Insights

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.

 

Claims Help at Christmas
Claims Help at Christmas 800 347 James Hallam

Our Christmas Opening Hours are as follows:

If you need to make a claim and we are not open, please contact your insurance company directly. Information regarding how to make a claim will be in your policy documents but we also have contact details for the major insurers on our website: Emergency Claims Contact Details – James Hallam

If you are unsure of what making a claim may involve, please also have a look at our “How to” guides for some help: Claims ‘How To’ Guides – James Hallam

Of course, we hope you don’t need to use either of these and have a peaceful and relaxing time with your family and friends over the festive period.

Wishing you a very Merry Christmas and a Happy New Year from all at James Hallam.

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.

winter storage of boats

Top 10 Tips for the Out-of-Water Season: An Off-Season To Do List
Top 10 Tips for the Out-of-Water Season: An Off-Season To Do List 650 433 James Hallam

The end of the boating season often signals a shift in priorities for marine enthusiasts. As your vessel is hauled out of the water, it’s essential to ensure it is properly cared for during the off-season.

Whether you are protecting against the winter chill or gearing up for spring’s return, these top 10 tips will keep your boat in prime condition and ready for the next adventure.

1. Winterising your boat

Winterisation is the cornerstone of off-season boat care, particularly in colder climates where frost and freezing can wreak havoc on engines and plumbing.
• Drain water from engines and plumbing systems to prevent ice damage.
• Add antifreeze to critical systems, such as engine cooling circuits and bilge pumps.
• Spray protective coatings on metal components to guard against rust and corrosion.

Failing to winterise properly can result in costly repairs, so take the time to do it right or consult a professional.

2. Thorough cleaning internally and externally

Before your boat goes into storage, a deep clean is a must. Accumulated salt, algae, and barnacles can degrade your vessel’s surfaces over time.

• Scrub the hull to remove marine growth.
• Rinse and clean all deck fittings, rails, and exterior surfaces with fresh water.
• Don’t neglect the interior—wipe down surfaces, vacuum upholstery, and empty any perishables.

A well-cleaned boat not only looks better but is also easier to maintain in the long term.

3. Hull & propeller inspection

The off-season is an ideal time to assess the condition of your hull and propeller.
• Look for cracks, blisters, or signs of osmosis, and sand or repaint if needed.
• Inspect the propeller for nicks, dents, or corrosion, as these can affect performance.

Timely repairs now can prevent major issues during the boating season, saving you both time and money.

4. Engine maintenance

Your engine is the heart of your boat, and proper care ensures it runs smoothly when it’s time to set sail again.
• Change the engine oil and replace filters.
• Inspect belts, hoses, and seals for wear or cracking.
• Lubricate moving parts to reduce friction and corrosion.

Keeping up with regular maintenance extends the engine’s lifespan and minimises unexpected breakdowns.

5. Battery and electrical care

Electrical systems require special attention during the off-season to prevent issues when you are ready to relaunch.
• Remove or disconnect batteries and store them in a cool, dry place.
• Clean battery terminals and check charge levels periodically.
• Inspect wiring for wear or damage and address any issues immediately.

Proper storage and care ensure your batteries remain in top condition.

6. Damp and mould prevention

Boats are prone to damp and mould, especially in storage. Taking proactive steps can save you from unpleasant surprises.
• Use desiccants, dehumidifiers, or moisture absorbers in the cabin and storage compartments.
• Open lockers and doors to promote airflow.
• Ensure all upholstery, carpets, and fabrics are dry before storage.

This not only keeps your boat fresh but also protects against long-term damage.

7. Safety equipment check

The off-season is the perfect time to review and update your safety gear.
• Inspect life jackets for wear and tear and ensure they are in compliance with regulations.
• Check the expiry dates on fire extinguishers and replace them as necessary.
• Replenish your first-aid kit, ensuring all supplies are current and complete.

Preparing safety equipment in advance gives you peace of mind when it is time to head back on the water.

8. Off-season storage options

Choosing the right storage option for your boat is critical to its protection during the off-season.
• Dry stack storage keeps boats safe from the elements but may require prior booking.
• Shrink-wrapping provides weatherproofing and is excellent for outdoor storage.
• Trailer storage is a versatile and cost-effective choice for smaller vessels.

Consider your budget, location, and security needs when making your decision.

9. Environmental best practices

Caring for your boat responsibly means caring for the environment, too.
• Use biodegradable cleaning products to reduce chemical runoff.
• Dispose of used oil, antifreeze, and fuel properly at designated facilities.
• Avoid washing your boat near waterways to prevent pollutants from entering the marine ecosystem.

Sustainable practices not only preserve our waterways but also enhance the reputation of the marine trade as stewards of the environment.

10. Plan for next season early

The off-season provides a valuable opportunity to get ahead of next year’s boating plans.
• Book berths early to secure your preferred locations.
• Schedule maintenance and upgrades well in advance to avoid the pre-season rush.
• Consider enhancements like new electronics, navigation systems, or improved storage solutions.

With proper planning, you will transition seamlessly from off-season to open water.

Make the most of the out-of-water season

The out-of-water season is more than a hiatus. It is an opportunity to protect, maintain, and improve your vessel. By following these ten tips, you ensure your boat is not only well-preserved but also primed for another successful season.

Remember, the marine trade thrives on proactive care and foresight. By taking the time now to prepare, you set yourself up for smoother sailing in the future. Whether you are a seasoned sailor or a weekend cruiser, your efforts during the off-season will pay dividends when the waters beckon once more. Use this time to also ensure that your insurance is up to date and sufficient.

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

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

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

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

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

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

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

What is a Management Liability Policy (MLP)?

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

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

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

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

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

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

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

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

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

Get help deciding what cover your business needs

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

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

Get in touch for a free quote today.

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

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

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

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

1: Cybercriminals actively target small businesses

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

Cybercriminals will not overlook your business because of its size.

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

2: Many SMEs are powerless to resist cyber attacks

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

3: Cyber threats are getting harder to spot

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

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

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

4: Cybercrime carries a huge cost

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

5: Cybercrime is getting more expensive

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Get tailored cyber insurance for your SME

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

Get in touch for a free quote today.

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