SME

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.

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.

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.

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.

Compared to a warehouse, a construction site, or a factory, an office might not feel like a particularly risky work environment. But accidents can still happen. And if they do, your business could face some costly claims.

Common Risks For Offices

It is important to take the time to understand all of the possible risks in your office that could lead to an accident or other incident. Once you understand these risks, you will know what actions you need to take to manage and mitigate them.

• Slips, Trips, and Falls – Employees could trip over bags, files, wires, and other items that might clutter or obstruct walkways. A leak or spillage in the kitchen or breakroom could also lead to slips or falls.
• Musculoskeletal Injuries – If an employee lifts a heavy item without following the correct procedures, it could lead to serious long-term back injuries. Years of bad posture could also result in chronic issues in later life.
• Damage to Property – If an employee spills a cup of coffee at their desk, it could result in significant damages to your company’s property and equipment.
• Fire, Flood, and Theft – Finally, offices must contend with the same risks that exist for any business in any sector. Fires may be a particular risk for offices, as the prevalence of flammable materials, including paper and soft furnishings, could mean that any fire that breaks out will rapidly spread.

How to Perform a Risk Assessment For Your Office

There are four essential steps to an office risk assessment:

1. Identify every risk that could lead to accidents or injuries. As well as immediate risks, such as obstructions that could lead to trips or falls, also consider long-term risks, such as back problems arising from poor lifting techniques.
2. Determine the likelihood and severity of every risk you identify. Also determine who each risk is most likely to affect. In an office environment, where everyone works similar jobs in similar conditions, it may be the case that every member of staff is equally susceptible to any risk you identify.
3. Outline the steps you can take to manage, mitigate, or eliminate each risk you identify. Again, it pays to think of long-term risks as well as immediate risks. For example, what can you do today to prevent the onset of RSI in your employees’ later lives?
4. Establish who is responsible for carrying out every risk management procedure you identify. For example, every employee might take responsibility for keeping the area immediately surrounding their desk free from clutter, to reduce the possibility of trips and other incidents.

Read our full guide to risk assessments for businesses.

Health and Safety Starts With Staff Training

You should routinely train your staff to understand the risks associated with the office environment, and the part they can play in managing these risks.

Along with managing everyday risks, your staff training should cover:

• Safe lifting techniques – To avoid the musculoskeletal injuries that could arise from lifting a heavy object.
• Fire safety procedures – What your staff should, and should not do, in the event of a fire. Read our full guide to fire safety procedures for businesses.
• Cybersecurity – Your employees should also understand the role they can play in protecting your business from cybercrime. Read our essential introduction to cybersecurity for businesses.

All new employees should go through this training as part of their induction, and you should run refresher training sessions at least once a year.

Health and Safety Checklist For The Office

Beyond staff training, here are the key elements of health and safety that you should address in your office:

The workplace environment

• Is there a cleaning rota, and are you sticking to it?
• Are staff responsible for keeping their own work areas clean?
• Are the walkways free from clutter and other trip hazards?
• Also pay attention to the light levels, the noise levels, and the air quality in the office.

Fire safety

• Are you keeping on top of routine safety inspections for the electrical equipment in your office?
• Are your fire extinguishers in code?
• Are your alarms and sprinkler systems working?
• Make sure your fire escape routes are clearly marked, and free from all obstructions.

Accident reporting

In the event of an accident, you should:

• Have a process for reporting what took place
• Identify possible root causes of the incident.
• Identify some possible actions you could take to prevent similar incidents from occurring in future.

Get The Right Cover For Your Office

You have a legal duty to get employer’s liability insurance. This will cover your employees for any accidents that might take place in the workplace.

But remember that anything that happens to your employees could also happen to visiting clients and customers, to contractors, to delivery drivers, and to other members of the public who may spend time on your premises.

You employer’s liability insurance would not cover any incidents involving non-employees. Nor would it cover damage to property, or other losses associated with fire, flood, theft, or cybercrime.

This is why you need specialist, comprehensive insurance 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, at the best price.

Learn more about our specialist office insurance services, or for more information call us on 0330 024 0755 or email enterprisenb@jameshallam.co.uk

There are currently over 4,300 coworking spaces in the UK, with more opening each year.

Coworking spaces provide an affordable means for SMEs and startups to launch and scale, while also providing unique networking opportunities for freelancers, consultants, and other independent professionals.

But this new way of working creates new risks. If you own or manage a coworking space, in this post we will outline what insurance you will need to cover your coworking space, and the people that use it, against all risks.

Add Insurance Requirement To Your Membership Agreements

You should specify that anyone who joins your coworking space, whether they are an individual or an organisation, has adequate insurance to cover their own risks. This should be a requirement for all contracts, even if they only last for a few weeks.

Members’ insurance should cover:

• Their own property. e. Any stock, equipment, devices, or other items they bring to the coworking space.
• Their own liability. For example, any business that uses your coworking space should be covered for any accidents or incidents involving their own employees, or any clients they bring onto the premises.

This means that there will be less uncertainty surrounding who is liable for certain claims. But as well as requiring your members to take care of their own cover needs, you will need your own insurance to cover the areas of your operation for which you are personally liable.

Insurance Cover Coworking Spaces Need

In addition to requiring your members to hold their own insurance, as a coworking space, you’ll also need:

• Employers liability insurance
• Public liability insurance
• Buildings insurance
• Contents insurance
• Business interruption insurance
• Cyber Insurance

We’ll cover each of these in more detail below.

Employer’s Liability Insurance

If you employ any staff to manage your coworking space, then you have a legal duty to get employer’s liability insurance. This will cover your employees for any accidents or injuries they may experience while working for you.

This cover could extend to:

• Cleaning staff
• Caretakers and maintenance staff
• Onsite tech support
• Receptionists
• Catering staff

Public Liability Insurance

Your members should get liability insurance to cover their employees, and any other individuals they bring to your coworking space. But you should still get your own public liability insurance to cover any other members of the public who may visit your premises.

This could include:

• Contractors
• Delivery drivers
• Prospective clients, who visit your coworking space to see if it is right for them

Public liability insurance will cover these individuals for any accidents or injuries they experience while spending time at your coworking space. This will also include cover for their personal property.

Buildings Insurance

This will cover the structure of your coworking space, including any interior fixtures and fittings such as doors, staircases, elevators, and so on. It may also cover certain exterior features, such as car parks, gardens, and outdoor structures.

You will likely be required to get buildings cover for your coworking space as a condition of your rental or mortgage agreement.

Contents Insurance

As we mentioned above, you should specify that anyone who uses your coworking space takes responsibility for their own property while onsite. But you should still get your own contents insurance to cover any equipment or furniture you provide.

This might include:

• Any equipment used by your onsite staff.
• Any stock you store onsite, such as stationery.
• Furniture, including office furniture you provide for your working spaces, and any chairs, tables, or other items you provide in your communal spaces.

Business Interruption Insurance

If a fire, a flood, a break-in, or another incident temporarily prevents you from operating your coworking space, business interruption insurance can cover your overheads for as long as it takes for you to recover.

For coworking spaces, a business interruption insurance policy may include cover for lost income. You may have to refund your members for any time they have paid for, but which they were not able to use. And of course, you will not be able to gather any income from members while your space is closed.

Cyber Insurance

Finally, all businesses are vulnerable to cybercrime, and coworking spaces are no exception.

You might require your members to cover their own liabilities for data loss or cyberattacks. But you should also get your own cover in place, just in case cybercriminals ever target your systems. In this case, your cyber insurance can cover the costs of your response to the attack, along with any legal fees or compensation payments that may arise as a result of the breach.

Read our full guide to cyber insurance for businesses.

Get Tailored Insurance For Your Coworking Space

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

Get a free quote today. If you would prefer to speak to someone call us on 0330 024 0755 or email enterprisenb@jameshallam.co.uk

We recently published a comprehensive warehouse health and safety policy checklist. In this post we will take a closer look at fire safety risk assessments for warehouses. This is a guide for warehouse owners and managers to help you ensure you are doing all you can to protect your staff, your stock, and your premises from the risk of fire.

Why is Fire a Serious Risk For Warehouses?

Fire is a serious risk for any business. But warehouses especially are particularly vulnerable to fire.

Warehouses are filled from floor to ceiling with large quantities of stock. Even if this stock is not itself flammable, then the components use to store the stock might well be: Wood, cardboard, packing materials, and so on.

So, if a fire breaks out in a warehouse, the sheer volume of combustible materials mean that the fire could rapidly spread before anyone has a chance to contain it.

What To Include in Your Warehouse Fire Safety Risk Assessment

There should be five steps to your warehouse fire risk assessment:

1. Identify the possible fire hazards
2. Identify who is at risk
3. Determine how you can manage, mitigate, or eliminate these risks
4. Record the steps you take to address the risks
5. Periodically review your assessment

Step 1 – Identify The Possible Fire Hazards in Your Warehouse

You need to identify all sources of:

• Ignition – This could include naked flames, such as cigarettes, matches, and lighters; vehicle exhausts; faulty or misused electrical equipment; heat sources such as gas, electric, and microwaves; friction generated by mechanical processes; and sparks from bonfires, welding apparatus, and other processes. Also check any equipment for hot surfaces and make sure their ventilation ports are not obstructed.
• Fuel – As well as your stock, identify all flammable liquids and chemicals, such as cleaning products, paints, varnishes, and spirits; flammable gases such as aerosols and LPG cannisters; and materials such as plastics, rubber, paper, textiles, soft furnishings, insultation, and timber.
• Oxygen – Fire needs a source of oxygen to burn. If a fire breaks out in your warehouse, the air itself will provide this oxygen. But there may be additional sources of oxygen which could help the fire to spread. For example, certain chemicals might act as oxidising agents, and welding and other processes make use of oxygen cylinders.

Step 2 – Identify Who Is At Risk

If a fire were to break out in your warehouse, who would be at risk?

All employees would be at risk, of course. But you should pay particular attention to:

• Anyone who works alone, such as cleaners or security staff, and employees who work in isolated areas.
• Employees who are less familiar with your premises and processes, such as contractors, customers, delivery drivers, and seasonal workers.
• Employees with mobility issues, or language issues.

These are employees who may need extra support in effectively responding to a fire breakout. You may need to consult such employees in order to fully understand their individual needs, and how you could accommodate them.

Step 3 – Determine How You Can Manage, Mitigate, or Eliminate These Risks

Once you understand the possible sources of fire, and once you have identified who is at risk, you need to outline how you are going to manage these risks.

The specific steps you take will depend on the risks you have identified, but it might involve the following:

Staff training

Ensure that everybody understands the fire risks in your warehouse, and the role they can play in managing these risks. Also ensure that everyone understands the proper evacuation procedure in the event of an outbreak, including those you identified in step 2, who may be particularly at risk.

Addressing sources of ignition

This could include setting designated areas for smoking, for burning waste, for welding, and for other activities and processes that could create sparks or naked flames. You could also ensure that all electrical equipment is regularly inspected, and properly installed, used, and maintained.

Addressing sources of fuel

You might have to rethink how you store certain items. For example, you should not store combustible solids, liquids, and gases in the same space. You should also ensure that there is adequate spacing between any stacks of stored stock, and you should review your security systems to reduce the risk of arson.

Address sources of oxygen

Set some best practice guidelines. For example, any doors, windows, or other openings that are not required for ventilation should be kept shut as much as possible. You should also avoid storing any oxidising agents near any sources of heat, or flammable materials.

Review your fire safety equipment and procedures

Are your fire extinguishers all in code, and suitable for fighting the sort of fires that could break out? Are you fire alarms, emergency lights, and sprinkler systems in good working order? Do all staff, including any temps or seasonal workers, understand the procedures to follow should a fire break out? Are your fire exits clearly marked, and are all escape routes clear of obstructions?

Step 4 – Record The Steps You Take to Address The Risks

Keep a record of any risks you identify, including those members of staff who may be particularly at risk, along with any action you take to address these risks.

Also keep a record of any additional staff training requirements you identify. And if you meet with any staff members to discuss their individual needs, keep a record of this discussion, and of the agreed actions.

Keeping such records will prove invaluable should any enforcing authority ever call upon you to evidence your fire risk management procedures. Your records will also act as a benchmark, which you can refer to when reviewing your fire risk management procedures.

Step 5 – Periodically Review Your Risk Assessment

You should periodically review your fire risk assessment in order to ensure that you are managing all existing risks while effectively responding to any new or emerging risks.

At minimum, you should review your fire risk assessment once a year. But you should also review your fire safety policies and procedures whenever you make any significant changes to your warehouse operations, including:

• Substantial changes to the working patterns, including the acquisition of new equipment
• Alterations to the warehouse premises, including any changes to the furniture, fixtures, and fittings.
• Major staff overhauls, such as the recruitment of seasonal staff or contractors.

Get The Right Cover For Your Warehouse

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 warehouse. 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

Every year, small businesses must contend with a wealth of new and emerging threats, while also safeguarding their operations against the sort of risks that never go away. In this post we will look at some of the most common small business insurance claims that insurers expect to deal with in 2026.

What Claims Are Expected This Year?

In the current climate, insurers are expecting to be dealing with claims relating to:

• Cyberthreats using AI
• AI risks relating to data and intellectual property
• Property damage from extreme weather
• Property damage and business interruption as a result of deferred maintenance
• Liability claims

We’ll explore each of these in more detail below, and what you can do to help protect you and your business.

AI Brings Both Internal and External Threats

Cyber threats from AI tools

There is no question that your business needs cyber insurance. One study found that around 96% of all cyberattacks target SMEs. And as artificial intelligence (AI) tools get more powerful and accessible, it has never been easier for cybercriminals to target your business for phishing, ransomware, and other cyberattacks.

Data security, IP and reputational risk from AI use

But AI brings internal threats, too. Many businesses, eager to join the “AI revolution”, have started using off-the-shelf tools to create content, draft proposals, and process their data. This may expose some SMEs to certain unexpected risks.

Without proper governance, through using an AI tool a business may inadvertently:

• Breach intellectual property laws
• Leak private or confidential data
• Provide clients with bad advice or poor services

All of this could lead to costly claims, financial losses, and significant reputational damage.

While AI can help businesses move faster while saving time on admin, you must never take these tools for granted. Never lose sight of the importance of privacy and data confidentiality, and never release or share any AI-created content without first performing a thorough human review process.

And if a client ever makes a claim against you, make sure you have adequate professional liability insurance to cover any legal fees and other expenses that may arise.

Property Damage From Extreme Weather

Extreme weather events, such as storms, high winds, and flash floods, appear to be on the increase. Whether that is the case, the fact remains that property damage from adverse weather is an ongoing risk for any business that operates out of a brick and mortar premises. Regardless of whether that is a retail shop, an office, a bar, a restaurant, or a warehouse.

From backing up your business data to installing flood defences and sprinkler systems, there are many things you can do to help mitigate the damages from any possible incident. Yet it may prove impossible to prevent certain incidents, which is why your small business insurance should give you all the cover you need to make a full recovery.

Business buildings insurance can help you cover the costs of repairs following an incident. But you should also invest in business interruption insurance, which can cover your overheads during an extended period of downtime. And as recovery from an adverse event can take much longer than expected, you should aim to make your business interruption insurance liability period as long as possible.

Read our full guide to how small business insurance can provide vital peace of mind.

Deferred Maintenance: A Disaster Waiting To Happen?

In recent years, high inflation rates and ongoing supply chain issues have resulted in higher labour and material costs, along with longer lead times, for all maintenance, repair, and renovation projects. As a result, many SMEs may have deferred some essential maintenance tasks.

While deferring maintenance can save money in the short-term, in the long-term it could expose your business to a greater risk of fire, flood, subsidence, and downtime as a result of broken or faulty tools or equipment.

In the coming years, insurers may face more claims for repairs or business interruption as all of this deferred maintenance finally catches up with SMEs.

While it is understandable that SMEs will look to save money during uncertain economic periods, it pays to think in the long-term. Switch to a preventative maintenance schedule. The savings you make on deferring maintenance will pale in comparison to the eventual cost of repairs or replacements, or the higher insurance premiums that could follow claims.

Liability Claims – A Perennial Risk For All SMEs

Finally, all SMEs should protect themselves against potential liability claims. This is when an individual or an organisation makes a claim against your business on the grounds of negligence, professional misconduct, or similar.

Here are some situations that could result in a liability claim for your SME:

• An employee injures themselves on the job, or contracts an illness through their work.
• A member of the public, such as a customer, a contractor, or a delivery driver, trips or falls while on your premises.
• A client is dissatisfied with your work, and claims you have breached your contract or acted dishonestly.

In each of these cases, liability insurance can cover any compensation payments that may be due, along with any legal fees that may arise.

Public liability insurance can cover you for any claims arising from incidents involving members of the public, while professional liability insurance can cover you for any claims arising from clients relating to your work or conduct.

You also have a legal requirement to get employer’s liability insurance, which will cover you for any claims arising from your employees.

Talk To James Hallam About Your Small Business Insurance Needs

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who are committed to getting you the cover you need at a price you can afford, no matter what challenges the next few years may bring.

Get in touch for a free quote today.

The specific licences you need to run a newsagent will depend on whether or not you choose to sell certain regulated products, such as alcohol and tobacco.

In this post we will list the various licences you may need as a newsagent.

When Does A Newsagent Need a Licence?

Most, if not all, newsagents will need to register for licences to undertake a number of activities and sell different types of products. You will need licences if you wish to:

• Sell food – registering will give you a licence to store, sell, or prepare food on your premises, as long as you meet all relevant food safety laws.
• Sell alcohol
• Sell tobacco products
• Sell fireworks
• Sell lottery tickets
• Play music
• Employ young people to deliver newspapers

We’ll explore some of these licences in more detail below.

What Licence Does a Newsagent Need to Sell Alcohol?

In the UK, there are two types of alcohol licence: Premises licences, and personal licences. If you want to sell alcohol in your newsagent, you will need both types of licence.

• A premises licence will give you the legal right to sell alcohol from a specific location – in this case, your newsagent.
• A personal allowance will give you the legal right to sell alcohol, through acting as your newsagent’s Designated Premises Supervisor (DPS).

If you sell alcohol without the relevant licences, you will face a personal fine of up to £1,000. You may also get a criminal conviction, which could lead to up to six months’ imprisonment.

As part of your licence to sell alcohol, you will be required to implement and enforce age verification policies. Once again, you will face fines and legal sanctions if you fail to do so.

What Licence Does a Newsagent Need to Sell Tobacco?

If you want to sell cigarettes and other tobacco products in your newsagent, you will need an economic operator ID, along with a separate facility ID for your newsagent. If you run more than one newsagent, you will need a separate facility ID for each store.

The Government intends to introduce a new vape licensing scheme by the end of 2026. Under this plan, Trading Standards could issue instant fines of up to £2,500 for any stores caught storing or selling vapes without an appropriate licence.

The vape licensing laws are likely to be similar to the alcohol licensing laws, meaning you will need both a personal and a premises licence if you want to sell vapes at your newsagent.

What Licence Does a Newsagent Need to Sell Fireworks?

You must notify your local fire authority, along with the relevant trading standards departments, if you wish to sell fireworks in your newsagent.

However, you only need a licence if you intend to sell fireworks all year round. You do not need a licence if you are selling fireworks during the Bonfire Night, New Year, Chinese New Year, or Diwali periods – though you will need a licence to store fireworks during these times.

Learn more about the UK’s firework licensing laws.

What Licence Does a Newsagent Need to Sell Lottery Tickets?

If you want to sell lottery tickets in your newsagent, along with other gambling products such as scratchcards, you will need a lottery retail licence from the Gambling Commission.

You can learn more about the current lottery licensing laws.

Specialist Insurance For Newsagents

Selling alcohol, tobacco, vapes, and fireworks from your newsagents may expose your business to additional risks. Thieves may be more likely to target your store for theft, and some products carry a strong fire risk.

You need to make sure your business insurance will cover you for the risks associated with storing and selling these regulated items.

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 ensure that your specialist newsagent insurance meets all of your cover needs at the right price.

Find out how we can help you today.