Insights

Valuing your Possessions for Insurance
Valuing your Possessions for Insurance 1392 992 James Hallam

If you are the owner of any antiques or treasured possessions it is important to insure them properly. Regardless of their worth they are likely to hold significant personal value and having insurance will not only protect them but help give you some peace of mind.

Insuring valuables can bring with it challenges given the uniqueness of some of the items, as well as the high value that some hold. Even with specialist insurance, the amount and type of protection you need may change as your life does. Your policy may be able to cope with small fluctuations, if your possessions rise significantly in price, you will need your insurance policy reviewed to check it is still suitable.

Why do valuations matter?

Fluctuations in the market could have an impact on the insurance protection you need. Having an accurate valuation of your antiques will allow you to decide if a standard policy will be sufficient or if you need to consider a specialist insurance policy such as a high net worth policy. Many standard contents insurance policies will set a sum insured limit, while others may require you to individually list items which exceed a certain value.

From classic cars, rare watches or bottles of whisky, we can recommend skilled and independent valuers to assist with reviewing your valuable collections. An up to date valuation can help avoid financial losses in the case of a claim or having to accept a lesser quality replacement item.

The benefits of professional valuation are:

  • A professional, fully detailed valuation makes it more likely for an insurer’s loss adjuster to accept the claim and speed up the process in case of loss/theft.
  • A valuer will confirm the authenticity of the item and its certificates.
  • Experts will give you an accurate market price.
  • They will be able to advise the best care and check for any repair work to your item.
  • It could provide a far better description or more accurate details of the item that might not be available from purchase receipt or older valuations.
  • An ‘agreed value’ will be made on your item which means in the event of a claim, you will receive its full value – or even more in certain circumstances.

 

If you own any antiques or treasured items, then it is vital to get them valued correctly. If you do not keep abreast of market fluctuations which could impact the price of an item you may be surprised to find out the cost price has significantly risen. We recommend getting your items valued regularly, for example expensive high end jewellery could be valued annually but we recommend this be done every 3 years at the very least. You may want to consider security for your valuables. This could include storing your valuables in a safe, having a home alarm system installed or considering CCTV to increase the security of your home. By doing this, you ensure your possessions are fully protected.

Why do I need Directors and Officers Liability Insurance?
Why do I need Directors and Officers Liability Insurance? 1920 1280 James Hallam

Directors and Officers have a significant role in helping to keep businesses running smoothly, but mistakes can happen. Directors and Officers Liability insurance applies to anyone who serves as a director or officer of a for-profit business or nonprofit organization. In the event that the individual within the business falls short of their obligations, this insurance is intended to protect them from personal losses if they are sued as a result. It can also cover the legal fees and other professional costs of defending yourself against such claims.

Who can sue?

  • The Company
  • Shareholders
  • Third Parties
  • Employees
  • Creditors
  • Regulatory Bodies
  • Competitors

Directors and officers can be sued for a variety of reasons, including:

  • Misrepresentation of company assets
  • Misuse of company funds
  • Improper disclosure
  • Failure to comply with workplace laws
  • Negligent
  • Theft of intellectual property or poaching of competitor’s customers
  • Lack of corporate governance

What does Directors and Officers Liability insurance policy cover?

The purpose is to provide protection for the directors and officers of the company for any alleged wrongful acts that are committed in the course of their duties. A Directors and Officers Liability Insurance Policy is comprised of two sections; officers and directors liability which pays any loss they are liable to pay and which arises from their having committed a wrongful act while acting as such. The second section refers to company reimbursement, if the company is legally liable to indemnify its directors and officers for their actions, this section will reimburse the company in respect of such liability.

Why does my business need to purchase D&O insurance cover?

Any business with a corporate board should consider investing in D&O insurance. While you may not be legally required to have D&O insurance if you are alleged to have acted wrongfully, you could face claims for compensation or criminal proceedings. Regardless of the size of your company, directors and officers can still be personally sued over their management of company affairs. Smaller businesses with fewer assets may need as much protection as larger corporations with higher revenues. There are so many decisions to be made for your business as we navigate through these uncertain times and whilst there is a wealth of professional advice out there, this won’t necessarily prevent allegations being brought against you or your business. It is for this reason that many company directors tend to have D&O cover in place.

D&O Insurers are aware that the current crisis has resulted in more claims, which is causing a hardening market. This means that insurers are likely to revise the D&O cover they provide and increase their premiums. This trend is probably going to continue for the foreseeable future so purchasing a policy now makes sense, even if your other insurance policies are not yet due for renewal.

Unoccupied Business Premises
Unoccupied Business Premises 1920 1280 James Hallam

The Government have now implemented new restrictions designed to combat the second wave of coronavirus, with people being asked to work from home, where possible. Therefore with premises continuing to remain unoccupied, it is important to remember that there is still a substantial risk to your business and you should ensure all necessary precautions are taken to protect it.

There are several third parties that may seek to gain access to your premises;

  • Vandals / Arsonists – This can be children or teenagers looking for thrills or others looking to do the specific business harm. It could even involve disgruntled employees or customers.
  • Squatters / Homeless – This could be as simple as a homeless person looking for temporary shelter through to others looking to use the premises for illegal purposes such as fly-tipping.
  • Thieves – Unoccupied premises could still have items of value stored within it, or the fabric of the property, such as copper pipework. The cost of replacing these items can be high, but consideration should be given to the additional damage which could be caused.

While continuing to work from home, policyholders should make themselves fully aware of the additional security obligations that they are bound by within their policy wordings. These obligations usually include;

  • Premises are being secured by protective locking devices.
  • Any alarm systems are fully operational.
  • All electricity, gas and water services should be turned off at the mains. Where existing intruder alarms, fire alarms or automatic sprinklers systems are installed they should continue in full operation.
  • Regular recorded visitation of the premises and carrying out any work necessary to maintain the security of the premises.
  • Removal of all waste materials from the interior and exterior of the premises.

Businesses should also seek clarity on any restriction of coverage as a result of property being unoccupied. If your business is open but you are not reoccupying some of your commercial premises it is important that you discuss this subject with your designated James Hallam Account Executive. This discussion should clarify your policy terms and conditions on any imposed restrictions to your coverage. We can advise you of the specific requirements in order that your insurance coverage adjusts to your needs.

Reduce Data Exposure to Cyber Threats
Reduce Data Exposure to Cyber Threats 1920 1280 James Hallam

In our current world, protection against cybercrime is needed more than ever. Cyber criminals will be using COVID-19 to increase their activities to attack individuals and organisations. The National Cyber Security Centre has reported a rise in online scams exploiting the pandemic with the aim of obtain money from victims. It is critical for organisations to re-assess their data protection practices to cyber security and help protect themselves from experiencing data exposure and breaching GDPR.

Why is cyber security important?

• Damage to IT systems
• Loss or impairment of critical business data
• Loss or compromise of customer data
• Loss of use of customer facing websites
• Damage to brand or reputation and loss of public trust.

The increase in the number of individuals working from home poses even more risk to businesses as they become more reliant on their IT systems and employees often working on their own devices.

What steps can I take to be prepared for a cyber attack?

1. Protect data using strong passwords and encryption. Make sure you avoid using predictable passwords and provide secure storage for passwords.

2. Secure your computer, wireless network and mobile device. Often cyber criminals will gain entry by exploiting your software. To prevent this, ensure you keep all your applications and operating systems up to date.

3. Provide training against cyber treats. Your employees should know your cyber security policies and know how to report suspicious activity. Providing training on these topics should assist employees in reducing the risk of data exposure.

4. Consider having an offline back up. Back up your data regularly in more than one place and do not leave your backup connected to your device when not in use.

5. Understand phishing threats and how to respond. Phishing is a method cyber criminals use to gather information. They often send victims emails with links that will direct you to fraudulent websites, asking you to provide sensitive information. Providing real life examples through training can help employees understand what to look for and how to best deal with them.

6. Create an incident response plan. While cyber security programmes secure an organisations digital assets, an incident response plan provide steps in case a cyber attacks occurs. This will allow organisations to notify impact customers quickly and limit financial and reputational damages.

7. Use multi factor authentication. This adds a layer of security to protect against compromised credentials. Users must confirm their identity by providing extra information when attempting to access networks, e.g. phone number or security code.

What if my business becomes victim to a cyber attack?

Taking these steps can reduce the chances of you becoming a victim of a cyber-attack but it is impossible to eliminate the risk entirely. Cyber Insurance can help your business deal with and recover from any cyber attacks.

The Insurance Landscape and Covid -19
The Insurance Landscape and Covid -19 1920 1280 James Hallam

Staying Covid-19 Secure
Staying Covid-19 Secure 1920 1280 James Hallam

Navigate a safe return to work with our Staying Covid-19 Secure guide. Please click here to download our guide.

Advice: Are your business premises Covid-19 Secure?
Advice: Are your business premises Covid-19 Secure? 1920 1280 James Hallam

Vito Sepe, divisional director of James Hallam Travel and Tour, outlines considerations identified by James Hallam Risk Management for travel firms as they look to reopen business premises. Read more here on the Travel Weekly.

Hospitality Industry – Planning to Reopen Guidance
Hospitality Industry – Planning to Reopen Guidance 1920 1280 James Hallam

Please click here to download our Hospitality Industry – Planning to Reopen Guidance. Download the supporting checklist here.

Wording of Some Insurance Policies May Allow Claims on Coronavirus Closures
Wording of Some Insurance Policies May Allow Claims on Coronavirus Closures 1920 1280 James Hallam

Businesses have been advised to seek advice if they think their insurance policy could cover the enforced closure caused by the coronavirus outbreak.

David Noble, director of hospitality and leisure, explained that insurers will not have intended to cover the current situation, but that the writing of some policies may produce circumstances where a claim can be pursued.

He explained: “It was not the intention of the insurance industry to cover the Covid-19 pandemic that resulted in the closure of the UK hospitality industry. Insurance companies had suffered large losses during the Sars outbreak, so policy wordings were written to try and limit insurers’ exposure to global pandemics. If they had priced for such an event, insurance premiums would not have been affordable.

“It was, though, insurers’ intention to cover, where purchased, business interruption losses for outbreaks of infectious diseases on the premises or in close proximity to the premises. The government making Covid-19 a notifiable infectious disease triggered this cover in some policies. However, there were very few reported losses of this nature because shortly after the government closed hotels, restaurants, bars and pubs.

“While this triggered possible claims in some policies that extend to cover ‘non-damage denial of access’ to premises following the ‘closure by a public authority’, most policies contain a version of a pandemic exclusion. The words differ from one insurer to another and, in some cases, from one wording to another with the same insurer. For example, an insurer might have a specialist scheme arrangement for a particular class of business.

“Some wordings suffer from poor draughtsmanship, so it can be argued that the [pandemic] exclusion is not obvious, and in some cases it has been missed out completely. In these circumstances, it will be difficult for insurers to repudiate claims, despite what some have been saying in the press.

“My advice is, in the first instance, speak to your insurance broker. They can advise you on what cover you have. If you are not satisfied, seek a legal opinion, but if that is not a viable financial option at the moment, speak to a loss assessor. The good ones will give you an honest opinion on your cover and only charge on success.”

Read the full article by Emma Lake in The Caterer here.

Be Aware – 18th Edition IET Wiring Regulations Launched
Be Aware – 18th Edition IET Wiring Regulations Launched 1920 1280 James Hallam

Last year saw the publication of the 18th Edition IET Wiring Regulations. The regulations apply to the design, erection and verification of electrical installations; and additions and alterations to existing installations.

Also known as BS 7671:2018 Requirements for Electrical Installations, these changes were issued on 2nd July 2018 and came into effect on 1st January 2019. The period between publication and application gave a 6-month window for electrical contractors and others responsible for installing and maintaining electrical installations to become familiar with the new regulations.

Whilst there are many small changes from the previous 17th Edition, some of the significant updates in the new 18th Edition cover include:

  • Protection Against Electric Shock – changes to regulations relating to protective equipotential bonding and those relating to disconnection times.
  • Protection Against Thermal Effects – of particular relevance to fire, a new regulation has been introduced recommending the installation of arc fault detection devices (AFDDs) to mitigate the risk of fire in final circuits of a fixed installation due to the effects of arc fault currents.
  • Protection Against Voltage Disturbances – stipulating that transient over-voltage protection has to be installed when (amongst others) the consequences caused by over-voltage results in interruption of commercial or industrial activity.
  • Inspection and Testing – this has been revised to align Inspection and Testing requirements to other revisions within the 18th Edition.
  • Energy Efficiency – recommendations for the design and erection of electrical installations with local production and storage of energy to optimise the use of electricity. These are listed in a new appendix.

This doesn’t mean that existing electrical installations installed in accordance with earlier editions of the wiring regulations are now unsafe or require upgrading, but any new installations, alteration or additions made from 1st January 2019 onwards will need to comply with the new regulations.

It is always recommended to hire contractors who are members of a trade body such as NICEIC when choosing an electrical contractor to inspect and test electrical installations within your premises. Many commercial insurance contracts contain a fixed wiring electrical inspection condition and generally stipulate use of an NICIEC contractor.

For more information, please contact us on 01923 298435.

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