Insights

Environmental Regulations in the Shipping Industry
Environmental Regulations in the Shipping Industry 1000 666 James Hallam

With over 12 billion tonnes of cargo being shipped each year, global shipping is responsible for around 90% of the world’s trade.

Yet global shipping also has a significant environmental impact. As a result, there are numerous strict regulations designed to control and reduce pollution at sea, along with some ambitious targets to address the environmental impact of global shipping.

In this post, we’ll explore the impact of shipping on the environment, followed by key regulations which aim to reduce  harm to the environment.

The Impact of Shipping on the Environment

According to the International Maritime Organization (IMO), international shipping is responsible for nearly 3% of all global greenhouse gas emissions. One report found that, in 2023, global shipping was responsible for over 900 million tonnes of CO2 emissions.

International shipping has further environmental impacts beyond the emissions:

  • Ships may introduce invasive species to new habitats, via organisms that migrate in their ballast tanks.
  • Vessels can pollute waters with sewage, oil spills, anti-fouling substances, chemical leaks, and solid waste.
  • Underwater noise produced by vessels can disturb marine habitats.

Shipping Regulations to Reduce Environmental Impact

Next, we’ll look at some of the regulations in the shipping industry which aim to improve and reduce the environmental impact of shipping on the environment.

International Convention for the Prevention of Pollution from Ships (MARPOL)

MARPOL is the International Convention for the Prevention of Pollution from Ships. This convention was introduced in 1973, and further protocols were adopted in 1978 in response to a spate of tanker accidents. The combined regulations finally came into force in 1983, and the regulations have been updated multiple times since.

MARPOL regulations are designed to prevent and minimise both accidental pollution from ships, along with pollution arising from routine operations.

For more, you can read a full guide to MARPOL regulations, along with all additional protocols and annexes.

ISM Code

The ISM Code promotes a proactive approach to safety and environmental protection by requiring ship operators to establish effective management systems and procedures. Key areas of focus include:

Key preventative strategies in the ISM Code include:

  • Management responsibilities, including a Designated Person responsible for overseeing and reporting on all pollution prevention strategies.
  • Training to guarantee awareness and competence of all environmental compliance tasks for every voyage.
  • Waste stream analysis, and sufficient allocation in the operating budget for each ship to meet the required compliance costs.
  • All environmental equipment to be considered critical, and any failure in any of the equipment should be reported to the Designated Person immediately, along with a timeline for repairs and replacements.
  • Use of monitoring equipment, seals, interlocks, and other techniques for preventing deliberate non-compliance.

For more, you can read a full guide to the numerous elements of the ISM Code.

Carbon Intensity Indicator (CII)

The International Maritime Organisation introduced the Carbon Intensity Indicator (CII) in 2023. These regulations are designed to reduce the carbon intensity of all ships by 40% by 2030.

As part of these new regulations, all ship owners must calculate their ship’s CII rating. This is a measure of the total carbon emissions compared to the amount of cargo transported over the distance travelled.

CII ratings range from A to E, with an A rating being the most efficient. If a ship gets a D rating for three years running, or if it gets even a single E rating, then shipowners must submit a Ship Energy Management Plan to outline their intended decarbonisation roadmap.

For more, you can read a full guide to CII ratings.

Fuel EU Maritime

Fuel EU Maritime regulations came into force on 1 January 2025. These regulations establish maximum limits for the yearly average greenhouse gas intensity of the energy used by ships of 5,000 gross tonnage and above, whenever they call at European ports.

The regulation introduces progressively stricter greenhouse gas intensity limits, culminating in an 80% reduction by 2050 compared with the baseline established in the legislation.

Fuel EU Maritime focuses on all greenhouse gases, and not just carbon. So, it requires shipowners to account for their methane and nitrous oxide emissions, in addition to their carbon emissions.

For more, you can read a full guide to Fuel EU Maritime.

Marine Insurance and Regulatory Compliance

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

While we cannot help you meet these environmental regulations, we can help you understand the numerous legal obligations you may have to meet. We can then help you access 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.

What Is The Professional Negligence Limitation Period?
What Is The Professional Negligence Limitation Period? 1000 668 James Hallam

If you offer professional services or advice, then you may face a claim of professional negligence. In this case, professional indemnity insurance can cover any legal fees and compensation payments that may arise as a result of the claim.

To ensure you have the cover you need for any claim you might face, it is vital that you take the time to understand how the professional negligence limitation period might affect claims.

What is Professional Negligence?

A professional negligence claim is an accusation that an individual has failed to carry out their responsibilities to the required professional standard, or that they have somehow breached their duty of care.

For example, a solicitor might offer poor legal advice, leading to financial losses or legal troubles for their client. Or it might transpire that a solicitor has a conflict of interest, which could jeopardise a trial leading to costly delays and other losses for all involved.

If any injured parties decide to make a professional negligence claim against this solicitor, then the solicitor may be held liable for all losses. Dedicated professional indemnity insurance would cover the solicitor for these losses, along with any legal fees that may arise as a result of the claim.

For more information on professional negligence, see our full guide to professional negligence and our guide to professional indemnity insurance for solicitors here.

What Is a Professional Negligence Limitation Period?

The limitation period is a specified timeframe in which individuals can make a negligence claim against a professional.

Standard Limitation Period

Under the Limitation Act 1980, the standard limitation period for most civil claims in England and Wales is six years from the date of the alleged negligent act or omission.

Extended Limitation Period

However, this period may be extended if the negligence is not immediately apparent. Individuals may have three years from the date they became aware of the negligence to make a claim.

In any case, no matter when the negligence or omission was discovered, it is not possible to make a professional negligence claim more than 15 years after the date of the alleged negligent act or omission.

When the Standard Limitation Period May Not Apply

The standard limitation period may not apply to certain situations. For example, in cases of alleged continuous negligence, the limitation period may not commence until the professional ceases to carry out negligent acts.

How Professional Negligence Limitation Periods Affect Insurance

The courts are very strict when it comes to limitation periods. If a claim is issued out of time, then it does not stand a chance, even if the claimant has undeniable proof of a professional’s negligence or omissions.

But at the same time, it is important to ensure that your professional indemnity insurance covers you for any claims that may arise relating to incidents from previous years. Depending on the nature of the claim, claimants may be able to make a professional negligence claim up to 15 years following an alleged incident.

Your professional indemnity insurance policy may specify a retroactive date. This is the date from which your insurer has agreed to cover you. If your policy gives you full retroactive cover, then you will have all the cover you need, even for claims relating to incidents that occurred years ago.

For more about retroactive dates, see our full guide to professional indemnity insurance retroactive dates.

Get Specialist Professional Indemnity 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.

If you offer professional services and advice, we can advise you on the regulatory requirements concerning professional indemnity insurance, and other forms of cover. We can then help you get the tailored cover you need at a competitive price.

Find out how we can help you today.

Travel Industry Regulation Changes Coming in 2026 and Beyond
Travel Industry Regulation Changes Coming in 2026 and Beyond 1000 667 James Hallam

A number of regulation changes are set to transform the travel industry in the coming years.

In this post we will take a closer look at some of the upcoming changes, and assess how they might impact travel agents, tour operators, hotel owners, and all other businesses in the travel industry.

We’ll be looking at:

  • Package travel regulations (PTR) reforms expected in the coming years
  • Electronic travel authorisation (ETA) introduced towards the beginning on 2026
  • EU entry/exit systems (EES) introduced towards the end of 2025
  • European travel information and authorisation system (ETIAS) due by the end of 2026

Package Travel Regulations (PTR) Reforms

The Package Travel and Linked Travel Arrangements Regulations 2018 introduced a number of consumer protection provisions, including:

  • Regulatory obligations whenever two or more travel services are sold as a single package.
  • A requirement to provide detailed information before booking, including full price transparency.
  • A right for customers to cancel in the event of a price increase of 8% or more, or following significant material changes to their trip.
  • An obligation to provide customers with insolvency protection for any package they purchase. Under these regulations, organisers are also held liable for the performance of all services the customer receives as part of their package booking.

Over the past year, a Government consultation outlined a series of proposals to improve how these regulations operate:

  • The regulations will only apply to domestic packages when they include transport.
  • The regulations on linked travel arrangements will either be simplified, extended, or removed outright.
  • Relaxing any territorial restrictions on travel insurance cover.

You can learn more about this consultation, and the proposed changes to the regulations.

For travel agents and tour operators: Keep on top of proposed changes and upcoming dates for reforms which may affect your operations.

Electronic Travel Authorisation (ETA)

A new law introduced in February 2026 requires all visitors travelling to the UK from non-visa countries to hold an Electronic Travel Authorisation (ETA) before they depart.

ETAs are designed to strengthen immigration control while streamlining entry checks. Authorisation costs £20, and travellers can apply online or via a dedicated UK ETA app.

For travel agents and tour operators: Any travel agents and tour operators arranging for UK hotel stays and multi-destination trips will need to familiarise themselves with ETA rules, and to make them as clear as possible to customers upfront. If not, it could lead to serious disruption for customers, and even liability claims.

You can learn more about ETAs, and when they’re required.

EU Entry/Exit System (EES)

The EU introduced its new Entry/Exit System (EES) rules in October 2025. This is a new digital border system that applies to UK passport holders travelling to countries in the Schengen area.

Previously, visitors arriving in the EU would have received stamps on their passport. Under EES rules, visitors may instead have to register certain biometric details, including photos and fingerprints, when they arrive.

Travellers do not have to make any preparations before they arrive at the border, and they do not have to pay anything extra for EES registration. However, EES checks may result in longer waits at the border.

For travel agents and tour operators: Travel agents and tour operators will have to account for extended waits at borders when arranging for transfers and ongoing travel.

Read more about the EU EES rules.

European Travel Information and Authorisation System (ETIAS)

The European Travel Information and Authorisation System (ETIAS) is due to come into force by the end of 2026. Under ETIAS, UK passport holders may need to apply for a dedicated visa waiver when travelling to certain European countries.

The ETIAS will cost around £17, but it will be free for anyone aged 18 or younger, and for anyone aged 71 or over. Once a traveller has an ETIAS, it will last for three years, and can be used for multiple trips.

For travel agents and tour operators: As with the new ETA rules, travel agents and tour operators arranging for European hotel stays and multi-destination trips will have to familiarise themselves with ETIAS requirements, and communicate all of the costs and regulations with customers upfront. Otherwise, you may be held liable for any disruption or costs that customers incur throughout their trip.

Specialist Insurance Services For Travel Agents and Tour Operators

At James Hallam, for over 35 years we have provided dedicated insurance services for travel agents and tour operators. We can advise you on the insurance implications of any upcoming travel industry regulation changes, and we can also help you get the cover you need at a truly competitive price.

Find out more about our bespoke insurance services for travel agents and tour operators or call us on 0203 967 1923 or email david.mcgregor@jameshallam.co.uk.

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.

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