy. Be sure to compare quotes and prices. And though it will be a less straightforward option, it just may prove more affordable to invest in a number of individual policies for your business.

Commercial Combined vs. Separate Insurance Policies: Which is Best For Your Business?

Commercial combined insurance is a great choice for certain types of businesses. If you are a large business facing numerous risks, then it may prove too inconvenient and expensive to take out separate policies for every aspect of your business. SMEs, too, might value the peace of mind that comes with taking out a single policy to cover a range of risks.

However, some SMEs might not need some of the cover offered by a comprehensive commercial combined insurance policy. If a combined policy is surplus to requirements, it might prove more cost-effective to instead take out a handful of separate policies. This is something an insurance broker like us can help you with.

Additional Specialist Insurance on Top of Commercial Combined Policy

If you operate in certain industries – such as healthcare – then you may need to take out additional separate policies on top of your commercial combined insurance policy, to ensure you have all of the cover you need.

Should I Choose Commercial Combined Insurance For My Business?

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. Talk to us about your business and your insurance requirements, and we can help you find the cover you need at the best possible price – whether this is through a combined commercial insurance policy, or through a number of individual policies.

Get in touch for a free quote today.

 

What Are The Fundamental Principles of Marine Insurance?
What Are The Fundamental Principles of Marine Insurance? 800 533 James Hallam

In this post we will explain six fundamental principles of marine insurance. The principles of marine insurance may determine the outcome should you ever need to make a claim on your policy.

What Are the Fundamental Principles of Marine Insurance?

  • Utmost Good Faith
  • Insurable Interest
  • Indemnity
  • Proximate Cause
  • Contribution
  • Subrogation

Principle of Utmost Good Faith

Sometimes referred to by the Latin phrase Uberrimae Fidei, the principle of utmost good faith is basically an agreement that all parties in a marine insurance agreement will be totally honest with each other.

This means that neither the insurer nor the policyholder will falsify or misrepresent any aspect of the agreement. The insurer, for instance, will not mis-sell the policyholder any cover they do not need. Meanwhile, the policyholder will be completely transparent when taking out the policy and will not, for example, misrepresent the age of their ship.

Should either party violate the principle of utmost good faith, it can void the insurance agreement.

Principle of Insurable Interest

This means that a person can only insure objects in which they have a financial stake. If they would not suffer any financial losses as a result of loss or damage to the object, then they cannot buy insurance for it.

This principle forms the basis of all insurance policies, and it is largely a means of preventing situations where policyholders might actually profit from allowing, or intentionally causing, a loss.

Principle of Indemnity

The principle of indemnity means that the settlement the policyholder receives will never exceed the total value of the loss they incurred.

This principle is in place to prevent policyholders from using their marine insurance policies to make a profit, such as through allowing or intentionally causing a loss.

Principle of Proximate Cause

The principle of proximate cause is designed to simplify the claims process through determining exactly how an instance of loss or damage occurred.

For example: An incident at sea may result in loss or damage to a policyholder’s cargo. Upon investigation, the insurers find that the loss could be attributed to two or more events. In this case, the insurers will aim to determine the proximate cause – the closest or most plausible cause that resulted in the damage.

A marine insurance policy wording will specify the events that are covered, and those that are not covered. The principle of proximate cause allows insurers to ensure that they only provide settlements for insured events, while preventing policyholders from making claims for instances for which they were not insured.

Principle of Contribution

The principle of contribution allows policyholders to insure the same object for the same risks with two different insurance companies.

Shipping contracts can get very complex, very quickly. Marine businesses may need multiple policies to cover different jurisdictions, for example. Allowing for overlap between multiple policies allows the policyholder to get full cover for their ship or cargo, from beginning to end.

If the policyholder needs to make a claim on these overlapping policies, the two insurers may work together to split the liabilities.

Principle of Subrogation

If the policyholder makes a claim on their policy following an insured incident, the insurer will pay them the settlement to which they are entitled. However, following this, the principle of subrogation allows the insurer to assume future ownership of the cargo.

The insurer may try to salvage and sell the cargo themselves, in order to recuperate the cost of the settlement. But if the policyholder attempts to sell their cargo after making a claim for loss or damage, they may be obliged to donate any money they make to their insurer.

This is a further principle that is designed to prevent policyholders from profiting from their insurance arrangements. Without this principle, unscrupulous policyholders would be able to intentionally damage their goods in order to receive two separate paydays – one for the ultimate sale of the goods, and one from their insurance settlement.

Why It Is Important to Understand Marine Insurance Principles

Understanding these key principles of marine insurance is vital if you want to know exactly what to expect should you ever make a claim on your policy.

These various principles will determine your responsibilities in the claim process, along with your insurer’s responsibilities. They could also determine the settlement you receive, and the ultimate fate of any cargo that might be lost or damaged during an incident.

Have Any Questions About Marine Insurance?

If you have any questions about marine insurance, or you want to ensure you have all the insurance you need for your ship or cargo, we are here to help.

James Hallam is an independent Lloyd’s broker. We have partnered with Everard Marine and Commercial Insurance to deliver tailored marine insurance packages.

Find out more about our specialist marine insurance services.

 

 

Cyber Security For Travel Agents & Tour Operators – How To Protect Your Business
Cyber Security For Travel Agents & Tour Operators – How To Protect Your Business 1280 853 James Hallam

Cyber criminals are actively targeting the travel and tourism industry. According to one report, 72% of SMEs in the travel sector have fallen victim to at least one cyberattack in recent years.

In this post we will outline the key cyber security threats for travel agents and tour operators, and explore some ways you can protect your business.

Cyber Security Threats for Travel Agents & Tour Operators

  • Ransomware – Cyber criminals can encrypt your files, making your online systems unusable unless you pay a costly ransom. If you do not pay this ransom, the cyber criminals will either delete your files, or they will leak them. This will put you and your customers at risk of further exploitation.
  • Data Breach – If hackers gain entry to your system, they might choose to steal your data outright, rather than encrypt it as part of a ransomware attack. A data breach will put your customers at risk of identity theft, and it will also result in significant reputational damage for your business.
  • SQL Injection – Structured Query Language (SQL) is a form of coding used in database management. An SQL injection involves submitting malicious code into a data entry field on your website, which can allow hackers to access your database.
  • Phishing – This is a means, rather than an end, of cyberattacking. It involves sending a fake message, usually via email or text, that appears genuine. This can trick employees into providing login codes, or other entry points into your system, leaving your business vulnerable to further cyberattacks.

Why Are Cybercriminals Targeting Travel Agents & Tour Operators?

There are a few reasons why travel agents and tour operators are prime targets for cybercriminals:

  • Valuable Data – You will handle huge amounts of sensitive customer data as part of your work, all of which can prove immensely valuable to cybercriminals.
  • Multiple Points of Attack – With an increasingly remote workforce, and multichannel booking and communication systems, cybercriminals have multiple points of attack.
  • Lack of Awareness – Your employees specialise in travel, tourism, and customer service. They may not be so experienced when it comes to IT and cybersecurity. As such, they may not recognise a phishing email until it is too late.
  • Lack of Resources – Around 80% of travel and tourism businesses are SMEs. Cybercriminals tend to target smaller businesses over larger businesses. This is because they know that smaller businesses are less likely to have the resources in place to protect themselves against cyberattacks. As a result, following a ransomware attack, many SMEs will have no choice but to pay the hackers’ ransom.

How To Protect Your Travel and Tourism Business Against Cyberattacks

Establish Your Cybersecurity Policy and Procedures

Your cybersecurity policy and procedures document should outline the risk your business faces, along with the steps you expect all employees to take in to safeguard your data. This can include basic procedures, such as always locking devices when they are not being used, along with policies for ongoing staff training.

Make sure everyone can access your cybercrime policies and procedures and take steps to communicate it across your organisation. You should also routinely review and update the document to meet new and emerging cybersecurity threats.

Staff Training and Development

Ensure that employees at all levels of your business understand the risks of cybercrime, and the part they can play in keeping themselves, and the business, safe. At the very least, you should ensure that every member of staff knows how to recognise a phishing attack.

Cybersecurity training should form part of your employee induction process, and all staff should receive refresher training at least once a year.

If any of your employees work from home, your cybersecurity training should cover how staff can safeguard customer data when accessing your system remotely.

Consider the Role of Cybersecurity Consultants

A third-party cybersecurity consultant can assist you in threat modelling, helping you to understand the vulnerable areas in your network. They can also run network vulnerability and penetration testing, which can involve simulating a cyberattack to assess how you might enhance your security.

Invest in Cybersecurity Software

A good antivirus system usually includes multiple cybersecurity features, including automatic blocks for malicious websites and unwanted network access. Invest in a good system, and make sure you update it as often as possible.

Software updates are a vital part of any cybersecurity policy, as cybercriminals are constantly looking for vulnerabilities in outdated software. As well as keeping your cybersecurity software up to date, also be sure to regularly update any software you use to manage your website, your customer database, and your accounts.

Ensure you have Cybersecurity Insurance

Finally, a cyber insurance policy can provide cover for customer data loss, and for system breaches. While this might not prevent attacks from occurring in the first place, it can at least help your business recover should you ever fall victim to a cyberattack.

At James Hallam, we can provide you with comprehensive cyber insurance cover as part of a wider travel and tourism insurance package.

Find out more about our cyber insurance for businesses as well as our comprehensive insurance policies for travel agents and tour operators.

For more information, call us on 0207 977 7856 or email Nic.Wheele@JamesHallam.co.uk.

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