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Health & Safety Support

14th February 2018

Every business has a responsibility to keep members of the public and employees safe and at Chadwick Insurances we have teamed up with Marksafety Ltd to help our clients meet their legal responsibilities.

Good risk management practices help to prevent accidents or to mitigate the cost of those that, unfortunately, do still occur. It also demonstrates to insurers that the business takes risk management seriously and is, therefore, deserving of better than their standard premium. Our partnership with Marksafety is aimed at businesses who take their responsibilities for safety seriously.

Marksafety will offer Chadwick Insurances clients a one hour complimentary Risk Review in a face to face meeting at the customer's premises. During the meeting they will offer suggestions regarding the client's existing risk management and health and safety procedures.

The services available from Marksafety will depend on each customer's individual needs but can include:

  • Safety procedures health check.
  • Assumption of designated person responsible for safety.
  • Risk Assessments such as Fire and Health & Safety.
  • Health & Safety compliance audit.
  • GAP analysis.
  • Internal safety awareness courses.
  • Links to Occupational Health services.

Marksafety Ltd have 15 years experience in local authority, construction and manufacturing businesses and the principal, Mark Prince, holds a NEBOSH Diploma and maintains IOSH membership. More information regarding Marksafety's services can be found on their website at: www.marksafety.co.uk or you can call Mark on 01253 367094.

The Perils Of Under-Insurance

10th January 2018

Under-insurance occurs when Sums Insured are set too low and can be one of the most stressful and contentious of issues for businesses, putting them at risk of not recovering financially from a serious loss.

Most insurance policies contain an Average clause which means that if the Sum Insured is under-declared, thereby reducing the premium paid to the insurer, then a claim will only be paid in proportion to the amount of the correct premium.

For example, if a Sum Insured of £250,000 is selected when the true value should be £500,000 there is 50% underinsurance. If a claim is subsequently made for, say, £180,000, then only £90,000 (50%) of that will be insured.

Business Interruption policies contain a Maximum Indemnity Period which is the time following a loss during which such claims can be made. Selecting too optimistic (or short) an Indemnity Period is another form of under-insurance and can result in un-insured losses.

Avoiding under-insurance can be achieved by working with a professional insurance advisor and by taking some key steps such as:

  • Obtain a professional valuation so do not use market value.
  • Understand the basis of cover because Reinstatement, Indemnity & Agreed Value all affect the basis of claims settlement and therefore, the correct Sum Insured, differently.
  • Then selecting an Indemnity Period, be conservative and consider the worst-case scenario for the business being able to recover lost customers.
  • Understand the difference between an accountancy definition of Gross Profit and that applicable within the insurance policy.
  • Factor in additional costs that can affect the cost to the business, not just replacement amounts or building costs.
  • Re-evaluate Sums Insured at least annually.
  • Ensure that seasonal increases in assets are built into the Sum Insured.
  • Establish and regularly update a Business Continuity Plan.
  • Calculate and record all the fixed and variable expenses which could be impacted during the insurance policy or Indemnity Period.

At Chadwick Insurances, we can help you to identify the issues which go into selecting adequate Sums Insured. We also work with insurers who provide risk tools to help in this process.

The above is only a summary of the issued involved and we would welcome the opportunity to discuss the subject in more detail with both existing and prospective clients.

More detail regarding the points above can be obtained via the Zurich Insurance Group article on Underinsurance at: https://insider.zurich.co.uk/app/uploads/2017/12/Underinsurance-Whitepaper.pdf

Please CONTACT US to discuss your insurance needs.

Cyber Risk Management

8th January 2018

Any business that holds or processes sensitive data or is reliant on computer technology is at risk of losses. Dealing with Cyber related incidents has not only a direct monetary impact but also ties up a business in dealing with potentially affected customers and regulators.

Although Cyber exposures are one of the top risk concerns for many companies not all of them know how to reduce the possibility of losses. At Chadwick Insurances we have teamed up with Xyone Cyber Security Solutions Limited to help businesses assess and improve their risk management procedures.

Xyone have a suite of products and services which will assist clients wishing to gain an accreditation or reduce their risk of attack from a cyber incident and will offer Chadwick Insurances customers a free Risk Assessment. This is achieved by completing a simple questionnaire to help assess the existing procedures and how exposed or secure systems and processes are currently. This is then benchmark rated by Xyone against the industry standards. The information obtained from the questionnaire is also used to prepare a detailed proposal for Xyone to undertake costed Cyber risk management work. We have negotiated a 10% discount for Chadwick’s’ customers who purchase the Xyone Cyber Seal product which includes the items listed below. However, the extent to which they are provided depends on each customer’s individual needs:

  • Provides a management picture of an organisation’s risks in relation to Cyber security
  • Identify vulnerabilities and strengths
  • Create a detailed plan to mitigate risks and help build resilience against internal and external threats
  • Implement a GCHQ accredited certification to enhance a client's cyber credibility and to comply with some of the guidelines laid out in the forthcoming GDPR criteria (deadline is 25th May, 2018)
  • Deliver a GCHQ approved Cyber security awareness and training program (this can be provided either as part of a board level onsite training programme or through an online e-learning platform)
  • Deliver a suite of GCHQ accredited policies for each member of staff which complies with the GDPR requirements and significantly reduces the risks of breaches from internal/employee errors
  • Cyber Essentials
  • Vulnerability scanning
  • Network testing
  • Board Level training
  • One-day awareness events

Finally, if the Cyber Seal product is purchased, Xyone can assist with the completion of Cyber Insurance proposal forms which can be complex documents to the layperson.

The Value of an Insurance Broker or Beware Cheap Imitations

4th December 2017

There is a saying that if something looks too good to be true, it probably is and that applies just as equally to insurance. Because insurance is an intangible product that can often remain un-used for long periods its value can be difficult to appreciate until something goes wrong. People are often tempted to buy the policy with the lowest premium without fully considering all the implications. If an insurer is quoting a premium much lower than all its competitors then there is usually a reason behind it. The low premium could be offered because the cheapest insurer may:

  1. Apply exclusions or onerous conditions which significantly reduce the amount of cover provided.
  2. Be buying in business and will significantly increase the premium at the earliest opportunity.
  3. Have a weaker financial status than its competitors and could possibly default on future claims.
  4. Stint on costs and provide poor service in such key areas as claims handling.
  5. Interpret policy terms and conditions in a harsh manner and not pay borderline claims.

Two recent examples highlight the need to employ a professional insurance broker to properly explain the cover to you. They were both prospective new customers whose insurance had been arranged by other brokers:

  • Client One had a policy where the territorial limits were described as "The United Kingdom of Great Britain and Northern Ireland, the Isle of Man and the Channel Islands." However, the client occasionally carried out work in the Republic of Ireland so if there had been an accident in that country then no cover would have been provided. We were able to find the client a policy which provided the correct cover without a significant increase in premium.
  • Client Two provided treatments for customers which were administered by all their employees but the policy contained an exclusion if those treatments were administered by a certain category of professional. If there had been a claim for injury caused by one of those professionals there would have been no cover. We identified this significant gap in cover, provided a policy which covered this exposure and were able to save the client money at the same time.

It may be that choosing a cheap quote may be the right decision but it is important to make it knowing all the facts. At Chadwick Insurances we will help you to understand the quotations on offer and to find the alternative that works best for you. Sometimes that may mean paying a higher premium for better cover and that might only become important if you have a claim but it could be the difference between you staying in or going out of business. Our aim is to keep you in business, not to find the cheapest quote.

Cyber Event Success

29th November 2017

Chadwick Insurances hosted an event on 28th November to discuss Cyber risks to businesses. Attendees at the event included local business leaders from solicitors, accountants, management consultants, I.T. specialists, risk management specialists, property managers, estate agents, financial advisors and plumbing & heating engineering companies.

Following the event Gareth Chadwick said ”Any business that holds or processes sensitive data or is reliant on computer technology is at risk of uninsured losses. Dealing with Cyber related incidents has not only a direct monetary impact but also ties up a business in dealing with potentially affected customers and regulators. Our discussion, led in conjunction with major insurers AIG, highlighted the fact that although Cyber exposures are one of the top risk concerns for many companies, traditional insurance policies do not provide full cover for them. However, we can help businesses to be protected by offering them tailored insurance policies to cover such events as cyber extortion, data breaches, network interruption, digital media liability and telephone hacking.”

General Data Protection Regulation (GDPR) comes into force in May 2018 and will replace the Data Protection Act 1998. With organisations facing increased data responsibilities and potentially higher fines, how they respond to and manage a cyber breach will become increasingly important. Organisations face the prospect of significantly increased fines for non-compliance, up from their current maximum of £500,000 to €20,000,000 or 4% of annual global turnover. In addition, mandatory notification requirements will require organisations to inform the regulator of data breaches within 72 hours. This notification requirement in turn has the potential to create an increase in third party liability claims making Cyber insurance even more important for business.

Good risk management reduces cost

16th October 2017

Preventing accidents has both human and financial benefit. Insurance is a method to transfer your risks to another party but there are still exposures which remain uninsured such as the management time spent in dealing with the aftermath of accidents. Good Risk Management practices help to prevent accidents or to mitigate the cost of those that, unfortunately, do still occur.

The Health and Safety Executive (HSE) produce regular safety courses and evidence of those qualifications is ideal in persuading insurers to offer you the best terms. Relevant qualifications and accreditations demonstrate to insurers that a company takes risk management seriously and is, therefore, deserving of better than their standard premium.

As a recent example, the HSE and NEBOSH have collaborated to develop a newPlant specialist Occupational Safety and Health Qualification specifically for process industries. The qualification combines the advanced technical 'high hazard' expertise of HSE with NEBOSH's ability to deliver strong vocational OSH qualifications. The course focuses on the prevention of catastrophic accidents and near misses associated with loss of containment of energy or dangerous substances such as chemicals and hydrocarbons. For more information please view the HSE website: https://www.hsl.gov.uk/health-and-safety-training-courses/nebosh-hse-certificate-in-process-safety-management.

If you are unable to attend such events you can also obtain useful information by keeping up to date on Health & Safety issues by subscribing to the HSE website at: http://news.hse.gov.uk/category/health-and-safety/
Our aim is to help you avoid any claims which will disrupt your business. In addition to the specialist local companies with whom we work, many of our partner insurers offer risk management tools at either no charge or at discounted prices. Working in conjunction with selected insurers or specialist independent companies we can help you to put together an appropriate Risk Management programme. Please speak to your Chadwick contact to learn more.