Insights

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.

What is the Difference Between CIF and FOB in Shipping?
What is the Difference Between CIF and FOB in Shipping? 800 449 James Hallam

CIF and FOB are two different international shipping agreements determining who is responsible for goods during transit – the buyer, or the seller.

In this post we will outline the differences between CIF and FOB, and examine the insurance implications of each.

What is CIF in Shipping?

CIF stands for cost, insurance, and freight. In this arrangement, the seller takes on the following responsibilities:

  • Loading the goods onto the ship.
  • Covering the cost of shipping.
  • Arranging adequate marine insurance to cover the goods during shipping.
  • Acquiring all necessary documents, licenses, and inspections.

The buyer takes full responsibility for the goods from the moment they reach the destination port. This includes liability for any extra costs that may be incurred during the voyage, such as customs fees.

What is FOB in Shipping?

FOB stands for free on board. In this arrangement, the seller has very few responsibilities. Essentially, they are responsible for transporting the goods to the port, and for ensuring they are loaded onto the ship.

The buyer assumes full responsibility for the goods once the voyage begins. This means they are responsible for arranging transportation, for paying any additional shipping fees, for arranging adequate marine insurance for the goods in transit, and for unloading the goods at the destination port.

What is the Difference Between CIF and FOB in Shipping?

The key difference between CIF and FOB is who takes responsibility for the goods during shipping – the buyer, or the seller.

Under CIF, the seller is responsible for all the costs and risks of shipping, with the buyer only taking responsibility upon delivery.

Under FOB, the buyer takes responsibility for all costs and risks from the moment the goods are loaded onto the ship.

CIF or FOB – Which is Best?

Neither arrangement is necessarily “better” than the other. The arrangement you choose will depend on the nature of the trade agreement.

Pros and Cons of CIF for Buyers

PROS: The seller takes full control for all shipping arrangements, and other responsibilities. This invariably makes things more convenient for the buyer. But it can also make things more cost-effective for both parties – particularly if the seller has more experience with local customs

CONS: CIF can prove a lot more expensive than FOB. Plus, it can lead to communication issues, as the buyer may have to contact the seller should they ever need an update on progress etc.

Pros and Cons of CIF for Sellers

PROS: CIF allows sellers to use their chosen providers, which can help save money. They can also choose to include insurance and other related costs in the shipping prices they charge the buyer, which can make CIF the most cost-effective, and even profitable, choice for sellers.

CONS: Sellers take full responsibility for the goods until they reach their destination. If anything happens to the ship or the goods during the voyage, they could be liable for all damages or losses.

Pros and Cons of FOB for Buyers

PROS: In an FOB arrangement, the buyer can choose their own providers for many aspects of the shipment, from logistics to insurance. This can help them find the best prices, while giving them more control over delivery timeframes etc.

CONS: The extra responsibility can result in added pressure – more things to manage means more things that could potentially go wrong. As such, smaller or less experienced buyers may struggle with the process.

Pros and Cons of FOB for Sellers

PROS: FOB allows sellers to complete their sales much sooner. Once they have ensured that the goods are loaded, the seller has nothing else to worry about. From this point on, the shipment becomes the buyer’s responsibility.

CONS: Because they have less control over logistics, insurance, and other expenses, FOB arrangements can often result in lower profit margins for sellers.

Get Comprehensive Marine Insurance From James Hallam

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

Whether you are looking to cover a single vessel or an entire marine trade supply chain, we deal with a wide range of niche insurance providers, and we can arrange the cover you need at the best possible price.

Find out more about our specialist marine insurance services.

Common GDPR Challenges for Travel Agents and Travel Operators
Common GDPR Challenges for Travel Agents and Travel Operators 800 450 James Hallam

Since 2018, the General Data Protection Regulations (GDPR) have governed how businesses collect, store, and transfer personal data. These regulations apply to businesses operating in most European countries – regardless of whether they are members of the EU. This includes travel agents and travel operators.

In this post we will outline some common GDPR challenges for travel agents and travel operators, and explore how you can ensure your travel business stays compliant.

Please note that regardless of the industry you work in, data protection will always be a complex issue. This post will provide a general overview of some of the key principles of GDPR for travel agents and tour operators. But for a thorough guide to your data protection obligations, please consult the Information Commissioner’s Office.

The importance of consent and withdrawal

Under GDPR, you must obtain explicit consent to collect certain customer data, for every specific data use case. Most businesses do this via pop-ups on their website.

You cannot ever infer a customer’s consent. The customer must give it willingly, and in full understanding of exactly what they are consenting to.

Also, customers have the right to withdraw their consent at any point. This means you must make it as easy as possible for customers to change their preferences.

What is personal data for travel agents and tour operators?

GDPR regulates personal data. So, what constitutes personal data, for travel agents and tour operators?

In the travel industry, personal data might include:

  • Passport details, including names, addresses, dates of birth, and biometric data.
  • Contact details, including emails and phone numbers.
  • Photos, and other identifying information.
  • Financial details, payment and billing histories, and other forms of sensitive data.

Your employees’ data is also protected under GDPR. Your HR department should take appropriate care when collecting and storing employee details.

What personal data should travel agents be collecting?

When obtaining customer consent for data collection, you must be completely open and unambiguous. You must tell your customers exactly what data you are collecting, and for what specific purpose you are collecting it.

If a customer consents to your using their data for one purpose, you cannot then use this data for a different purpose. For example, if a travel operator requests a customer’s email address so that they can send them some digital tickets, they cannot then use this same email address for marketing purposes. You would need to seek the customer’s consent separately before you could add them to a marketing mailing list.

You must only collect customer data that you really need. For example, an airline will need to know a customer’s passport number. The airport car park will not.

Can travel agents and tour operators share customer data?

Tour operators and travel agents may make travel and accommodation arrangements on a customer’s behalf. For this, they may need to share certain personal details with other organisations.

Businesses are allowed to share personal data with other organisations under GDPR. But once again, you will first need the customer’s explicit consent before you share their data. Plus, you may only share necessary information, and you must only do so for specific purposes.

For example, if a travel agent shares a customer’s email address with a hotel, this hotel cannot then bombard this customer with marketing emails.

How To Store Customer Data Safely and Securely

You must ensure that any personal data you collect is stored as securely as possible. You probably have certain security measures in place already. Locks on doors, windows, and cabinets play a huge role in data security. Passwords, antivirus software, and firewalls can help protect your data from digital breaches.

It is also important to train your staff on certain cybersecurity principles. All staff members should know how to spot a suspicious email, for example.

How long should you store customer data?

A robust, and enforced, data retention policy is critical for GDPR compliance.

Under GDPR, you should not store personal data for longer than you need to. For example, a hotel might collect contact details from a customer to keep them informed about their booking. Once the customer has checked out, then the hotel no longer needs this contact information. So technically, under GDPR, the hotel should then delete this customer data.

However, GDPR does not set strict timeframes for storing customer data. The wording of the regulations simply requires businesses to ensure “that the period for which the personal data are stored is limited to a strict minimum.”

To ensure you stay compliant, you should commit to regular content audits. Periodically, you should review the data you store, and assess whether or not you still need it based on the purpose for which you collected it. Needless to say, you should then delete any personal data you no longer need.

How to deal with data breaches

Cybercriminals know that travel agents and travel operators store huge amounts of valuable customer data. Because of this, around 72% of SMEs in the travel sector have fallen victim to cyberattacks in recent years.

Be sure to read our full guide to cybersecurity for travel agents and tour operators. Our guide outlines the common cybersecurity risks for the travel sector, while detailing some key strategies for keeping your business safe.

Following a breach, you may need to provide evidence that you took sufficient measures to keep your customer data safe. If you fall victim to a cyberattack, a dedicated cyber insurance policy can provide cover for customer data loss, and for system breaches. So, as well as helping your business and your customers recover from a cyberattack, cyber insurance also plays a huge role in ensuring your business stays compliant with data protection regulations.

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

For more information, call us on 0207 977 7856 or email Nic.Wheele@JamesHallam.co.uk.

Who is Responsible for Building Insurance on Commercial Property?
Who is Responsible for Building Insurance on Commercial Property? 800 533 James Hallam

Buildings insurance is vital for all businesses. If your business premises are not insured, then you may struggle to operate following fires, floods, and other incidents.

Yet who is responsible for arranging and paying for building insurance on commercial properties?

Whether you are a business owner, a leaseholder, or a freeholder, it can be confusing to determine your exact responsibilities when it comes to building insurance. So, in this post, we will answer some of the key questions that you might have regarding building insurance on commercial properties.

Who is responsible for arranging building insurance on commercial properties?

Apart from a few exceptions, the responsibility for arranging building insurance falls upon whomever legally owns the commercial property. If you are an owner-occupier, meaning your business owns your premises outright, then you will be responsible for arranging your building insurance, and paying for it, alongside the rest of your business insurance.

Who is responsible for building insurance if you rent your business premises?

What if your business is just one of a number of businesses to rent space in the same building? In this case, more often than not, the building’s owner, freeholder, or landlord will be responsible for ensuring there is adequate building insurance in place to cover their occupants against all possible risks.

In some instances, the terms of the lease may stipulate that the head lessee is responsible for arranging building insurance, rather than the freeholder, subject to the freeholder’s interest being noted on the policy.

Who is responsible for paying for building insurance on commercial properties?

The property owner, freeholder, or landlord will not necessarily pay for the insurance they arrange. They may instead choose to pass on the cost of cover to their tenants as part of their commercial lease agreement.

So, if you are a business owner renting your premises, you may still have to pay for buildings insurance, even if you are not responsible for arranging it yourself.

If you are the sole business occupying the premises, then you will pay for all of the cover. But if you are one of several businesses occupying the premises, then you will likely only pay for a proportion of the cover.

What does commercial building insurance cover?

In a commercial property, building insurance will cover the property’s internal and external structure, including all windows, doors, plumbing, electricals, stairwells, and so on. Typically, the insurance will provide cover for property damage – for any necessary repairs following fire, flood, subsistence, break-ins, and so on.

The commercial property insurance will typically not cover the building’s contents. So, if you are leasing office or warehouse space in a commercial property, you will almost certainly have to arrange for your own separate contents insurance policy, to cover your stock and equipment.

You will also have to arrange for certain additional forms of business insurance. This might include business interruption insurance, employer’s liability insurance, cyber insurance, and whatever else is necessary to cover your business for the various risks you face while conducting business.

How does commercial property insurance work when making a claim?

Consider the following example: There is a fire at the commercial property where your business is based. It causes significant damage, so it becomes necessary to make an insurance claim.

Whomever legally owns the building, whether this is an owner-occupier, or a third party landlord or freeholder, will be responsible for making a claim on the building insurance policy. This will cover the necessary repairs for any damage to the building’s structure, or its permanent fixtures and fittings.

Yet any businesses based in the building will have to make separate claims on their own policies to get the cover they need for destroyed or damaged stock or equipment, for business interruption, for loss of income, for temporary relocation, and so on.

This is why it is important that everyone involved in a commercial property leasing agreement fully understands their responsibilities in regard to insurance, and the steps they will need to take in the event of a claim.

Insurance claims in commercial properties can get complicated. But with good communication between tenants, freeholders, leaseholders, insurers, loss adjusters, and whomever else is involved in the claim, the process can proceed as smoothly as possible.

Have you got the right cover for your business or commercial property?

Whether you are a landlord, a leaseholder, a freeholder, or an owner-operator, we can help you make sure you have the right cover in place for your commercial property. As well as advising on your buildings insurance, we can also advise on the additional cover you might need to ensure you meet you are fully compliant and fully protected.

Find out more about our Real Estate Insurance and get in touch for a free quote today.

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