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Sarah Clements

What Is Latent Defects Insurance and Who Needs It?
What Is Latent Defects Insurance and Who Needs It? 1000 562 James Hallam

Latent defects insurance is essentially cover for any structural issues with a newly-built property that may take a while to become apparent. In this post we will explain what sort of latent defects could affect a property, before exploring how latent defects insurance can cover property developers and other parties for these risks.

What Is A Patent Defect?

During the construction process, a surveyor will identify any “normal” defects. These are known as patent defects. A building warranty will provide a certain liability period for these defects.

What Is A Latent Defect?

A latent defect is an issue with a building’s structure that has not yet been identified. These structural issues may be so deep-seated that, at first, not even a thorough building survey will discover that anything is amiss.

Any number of factors can result in a latent defect, from the materials used in construction, to the quality of the workmanship. As such, latent defects can arise at any stage of the construction process, or indeed beyond.

It can take months, or even years, for a latent defect to reveal itself. This can be hugely problematic for property developers, as you might find yourself dealing with a major issue that simply did not seem possible when you first acquired the property.

Common Examples of Latent Defects

  • Inadequate groundwork or foundations, resulting in subsidence.
  • Weak concrete, or misapplied reinforcements, allowing for movement and causing cracks and other damage.
  • Ineffective basement tanking leading to water penetration.
  • Lack of wall ties and other structural features within the cavities, leading to cracks and other structural issues.

What Is Latent Defects Insurance, and What Does It Cover?

Latent defects insurance provides cover for any defects that were not detected during the original site inspection, and the cover will extend beyond the building warranty defects liability period.

In short, if there is any structural damage that appears in the months or years following a construction or renovation project, latent defects insurance can cover the cost of repairs or rebuilds. It can also cover some additional costs, such as the removal of debris, and even temporary accommodation for the owners or occupiers.

However, a latent defects insurance policy will usually only cover a building’s structural integrity. It may not cover any latent issues with the building’s plumbing, electricals, heating system, or any fixtures and fittings.

Who Needs Latent Defects Insurance?

The owner or occupier of the property will ultimately benefit from the cover. However, this does not necessarily mean that they will be the ones to purchase the insurance policy. Often, a latent defects insurance policy will be transferred to a property owner after they purchase the residential or commercial property.

With this in mind, here are some parties who may benefit from purchasing latent defects insurance:

  • Property Developers – For a property developer, latent defects insurance offers protection for their commercial or residential property investments. If they ever sell the property, they can pass on any cover they have purchased to the new owners.
  • Contractors – Anyone involved in the planning, construction, or renovation of a building may need to purchase a building warranty, which should specify a defects insurance period for both patent and latent defects.
  • Mortgage Lenders – Just like property developers, mortgage lenders and third party funders may take out latent defects insurance to protect their investment.

How To Ensure You Have The Right Level of Latent Defects Cover

The cost of repairs or rebuilds following structural issues can be considerable. It is important to ensure that your defects insurance will cover you for all of these costs, along with any other expenses that may arise.

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

We can advise you on the potential costs of any structural issues with your property, and we can help you access the right level of latent defects cover to protect your investment.

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

 

What is Professional Negligence, and is it Covered by Indemnity Insurance?
What is Professional Negligence, and is it Covered by Indemnity Insurance? 1000 666 James Hallam

In this post, we’ll explore that professional negligence is, when it can happen and whether professional indemnity insurance can help cover you and your business against claims.

What is Professional Negligence?

Professional negligence essentially means that an individual has failed to carry out their responsibilities to the required professional standard. It can also mean that a professional has breached their duty of care.

In either case, as a result of this poor conduct, a client, customer, or other third party individual may experience a financial loss, or damage to their property, or they may sustain a personal injury.

In such a scenario, the injured party may choose to make a claim of professional negligence. For this claim to be successful, there must be clear evidence that the service they received did not meet the required or expected standards of the profession.

Examples of Professional Negligence

Here are some examples of situations that may result in a professional negligence claim:

  • An accountant makes an error in a tax calculation, resulting in a penalty for a client.
  • A financial advisor offers bad investment advice, and their client makes a loss.
  • A solicitor offers poor legal advice, or they are found to have a conflict of interest.
  • A personal trainer fails to enquire about a client’s prior injuries, resulting in a serious injury during a session.

What is Indemnity Insurance?

Professional indemnity insurance can cover your business for a range of professional mistakes. This can include allegations of professional negligence, and allegations that you have breached your duty of care.

In the event of a professional negligence claim, your professional indemnity insurance can cover any legal fees that may arise, along with any compensation the injured party may be due.

Common Exclusions to Indemnity Insurance Policies

A professional indemnity insurance policy will usually outline a number of exclusions where the cover will not apply. These may include:

  • Intentional acts – The policy will cover you for claims of negligence, but not for claims arising from criminal acts, or intentional
  • Known circumstances – If the policyholder was aware of circumstances that could result in a claim, then they would have to disclose this situation when taking out the policy. If they do not disclose these known circumstances, then any subsequent claims may not be covered.
  • Contractual liabilities – If a liability would not exist without a contract, then an indemnity insurance policy may not cover any claims involving breach of this contract. For example, it would not cover a penalty clause for the late delivery of a project, if it is found that the policyholder agreed to this clause in their contract.

The professional insurance policy may also exclude certain types of damages on the assumption that they would be covered by other liability policies. For example, claims for physical injury or property damage may be covered by a general liability policy, while costs arising from data loss may be covered by cyber liability insurance.

Protecting You And Your Business Against Professional Negligence Claims

As we have seen, professional indemnity insurance can protect your business against professional negligence claims. However, it is important to ensure you have the right level of indemnity cover for your business.

It is also important that you get the right type of indemnity policy for your business.

Types of Professional Indemnity Insurance

Indemnity insurance policies can either provide cover “in the aggregate” or for “any one claim”.

If your policy covers you in the aggregate, then the cover limit will apply to all claims made against you in the policy period.

If the policy covers you for any one claim, you will have the same policy cover limit for an unlimited number of claims in the policy period.

This distinction is important, as a single professional negligence claim could max out your cover limit. If your policy only covers you in the aggregate, then your insurance would not cover you for any subsequent claims.

Read our full guide to choosing the right level of indemnity insurance for your business.

We Can Help You Protect Your Business Against Professional Negligence Claims

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

We will take the time to get to know you and your business, so that we can advise you on your specific business insurance and regulatory requirements. We can then help you get the right level of professional indemnity insurance for your business.

Learn more about our professional risks insurance services.

 

How To Insure a Second Home
How To Insure a Second Home 1000 667 James Hallam

A standard home insurance policy may not be suitable for your second home. To get the cover you need, you may need to purchase a dedicated second home insurance policy.

Why Standard Home Insurance May Not Cover Your Second Home

Home insurance policies will only usually only cover occupied properties. If a home is unoccupied for long periods, then it may be more vulnerable to fire, theft, or vandalism.

For one reason or another, it is likely that your second home will be unoccupied for extended periods throughout the year. This means you will need a separate second home insurance policy if you want any cover at all.

There are other reasons you might need specialist second home insurance, depending on how you use it:

  • Is it a renovation project, which you later intend to sell?
  • If you only live in it for a few months of the year, who lives in it the rest of the time? Do you let it to tenants or holidaymakers? Or do other members of your family live there?

Any of these situations will create certain risks that may not be covered by a standard home insurance policy.

Do You Need Second Home Insurance?

There is no law saying that you must get second home insurance for any properties that are not your main property. But that said, mortgage lenders will require you to get some level of buildings insurance for any property you acquire. And even if you do not work with a third party funder, second home insurance will provide essential protection for your property investment.

Second home insurance is particularly useful if you plan to let the property to tenants. If any of these tenants injures themselves on your property, your second home insurance policy could include some liability cover, which can help meet any legal fees or medical expenses that may arise. Plus, your second home insurance can include a level of rental income protection.

What Does Second Home Insurance Cover?

A second home insurance policy can include:

  • Buildings Insurance – Usually, mortgage lenders will specify that you need some level of buildings insurance as a minimum. This will cover the property’s structure, along with any fixtures and fittings, for damage from fire, storms, floods, vandalism, and other specified events.
  • Contents Insurance – This will cover the property’s contents, including furniture and personal possessions, for loss or damage from specified events.
  • Liability Insurance – This can cover any accidents or injuries that may occur on the property. This form of cover is particularly important if you are renovating the property, as it can cover contractors for onsite injuries. Or, as we mentioned above, it can also cover any tenants for certain accidents and the resulting costs.
  • Other Optional Extras – Above, we mentioned how your second home insurance can include some rental income protection. Depending on how you use your second home, other optional areas of cover can include accidental damage cover, home emergency cover, and cover for personal possessions while you are not on the premises.

How To Insure a Second Home

Many insurers offer specialist second home insurance policies for high net worth individuals.

The level of cover you get, and the premium you pay, will depend on a number of factors. These will include:

  • The property’s location (as different areas will have different flood risks and crime rates)
  • The property’s rebuild costs
  • The way you plan to use the property
  • Renovation projects
  • Rental arrangements
  • Long periods of unoccupancy

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who specialise in protecting your assets. Talk to us about your second home, and how you intend to use it, and we can help you get the right level of second home insurance to protect your investment against all risks.

Find out how we can help you today.

 

Most Common Travel Insurance Claims
Most Common Travel Insurance Claims 1000 667 James Hallam

In this post we will list some of the most common travel insurance claims. This will include claims that customers make on their travel insurance, along with claims they make against travel agents and tour operators.

What Are The Most Common Travel Insurance Claims?

Common travel insurance claims include:

  • Medical expenses
  • Travel cancellation
  • Trip curtailment
  • Missed or delayed transport
  • Lost or damaged luggage

We’ll look at each of these in more detail below, including how common they are and how they might affect travel agents.

Medical Expenses Insurance Claims

According to data from Which?, medical expenses account for over 50% of all travel insurance claims. This is to cover treatment for illnesses or injuries travellers sustain abroad. Medical claims can be high, occasionally as much as a million pounds or more for a complex medical case which includes air repatriation.

Travellers may make a claim under their own personal travel insurance policy, which should specify a certain level of medical cover. If they are travelling to a location where healthcare is expensive, or if they are planning certain high-risk activities, then they may choose to take out a higher limit of medical cover.

However, travellers can claim damages and compensation against their travel agents or tour operators too. If you sell a package travel arrangement, then you may be liable for any injuries or illness the customer may sustain caused by the negligence of you or your suppliers.

Travel Cancellation and Trip Curtailment Claims

The second most common travel insurance claim, accounting for over 25% of all total claims. If a customer must cancel their trip due to an illness, a family emergency, or a natural disaster, then travel cancellation insurance can cover the lost expenditure.

Travellers may also claim for trip curtailment, should they need to cut their trip short due to an emergency or an unexpected event. With trip curtailment insurance, travellers can get reimbursed for any unused portions of their trip, along with any additional expenses they may incur through travelling home early.

Missed or Delayed Transport Claims

If industrial action or inclement weather delays travel, or causes a traveller to miss a connection, then their travel insurance can cover the costs of any alternative transport or accommodation they need to book. Some policies will even cover them for food and drink they purchase while they wait for a delayed connection.

Lost or Damaged Luggage Claims

Most travel insurance policies will provide a certain level of baggage insurance, which provides cover for any lost, stolen, or damaged bags or personal belongings. Customers may choose to extend this cover if they plan to travel with high-value items, or if they are visiting an area with relatively high crime rates.

Can Travel Agents And Tour Operators Be Liable For Claims?

As we have seen, some of the most common travel insurance claims will be covered by a traveller’s personal insurance policy. Yet travel agents and tour operators may be liable for certain claims, if they or their suppliers have made mistakes.

Customers may choose to make other types of claims against travel agents too. If something goes wrong with the booking, or if they are dissatisfied with the trip, they may take action against the travel agent or tour operator that sold them the experience.

Professional indemnity insurance can cover travel agents and tour operators for these sort of claims. This can cover any compensation the customer may be due, along with any legal fees that may arise as a result of the dispute.

How To Ensure You Have All The Cover You Need As a Travel Agent

It should be clear by now that travel insurance claims can get complicated. Travel is inherently risky, and if something goes wrong, it may not be immediately clear just who is liable. So, how can you ensure you have all the cover you need for any claims that may be made against your travel agency?

This is where an insurance broker can prove invaluable. An experienced insurance broker will take the time to get to know your travel agency, the types of trips you sell, and the sort of customers you sell them to. They can then help you understand all the risks your agency faces, before helping you access the bespoke travel insurance you need to cover these risks.

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. 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.

 

Supporting Friends of Horsey Seals: A Collaborative Approach to Specialist ATV Insurance
Supporting Friends of Horsey Seals: A Collaborative Approach to Specialist ATV Insurance 1369 672 James Hallam

A Heartwarming Partnership in Action

We’re delighted to share a heartwarming story that perfectly captures what can be achieved when collaboration, understanding and a little determination come together.

Protecting Seals During Pupping Season

One of our valued insurance partners, ERS, has created a fantastic video showcasing the incredible work of the volunteers at Friends of Horsey Seals. The charity works tirelessly to protect the local seal population, particularly during the busy pupping season, when extra care and vigilance are essential.

Why the Quad Bike Is Essential

A key part of their work relies on a quad bike, which allows volunteers to transport vital equipment across the beach and safely assist seals when needed. Without it, reaching the animals quickly and efficiently would be a real challenge.

Watch this heartwarming video

Finding the Right ATV Insurance Solution

From our perspective, the risk didn’t immediately sit within the typical scope of our agricultural ATV/RTV scheme. However, rather than stopping there, Chelsea Chatfield from our Personal Lines team took the time to truly understand the charity’s needs and the importance of being able to use the ATV on the beach in support of their work.

A Team Effort to Deliver the Right Outcome

That understanding opened the door to a productive conversation with ERS underwriters. By working together, we were able to agree suitable terms and ensure the charity had the cover they needed to continue their invaluable efforts.

It was especially rewarding to hear Friends of Horsey Seals personally thank Chelsea during the marketing call, sharing how thrilled they were with the support provided. Having the ATV properly insured will make a meaningful difference throughout the pupping season, enabling volunteers to protect the seals more effectively and with greater ease.

A special well done also goes to our Personal Lines Schemes team in Ipswich. Claire Moore, Team Manager, highlights that the team pride themselves on taking the time to understand each customer’s unique needs and delivering a friendly, personal service that builds trust and long-lasting relationships.

Here to Help with Your ATV Insurance Needs

If you have any ATV insurance requirements, our team would be delighted to help. Get in touch to find out how we can support you with your specialist or non-standard ATV insurance.

T: 01473 343390

E: plnew@jameshallam.co.uk

 

Beach Hut Fires: Common Causes and How to Reduce the Risk
Beach Hut Fires: Common Causes and How to Reduce the Risk 1000 648 James Hallam

Reports of beach hut fires often make the news. For example, in May 2025, firefighters in Bournemouth responded to a fire affecting nine beach huts along with the surrounding cliffs.

In this post we will examine some of the common causes of beach hut fires, and explore how you can reduce the risk.

What Causes Beach Hut Fires?

There are a number of common causes of beach hut fires in the UK, including:

  • Faulty equipment can cause beach hut fires. If the hut is fitted with a stove or heating facilities, then any issues with this equipment could ultimately lead to a fire.
  • Carelessness is another common cause of beach hut fires. In May 2025, Essex County Fire services responded to a beach hut fire that they suspect was caused by a hot BBQ placed in a nearby bin.
  • Some beach hut fires are the result of arson. Arsonists may intentionally target beach huts because, due to the lack of security, they feel it is unlikely that they will get caught.
  • A fire in one hut can easily spread to neighbouring huts because beach huts are made out of wood and other combustible materials. Spread from other huts and other fires are another common reason for beach hut fires.

How To Reduce The Risks of Beach Hut Fires

There are some key actions you can take to help reduce the risk of beach hut fires:

  • Keep your hut in good condition. In one suspected arson attack, authorities pointed out that only one of the affected huts was currently occupied. This may mean that arsonists, vandals, and other criminals will be less likely to target your hut if they think it is occupied. So, keep your hut clean and in good condition, and it may help deter opportunistic criminals.
  • Stay on top of maintenance and repairs. If your hut has cooking or heating facilities, be sure to service them regularly, and take care of any necessary repairs as soon as you spot a fault. Keeping them clean can also help prevent fires from spreading.
  • Practise basic fire safety. If you are having a bonfire or a BBQ, keep any flames or embers as far away from your hut as possible, and ensure that the fire is fully extinguished before you leave. It may also be a good idea to keep basic fire safety equipment in your hut, such as a fire blanket or an extinguisher. This way, you can quickly address any fires that do break out before they have a chance to spread.

Make Sure Your Insurance Covers You For Beach Hut Fires

Unfortunately, if arsonists target your hut, or if a fire breaks out in a nearby hut while you are not around, then there is really nothing you can do. However, while it will not prevent fires from breaking out in the first place, comprehensive beach hut insurance will at least cover you for any fire damage.

In the event of a fire, your beach hut insurance policy could cover the costs of any necessary repairs. It could also cover you for the loss of any equipment or personal belongings that happened to be inside the hut during the incident.

At James Hallam, we provide a specialist beach hut insurance scheme and are experts in this market. Our dedicated team of experienced insurance professionals are committed to protecting your beach hut at a competitive price.

Learn more about our specialist beach hut insurance and get a free quote today.

Claims Made vs Occurrence Policies – What You Need To Know
Claims Made vs Occurrence Policies – What You Need To Know 1000 527 James Hallam

Insurance policies can be written on two bases: Claims made, or claims occurring. It is important to understand the terms of your policy, as this may determine whether you get a payout should you ever need to make a claim.

In this post we will explain the key differences between a claims made and a claims occurrence policy, and examine why this distinction matters.

What is a Claims Made Policy?

An insurance policy will usually specify the policy period, which is typically 12 months. In a claims made policy, the insurer will pay out for any valid claim made during this policy period regardless of when the insured incident occurred.

Claims Made Policy Examples

A professional indemnity insurance policy, for example, may specify a retroactive date, which could be a number of years before the date you originally took out the policy. If it is a claims made policy, then it would cover all of your work as far back as this retroactive date.

A claims made policy may also pay out for a claim made after the policy period expires. However, for this claim to be successful, the policyholder would have to notify the insurer of emerging circumstances during the policy period.

For example, the policyholder may become aware that a client is dissatisfied. This client may not make a claim immediately, but it seems likely that they will in the coming months or years. If the policyholder notifies their insurer of this situation, then the insurer may honour the claim even if it is made after the policy period expires, and even if the policyholder switches insurers.

What is a Claims Occurring Policy?

A claims occurring policy will only pay out for claims for incidents that occurred during the policy period. This can include claims for losses or damages that occurred during the policy period, but which did not emerge until after the period expired.

Claims Occuring Policy Examples

Employer’s liability insurance policies are typically written on a claims occurring basis. This means that employees can make a claim for injuries or illnesses that only become apparent after they leave the job.

For instance, an employee who is exposed to asbestos or other harmful substances may not become aware of any health issues until years later. Plus, employees may develop RSI or other conditions as a result of using certain equipment over a number of years. In both cases, if the employer’s liability insurance policy is written on a claims occurring basis, then these employees would still be able to pursue their former employers for compensation.

What’s the Difference between Claims Made and Claims Occuring Policies?

The key difference is relating to when the incident occurred. Policies written on a basis of claims made will cover claims made within the policy period regardless of when the incident occurred, whereas a claims occurring policy will only cover claims for incidents that occurred during the policy period.

Do You Have a Claims Made or Claims Occuring Policy?

So, is your business insurance written on a claims made or a claims occurring basis? It should now be clear that this could determine whether or not you are able to make a successful claim on your policy, so you should check your policy wording to find out.

If you are taking out a professional indemnity insurance policy to cover an ongoing project, then a claims made policy is most likely to give you the cover you need for as long as you need it. Agree on a valid retroactive date, and notify your insurer of any emerging threats, and your policy should give you full protection even for incidents occurring years before, or years after, the policy period.

Be sure to read our full guide to getting the right level of professional indemnity insurance here.

Understanding Your Policy Terms is Key To Avoiding Underinsurance

If you do not understand the terms of your policy, then you might find that you do not have all the cover you need should you ever make a claim.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. We can help you understand your cover requirements, before helping you ensure your policy meets all of your needs at the best price.

Learn more about our professional risks insurance services.

 

What is Stock Insurance and How To Choose The Right Level of Cover
What is Stock Insurance and How To Choose The Right Level of Cover 1000 667 James Hallam

Stock insurance is essential cover for retailers and warehouse owners. In this post, we will outline what stock insurance is, and what it covers, before exploring how you can ensure you have all the cover you need while avoiding certain common pitfalls.

What is Stock Insurance?

This is a dedicated insurance policy to cover your stock for loss, theft, or damage. Your policy should cover your stock whether you store it on your own premises, or elsewhere.

Usually, stock insurance will also include some contents cover. For instance, if you lose some stock to theft, then your insurance could also cover any fixtures or fittings that were damaged during the break in.

Most retailers and warehouse owners will take out some level of stock insurance. However, many businesses might not have quite the level of cover they need. And unfortunately, they may only discover that they are underinsured when they choose to make a claim on their policy.

Common Issues With Stock Insurance

Here are some common stock insurance pitfalls:

  • Seasonal variance: You may store more stock at certain times of the year. For example, retailers will usually store significantly more stock during the festive period. The amount of stock onsite may exceed the limits of your policy, which would mean you would not be fully covered in the event of a claim.
  • High risk stock: Some items of stock may be more attractive to thieves. Or it may cost more to repair or replace following a flood or a fire. If your stock insurance does not account for these high risk items, then you may be underinsured.
  • Stock deterioration: Stock insurance will cover your stock for loss, damage, or theft. But it may not cover your stock for deterioration as standard. Say you sell perishable goods, and an electrical fault causes your fridges or freezers to fail. You may have to dispose of a large amount of stock. But unless your stock insurance included cover for deterioration, you would not be covered for this loss.

How To Calculate The Right Level of Stock Insurance For Your Business

  • Consider your seasonal peaks. You will need to extend your cover in line with your busiest periods. If you are a retailer, for example, you will need more cover in the run up to Christmas, and in the weeks preceding and following bank holidays.
  • Consider your risk profile. As we mentioned above, a high risk item could be something that thieves are more likely to target, or something that would cost a lot to repair or replace following an incident. Sometimes, only certain items that you stock will be considered high risk, such as cigarettes and alcohol for retailers. But if you work in certain sectors, such as electronics, then all of your stock may be considered high risk.
  • Consider your cover limits. Your stock insurance should cover the amount it would cost to replace all of your stock. When specifying your cover limit, as well as accounting for seasonal peaks and high value items, you should also include the possible costs of replacing any fixtures, fittings, and equipment that may get stolen or damaged during an incident.
  • Work with a broker. An insurance broker with experience in your sector can help you to identify the right level of cover for you, by working with you to understand more about the risks you face.

We Can Help You Avoid Underinsurance With Your Stock Cover

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance specialists. We can help you avoid underinsurance and get the right level of cover for your stock, at the right price.

We can help you determine an accurate cover limit for your stock, which accounts for seasonal variations and high risk items. And we can help you ensure you have any specialist cover you may need, such as cover for stock deterioration.

Find out how we can help you today.

How To Protect Hotel Businesses From Theft
How To Protect Hotel Businesses From Theft 1000 667 James Hallam

Theft can be a major problem for hotels. Any losses may seem small at first, but the costs can quickly add up.

In this post we will explore the most common types of hotel theft, before discussing how you can protect your hotel business from theft.

The Most Common Types of Hotel Theft

  • Guest theft: Including stealing towels, dressing gowns, toiletries, and electronics from rooms, and taking home glasses and cutlery from the hotel’s bar or restaurant.
  • Housekeeping theft: Like guests, housekeepers may occasionally lift items from hotel rooms, including towels, linens, toiletries, and cleaning supplies.
  • Internal theft: This can include front desk staff engaging in fraudulent behaviour, including skimming cash, misusing credit card systems, or even stealing guests’ valuables while handling their luggage.

What is The Impact of Hotel Theft?

Theft can impact many areas of your hotel, including:

  • Loss of revenue
    You will have to pay to replace every lost item, which can boost your operating costs while cutting into your profits.
  • Reduced efficiency
    At the same time, any missing item can disrupt your housekeeping and guest services, leading to reduced efficiency and increased delays.
  • Low staff morale
    Over time, theft can take its toll on staff morale, too. If things keep going missing, many members of staff will find it increasingly difficult to do their jobs. And if there is evidence of internal theft, it could lead to a culture of tension and distrust.
  • Poor customer experience
    And of course, if any guests are victims of theft while staying at your hotel, it can lead to bad reviews, a poor reputation, and potentially legal action.

How Common is Hotel Theft?

Hotel theft is so common that it is no exaggeration to say that every hotel owner will have experienced it at some point.

According to one survey, 87% of guests admit they have taken something from a hotel at some point, and 26%  admit that they always steal from hotels.

Further hotel crime statistics suggest that hotels lose an estimated £74m a year to guest theft. Also, around 25% of hotel robberies are the result of internal theft, or of hotel employees colluding with criminals.

And on top of all this, just like any other businesses, hotels these days must contend with the risks of cybercrime.

5 Ways to Protect Your Hotel Business From Theft

  1. Get Your Staff On Your Side

Talk to your staff about the impact of theft, about how it makes life harder for everyone. Train your staff to spot the signs of all forms of theft, and aim to create an open culture of trust in which staff feel they can safely raise concerns while depending on your full support.

You could also make it clear that you take a zero tolerance approach to theft. Hopefully, you will never have to act on this. But if your staff are familiar with your policies, then they may be less tempted to lift cash or items.

  1. Ensure Better Oversight of Key Operations

You could introduce routine room checks and post-cleaning inspections to look out for any discrepancies. Make sure everyone sticks to the same housekeeping schedule, so that it will be clear exactly who may have been involved should you ever suspect that theft has taken place.

Try to minimise the number of employees who can access financial systems and guest valuables, and implement rigorous cash-handling policies while ensuring you reconcile all tills every day. You could also conduct periodic audits on all inventory and cash handling systems, which will make it clear to everyone that any discrepancies will be discovered before long.

  1. Encourage Your Guests To Be Honest

There is not a lot you can do to prevent a guest from stealing a towel or a hairdryer from their rooms, and you cannot exactly perform random luggage searches at checkout. But you could try to appeal to your guests’ better natures.

Place signage in your rooms letting guests know that, should they wish to take home towels or dressing gowns etc., then they are for sale at reception. This subtle reminder that these things cost money might deter many guests from packing items in their bags.

  1. Invest in Technology

Ensure you have sufficient CCTV coverage of any areas where serious theft could take place, including any counter with a till, any area where cash is handled, and your storerooms.

You could also invest in a Property Management System (PMS), which can help you track your stock and inventory, along with ongoing tasks such as cleaning, housekeeping, and cash flow.

Also, technology is your hotel’s main line of defence against cybercrime. Read our full guide to protecting your hotel against cybercrime.

  1. Get the Tailored Hotel Insurance You Need

Specialist hotel insurance can cover your hotel against many of the risks you will face, including the growing risks of cybercrime.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance brokers. No matter if you are running a large or a small hotel, we can tailor a niche insurance package to ensure you are covered for all risks at the best possible price.

Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.

 

How To Reduce Shop Insurance Costs and Minimise Claims
How To Reduce Shop Insurance Costs and Minimise Claims 1000 667 James Hallam

In recent years, the cost of insurance has risen for all UK businesses, including retailers.

In this post we will examine some of the underlying causes of the rise in shop insurance costs. We will also explain how you can help to bring down the cost of your shop insurance.

Why Is Shop Insurance Going Up?

UK shops are dealing with rising insurance costs as a result of claims inflation. This means that it is costing more for insurers to settle all kinds of claims, regardless of how often these claims occur.

What is Causing Claims Inflation?

A number of factors are driving claims inflation:

  • Global supply chains have been hit by major disruptions in recent years, which has increased the cost of many essential materials, including timber, steel, and insulation.
  • Workforce shortages have contributed to rising labour costs. Which drives up construction and repair costs and lead times.

This will increase the average cost of settling an insurance claim, and insurers will pass these increased costs onto their customers in the form of higher premiums.

When it comes to the retail sector in particular, insurers may be worried by a rise in shoplifting and other crimes. Higher crime rates may make it more likely that shops will make claims on their policies, which will further contribute to claims inflation while driving up the cost of cover for everyone.

How To Reduce Shop Insurance Costs

The good news is that, if you can demonstrate to your insurer that you are taking steps to reduce the risks of shoplifting and other sources of loss, then it may lead to lower insurance premiums.

But in short, here are some measures that might help you reduce your shop insurance costs:

  • Install security systems including locks, shutters, safes, alarms, and CCTV.
  • Invest in staff training to help them spot the signs of theft, and to help them stay safe on the job.
  • Maintain a good cleaning schedule, which can reduce the risks of slips, trips, and falls.
  • Stay on top of all ongoing servicing and maintenance procedures for your electrical equipment, security systems, and fire safety systems.
  • Implement an effective stock management system so that you can identify sources of loss as early as possible. Also be sure to store any high value items as safely and securely as possible.

For more, be sure to read our full guide to designing and implementing policies for addressing shoplifting and other theft.

How We Can Help You Reduce Your Shop Insurance Costs

Remember that not all insurers will charge you the same for your cover. It always pays to shop around and compare quotes. And while it is vital that you avoid underinsurance, it is just as important to avoid overinsurance – paying too much for cover you do not really need.

At James Hallam, we can help you find the dedicated shop insurance you need at a competitive price. We will take the time to get to know you and your business, so that we can fully understand all of the risks you are facing. We will then find you an insurance package that meets all of your requirements, including your budget.

We can also advise you on how to effectively evidence your risk management policies and procedures so as to bring down the cost of your cover.

Find out how we can help you today.

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