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Sarah Clements

DMCC New Automatic Subscription Renewal Rules
DMCC New Automatic Subscription Renewal Rules 1000 667 James Hallam

Do you offer subscriptions or memberships as part of your business? If so, you may be aware of new laws regarding how subscription services operate in the UK.

In this post we will explain these new rules, and explore how they might affect your business.

DMCC Automatic Subscription Rules – The Basics

The Digital Markets, Competition and Consumers Act 2024 (DMCC) set certain rules and regulations for digital markets. This included some major changes to auto-renewing subscription contracts, which are due to come into force in 2026.

The new rules are designed to combat “subscription traps”, whereby customers unwittingly sign up for long-term subscriptions that renew automatically.

Who Do The New Rules Apply To?

The new rules apply to any business that offers any kind of subscription service, whether you offer them online or in-store.

This might include:

  • Gyms and leisure centres
  • Companies offering “subscription boxes” containing snacks, drinks, or other products
  • Shops that offer membership schemes
  • Apps, websites, and streaming platforms

What Are The New DMCC Automatic Subscription Rules?

DMCC sets new rules for various aspects of automatic subscription contracts:

  • Pre-contract information.
  • Reminder notices
  • Ending contracts
  • Cooling-off notices

Pre-Contract Information

  • Businesses must provide key pre-contract information in full at the point when customers enter into the contract. This information can not be hidden in terms and conditions, or behind a hyperlink.
  • Key pre-contract information should specify both the frequency and amounts of ongoing payments, along with the customer’s minimum total liability, a summary of their cancellation rights, and details of how reminder notices will be timed.
  • In addition to providing this key pre-contract information, businesses must also make full pre-contract information available before the customer enters into a contract. This should include company details, including information on how to contact them for enquiries, along with the customer’s cooling off rights.
  • Failure to provide any of the above information means that the customer will not be considered legally bound by any contract they sign.

Reminder Notices

  • Businesses must send reminder notices before a customer’s subscription renews, and before a payment is due.
  • The frequency and timing of these reminder notices vary depending on the length of the subscription. For instance, businesses must send reminders every six months for yearly subscriptions.
  • The legislation outlines that these reminder notices must contain specific information regarding payment amounts, cancellation rights, and so on.

Ending Contracts

  • Businesses must make it as easy as possible for customers to end their contracts.
  • There must not be any unreasonable steps for cancellation. For example, if the customer takes out a subscription online, then they must also be able to cancel that subscription online.
  • Businesses must make their cancellation instructions as accessible as possible. They must also provide customers with written confirmation of a cancellation.
  • Businesses must send this confirmation within 24 hours if the customer cancels their contract online, or within three working days if they cancel by other means.

Cooling-Off Notices

  • All subscription contracts must include a non-waivable and non-conditional cooling-off period that applies more broadly than standard cancellation rights.
  • Customers must be allowed to cancel a contract within 14 days of entering it, and within 14 days of any renewal payments.
  • Cooling-off periods must apply regardless of how the customer signed up, whether it was online or in person.
  • Businesses must issue new cooling-off notices on the first day of renewal cooling-off periods. They are not just for new customers.
  • Businesses must explicitly notify customers of their cooling-off rights. They must provide this information separately from all other contractual information. They cannot hide the cooling-off rights in the terms & conditions, for example.

What Are The Penalties For Not Complying With DMCC Rules?

The DMCC Act also introduced new fining powers for the Competition and Markets Authority (CMA). As a result of this, you can be fined up to 10% of your annual turnover if you fail to comply with consumer law.

Non-compliance could also lead to reputational damages. If you do not adopt these more user-friendly contract rules, then it may send a message to your existing and potential customers: That you are actively looking to deceive them, or trap them. This, of course, could cause many to think twice about signing up.

Complying With The New DMCC Automatic Subscription Rules

You should review your current subscription contract processes as soon as you can. You may have to make changes to some aspects of the customer journey so as to ensure that customers receive all the information you need to provide, when you need to provide it.

It may also be necessary to review your current terms and conditions, to ensure that you are not burying any necessary information regarding renewal clauses, cancellation policies, and cooling-off periods.

Get Specialist Help and SME 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 business. We can help you understand the new regulatory framework for subscriptions, and we can help your business access the specialist insurance you need should a customer ever make a claim against you.

Find out how we can help you today.

 

 

Office Fire Risk Assessments: What To Include
Office Fire Risk Assessments: What To Include 1000 723 James Hallam

According to The Regulatory Reform (Fire Safety) Order 2005 (RRO), employers have a legal duty to ensure fire risk assessments are carried out, and that appropriate fire safety precautions are in place at all times.

This legal responsibility applies to offices of all sizes. So, whether you are managing a single room office, or a large office complex that contains multiple rooms across multiple floors, you have a legal responsibility to arrange for a fire risk assessment.

Who is Legally Responsible For Carrying Out Office Fire Risk Assessments?

The RRO places the responsibility for carrying out fire risk assessments on whichever “responsible person” has control of the premises.

As an employer, you will be responsible for whichever portion of a commercial building contains your office

The building’s owner or manager will be responsible for any common areas, including stairwells and corridors.

In a serviced office or a co-working space, you will share this fire safety responsibility with other employers, or with the building manager, depending on the nature of your contract.

Office Fire Risk Assessments: What To Include

There are five basic steps to any fire safety plan:

  1. Identify fire hazards
  2. Identify people at risk
  3. Evaluate the risk
  4. Identify any steps you need to take to manage, mitigate, or eliminate the risk
  5. Record your actions, and establish a schedule for reviewing them

Identify All Possible Fire Hazards

This should include all sources of ignition, such as electrical and heating equipment, along with all sources of fuel, including your office furniture and your stored materials. Also identify any sources of oxygen, such as doors, windows, and air conditioning systems, which could help a fire to spread.

Identify Who Is At Risk

If a fire were to break out in your office, who exactly would be at risk? Think beyond your employees, and also consider contractors, delivery drivers, visiting clients and customers, and any other members of the public who may happen to be on the premises at the time.

Also consider that some may be at greater risk than others. People with mobility, hearing, or visibility issues may struggle to evacuate, and anyone who is unfamiliar with the building will also be unfamiliar with your evacuation plan.

Evaluate The Risk

Once you have identified any possible fire hazards, and once you have determined who would be most at risk from a fire, you need to assess how likely it is that a fire might break out.

You also need to consider the possible severity of any outbreak. This means identifying any measures that are currently in place to prevent fires, along with any measures that you need to introduce to keep people safe.

Identify Steps To Manage, Mitigate, or Eliminate the Risk of Fire

This might include:

  • Staff Training – All onsite staff should understand the fire risks that exist in the office, along with the steps they should take in the event of a fire. Among other things, you should set an evacuation plan, and a place for people to assemble after they leave the building, so you can ensure that nobody has been left behind.
  • Appointed Responsibilities – You should appoint a fire warden, who can be responsible for monitoring all possible fire risks, for running fire drills, and for enacting emergency plans in the event of a fire. You should also ensure that everybody knows who to report to, and what other actions to take, should a fire break out.
  • Emergency Signage – Remember that not everybody will be familiar with your emergency plans. This is why you will need adequate emergency signage throughout your office, along with emergency lighting should there be a power cut.
  • Fire Safety Equipment – This should include fire alarms, fire extinguishers, sprinkler systems, and evacuation equipment to assist anyone with mobility issues.

Record And Review Fire Precautions

You should keep a written record of:

  • Your fire risk assessment, along with any steps you carry out to mitigate risks. You should also specify who is responsible for carrying out these steps, along with a timeframe for completion.
  • Your fire drills, including the dates and times they take place, along with any issues you identify throughout the process.
  • Any servicing, tests, or inspections for your fire alarms, fire extinguishers, fire doors, and emergency lighting.
  • Any specialist training you arrange either for your staff, or for your designated fire warden.

Get The Right Insurance Cover For Your Office

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 get the dedicated cover you need for your office. We can also show you how to evidence your fire risk management procedures to your insurer, which could help you make a saving on the cost of cover.

Learn more about our specialist office insurance services, or to speak to someone call us on 0330 024 0755, or email enterprisenb@jameshallam.co.uk.

How Many Trustees Does a Charity Need and How Long Should They Serve?
How Many Trustees Does a Charity Need and How Long Should They Serve? 1000 667 James Hallam

We recently published a guide to the legal responsibilities and duties of charity trustees. In this post, we will examine another aspect of charity law regarding trustees: How many does your charity need, and how long should they serve?

How Many Trustees Does a Charity Need?

The number of charity trustees you need as a legal minimum will depend on the type of charity you are running, along with your charity’s constitution or governing documents.

In most cases, if you are running:

  • An unincorporated trust or association, or a charitable incorporated organisation (CIO), you have a legal requirement to appoint one trustee.
  • A charitable company (CLG), Companies Act 2006 specifies that you need to appoint, at minimum, one director.

A charity’s governing documents should also set a minimum number of trustees. Typically, this will be between three and five.

It is important to note that you must appoint the minimum number of trustees as outlined in your charity’s governing document, even if this number is higher than the legal minimum.

Charity Commission Guidance on Number of Trustees

The Charity Commission recommends that all charities, regardless of size or type, need at least three trustees.

This is for practical governance reasons:

  • Effective Decision-Making – If there are just two trustees, any disagreement will automatically lead to a deadlock. But when there are three or more trustees, it is more likely that two trustees might agree on a decision, meaning that the board as a whole can agree to go with the majority.
  • Clearly Defined Roles – With three or more trustees, each trustee can take on a specific role. Along with a chair of trustees, you can have trustees responsible for finance, fundraising, safeguarding, programme oversight, and so on.
  • Less Risk of Fraud – Clearly defining roles for your trustees will also much easier to effectively segregate duties. When it comes to finances, for example, one trustee can take responsibility for authorising payments, and other can take responsibility for checking them. If this were handled by just one trustee, along with all other governance tasks, then there may be a greater risk of fraud or oversight.
  • Better Continuity – With three or more trustees, your charity’s board can continue to operate even if one trustee resigns, moves away, or falls ill.

Is It Possible For A Charity To Have Too Many Trustees?

While the Charity Commission does not advise on a maximum number of trustees, it does advise that larger boards can provide less effective governance than smaller boards.

If you are a smaller charity, you should aim to have between five and eight trustees. Even larger charities should aim for relatively smaller boards. Most charities will set a maximum number of trustees in their governing documents, typically between 10 and 15.

The more trustees your charity has, the harder you will find it to schedule meetings that everyone can attend. Larger boards can also lead to slower decision-making, particularly if disagreements arise. Plus, if your board is too large, then there may be less individual accountability, which could lead to oversights and other issues.

How Long Should Your Trustees Serve?

There are no laws around how long your trustees should serve. The Government guidance instead advises you to refer to your charity’s governing documents.

Essentially, your charity’s governing document should specify a set number of years that your trustees can serve for. Unless your document specifies otherwise, then any trustee that reaches the end of their term may be reappointed for another term.

The Government guidance also specifies that, if your charity’s governing documents do not specify a specific length of service, then “trustees continue in their role until they die, resign, or are removed.”

Procedures for Removing or Recruiting Trustees

With this in mind, your documents should outline the procedures for removing trustees, for resignations, and for appointing new trustees should they stop serving for whatever reason.

It is important to ensure that you will always have enough trustees in place for effective governance, which is why the Charity Commission advises on a minimum of three trustees for all charities. The Government also advises that you should find and appoint new trustees before retiring or resigning trustees leave, to ensure continuity.

Specialist Insurance For Charities and Trustees

At James Hallam, we have supplied dedicated insurance and risk management solutions to charities and other third sector organisations since 1982. We are an independent Lloyd’s broker, and charity trustees across the UK rely on us for expert advice and market-leading solutions at a competitive price.

Find out how we can help you manage all of the risks you face as a charity trustee.

How Much is Beauty Therapist Insurance?
How Much is Beauty Therapist Insurance? 1000 667 James Hallam

Specialist insurance can cover beauticians, makeup artists, nail technicians, hairdressers, and other professionals from the unique risks associated with providing beauty therapist services.

In this post we will take a quick look at the sort of insurance beauty therapists need, before exploring the factors that can affect how much you pay for your specialist cover.

What Type Of Insurance Do Beauty Therapists Need?

As a beauty therapist, you will need cover for:

  • Your specialist equipment
  • Liability cover just in case a customer ever makes a claim against you
  • Your business premises, to cover you for losses from fire, flood, or theft, if you run your own beauty establishment
  • Treatment risk insurance, depending on the type of services you provide. If you accidentally injure a customer during a procedure, or if they experience an allergic reaction to a product you use, this can cover any legal fees or compensation payments that may arise.
  • Employer’s liability insurance, which you have a legal duty to get if you employ any staff. This will cover your employees for any accidents or injuries they may experience while working for you.

You can read our full guide to insurance for beauty therapists.

How Much is Beauty Therapist Insurance?

The minimum insurers charge for very basic cover is around £5 – £8 a month for beauty therapist insurance. Though the amount you pay for your cover can vary greatly depending on a number of factors.

What Can Affect The Cost Of Beauty Therapist Insurance?

  • The Type of Beautician Services You Offer – If you provide highly specialist services, such as microplanning, dermaplaning, and other more intensive procedures, then you may need treatment risk insurance. This will likely cost you more than a standard business insurance policy.
  • The Type of Business You Run – Many factors can increase the cost of your cover, including the number of employees you hire, and the size and location of your beauticians premises, if you have one. On the other hand, you will likely pay less for cover if you are an independent beautician and you visit clients on their premises to provide your services.
  • The Level of Cover You Get – When you take out a policy, you may have a choice in the amount of liability cover you get. This can determine the overall price of your policy.

How Can I Reduce The Cost of Beauty Therapist Insurance?

You can make a saving on the cost of your insurance through only taking out the bare minimum of cover. However, this could prove risky. If you ever need to make a claim on your policy, you might find that your insurance will not cover you for your losses.

It is much better to have the cover you need than it is to risk underinsurance. As a result, the best way to save money on your policy is through working with an insurance broker.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your beautician business. We will take the time to get to know you and the services you provide. We can then help you access the specialist, tailored cover you need at a competitive price.

Find out how we can help you with your beauty therapy insurance today.

What Insurance Do I Need for an Airbnb?
What Insurance Do I Need for an Airbnb? 1000 665 James Hallam

You will need specialist host liability insurance if you want to let out your property on Airbnb. In this post, we’ll be looking at what you need specialist insurance, why insurance you need and why could happen if you find you’re not covered.

Who Needs Insurance for an Airbnb?

You will need a dedicated policy whether you let:

  • A single room in your home, or an annex
  • The entirety of a property, such as a second home or a holiday home
  • A smaller structure on your property, such as a shepherd’s hut, a glamping pod, or similar

Why Do You Need Specialist Insurance for an Airbnb?

A standard home insurance policy will not cover you if you let your property to paying guests using Airbnb. This is because there are numerous unique risks associated with letting members of the public stay on your property as paid guests, none of which will be included in your home insurance policy.

These risks include:

  • Guests injuring themselves while staying on your property.
  • Guests causing accidental damage, or even intentional malicious damage, whether to your property or any nearby properties or common areas.
  • A guest damaging or losing their own property while staying on your property.
  • A guest compromising your home security system (such as through accidentally leaving a door unlocked), resulting in theft or vandalism.

What Insurance Do You Need For an Airbnb?

If you want to let your property on Airbnb, you will need:

  • Host Liability Insurance – This will cover you for any claims that may arise for loss, damage, or injuries guests experience while staying on your property. It can also cover damage caused by guests to other properties or common areas near your property.
  • Host Damage Protection – This can cover any damages that guests cause to your own property or belongings. It can also cover instances of theft, whether a guest steals from your property, or they accidentally leave a door unlocked, making your property vulnerable to thieves.
  • Second Home or Holiday Home Insurance – If you list a second home or a holiday home on Airbnb, a dedicated insurance policy can cover it for any leaks, fires, break-ins, or other incidents that occur while your property is unoccupied. Please note that a standard home insurance policy will not provide any cover if the property is unoccupied for extended periods.

What Happens If You Do Not Get Insurance For Your Airbnb?

Airbnb may require you to get some form of cover in place before you can list your property on their site. Beyond this, you have no legal obligation to get host liability insurance. However, if you do not get sufficient cover, you may face extensive costs, and even some legal difficulties, should something go wrong while a guest is staying at your property.

A guest could trip over a rug, or a wire, or a loose bit of carpet. They could injure themselves, or they could drop the expensive laptop they happened to be carrying at the time.

In either case, as the accident happened on your property, you may be held liable for their injury, or for the damage to their property. So, if the guest makes a claim against you, you could be responsible for covering all legal fees along with any compensation payments that may arise.

Also, as we pointed out above, a standard home insurance policy will not cover your property if it is left unoccupied for extended periods. And when a property is unoccupied, it is more vulnerable to vandalism and burglary, and small issues can quickly spiral into major disasters. For example, over time, even a small leak could result in severe water damage.

We Can Help You Get The Insurance You Need For Your Airbnb

If you want to let part of your property, or your full property on Airbnb, we are here to help.

We can help you understand the unique risks you face, and we can advise you on how to manage and mitigate these risks. We can then help you access the specialist insurance you need to cover your property on Airbnb, including host liability insurance, host damage protection, and comprehensive second home or holiday home insurance.

Find out how we can help you with Airbnb insurance today.

What is Social Engineering in Cyber Security? And How To Protect From It
What is Social Engineering in Cyber Security? And How To Protect From It 1000 653 James Hallam

In this post we will explain how social engineering attacks work, and discuss how you can protect your systems against this form of cybercrime.

What is Social Engineering?

Social engineering is a type of cyberattack that relies on the psychology of persuasion to trick people into divulging personal information, or accessing malicious links or attachments.

How Does Social Engineering Work?

Many social engineering attacks start with a cybercriminal communicating directly with their intended target. This might be via an email, a text message, or a telephone call.

The cybercriminal will pretend to be from a trusted organisation, or they may even attempt to impersonate a specific person, such as a manager or an IT consultant. In any case, the aim is to trick the target into taking an intended action. This could be to divulge sensitive information, such as bank details or a password, or to click on a malicious link, or to open a malicious email attachment.

What Happens If You Fall Victim to a Social Engineering Attack?

If someone falls for a social engineering attack, then they may themselves become victims of identity theft or other forms of fraud. But in most cases, the cybercriminal’s aim is to breach a secure system. They may target an employee of a company, for example, in order to access the company’s systems or data. Or they may try to gain entry to an employee’s computer in order to hit the whole company with a ransomware attack.

This is why social engineering attacks can be so dangerous. Cybercriminals can target multiple people in an organisation at the same time. And in order for their attack to be successful, it only needs to work against one person.

The Different Types of Social Engineering Attacks

  • Phishing – This involves sending a message, such as an email, that claims to be from a trusted individual or organisation. The aim is to trick the recipient into divulging sensitive information, or to take some other desired action, such as clicking a link or opening an attachment.
  • Baiting – This might also be referred to as a “watering hole attack”. It involves setting up a fake, malicious website that looks identical to a trusted organisation’s website. Of course, entering your login information on this fake website essentially means that you are sharing your username and password directly with cybercriminals.
  • Physical Social Engineering Attacks – Some social engineering attacks may be more personal. You might get a phone call, apparently from your bank, urging you to share certain information so as to correct some kind of bank error. Or, a cybercriminal may post as an IT support worker, in order to gain direct access to a system.

How To Protect Yourself, Your Employees, and Your Business Against Social Engineering

Social engineering attacks are particularly dangerous as they target the weakest link in any cybersecurity system – people. This means that even the most advanced of cybersecurity systems can still be vulnerable to a social engineering attack.

And as cybercriminals are getting smarter and more sophisticated all the time, even the savviest and most experienced of IT professionals may still fall victim to a social engineering ploy.

Constant vigilance is your best defence against social engineering, underpinned by a robust IT security framework.

Essential Cybersecurity Measures Against Social Engineering Attacks

  • Staff Training – It is essential that you, and everyone else in your business, understands the risks, and the red flags that could suggest that a message or phone call is not what it seems. This training should be tailored to reflect the unique risks that might exist for your organisation, and the specific forms of attack that cybercriminals may attempt to gain access to your system.
  • Password Management – Set clear guidelines on password security, including procedures for when employees should update their passwords, and a strict rule that employees must not share passwords with anyone, at any time.
  • Multi–Factor Authentication – This means that people will need more than one security credential in order to access a system. For instance, employees may have to provide one-time passcodes, as well as biometric information, in addition to their passwords.
  • Zero Trust Security – This is a cybersecurity framework whereby every user must provide credentials at every point of access, without exception. This, combined with multi-factor authentication, will make it much harder for cybercriminals to access your system, even if their social engineering attacks are successful.

How to Respond To Social Engineering Attacks

Your cybersecurity policy should also outline how you respond to a social engineering attack.

Employees should know who to report to, and what actions they should take, if they suspect they have fallen victim to an attack. This might involve changing their passwords or notifying IT staff, who may be able to take appropriate action before it is too late.

This is one area where cyber insurance can make a huge difference. As well as covering your liabilities during a cyberattack, cyber insurance can also cover certain expenses associated with your response, including the costs of notifying clients or customers whose data may have been compromised by a breach.

Read our full guide to how cyber insurance can help protect your business.

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.

What is DDP and DAP in Shipping?
What is DDP and DAP in Shipping? 1000 750 James Hallam

International commercial terms (incoterms) are a set of standard trade definitions that outline the specific responsibilities of buyers and sellers in international trade agreements. You can read our full guide to incoterms.

In this post we will take a closer look at two specific incoterms: DDP and DAP. We will explore the key differences between these two terms, and outline how they might affect your risks, responsibilities, and costs in an international shipping agreement.

DDP and DAP – A Brief Introduction

DDP (Delivered Duty Paid) and DAP (Delivered at Place) are both seller-focused incoterms. These terms apply to transactions where the seller, exporter, or manufacturer takes on most or all of the costs and risks associated with delivering goods to a named place of destination.

What is DDP in Shipping?

The DDP (Delivered Duty paid) incoterm places maximum responsibility on the seller.

Under a DDP contract, the seller, exporter, or manufacturer takes full responsibility for delivering goods to the agreed destination. They will cover all associated costs and risks, which includes all relevant customs and duties. Typically, the seller will include all of these expenses in the price of their goods, which can result in clear and transparent costs for all parties involved.

In a DDP arrangement, the buyer’s only responsibilities involve unloading the goods once they reach their destination. So, while the buyer will likely have to pay a higher price for the shipping, DDP remains a popular choice for buyers who are new to international shipping, and for those who want a frictionless and streamlined approach to entering new markets.

What is DAP in Shipping?

The DAP (Delivered at Place) incoterm is similar to the DDP incoterm, in that the seller is responsible for delivering goods to an agreed destination, covering all transport costs and bearing all risks until the goods reach their destination port.

The key difference between DAP and DDP is that, in a DAP arrangement, the seller does not take responsibility for covering any customs, taxes, and duties that may arise during the shipping process. Instead, the buyer will take responsibility for covering these costs. The seller generally will not include these charges in the total costs of their goods, meaning that the buyer will have less clarity and transparency when it comes to the total cost of the shipping.

However, the buyer will have full control over all import procedures, which often makes DAP the preferred arrangement for companies with pre-existing relationships with customs brokers, or for larger companies with established logistics expertise.

Is DDP or DAP Better For Sellers?

If you are a seller, you will have extensive responsibilities and liabilities regardless of whether you choose DDP or DAP. These will include:

  • Preparing and packaging all goods for shipping.
  • Arranging for shipping to the specified destination.
  • Bearing all costs and all risks until the point the goods arrive at their destination – including all marine insurance costs.
  • Providing all necessary documentation for customs and so on.

The only difference is that, with DDP, you will have to cover all customs, taxes, and duties on top of this.

If you would prefer an arrangement in which the buyer takes on more risks, or in which the buyer and the seller share the risks and the costs, read our complete guide to incoterms.

DDP or DAP – Which is Best For Buyers?

If you are a buyer, choose DDP if:

  • You are inexperienced with international shipping, or you are looking to enter a new market, and you are happy for the seller to take care of everything.
  • You want total clarity and transparency with the price you pay for shipping. In most cases, the price the seller quotes for shipping will include everything, including the costs of customs, taxes, duties, and insurance cover.

However, you might prefer DAP if:

  • You want flexibility with your transport options. DAP arrangements are compatible with all forms of transport, including air, rail, road, and sea.
  • You have established relationships with customs brokers, or you have in-house logistics expertise, so you would prefer to handle all customs, duties, and tax procedures yourself.

One more thing to consider: Choosing either DDP or DAP will tie you to your seller’s price structure and supply chain. For one reason or another, this might not suit your needs. Alternative incoterm arrangements would give you greater flexibility, but most would require you to take on additional costs, risks, and liabilities.

For more information, read our full guide to incoterms.

How DDP and DAP Affect Insurance in Shipping

The incoterms you use during your transactions will determine the level of insurance cover you need, whether you are the buyer or the seller.

In both DDP and DAP transactions, the seller takes on the most risk. The responsibilities only transfer from the seller to the buyer at the point of delivery, at which point the buyer is responsible for ensuring all goods are safely unloaded.

Whichever code you use, and whichever party you are in the transaction, it is essential that your insurance covers you for all the risks and responsibilities as outlined in your contract.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you understand the cost, risk, and insurance implications of any incoterm you use, and we can help you get the specialist cover you need at a competitive price.

Find out more about our dedicated marine insurance services, or call us on 020 3148 9540 or email info@everardinsurance.co.uk.

How Many Shipping Containers Are Lost At Sea Each Year?
How Many Shipping Containers Are Lost At Sea Each Year? 800 533 James Hallam

Hundreds, and sometimes thousands, of shipping containers are lost at sea each year, resulting in significant financial losses for global shipping businesses. Lost containers can also present a collision risk for other vessels at sea, and depending on their contents, they could even lead to serious environmental damage.

In this post we will explore why so many shipping containers get lost at sea each year, and discuss how you can best protect your shipping business against financial loss.

How Many Shipping Containers Get Lost At Sea Every Year?

The World Shipping Council routinely surveys its member companies in order to estimate the number of shipping containers that get lost at sea each year.

The most recent survey, from 2025, covers the years up to and including 2024. Here are the total number of containers lost at sea over the past few years, according to World Shipping Council members:

  • 2024 – 576
  • 2023 – 221
  • 2022 – 661
  • 2021 – 2,301
  • 2020 – 3,924

The World Shipping Council points out that over 250 million containers are shipped each year. 576 lost containers equate to just 0.0002% of this total. They also highlight how approximately 33% of all containers lost each year are ultimately recovered.

The World Shipping Council has been surveying their members in this way since 2011. Each year, they report a rolling three-year average. In the latest report, this stood at 489. In the previous report, the rolling three-year average was more than double this, at 1,061.

So, there is an encouraging downward trend. But the council also report a 10-year average of 1,274 containers lost each year. Every single lost container will lead to significant expenses, and each one poses a hazard to other vessels, and potentially to the environment too.

What Causes Shipping Container Loss?

Container falls
A container might fall from a vessel as a result of bad weather, collisions, or other incidents at sea. Human error can also play a part, should someone fail to correctly secure a container, for example. A ship may also choose to jettison its cargo in response to an onboard incident, such as a fire.

Global events
Global events can influence the total number of containers lost in a year. In recent years, unrest in the Middle East has forced many shipping routes to detour away from the Red Sea, and around the Cape of Good Hope.

Converging weather systems make extreme weather events, along with steep wave patterns, relatively common in this area. According to the South African Maritime Safety Authority, around 200 containers were recently lost around the Cape of Good Hope in the space of one year.

Isolated events
Occasionally, isolated events cause a major spike in the number of shipping containers lost in one year. 5,578 containers were lost in 2013, making this the worst year for losses in recent memory. This was largely due to a single incident in which an entire vessel was lost. Large scale incidents also occurred in 2020, when 3,924 containers were lost in a year, and 2021, which saw total losses of 2,301.

TopTier is an ongoing research project which is currently investigating these large scale losses in order to determine what went wrong, in the hope of identifying potential actions that could help prevent container loss.

Who is Liable For Shipping Container Loss?

Claims involving lost containers can get complicated. As well as the physical loss of the container, insurers must also consider any other containers that get damaged as a result of collapsing stacks, along with any damage the vessel itself sustains during the incident. Plus, as we mentioned above, a container lost at sea could ultimately damage other vessels, and could also have an environmental impact.

A shipping contract should outline who is responsible for costs and losses at each stage of the process. Whichever party is responsible for the goods during the passage at sea, whether that is the buyer or the seller, will have to ensure they are fully covered for potential container losses, along with the subsequent damages and costs that may arise.

Beyond this, the specific circumstances of the incident will determine who takes ownership of the container after it is lost. The cost of recovering lost containers, for instance, often falls on third parties. You can read our full guide to the different types of marine insurance loss claims.

Get Comprehensive Marine Insurance From James Hallam

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

We can help you understand your liability concerning incidents of containers lost at sea, and we can help you ensure you have the dedicated insurance you need to cover you for all risks.

Find out more about our specialist marine insurance services. Or to speak to one of our team Call us on 020 3148 9540 or email info@everardinsurance.co.uk

Incoterms: Full List with Meanings & Definitions
Incoterms: Full List with Meanings & Definitions 800 533 James Hallam

If you want to ship goods internationally, it is essential that you understand incoterms.

In this post we will outline the full list of incoterms, with meanings and definitions, before exploring why they matter.

What are Incoterms?

Incoterm is short for “international commercial terms”. These are a set of standard trade definitions introduced by the International Chamber of Commerce to transcend global language barriers.

Each incoterm features three letters, and each outlines the specific responsibilities of buyers and sellers in international trade agreements.

Because banks and customs agencies across the world use the same incoterms, anyone involved in international shipping can avoid ambiguities.

Some incoterms apply to all modes of transport, while others are exclusively for sea and inland waterway transport.

Full List of Incoterms

The current edition of incoterms is INCO 2020. There are 11 incoterms in total, and they are grouped into four categories:

The E Term

EXW

EXW is the only E term. It stands for “Ex Works”.

This term is used exclusively to refer to transactions where the seller, exporter, or manufacturer makes the goods available at their own premises. This means that the buyer takes on all subsequent risks, responsibilities, and costs for the goods’ ongoing journey to the final point of delivery.

The F Terms

These terms apply to transactions where the seller or exporter is responsible to deliver the goods to a carrier.

Usually, the buyer arranges for the carrier, meaning that the buyer and the seller share risks and costs. The seller handles the risks and costs up to the handover, and the buyer handles the risks and costs for the rest of the process.

There are three F terms:

FCA (Free carrier)
The delivery point is an agreed location, such as a port or a terminal.

FAS (Free Alongside Ship)
This term refers exclusively to marine shipping. The delivery point is a port of shipment, and the risk and cost transfer takes place when the goods are placed alongside the ship.

FOB (Free On Board)
Another marine shipping incoterm. Like FAS, the delivery point is a port of shipment, but this time the risk and cost of transfer takes place when the goods are loaded onboard the ship.

The C Terms

These terms apply to transactions where the seller, exporter, or manufacturer takes responsibility for arranging for, and paying for, the carriage of goods. However, they are not responsible for any additional risks or costs that may emerge once the goods have been shipped.

There are four C terms:

CPT (Carriage Paid To)

The delivery point is a named place of destination, and the seller is responsible for all transport costs until the goods are handed to the first carrier.

CIP (Carriage and Insurance Paid To)

The delivery point is a named place of destination, and the seller is responsible for all risks and costs until the goods are handed to the first carrier. In this case, the costs include some insurance cover for any loss or damage to the goods during that first part of their journey.

CFR (Cost and freight)

This term refers exclusively to marine shipping. The delivery point is the port of destination, and the seller is responsible for all freight costs up to the point where the goods are onboard the ship.

CIF (Cost, Insurance, and Freight)

Another marine shipping term. The delivery point is the port of destination, and the seller is responsible for all freight costs up to the point where the goods are onboard the ship. But they will also pay for insurance, to cover any loss or damage to the goods during that first part of their journey.

The D Terms

These terms apply to transactions where the seller, exporter, or manufacturer takes responsibility for all costs and risks associated with delivering goods to a named place of destination.

There are three D terms:

DAP (Delivered At Place)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. However, this does not extend to any costs or risks associated with unloading the goods, or taking them to a further destination.

DPU (Delivered At Place, Unloaded)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. This time, the seller takes additional responsibilities for the costs and risks associated with unloading the goods at the destination.

DDP (Delivered Duty Paid)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. In this case, these costs will include any duties incurred during the delivery.

Why Incoterms Matter for Liability

Each incoterm clarifies both the buyer’s and the seller’s responsibilities when it comes to both costs and risks. The terms also clarify the limits of these responsibilities, and the point at which they might transfer from one party to another.

Get incoterms right, and it can lead to streamlined global shipping, even when there is no shared language. But get them wrong, and it can lead to delays, extra costs, custom issues, and even legal disputes.

This is why it is important to not just choose the right incoterm for each transaction, but also to ensure that the contract reflects the implications of the term you use. For example, most incoterms require a named destination. If this is not included in the contract, it could lead to ambiguities and disagreements should anything go wrong.

How Incoterms Affect Insurance

The incoterms you use during your transactions will also determine the level of insurance cover you need, whether you are the buyer or the seller.

In an EXW transaction, the buyer takes on the most risk. In a DDP transaction, the seller takes on the most risk. Other incoterms will require the buyer and the seller to share the risks and the costs, with the specific code determining the precise point at which the responsibilities transfer from one party to another.

Whichever code you use, it is essential that your insurance covers you for all the risks and responsibilities as outlined in your contract.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you understand the cost, risk, and insurance implications of any incoterm you use, and we can help you get the specialist cover you need at a competitive price.

Find out more about our dedicated marine insurance services, or call us on 020 3148 9540 or email info@everardinsurance.co.uk.

Health and Safety Checklist For The Office
Health and Safety Checklist For The Office 800 533 James Hallam

Compared to a warehouse, a construction site, or a factory, an office might not feel like a particularly risky work environment. But accidents can still happen. And if they do, your business could face some costly claims.

Common Risks For Offices

It is important to take the time to understand all of the possible risks in your office that could lead to an accident or other incident. Once you understand these risks, you will know what actions you need to take to manage and mitigate them.

  • Slips, Trips, and Falls – Employees could trip over bags, files, wires, and other items that might clutter or obstruct walkways. A leak or spillage in the kitchen or breakroom could also lead to slips or falls.
  • Musculoskeletal Injuries – If an employee lifts a heavy item without following the correct procedures, it could lead to serious long-term back injuries. Years of bad posture could also result in chronic issues in later life.
  • Damage to Property – If an employee spills a cup of coffee at their desk, it could result in significant damages to your company’s property and equipment.
  • Fire, Flood, and Theft – Finally, offices must contend with the same risks that exist for any business in any sector. Fires may be a particular risk for offices, as the prevalence of flammable materials, including paper and soft furnishings, could mean that any fire that breaks out will rapidly spread.

How to Perform a Risk Assessment For Your Office

There are four essential steps to an office risk assessment:

  1. Identify every risk that could lead to accidents or injuries. As well as immediate risks, such as obstructions that could lead to trips or falls, also consider long-term risks, such as back problems arising from poor lifting techniques.
  2. Determine the likelihood and severity of every risk you identify. Also determine who each risk is most likely to affect. In an office environment, where everyone works similar jobs in similar conditions, it may be the case that every member of staff is equally susceptible to any risk you identify.
  3. Outline the steps you can take to manage, mitigate, or eliminate each risk you identify. Again, it pays to think of long-term risks as well as immediate risks. For example, what can you do today to prevent the onset of RSI in your employees’ later lives?
  4. Establish who is responsible for carrying out every risk management procedure you identify. For example, every employee might take responsibility for keeping the area immediately surrounding their desk free from clutter, to reduce the possibility of trips and other incidents.

Read our full guide to risk assessments for businesses.

Health and Safety Starts With Staff Training

You should routinely train your staff to understand the risks associated with the office environment, and the part they can play in managing these risks.

Along with managing everyday risks, your staff training should cover:

  • Safe lifting techniques – To avoid the musculoskeletal injuries that could arise from lifting a heavy object.
  • Fire safety procedures – What your staff should, and should not do, in the event of a fire. Read our full guide to fire safety procedures for businesses.
  • Cybersecurity – Your employees should also understand the role they can play in protecting your business from cybercrime. Read our essential introduction to cybersecurity for businesses.

All new employees should go through this training as part of their induction, and you should run refresher training sessions at least once a year.

Health and Safety Checklist For The Office

Beyond staff training, here are the key elements of health and safety that you should address in your office:

The workplace environment

  • Is there a cleaning rota, and are you sticking to it?
  • Are staff responsible for keeping their own work areas clean?
  • Are the walkways free from clutter and other trip hazards?
  • Also pay attention to the light levels, the noise levels, and the air quality in the office.

Fire safety

  • Are you keeping on top of routine safety inspections for the electrical equipment in your office?
  • Are your fire extinguishers in code?
  • Are your alarms and sprinkler systems working?
  • Make sure your fire escape routes are clearly marked, and free from all obstructions.

Accident reporting

In the event of an accident, you should:

  • Have a process for reporting what took place
  • Identify possible root causes of the incident.
  • Identify some possible actions you could take to prevent similar incidents from occurring in future.

Get The Right Cover For Your Office

You have a legal duty to get employer’s liability insurance. This will cover your employees for any accidents that might take place in the workplace.

But remember that anything that happens to your employees could also happen to visiting clients and customers, to contractors, to delivery drivers, and to other members of the public who may spend time on your premises.

You employer’s liability insurance would not cover any incidents involving non-employees. Nor would it cover damage to property, or other losses associated with fire, flood, theft, or cybercrime.

This is why you need specialist, comprehensive insurance for your office. 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 get the dedicated cover you need for your office, at the best price.

Learn more about our specialist office insurance services, or for more information call us on 0330 024 0755 or email enterprisenb@jameshallam.co.uk

 

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