SME

We recently published a guide to preventing theft from shops. In that guide, we focused on addressing theft from shoplifters. In this post, we will take a closer look at employee theft – why it happens, and how to prevent it.

Understanding the Impact of Employee Theft in Retail

According to research by Retail Economics and Thruvision, employee theft accounts for around 40% of all thefts experienced by UK retailers, which could account for a loss of about £3.2 billion a year.

But employee theft will have some added costs beyond the financial losses. It can affect morale, and lead to a culture of mistrust and suspicion among staff. It can lead to disciplinary actions and legal procedures, which will disrupt your operations, while increasing staff turnover and recruitment costs.

Plus, if word gets out that your business is having a problem with employee theft, then it could damage your reputation. After all, if you cannot keep your own stock safe, then who knows what else you are overlooking? This could affect your ability to attract suppliers, and it may even make some customers reluctant to buy from you.

Common Causes of Employee Theft

Why would an employee steal from their employer? For any number of reasons, including:

• Financial Hardships – If an employee is struggling outside of work, they may be tempted to steal from the till, the shop floor, or the stockroom, to help make ends meet.
• Resentment – If your employees are not happy in their jobs, or if there are poor relationships between staff and management, then employees may turn to theft as an act of protest.
• Opportunism – Sometimes, the opportunity to steal might just be too great to resist. If an employee is handling a large amount of cash, and they notice that there is nobody around, then they might think: “Who’s going to miss the odd note or two?”
• External Pressure – If you do not address employee theft in your shop, a negative workplace culture could take hold, and some employees may find themselves driven to theft as a result of peer pressure. Or worse, employees might get pressured by outside forces, such as criminals, to lift cash or stock from the premises.

How To Prevent Employee Theft in Your Shop

There are a number of actions you can take to help prevent theft in your shop including:

• Employee Screening – Conduct thorough background checks on all of your new hires, particularly if their role will involve handling cash, or if it will give them access to high value stock.
• Employee Training – During induction, make it clear to staff that you take a zero tolerance approach to theft, but be sure to explain why, highlighting how employee theft harms everyone.
• Security Measures – All of the systems that can help prevent shoplifting can also help prevent employee theft: CCTV, thorough stock management procedures, mirrors to eliminate blindspots, security tagging, and so on. You should also implement strict controls on who can handle cash, with robust security procedures for doing so.
• Anonymous Reporting – If a staff spots another employee stealing stock or money, they may be reluctant to report the incident, as they might be wary of reprisals. But if you allow for anonymous reporting systems, staff can report incidents in total peace of mind that they will not face any direct retaliation.
• Staff Support – Finally, we mentioned above how unhappy or dissatisfied staff may turn to theft. With regular performance reviews, you can identify any possible sources of discontentment as early as possible, while also helping to build trust between managers and employees.

Get The Right Cover For Your Shop

A comprehensive retail insurance policy will not prevent employee theft. But it can give you the cover you need to bounce back from any major disruptions or significant losses.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your shop. Whether you run an online store, a single high street shop, or a chain of shops, we can help you get the cover you need at a price you can afford.

Find out how we can help your shop today.

Gym risk assessments are essential for keeping your staff and your members safe from the many hazards present in health and fitness facilities. In this post we will outline the fundamentals of a gym risk assessment, including your legal duty to keep people safe.

You Have A Legal Duty To Manage Risk In Your Gym

Under the Health and safety at Work Act etc. 1974 and the Management of Health and Safety at Work Regulations 1999, if you own or operate a gym you have a legal duty to assess and manage all health and safety risks.

A gym risk assessment will help you understand all the potential hazards in your gym, and who is at risk. It will also help you identify your current capacity to manage these risks, along with any new measures you should introduce to help keep people safe.

Gym Risk Assessment Basics

How to Identify The Hazards in a Gym

The first step of any risk assessment is to identify all the potential hazards in your gym.

These might include:

• Environmental Hazards – Such as slippery or uneven floors, poor lighting, trailing cables, blocked walkways and emergency exits, and issues with noise levels, temperature, and ventilation. You should also consider hygiene hazards from contaminated or poorly maintained equipment and facilities, and chemical hazards from improper use or storage of cleaning equipment.
• Equipment Hazards – Staff and customers alike could injure themselves through inappropriately moving or using equipment. If any of your equipment is damaged or faulty, then it could cause injuries even if people do use it correctly.
• Fire Hazards – Identify all possible sources of fires, paying particular attention to your electrical equipment. Also identify your current means of detecting and managing fire outbreaks, and your current means of alerting staff and customers, and helping them evacuate.

How to Identify Who Is At Risk

For every hazard you identify, you should specify exactly:

• Who might be harmed
• How they might be harmed
• How likely it is that they will be harmed

Beyond your staff and your customers, think about other members of the public who may visit your premises, including contractors, delivery personnel, and emergency services staff.

Ways to Mitigate Risks in a Gym

Once you have determined the hazards in your gym, along with who is at risk, and the possible severity of the harm, it is time to determine the precautions you are going to take to mitigate these risks:

• Ongoing staff training, to help them understand all the hazards, along with the procedures they will follow in the event of an incident.
• Adequate staff-to-member ratios, so that your staff can identify and respond to any emerging situations as early as possible.
• Thorough induction processes for all new members, along with routine refresher sessions for more experienced members.
• Regular cleaning and maintenance schedules for all equipment, with a procedure for removing, repairing, or replacing any faulty or damaged equipment the moment you spot an issue.
• A thorough cleaning schedule for the whole gym environment, so as to clear areas of trip hazards while addressing any potential health issues arising from poor hygiene practices.
• Environmental controls, including ensuring there is adequate space between equipment to avoid collisions and overcrowding, while also addressing noise levels, temperature levels, and ventilation issues.
• Emergency protocols, including the availability of first aid and defibrillator kits, and ensuring that your staff know how to use them. You should also have a fire response plan in place, and you might also consider drilling your staff on responding to aggressive members, or potentially violent situations.

Special Measures and Additional Risks For 24 Hour Gyms

If your gym is open round the clock, then you might have to consider some additional risks. For example, there will likely be times when your gym will be unsupervised. It is therefore vital that all members know how to take care of themselves when they are using the gym out of hours, including the procedures for responding to emergency situations.

You can read our full guide to risk management for 24 hour gyms.

Your Written Gym Risk Assessment

Ultimately, your gym risk assessment will need to be a written document which clearly outlines every hazard you have identified, and how you intend to manage them. It should also specify who is responsible for carrying out every action you have proposed, along with a target completion date for every improvement you wish to make.

You should aim to review your risk assessment at least once a year, or immediately following any incidents – even if these incidents were just “near misses”.

Keep Good Records And You Could Save On Your Insurance

As we mentioned above, you have a legal duty to assess and manage all health and safety risks in your gym. Good record keeping is essential. But beyond keeping your staff and members safe, your risk assessment process could ultimately benefit you in other ways too.

If you can evidence your gym’s risk management procedures, you may be able to make a saving on the cost of your gym insurance.

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you understand the unique risks you face as a gym, and we can show you how to properly evidence your risk management procedures in order to access specialist at a competitive price.

Find out how we can help you today.

As a small business owner, you have a legal duty to keep your employees safe, along with any customers, contractors, or other members of the public who may visit your premises. Risk management is an essential process for understanding the risks you are facing, along with the steps you can take to address them.

What Is Risk Management?

Risk management is a process that involves taking the time to identify and assess every risk that your SME may be facing. Some of these risks will be the sort that any business of any size will have to contend with, such as fire hazards and workplace accidents. Other risks may be specific to your industry – a warehouse is a more hazardous workplace than an office, for example.

But SMEs may have to contend with some risks that may not be so much of a problem for larger businesses. For example, cybercrime. 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.

Risk Assessments For Small Businesses

Risk management starts with a thorough risk assessment. There are a few steps to go through here:

• Identify every risk that could lead to accidents, injuries, or other damages to your business.
• Determine who each risk may affect, along with the likelihood and severity of every risk you identify.
• Outline the steps you can take to manage, mitigate, or eliminate these risks.
• Establish who is responsible for carrying out each action you identify, along with a process for reviewing your risk assessment.

Essential Aspects of Risk Management For SMEs

Your risk assessment will help you identify the risks your SME is facing, along with the actions you might take to manage them. This might include:

• Staff Training – Every new member of staff should go through a thorough induction process to help them understand the various workplace risks, and how to manage them. You should also brief them on how to respond to emergency situations. Existing staff should receive refresher training at least once a year.
• Fire Safety – You should have a fire safety system in place, including alarms, sprinkler systems, fire fighting equipment, and emergency lighting and signage. You should also outline your fire response procedure. In the event of a fire, what steps should employees take? How should they evacuate the building, and who should they report to once they are safe?
• Onsite Security – As well as addressing the risks of fire, you should also address the risk of theft, vandalism, and other crimes. This can involve security features such as CCTV, roller shutters, and alarm systems, and anti-theft policies such as thorough stock-taking and anonymous reporting procedures.
• Employee Health and Safety – At least one member of staff should have first aid training, and every member of staff should know the process for reporting and recording incidents at work.

Cyber Risk Management For SMEs

As we mentioned above, SMEs may be at greater risk of cybercrime than larger businesses. Increasingly, IT and cybersecurity are becoming essential aspects of risk management for small businesses.

Cyber risk management starts with staff training. Every member of staff should be aware of the risks, along with the steps they should take if they ever encounter any suspicious activity. You should also take steps to secure your systems, paying particular attention to any employees who work remotely.

Read our full guide to cyber security for SMEs.

Get Tailored 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 understand the unique risks your business is facing, and we can show you how to effectively manage these risks. We can then help you access the dedicated business insurance you need, at the best price.

Get in touch for a free quote today.

Stock insurance is essential cover for retailers and warehouse owners. In this post, we will outline what stock insurance is, and what it covers, before exploring how you can ensure you have all the cover you need while avoiding certain common pitfalls.

What is Stock Insurance?

This is a dedicated insurance policy to cover your stock for loss, theft, or damage. Your policy should cover your stock whether you store it on your own premises, or elsewhere.

Usually, stock insurance will also include some contents cover. For instance, if you lose some stock to theft, then your insurance could also cover any fixtures or fittings that were damaged during the break in.

Most retailers and warehouse owners will take out some level of stock insurance. However, many businesses might not have quite the level of cover they need. And unfortunately, they may only discover that they are underinsured when they choose to make a claim on their policy.

Common Issues With Stock Insurance

Here are some common stock insurance pitfalls:

• Seasonal variance: You may store more stock at certain times of the year. For example, retailers will usually store significantly more stock during the festive period. The amount of stock onsite may exceed the limits of your policy, which would mean you would not be fully covered in the event of a claim.
• High risk stock: Some items of stock may be more attractive to thieves. Or it may cost more to repair or replace following a flood or a fire. If your stock insurance does not account for these high risk items, then you may be underinsured.
• Stock deterioration: Stock insurance will cover your stock for loss, damage, or theft. But it may not cover your stock for deterioration as standard. Say you sell perishable goods, and an electrical fault causes your fridges or freezers to fail. You may have to dispose of a large amount of stock. But unless your stock insurance included cover for deterioration, you would not be covered for this loss.

How To Calculate The Right Level of Stock Insurance For Your Business

• Consider your seasonal peaks. You will need to extend your cover in line with your busiest periods. If you are a retailer, for example, you will need more cover in the run up to Christmas, and in the weeks preceding and following bank holidays.
• Consider your risk profile. As we mentioned above, a high risk item could be something that thieves are more likely to target, or something that would cost a lot to repair or replace following an incident. Sometimes, only certain items that you stock will be considered high risk, such as cigarettes and alcohol for retailers. But if you work in certain sectors, such as electronics, then all of your stock may be considered high risk.
• Consider your cover limits. Your stock insurance should cover the amount it would cost to replace all of your stock. When specifying your cover limit, as well as accounting for seasonal peaks and high value items, you should also include the possible costs of replacing any fixtures, fittings, and equipment that may get stolen or damaged during an incident.
• Work with a broker. An insurance broker with experience in your sector can help you to identify the right level of cover for you, by working with you to understand more about the risks you face.

We Can Help You Avoid Underinsurance With Your Stock Cover

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance specialists. We can help you avoid underinsurance and get the right level of cover for your stock, at the right price.

We can help you determine an accurate cover limit for your stock, which accounts for seasonal variations and high risk items. And we can help you ensure you have any specialist cover you may need, such as cover for stock deterioration.

Find out how we can help you today.

Theft can be a major problem for hotels. Any losses may seem small at first, but the costs can quickly add up.

In this post we will explore the most common types of hotel theft, before discussing how you can protect your hotel business from theft.

The Most Common Types of Hotel Theft

• Guest theft: Including stealing towels, dressing gowns, toiletries, and electronics from rooms, and taking home glasses and cutlery from the hotel’s bar or restaurant.
• Housekeeping theft: Like guests, housekeepers may occasionally lift items from hotel rooms, including towels, linens, toiletries, and cleaning supplies.
• Internal theft: This can include front desk staff engaging in fraudulent behaviour, including skimming cash, misusing credit card systems, or even stealing guests’ valuables while handling their luggage.

What is The Impact of Hotel Theft?

Theft can impact many areas of your hotel, including:

• Loss of revenue
  You will have to pay to replace every lost item, which can boost your operating costs while cutting into your profits.
• Reduced efficiency
  At the same time, any missing item can disrupt your housekeeping and guest services, leading to reduced efficiency and increased delays.
• Low staff morale
  Over time, theft can take its toll on staff morale, too. If things keep going missing, many members of staff will find it increasingly difficult to do their jobs. And if there is evidence of internal theft, it could lead to a culture of tension and distrust.
• Poor customer experience
  And of course, if any guests are victims of theft while staying at your hotel, it can lead to bad reviews, a poor reputation, and potentially legal action.

How Common is Hotel Theft?

Hotel theft is so common that it is no exaggeration to say that every hotel owner will have experienced it at some point.

According to one survey, 87% of guests admit they have taken something from a hotel at some point, and 26%  admit that they always steal from hotels.

Further hotel crime statistics suggest that hotels lose an estimated £74m a year to guest theft. Also, around 25% of hotel robberies are the result of internal theft, or of hotel employees colluding with criminals.

And on top of all this, just like any other businesses, hotels these days must contend with the risks of cybercrime.

5 Ways to Protect Your Hotel Business From Theft

1. Get Your Staff On Your Side

Talk to your staff about the impact of theft, about how it makes life harder for everyone. Train your staff to spot the signs of all forms of theft, and aim to create an open culture of trust in which staff feel they can safely raise concerns while depending on your full support.

You could also make it clear that you take a zero tolerance approach to theft. Hopefully, you will never have to act on this. But if your staff are familiar with your policies, then they may be less tempted to lift cash or items.

2. Ensure Better Oversight of Key Operations

You could introduce routine room checks and post-cleaning inspections to look out for any discrepancies. Make sure everyone sticks to the same housekeeping schedule, so that it will be clear exactly who may have been involved should you ever suspect that theft has taken place.

Try to minimise the number of employees who can access financial systems and guest valuables, and implement rigorous cash-handling policies while ensuring you reconcile all tills every day. You could also conduct periodic audits on all inventory and cash handling systems, which will make it clear to everyone that any discrepancies will be discovered before long.

3. Encourage Your Guests To Be Honest

There is not a lot you can do to prevent a guest from stealing a towel or a hairdryer from their rooms, and you cannot exactly perform random luggage searches at checkout. But you could try to appeal to your guests’ better natures.

Place signage in your rooms letting guests know that, should they wish to take home towels or dressing gowns etc., then they are for sale at reception. This subtle reminder that these things cost money might deter many guests from packing items in their bags.

4. Invest in Technology

Ensure you have sufficient CCTV coverage of any areas where serious theft could take place, including any counter with a till, any area where cash is handled, and your storerooms.

You could also invest in a Property Management System (PMS), which can help you track your stock and inventory, along with ongoing tasks such as cleaning, housekeeping, and cash flow.

Also, technology is your hotel’s main line of defence against cybercrime. Read our full guide to protecting your hotel against cybercrime.

5. Get the Tailored Hotel Insurance You Need

Specialist hotel insurance can cover your hotel against many of the risks you will face, including the growing risks of cybercrime.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance brokers. No matter if you are running a large or a small hotel, we can tailor a niche insurance package to ensure you are covered for all risks at the best possible price.

Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.

In recent years, the cost of insurance has risen for all UK businesses, including retailers.

In this post we will examine some of the underlying causes of the rise in shop insurance costs. We will also explain how you can help to bring down the cost of your shop insurance.

Why Is Shop Insurance Going Up?

UK shops are dealing with rising insurance costs as a result of claims inflation. This means that it is costing more for insurers to settle all kinds of claims, regardless of how often these claims occur.

What is Causing Claims Inflation?

A number of factors are driving claims inflation:

• Global supply chains have been hit by major disruptions in recent years, which has increased the cost of many essential materials, including timber, steel, and insulation.
• Workforce shortages have contributed to rising labour costs. Which drives up construction and repair costs and lead times.

This will increase the average cost of settling an insurance claim, and insurers will pass these increased costs onto their customers in the form of higher premiums.

When it comes to the retail sector in particular, insurers may be worried by a rise in shoplifting and other crimes. Higher crime rates may make it more likely that shops will make claims on their policies, which will further contribute to claims inflation while driving up the cost of cover for everyone.

How To Reduce Shop Insurance Costs

The good news is that, if you can demonstrate to your insurer that you are taking steps to reduce the risks of shoplifting and other sources of loss, then it may lead to lower insurance premiums.

But in short, here are some measures that might help you reduce your shop insurance costs:

• Install security systems including locks, shutters, safes, alarms, and CCTV.
• Invest in staff training to help them spot the signs of theft, and to help them stay safe on the job.
• Maintain a good cleaning schedule, which can reduce the risks of slips, trips, and falls.
• Stay on top of all ongoing servicing and maintenance procedures for your electrical equipment, security systems, and fire safety systems.
• Implement an effective stock management system so that you can identify sources of loss as early as possible. Also be sure to store any high value items as safely and securely as possible.

For more, be sure to read our full guide to designing and implementing policies for addressing shoplifting and other theft.

How We Can Help You Reduce Your Shop Insurance Costs

Remember that not all insurers will charge you the same for your cover. It always pays to shop around and compare quotes. And while it is vital that you avoid underinsurance, it is just as important to avoid overinsurance – paying too much for cover you do not really need.

At James Hallam, we can help you find the dedicated shop insurance you need at a competitive price. We will take the time to get to know you and your business, so that we can fully understand all of the risks you are facing. We will then find you an insurance package that meets all of your requirements, including your budget.

We can also advise you on how to effectively evidence your risk management policies and procedures so as to bring down the cost of your cover.

Find out how we can help you today.

If you are a mobile hairdresser, then you will need all of the specialist cover that any hairdresser would need, as well as dedicated insurance to cover you for the unique risks associated with visiting customers at their homes.

In this post we will list the key types of insurance for mobile hairdressers. If you have any questions, or if you would like a free quote on your specialist hair insurance, get in touch with us today.

What Insurance Do Mobile Hairdressers Need?

Public Liability Insurance

This is an essential form of cover for mobile hairdressers. This will cover you for any accidents that may take place when you are visiting a customer at their home. This can include anything, from accidentally spilling a product or a cup of coffee, to scorching an item of furniture with some unattended hair straighteners.

In the event of such an incident, your public liability insurance can cover the costs of any necessary repairs or replacements.

Treatment Risk Cover

This can cover you for incidents relating to the services you provide. Many things can go wrong when you are giving a customer a haircut: You might slip and accidentally cut their ear. You might accidentally catch them with your hair straighteners. Or they might have an allergic reaction to a product you use.

In these cases, if the customer decides to make a claim against you, your treatment risk insurance can cover your legal fees, along with any compensation they may be due.

Contents Cover for Your Equipment

This can cover all the equipment you use to do your job, including your hair products. If you are a mobile or a freelance hairdresser, your contents insurance should cover your equipment when you are transporting it from one place to another. It will also cover your equipment when it is in storage, even if you store it in your own home.

Your contents insurance will cover the costs of repairs or replacements if any of your equipment or products are ever lost, stolen, or damaged.

Personal Accident Cover

If you are a mobile hairdresser, then you are very likely working on a freelance basis, which means that you probably cannot rely on statutory sick pay if an accident, injury, or illness ever prevents you from working. Personal accident cover can be included, which provides a lump sum, following accidents that lead to a serious injury, or permanent total disablement. It can also provide a weekly benefit, as a result of accidents leading to temporary disablement. Alternatively, you may wish to consider accident and sickness insurance.

Employer’s Liability Insurance

Finally, if you employ any staff, even if it is just on a part-time basis, and even if they are related to you, then you have a legal duty to get employer’s liability insurance.

This will cover your staff for any accidents or injuries they may sustain while on the job.

How to Choose The Right Cover For Your Mobile Hairdresser Business

If you are not sure how to meet all of your insurance needs as a mobile hairdresser, we are here to help.

Talk to us, and we will take the time to understand you, your business, and the unique risks you are facing. We can then help you access specialist insurance that will meet all of your needs at a truly competitive price.

Find out how we can help you today.