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Sarah Clements

What Kind of Insurance Does a Restaurant Need?
What Kind of Insurance Does a Restaurant Need? 500 334 James Hallam

If you are running a restaurant, or a chain or restaurants, then you no doubt know that you need insurance to cover your business for the range of risks you will face.

Yet there are many different insurance products out there, and not all of them are relevant for restaurants. So, how can you ensure you get the cover you need at the best possible price?

In this post we will explore some of the most important insurance products for restaurants, cafés, pubs, and other businesses that prepare and serve food.

Running a catering van? Take a look at our guide to insurance requirements for mobile caterers.

Types of Insurance for Restaurants

Public Liability Insurance

If a member of the public gets injured on your restaurant premises, public liability insurance can cover any compensation they may be due, along with any associated legal fees. This cover extends to your customers, as well as any other members of the public who may visit your premises, including contractors, delivery drivers, and health inspectors.

Public liability insurance can also cover any loss or damage to customers’ property while they are on your premises – such as if one of your waiters spills a drink on a customer’s clothing.

Product Liability Insurance

Product liability insurance can cover for claims related to the food and drink you prepare and serve on your premises. For example, if a customer has an allergic reaction to your food, or if they fall ill after eating at your restaurant, product liability insurance can cover any compensation they may be due, along with any associated legal fees.

Employer’s Liability Insurance

This is similar to public liability insurance, though rather than providing cover for claims made by members of the public, it covers you for claims made by your employers for any illnesses or injuries they sustain while working at your restaurant.

In UK law, there is a legal requirement to get adequate employer’s liability insurance should you employ any staff.

Contents and Stock Insurance

Business contents insurance can cover your restaurants furniture and equipment if they are lost or damaged as a result of fire, theft, floods, or other incidents. Contents insurance can provide cover for repairs or replacements, as necessary.

Stock insurance can cover your perishable stock for similar losses. But it can also cover for other kinds of situations, such as if your frozen stock goes bad following a power cut to your freezer.

Business Buildings Insurance

This can cover your restaurant premises for necessary repairs following fires, floods, storms, or break-ins.

Business Interruption Insurance

If you are forced to temporarily close your restaurant following an insured event, such as a fire or a flood, business interruption insurance can supplement any lost income, allowing you to stay afloat during your downtime.

All claims are different and we would recommend that you read through your policy documents to ensure you are familiar with the details of the cover you’ve been offered.

How Much is Restaurant Insurance?

The amount you pay for your restaurant insurance will depend on a number of factors, including but not restricted to the following:

  • The level of cover you choose. The more extensive your cover, the higher your premiums will be.
  • Your restaurant’s annual turnover.
  • The number of staff you employ. Some insurers may ask for additional information about your employees, including their ages, so as to determine their respective risk profiles.
  • The rebuild costs of your restaurant premises following a total loss. Insurers will also consider the value of your restaurant’s content and stock.
  • Your physical location. If your restaurant is located in an inner city area, there may be an increased risk of burglary. Also, any restaurants located on flood plains will likely have to pay more for buildings cover.
  • The construction of the premises.

We Can Help You Get All The Cover You Need at a Fair Price

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

We know that no two restaurants are quite the same. So, we will take the time to get to know you, your business, and your customers. This will allow us to design a restaurant insurance package that truly meets your needs at a competitive price.

Get in touch for a free quote today.

What Are The Leading Causes of Fires at Sea?
What Are The Leading Causes of Fires at Sea? 500 334 James Hallam

Fires at sea might not be as common as other risks, but they tend to cost marine companies much more than other types of claims.

According to the 2023 Nordic Marine Insurance Statistics (NoMIS), despite only accounting for 2.7% of all claims, fire and explosion claims accounted for 27% of the total claims cost distribution. This is nearly double the previous year’s figure of 15%.

The latest International Union of Marine Insurance report confirmed that fires are the leading cause of losses at sea, as they have been for the past 10 years.

In this post we will discuss the leading causes of fires at sea, and explore some ways you can safeguard your marine business against this risk.

Where Are Fires at Sea Most Likely to Break Out?

Fires at sea are most likely to break out in areas where fuels and other flammable materials are close to sources of heat.

This might include:

  • Engine rooms
  • Pump rooms
  • Cabins
  • Galleys
  • Boilers
  • Generators
  • Cargo holds and storage spaces
  • Incinerators
  • Chain lockers

According to UK P&I Club, the majority of fires at sea start in ship engine rooms.

What Are The Leading Causes of Fire at Sea?

Most fires at sea start when a flammable substance falls onto a hot surface. In an engine room, this can occur when oils or fuel mists spray onto unprotected hot surfaces. In a cabin room, it could occur when a crew member accidentally leaves an electrical device plugged in, which can lead to overheating and fire outbreaks.

The Allianz Safety and Shipping Review 2023 revealed that the most serious fires can be traced to combustible cargo, which can quickly spread until it overwhelms the crew’s firefighting capabilities. Plus, certain materials may reignite spontaneously even after the fire appears to have been extinguished.

Combustible cargos can include scrap metal and self-heating fuels such as coal and DRI. Fires can start when cargo or containers are damaged or compromised, such as during a storm, or due to bad stowage. Lithium-ion batteries may also overheat and cause fires if they are damaged. This may pose a particular risk for roll-on/roll-off ferries transporting electric or hybrid vehicles.

The Allianz review also suggested that the size of the vessel can determine the severity of the fire. The bigger the ship, the harder it can be for crews to detect fires. By the time crews are able to respond to outbreak, the fire may have already spread too far for them to handle.

Plus, emergency responses and salvage operations become more complex with larger fires on larger vessels, which can make declarations of total loss more likely.

How to Prevent Fires at Sea

  • Stay on top of maintenance and repairs, to prevent the risks of fires breaking out due to faulty wirings, mechanical failures, and electrical issues.
  • Also ensure that your vessel’s fire detection and suppression systems are always in full working order.
  • Provide adequate crew training, and run regular fire drills to ensure that everyone knows what they will need to do in the event of a fire.
  • Also brief your crew on fire prevention measures – i.e. not keeping electrical items plugged in, smoking regulations, correct stowage procedures etc.

Make Sure You Are Covered For Fires at Sea

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure you have the insurance you need to cover you for fires at sea, including incidents that result in total loss.

Find out more about our dedicated marine insurance services.

Future Trends and Predictions for the Travel Industry in 2025
Future Trends and Predictions for the Travel Industry in 2025 500 310 James Hallam

In this post we will share some of the trends that could shape the travel industry in 2025 and beyond.

No matter what happens in the travel industry over the next 12 months, you can depend on us to get you the cover you need, at the best possible price. Find out more about our specialist insurance services for travel agents and tour operators.

How Will Climate Change Impact the Travel Industry?

In recent years some parts of the world have experienced record high temperatures. This made certain destinations too hot for tourists, while making it difficult for some aircrafts to take off. There have also been numerous extreme weather events, which inevitably impacted the travel and tourism industry.

Will 2025 also see soaring temperatures, heavy rains, flooding, and storms? In any case, travel industry leaders are already anticipating how a changing climate could affect the way we travel.

Travellers could face more risks, and disruptions may become more frequent, and more severe. Plus, travellers may choose to avoid formerly popular destinations to avoid the risks of extreme heat and possible flooding, such as certain continental cities and coastal resorts.

Read our full guide to how climate change may affect tourism destinations.

What Do Customers Want From Their Travel Experiences in 2025?

In late 2024, Booking.com surveyed their customers to get an idea of the sort of trips that might prove popular in 2025. Here are their key travel predictions for 2025:

  • Travellers are increasingly concerned with sustainability. (link to other Jan blog)
  • People are looking for “authentic” experiences. Resorts and package deals may prove less popular than in previous years. Instead, travellers will look for “off-the-beaten-path” experiences, with particular interest in wellness, adventure, nature-based activities, and “nocturism”. That means “nocturnal tourism”, with trips focused on activities that take place at night, such as stargazing.
  • As well as catering to solo travellers and couples of all ages, travel and tourism operators should also deliver travel experiences for the whole family.

Predicted Trending Travel Destinations for 2025

Booking.com also predicted a few trending destinations for 2025:

  • Sanya, China
  • Trieste, Italy
  • João Pessoa, Brazil
  • Tromsø, Norway
  • Willemstad, Curaçao
  • Tignes, France
  • Villajoyosa, Spain

New Opportunities for the Travel Industry from Technology

Technology is revolutionising the travel and tourism industry. According to research from Mastercard, 56% of travel companies are focusing their strategic planning on rising customer expectations for digital user experiences.

What sort of digital trends will reshape the travel and tourism industry in the coming years? AI will mean that automated systems will increasingly replace human interactions. Airlines may turn to biometrics and facial recognition systems in lieu of boarding passes.

Customers will increasingly expect a totally streamlined and personalised experience, where travel companies recognise and meet their needs in real time, ideally without the customer needing to take any actions themselves.

New Cyber Security Risks for Travel Agents

As ever, along with bringing new opportunities, technology also brings a host of new threats. A growing reliance on interconnected digital systems will put travel companies, and their customers, at increased risk of cybercrime. Plus, agencies have warned that cybercriminals are now using AI tools to automatically target and attack businesses.

If you are a travel agent or tour operator, and you have not yet taken steps to secure your systems, make 2025 the year you start taking cyber security seriously. Read our full guide to cyber security for travel agents and tour operators.

We Can Help You Make The Best of the Opportunities that 2025 Will Bring

At James Hallam, for over 35 years we have provided dedicated insurance services for travel agents and tour operators. Our tailored services can help your business stay resilient and competitive, no matter what challenges and opportunities 2025 might bring.

Find out more about our bespoke insurance services for travel agents and tour operators.

Tourism Destinations and the Impact of Climate Change
Tourism Destinations and the Impact of Climate Change 500 334 James Hallam

In this post we will assess how climate change might affect the tourism industry. We will also discuss some precautions you can take as a travel agent or tour operator to safeguard your business and your customers.

When Summer Holidays Become Dangerously Hot

Summer 2023 was one of the hottest in recent memory. Greece had to evacuate over 2,000 holidaymakers as temperatures reached 45°C, and wildfires broke out on the island of Rhodes. Visitors to Rome also chose to end their holidays early due to the heatwave. Meanwhile, many flights were cancelled as aircraft were simply unable to take off in the hot, dense air.

Summer 2024 was not as intense as the previous year. In Athens the July temperatures reached a daily average of around 32°C. In Rome, the daily average temperature in July was around 28°C. Yet there were still concerns about the excessive heat. Athens once again was forced to close schools and some major tourist attractions.

How a Rise in Extreme Weather Conditions Affect the Travel Industry

As well as rising temperatures, some attribute extreme weather conditions to the changing climate. Climate scientists have linked heavy rains, flooding, drought, wildfires, and storms to climate change, all of which will affect the travel and tourism industry.

Certain coastal destinations are also concerned about rising sea levels. According to one University of Cambridge study, around 60% of Caribbean coastal resorts may be at risk of sea level rise.

The Travel Industry’s Carbon Footprint

The World Economic Forum has pointed out that the travel and tourism sector accounts for around 10% of all global greenhouse gas emissions. On top of this, total emissions from tourism are forecast to rise by around 25% by 2030.

It is easy to imagine how governments may penalise travel companies for these emissions, via taxes, fines, and strict regulations. This will increase the cost of doing business, which companies will pass on to their customers. Global travel, then, may become increasingly expensive in the coming years.

What is the Impact of Climate Change on Travel and Tourism?

  • New Tourist Destinations – Tourists may choose to avoid previously popular city locations, such as Athens and Rome, along with coastal resorts where rising sea levels are a concern.
  • New Risks – All travellers may face an increased risk of encountering extreme weather events, such as fires, floods, and storms.
  • More Travel Disruption – It may become more likely that holidaymakers will have to abandon their travel plans as a result of rising temperatures and other risks.

How Can Travel Agents and Tour Operators Prepare For A Changing Climate?

  • Be Flexible – You may not always be able to sell the same packages, and the same destinations, as you do today. Keep an eye on global travel trends so that you can identify the popular new travel destinations as early as possible.
  • Get The Right Cover – Make sure that any travel insurance you provide includes cover for the risks associated with extreme weather events. Plus, if rising temperatures means that holidaymakers will face more cancellations and uncertainty, it is vital that you get cover for supplier failure, and other forms of disruption.

We Can Help You Ensure You Are Fully Covered for Emerging Risks as a Travel Agent or Tour Operator

At James Hallam, we have provided dedicated insurance services for travel agents and tour operators for over 20 years. The global travel agency has changed significantly over the past few decades, but we have always helped our travel and tourism clients stay resilient.

We will take the time to understand your business so we can tailor the best possible travel and tour insurance programme for you and your customers. So if you are concerned about how your industry might be affected by a changing climate, we can help you prepare for any additional risks you might face.

Find out more about our specialist insurance services for travel agents and tour operators.

Risks for Travel and Tourism Industry Going Into 2025
Risks for Travel and Tourism Industry Going Into 2025 500 334 James Hallam

How will the travel and tourism industry react to the challenges and opportunities that 2025 might bring?

In this post, we will assess the risks for the travel and tourism industry as we go into 2025. We will also explore some ways your business can prepare for these risks, to ensure you stay resilient no matter what happens in the next 12 months.

Growing Risks for Travellers in 2025

Global Guardian recently published a 2025 global risk map. This map assesses country-specific risk factors and indicators, such as:

  • Crime
  • Terrorism
  • Natural disasters
  • Political stability
  • Civil unrest
  • Health

Every country in the world gets a risk rating that ranges from low, to extreme. Looking at the map, it is striking how many global travel destinations have medium, high, or extreme risk ratings. This has led some commentators to wonder: Is the world more dangerous than ever for travellers?

We recently assessed how a changing climate might affect the global travel industry. One thing that seems clear is that, more so than ever before, travellers need to be prepared for a number of risks wherever they go in the world.

If you are a travel agent or tour operator, you can help travellers manage these risks through providing more tailored and comprehensive insurance. Find out how we can help you give your customers the cover they need.

Cyber Security Risks Growing with the Use of AI

We recently published a guide to cyber security for travel and tour operators. For a number of reasons, cybercriminals may actively target businesses in the travel and tourism industry. You handle huge amounts of valuable customer data, and cybercriminals know that many businesses in the sector lack the resources to protect themselves against data breaches.

The risk of cybercrime is not going away, and cybercriminals are getting smarter, and more dangerous, with every passing year.

For example, agencies have warned of the growing threat of cybercriminals using AI tools to target and attack businesses. With AI, cybercriminals can craft phishing emails that are convincing enough to trick anyone. They can also automate their attacks, enabling them to act on a significantly larger scale than ever before.

If your travel or tourism business does not already take cybersecurity seriously, in 2025 you may find out the hard way how devastating a cyberattack can be.

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

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

Ongoing Cost of Living Crisis Affecting Travel Budgets and Business Costs

Geopolitical instability does not just make travel riskier. It can also make travel more expensive. Volatile markets, and the resultant inflation, can have a direct impact on customer spending and travel budgets.

ABTA’s forecasting is optimistic, suggesting a rise in long-haul flights and five star breaks. But many potential customers will be feeling the pinch, which means that many travel agents and tour operators may need to adapt to evolving customer preferences and priorities.

Plus, if you are forced to raise your prices, you will have to seek new ways to provide value to your customers. If you expect your customers to pay more, they may in turn expect to get more for their money. This may result in a rise in personalised and experiential travel options.

Tailored Support for Travel Agents and Tour Operators

At James Hallam, we have provided dedicated insurance services for travel agents and tour operators for over 20 years. Our tailored services can help your business stay resilient and competitive, no matter what challenges 2025 might bring.

Find out more about our specialist insurance services for travel agents and tour operators.

 

How To Find Suitable Land For Development
How To Find Suitable Land For Development 500 375 James Hallam

If you are a real estate developer, you may have struggled to find land that is suitable for building on.

This post is an essential guide to finding suitable land for development in the UK. We will cover a number of techniques you could try to help you find your next development opportunity.

Go for a walk and spot plots with potential

Take a tour of your local area, or of the target area you want to develop. Pay attention, and you just might find the perfect future development site.

It could be a derelict building, or an empty plot of land, or even an established building with a big “For Sale” sign on the front. Make a note of the address, take lots of pictures, and try to find out who you need to contact to inquire about purchasing and developing the land or property.

Ways to find undeveloped land online

There are many online resources to help you find land development opportunities:

  • HM Land Registry – This will tell you who, if anyone, already owns any given piece of land. If you find an empty plot of land that seems perfect for development, for example, this service will let you find out whether anyone owns it, so you will know who to contact for more information.
  • Brownfield Land Registry – Another government resource, on which local councils can list any sites in their area which may be suitable for future development.
  • PlotBrowser – One of a number of sites that will allow you to find UK building plots, for free. If you create an account, you may be able to get regular updates on any new development opportunities in your target areas.
  • Government Property Finder – The government is legally required to publicly advertise any land or property they have for sale. As well as using the government’s dedicated property finder resource, also check the official local council websites for any development opportunities in your target areas.

Finding Land to Develop at Property Auctions

Plots of land are often sold at auctions. You may be able to find upcoming auctions through visiting dedicated auctioneer websites:

You may end up paying less for the land at auction than you would if you used a different avenue. The turnaround is often a lot faster, too. However, it is important to do your research. Make sure you thoroughly understand the opportunities and limitations of any land up for sale before you commit to a purchase.

Get tailored support for property developers from James Hallam

Buying land is risky. So too is developing land. The right insurance can act as an essential safety net, enabling you to search for, purchase, and develop land with total peace of mind at every step of the way.

Our bespoke insurance services can help you ensure you have full cover for every stage of the land acquisition process. Talk to us, and we will help you secure the cover you need at the best possible price.

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

Construction Skills Shortage in the UK: Where Are The Biggest Gaps?
Construction Skills Shortage in the UK: Where Are The Biggest Gaps? 500 334 James Hallam

The UK has been struggling with a construction skills shortage for some years now. In 2021, it was estimated that 75% of all UK contractors were having problems recruiting skilled workers.

The latest CITB figures suggest that the UK needs an extra 251,500 construction workers by 2028 to meet expected levels of work. This means the industry will need to recruit an extra 50,300 new workers per year.

Where are the biggest gaps in the construction workforce?

The 2024-2028 Construction Skills Network report reveals that the major sectors for demand are:

  • Private Housing – In 2023, output on the construction of new private homes saw a decline of over 13%. The housing market slowly improved throughout 2024, but due to the skills shortage, the CSN report forecasts a comparatively sluggish growth in the coming years.
  • Infrastructure – New infrastructure output “flatlined” in 2022, and output rose by around 4% in 2023. The annual growth rate for the sector between now and 2028 is projected at 1.5%, one of the lowest of all sectors. Due to skill shortages, as of November 2023 the government’s Environment Agency delivered less than 20% of its initial output target, despite using up 33% of the time allocated and 25% of the funding.
  • Repair and Maintenance – 2023 was the fourth consecutive year in which R&M output outperformed new work. Between now and 2028, the CSN report forecasts an average growth in R&M work of 2.8% per year. Many private homeowners are choosing to improve their current properties instead of moving. Meanwhile, damp issues and cladding remediation projects are encouraging many public housing associations to invest more in R&M. Due to this projected demand, the construction skills shortage will likely be particularly noticeable in the R&M sector.

How to address the construction skills gap in your organisation

  • Aim to attract younger workers. Polls suggest that only 5% of students are considering pursuing roles in construction. Consider ways you might attract younger workers. This might be through offering generous renumeration and employee benefits packages, or through highlighting the possibilities of long-term job security and career development.
  • Invest in apprenticeships. The 2024 Open University Business Barometer highlights how many employers are turning to apprenticeships to bridge their skill gap. However, the report found that 63% of organisations do not have specific recruitment, retention, or training initiatives for apprentices or other target groups. The government has plenty of resources available on their site for any business that wants to offer attractive and sustainable apprenticeships.
  • Invest in training and development. As well as expanding your workforce, look for opportunities to improve your existing workforce. With training and development, you can broaden your existing workers’ skillsets, which could help reduce the skills shortage you are currently facing. Plus, if you publicise the extensive training and development opportunities at your business, it could help you recruit the next generation of construction workers. Development opportunities tend to be a strong incentive for potential employees.

Get tailored support from James Hallam

The coming years are going to be tough for the UK construction industry. But at James Hallam, we are committed to helping you in any way we can.

We can support you with thorough risk assessments and through ensuring you have adequate insurance cover in place to protect your business, your workers, and your assets. Our support can provide essential peace of mind at the best possible price.

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

What is Actual Total Loss in Marine Insurance?
What is Actual Total Loss in Marine Insurance? 500 209 James Hallam

We recently published a guide to the different types of loss in marine insurance. This post will take a closer look at a specific type of loss: Actual total loss (ATL).

What is Actual Total Loss (ATL)?

In marine insurance, the phrase “total loss” refers to a situation where a ship, or its cargo, has been either lost completely during a voyage, or else damaged so severely that it no longer has any value.

ATL means that the ship or cargo no longer exists at all. If the ship or cargo is insured, the policyholder can receive full compensation that is equal to the ship’s or the cargo’s agreed value in the policy wording.

An example of Actual Total Loss

During a voyage, a ship encounters a severe storm. The damages are significant, causing the ship to sink along with its cargo.

The ship owner will make a claim on their policy for the lost ship and cargo. Their insurer will launch an investigation. If they find that the ship is irretrievable – i.e. that a salvage operation would cost too much, or would be too difficult – the incident will meet the criteria for an actual total loss.

The ship owner will then be entitled to the maximum payout for the agreed value of their ship and value as specified in their policy wording.

The likelihood of ATL occurring will determine the price you pay for your marine insurance. Among other things, your insurer will calculate the price of your premium based on how likely you are to experience ATL, and on the amount such a loss would cost you.

Actual Total Loss vs. Constructive Total Loss

There is another form of total loss in the world of marine insurance. Actual total loss refers to situations where ships or cargo are completely destroyed. On the other hand, constructive total loss (CTL) refers to situations where the cost of repair or retrieval would exceed the ship or cargo’s insured value.

A major difference between ATL and CTL is in the way that claims are handled. ATL claims are usually pretty straightforward. As the policy owner, you are entitled to compensation for the full agreed value of your ship or your cargo. CTL claims, though, can be a little more complicated. If your loss meets the criteria for CTL, you have the option to let your insurer take ownership of your insured property – the damaged ship or cargo.

If you let your insurer take ownership of your damaged ship or cargo, they may then sell this property as salvage, before using the proceeds to offset your settlement. But if you prefer, you can retain ownership of your property. However, your insurer may then offer you a smaller settlement as a result.

Read our full guide to CTL, which covers in greater depth how this form of loss differs from ATL.

Worried about losses at sea? We can help you protect your most valuable assets

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

If you are worried about your rights and responsibilities following losses at sea, then we are here to help.

Find out more about our dedicated marine insurance services.

New Rule Changes for Ship Owners on Decarbonising
New Rule Changes for Ship Owners on Decarbonising 500 282 James Hallam

Global shipping is governed by a number of regulations designed to encourage decarbonisation. These regulations mainly affect ship owners who trade to, from, or within the EU.

In this post we will look at the current decarbonising rules, and assess how they are set to change from early 2025.

Carbon Intensity Indicator (CII)

The International Maritime Organisation’s Carbon Intensity Indicator (CII) came into force in early 2023. This initiative is designed to reduce the carbon intensity of all ships by 40% by 2030. It requires ship owners to calculate their ship’s CII rating, which is a measure of the total carbon emissions compared to the amount of cargo transported over the distance travelled.

All ships have a carbon intensity rating from A to E based on their efficiency, with A being the most efficient. A, B, or C ratings are acceptable. But if your ship gets a D rating for three years running, or an E rating for even one year, then you will have to submit a Ship Energy Efficiency Management Plan to outline how you intend to further decarbonise your operations.

What are the changes to Carbon Intensity Indicator?

The CII initiative is set to be reviewed in 2025, and the requirements are expected to tighten from 2026. This means that if your ship currently has an A, B, or C rating, in just a few short years you could get a D or E rating for shipping the same routes and the same distances.

EU Emissions Trading System

The EU Emissions Trading System (EU ETS) has applied to shipping since the start of 2024. Under these new rules, there is a cap on the total amount of greenhouse gases that ship owners can emit over the course of the year. The plan is to decrease this cap annually, in line with the EU’s climate goals.

One “allowance” is the right to emit one tonne of CO₂eq (carbon dioxide equivalent). Ship owners can buy and sell allowances through the European Energy Exchange. Any ship owner that generates more greenhouse gases than their allowance will face heavy fines. The idea is that ship owners can either work to reduce their emissions, or else continue as is, but pay for any emissions they produce.

Up-coming eeview of EU Emissions Trading System

Like the CII, the EU ETS system is up for review in 2026. Currently, all cargo and passenger ships of 5,000 gross tonnes and over must use monitoring, reporting, and verification (MRV) systems to track their CO₂ emissions. It is projected that, by 2027, ship owners will also be required to use MRV systems to track other types of emissions, including nitrous oxide and methane.

Extension to monitoring, reporting and verification (MRV) requirements

From 2025 the MRV requirement will extend to offshore vessels and cargo ships between 400 and 5,000 gross tonnes. By September 2025, 40% of a ship’s recorded emissions will have to be covered by allowances. This will rise to 70% in 2026, and 100% in 2027.

Fuel EU Maritime regulation being introduced on 1 January 2025

Finally, the Fuel EU Maritime regulation is due to come into force from 1 January 2025. This regulation sets maximum limits for the total average greenhouse gas emissions of all ships above 5,000 gross tonnes that call at EU ports.

The regulations apply to nitrous oxide and methane emissions, as well as CO₂ emissions. Plus, they account for the entire lifecycle of the fuels, on a Well-to-Wake basis.

Under this regulation, ships will have to abide by certain zero-emission requirements while at port. This includes the mandatory use of onshore power supplies, or alternative zero-emission technologies while berthed.

You can read the full text of Fuel EU Maritime regulation, including the forecast emission targets.

Worried about meeting these decarbonisation regulations?

These regulations are all geared towards encouraging ship owners to switch to renewable fuels of non-biological origin (RFNBO). Alongside these new regulations the EU is imposing Alternative Fuels Infrastructure Regulations, which set mandatory targets for the deployment of an adequate alternative fuel infrastructure.

However, ship owners may still need to make a significant investment to switch to these alternative fuels, while also potentially dealing with higher purchase prices. Many ship owners and operators, particularly those who run small fleets with limited resources, may also feel daunted by the potentially increased administrative demands and running costs that these regulations will bring.

Speed and routing optimisation, along with thorough hull cleaning to reduce drag, will help many ship owners reduce their carbon footprint. Yet the fact remains that many ship owners and operators will likely struggle to meet these new regulations.

Everard Insurance Brokers are the specialist marine trading division of James Hallam Limited who are accredited Lloyd’s brokers. While we cannot help you decarbonise your fleet, we can help you understand the numerous legal obligations you may have to meet. We can then design a cost-effective insurance package to help you ensure you at least have the right cover in place to meet all the risks you face both at port and at sea.

Find out more about our specialist marine insurance services.

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

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

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

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

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

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

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

What is a Management Liability Policy (MLP)?

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

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

What’s the difference between D&O insurance and an MLP?

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

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

D&O or MLP: What sort of cover does your business need?

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

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

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

Get help deciding what cover your business needs

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

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

Get in touch for a free quote today.

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