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Terrorism risks

July 23rd, 2015

With the current increased threat from ISIS terrorists, terrorism is once again high on the agenda.

The terrorism risk has never really gone away but it has been changing.

The perception of a terrorism risk is probably that this will only affect London but this may no longer be the case.

The news reports are suggesting that people from across the country are traveling to Syria for Jihadist training so there is no reason to believe why they may not target outside of London too.

So far, the security forces have thwarted a good number of attempts and specialist anti terrorist units admit to being around three times busier than ever before.

When defining a Terrorist act the UK government provides a clear definition in the Terrorism Act 2000. It states Terrorism is the use or threat of action designed to influence the government or an international governmental organisation or to intimidate the public, or a section of the public; made for the purpose of advancing a political, religious, racial or ideological cause.

For further information or assistance in respect of terrorism cover please do not hesitate in contacting Hensure Business Insurance on 01270 758056.

Law Commission Reforms

Architects professional insurance, PI cover
June 4th, 2015

LAW COMMISSION REFORMS
“Insurance underpins a healthy and prosperous society. It enables businesses and individuals to protect themselves against risk. However insurance contract law is out of date and no longer reflects the realities of today’s commercial practices.

The provisions of the Insurance Act 2015 will modernise the law, balance more fairly the interests of insurers and buyers and provide a framework for an effective, competitive and trusted business insurance Market” Stephen Lewis, Law Commissioner.

WHY ?
The UK’s Commercial insurance contracts are based on an Act that came into effect more than 100 years ago. The Marine Insurance Act 1906 imposed a duty to disclose every material circumstance which would influence a ‘prudent underwriter’, potentially giving insurers the opportunity to decline claims where there may be no related material impact, for example intruder alarm failings on a flood claim (although this is rarely used in today’s market it does bring uncertainty to the contract). So much has changed during that time and the need to modernise rules governing insurance contracts between businesses and insurers is essential.

WHAT CHANGES ARE BEING IMPLEMENTED .

Change 1. Non Deliberate or Non-Reckless Non-Disclosure/Misrepresentation

There remains a responsibility for presentation of the risk by the customer and this is explained further in the Act.

  • If the insurer would have charged a higher premium had they known about the circumstances of the misrepresentation then market practice will be that the insurer will look to charge the insured the additional premium when the non- disclosure or misrepresentation becomes know to them.
  • Where the insurer would not have written the risk then they can treat the insurance as if coverage was never attached but must return the premium.
  • If the insurer would have imposed terms, they can treat the insurance as if it had been entered into on those different terms ( from the date of the breach).

Change 2. Deliberate or Reckless Non Disclosure/Misrepresentation – Fraud

Where non-disclosure or misrepresentation is deliberate or reckless, the insurer has the right to avoid the policy and also to retain the premium.

Change 3. Warranties

The insurers will aim to remove warranties from their policies and replace with conditions precedent to liability and conditions.

Whilst insurance companies envisage most policies will be “Warranty Free”, they may apply by exception. In these instances they would explain the rationale to the broker or customer. Where warranties are used and are not complied with by the insured, it will only suspend cover and not terminate the policy in accordance with the Insurance Act.

Change 4. Basis Clause

This will be removed from the wordings as such clauses are being abolished

In practice this means :
• The insurer will treat the basis of contract clause as having no effect in all documentation.
• The insurer will not void the policy or refuse indemnity where the breach of specific risk condition is not related to the risk of loss.

WHAT DOES THIS MEAN FOR CUSTOMERS
Confidence in the insurers ‘Fair’ settlement of claims and certainty that the policy will perform as expected. Benefit of the insurers insight and ‘good customer outcomes’ approach.

Flood RE the long term flood insurance solution in the UK

January 21st, 2015

In 2011, the Association of British Insurers formally recommended Flood Re as a long term flood insurance solution in the UK. After lengthy discussions between the Government and the insurance industry an outline agreement was reached in June 2013. Royal Assent was gained less than a year later in May 2014 and the ABI is working hard to get Flood Re established in the summer of 2015.
The Flood Re Scheme will be a not for profit flood reinsurance fund, owned and managed by the insurance industry and established to ensure the highest risk domestic properties can receive affordable cover for the flood element of their household property insurance.

Data Breaches

January 21st, 2015

Over the last 12 months the reported instances of a’ Data breach’ have soared.
What is Data Breach ?
A data breach usually involves financial information such as credit card or bank details, personal health or personally identifiable information being stolen or lost and sensitive, protected or confidential data is copied.

There are also more and more examples of companies having their I T systems hacked in to .

The Insurance market has responded to these problems by highlighting the need for Cyber Liability cover.

Is it time for your company to take these risks seriously and consider a Cyber Liability policy ? !

Architects must construct better businesses to avoid ruinous claims !

October 28th, 2014

Architects could face claims that put them out of business if they don’t fully understand their responsibilities.
•Increasingly complex projects demand new skills, including better risk management
•Brokers can add value by helping their clients avoid common pitfalls

As the UK economy grows, architects can look forward to a healthier construction sector. But firms still face intense competition along with pressure to innovate and increase standards.

“Architectural firms need to make sure they have the skills to function at the right level, otherwise, if things go wrong, they risk facing potentially damaging claims, even when they may only be partially to blame,” says Steve Watson, Head of Professional Indemnity at Zurich.

In this environment, a well-informed broker, offering the right risk management advice, can make a real difference to their client.

Take care with contracts

One of the major burdens that architects face is the breadth of responsibilities that they end up bearing.

“For example, a firm could find themselves being sued if the contractor makes a mistake on site but later ends up insolvent at the point a claim arises,” says Watson. “Stringent financial due diligence is essential for firms before they enter into any contracts.

Firms need to be very diligent at the planning stage and ask the right questions… everything needs to be covered

Steve Watson, Head of Professional Indemnity at Zurich

“Firms also need to be very diligent at the planning stage and ask the right questions. Everything needs to be covered. Often what you find is that claims start to crystallise when a project nears completion, and the client says, ‘hang on, I wanted a blue building and this is red’.”

Getting the right planning permission to fully cover ambitious projects – such as basement extensions – can be challenging, while keeping up to date with building regulations and the use of new materials remain perennial hurdles for the profession. In addition, many projects are becoming more complicated. Buildings are expected to be more energy efficient and there are heightened expectations around things such as disability access.

Raise their game

“If an architect isn’t keeping up to date with what these changes mean in practice, they can face allegations of negligence later on,” says Watson.

Architects should also avoid taking on too much work. For some time there has been pressure to reduce architects’ fees and often firms can be tempted to take on more and more work to supplement income levels – making mistakes more likely.

Above all, brokers need to provide robust advice to their clients on both the quality and extent of cover they are purchasing. “They may think that indemnity limits of £1m or £2m are okay, but end up doing work that exposes them to claims much higher than this,” says Watson. “Brokers need to stress to their customers that they aim to get to the heart of what their client wants and they need to ensure that this is expressed clearly in a contract, removing as much subjectivity as possible.

“That’s how to minimise claims and keep premiums as reasonable as possible.”

Professional Indemnity new minimum premiums

October 15th, 2014

Hensure Business Insurance is pleased to announce that the underwriters behind their on-line scheme have recently done a review of their rating structure and have reduced their minimum premiums in a number of areas.

It has now possible to buy professional Indemnity Insurance for some of the lower indemnity limits at the following premiums , subject to qualifying criteria.

Limit of Indemnity Price

50 k £ 67.40 inc Taxes and Fees
100k £ 78,00
250 k £ 88.60
500 k £ 109.80
£ 1m £ 131.00

Our scheme rates for Public Liability have also been reduced with minimum premiums starting from £ 22.50 + Insurance Premium Tax at 6 %.

We are also pleased to announce that R K Henshall and Co Ltd our parent company, has recently been awarded with Chartered Broker Status. Chartered status is an exclusive title only awarded to firms which meet rigorous criteria relating to professionalism and capability. All Chartered Insurance Brokers commit to the Chartered Insurance Institute’s Code of Ethics, reinforcing the highest standards of professional practice in their business dealings ‘

R K Henshall and Co Ltd achieves Chartered Status

September 22nd, 2014

The Chartered Insurance Institute (CII) has awarded the prestigious ‘Chartered Insurance Brokers’ title to RK Henshall & Co Ltd, one of the area’s leading providers of insurance advice and support.

Chartered status is an exclusive title only awarded to firms which meet rigorous criteria relating to professionalism and capability. All Chartered Insurance Brokers commit to the CII’s Code of Ethics, reinforcing the highest standards of professional practice in their business dealings.

RK Henshall & Co Ltd, were established in 1976 and since then have developed a reputation as one of the area’s leading independent insurance brokers. RK Henshall specialises in providing independent advice on all types of insurance for individuals and businesses.

Allen Simpson, director, who holds the individual Chartered Insurance Broker title, says that securing Chartered Insurance Brokers status is a landmark for the company: “We have always prided ourselves on being thoroughly professional in everything we do, and to receive external recognition in this way is very gratifying. As Chartered Insurance Brokers, we can signal our commitment to the highest levels of service to our customers”.

To date, less than 100 firms have achieved Chartered status, indicating that this is a highly exclusive award reserved for the leading firms of the broking industry.

For further information, contact Allen Simpson on 01270 758070.

CII

As the premier professional body for the financial services profession, the CII promotes higher standards of integrity, technical competence and business capability.

With over 100,000 members in more than 150 countries, the CII is the world’s largest professional body dedicated to this sector.

The CII works with businesses to develop bespoke, company-wide solutions that ensure competitive advantage by enhancing employees’ technical and professional competence.

Individually, CII’s members are able to drive their personal development and maintain their professional standing through an unrivalled range of learning services and by adhering to the CII’s Code of Ethics & Conduct.

Professional Indemnity Insurance Market News

September 2nd, 2014

There have been some changes over the last year or so to various insurers strategies when it comes to writing Professional Indemnity Insurance Risks.

Aviva pulled out of the Professional Indemnity Market over a year ago and let over £ 20,000,000 of Premium lapse off their books .They  Insurer did not believe that this was a viable line of business for them anymore in light of a poor performing book.

W R Berkley have pretty much pulled out of writing Professional Indemnity Insurance for a number of traditional trades- Architects/ Engineers/ Surveyors/ Accountants. Again citing poor underwriting results as the main reason.

Royal and Sun Alliance have recently stopped taking on any more new business for Design and Construct type exposures due to a poor performing book in this area. They are also looking to step back from writing too many Architects.

As the capacity reduces in the P I Market and insurer’s appetite towards writing the more traditional trades diminishes, then this will inevitably lead to rate increases from the remaining insurers in the market.

Watch this space.. there could be tough times ahead for clients who require Professional Indemnity Insurance !

 

Do You have a Disaster Recover Plan ?

September 2nd, 2014

When a crisis strikes, having a well thought out disaster recovery plan in place can make a huge difference as to whether your business survives or not.
Swift decisive responses can see your business emerge from a crisis with its reputation in tact & enhanced.  The key is to establish a solid disaster recovery plan and you should consider worst-case scenarios and put strategies in place that are essential to deal with a sudden disaster.

A Disaster Recovery Plan should cover:-
*Acts of Terrorism
*Natural Disasters & Severe Weather
*Fire
*Accidents
*Social Media Activism & Defamation
*Medical Emergencies
*Criminal Activities or Violence
*Outbreaks of Infection &
*Hazardous Materials

 

R K Henshall and Co Ltd can provide valuable advice in this very important area. Please ring us on 01270 758070 if you would like any help.

Cover, Safety and Service: What Contractors Need To Know

August 11th, 2014

You will know that if you work in the construction industry then you need to make sure that your insurance is organised on the correct basis. If you buy your insurance based solely on price then you are missing out on vital services that only select brokers can provide – services that will save you time and money. An expert broker in the construction insurance industry knows that contractors need the right covers and services that include superior risk control, claims processing and underwriting service.

Risk Control
Rather than relying on general advice, brokers who specialise in the construction industry can give you tailored industry guidance. The most dedicated brokers will send a Account Executive to your worksite in order to observe your operations and create a customised risk control and safety programme tailored to your unique business needs. Only after a broker understands your day-to-day needs and challenges can he or she provide meaningful solutions.

A good risk control programme should emphasise safety as paramount. Worksite accidents are expensive, both in terms of compensation costs and future premium increases – but also in hidden costs. You may not realise just how expensive an accident can be:

Loss of profits: Accidents may interrupt work for a time period or even cause projects to run late. In addition, property damage involved in the accident may be time consuming and costly to repair.

Soft costs: Accidents may also require manpower to be redirected away from completing construction work to manage other responsibilities, such as additional paperwork, meeting with investigators or following up on investigations.

Market image: No one wants to hire a contractor prone to accidents, and one or two high-profile accidents could give your firm a bad reputation. Your safety track record is an important component to winning future bids.

Psychological impact: Other employees often have strong reactions following a serious or fatal accident. They may blame the company for not protecting their co-worker or may simply need time to deal with the trauma they witnessed or were a part of. This could impact your employee retention and ability to hire quality workers.

These examples show just how important an effective safety programme is, and a good broker will help you develop comprehensive safety initiatives to address any and all risks your company faces. Remember, too, that certain safety initiatives are mandated by law. Plus, many construction insurance policies will only pay claims if you can demonstrate that your company follows strict health and safety guidelines.

Claims Processing
The aftermath of an accident can be a stressful and overwhelming time, and you need a broker who is quick, efficient and knowledgeable with handling claims and helping you manage the accident site. Your broker should have extensive experience with construction industry claims, so that your claim is properly handled.  You may have to deal with the media or the police, and your insurance representative can help manage that situation. Some brokers will insist on waiting for a claim to be processed before visiting the site, but dedicated brokers will be there immediately to help with preserving evidence, serving as a liaison and managing the accident site.

Breadth of Cover
There are many types of cover that a contractor needs, and only agents that specialise in the construction industry will be able to ensure that you are fully covered. If your broker takes the time to learn and understand your business operations and the unique risks of your company, he or she will be able to put together a comprehensive cover package.

Your broker should know how to coordinate your various policies to ensure that there are no gaps in cover. When a claim occurs, a good broker will help liaise with the insurers to sort out who will handle the claim. Some policies may have exclusions that your broker should be aware of and can address with an alternative solution. If you work in multiple countries, that also may have implications for your covers. Your broker must understand and manage all of these aspects to ensure that you are appropriately covered.

Another risk issue in the construction industry is subcontractors. You should be able to count on your broker to advise you on how to handle that relationship to best protect yourself. For instance, you may be liable for mistakes made by a subcontractor. A good broker will also assist you in handling any claims that arise due to a subcontractor’s mistake, which can potentially be messy and confusing.

Underwriting Service
Underwriting can hold up the quoting process when putting together a cover package. However, brokers who have relationships with insurers and underwriters they trust can work to ensure the quickest turnaround time for a quote. Though this behind-the-scenes exchange normally does not impact you directly, brokers who work with reliable, responsive underwriters can save you time when quoting a renewal or new policy.

Obtaining insurance should be a strategic component of your business. Developing a comprehensive insurance programme to support your unique business needs is not something just any broker can deliver. At RK Henshall & Co Ltd., we specialise in construction insurance and our dedicated agents are committed to learning your business and developing a customised insurance and safety plan for you. Contact us at 01270 758070 today.


Copyright © Hensure | Hensure Business Insurance Consultants is a trading name of RK Henshall & Co Ltd. www.rkhenshall.com. RK Henshall & Co Ltd are authorised and regulated by the Financial Conduct Authority. Registration Number: 308865. www.fca.org.uk. Written quotations, policy terms, conditions and exclusions are available on request. Privacy policy, Cookie policy, Complaints Procedure
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