Classes of Corporate Insurance
Within the Corporate Insurance team, we provide service to a broad range of clients across all trade sectors.
Whilst on occasion this will involve the purchase of a specific trade insurance product (e.g. Property Owners Combined, Hotel Package, Motor Traders Combined etc) many of the insurance programmes that we design and arrange involve a combination of insurance products from a number of different insurers. Nevertheless, whether a specific trade package or a collection of individual policies, the protection arranged is likely to reflect some combination of the undernoted core classes of insurance:
Asset Protection / Property Insurance
Property insurance protects buildings and contents – such as stock and machinery - against loss or damage from risks such as
Fire, lightning, aircraft, explosion, storm, flood, impact etc
All Risks insurance provides wider cover but it is not possible to insure against wear and tear or deterioration.
Book Debts Insurance
Destruction of your ledgers, books and records relating to customer accounts would render it difficult or in some cases impossible for you to recover sums due to accounts outstanding and not paid at the time of damage. Duplication of records and storage away from your own premises will help protect you from major loss, but insurance cover is available at nominal cost.
Business Interruption Insurance
Apart from physical loss or damage arising from a fire or explosion you will appreciate that a drop in turnover may result or increased costs may arise in the aftermath at your premises. Additionally, in the event of the damage causing you to lay off employees, you would require funds to meet your obligations under contracts of employment. Special extensions of this cover also cater for:
- Fire etc. at the premises of major customers or suppliers
- Denial of access
- Loss of public utilities – electricity, gas, water
- Fire etc. at neighbouring premises preventing access to your own premises
Cover is available for loss of revenue and/or profit and/or Increased Cost or Working.
Comprehensive cover (e.g. medical treatment, personal/business possessions, loss of money, cancellation/curtailment, personal accident, legal expenses and personal liability) in respect of over-seas business trips; available either on a "one-off" or annual basis.
Specialist Insurers can provide package polices that will protect your hardware and software in respect of:
- All Risk physical damage both at premises or away from own premises
- Data carrying material
- Cost of Reinstating the data
- Increased Cost of working or loss of profit
Contractors All Risks Insurance
This wide form of cover can protect against loss of or damage to property, contractors plant, materials, work in progress and equipment at contract sites including tools and hired in plant.
The "dot com" culture is growing at a staggering rate and with this new medium comes a significant increase in risk. Companies who use e-mail, the internet or e-commerce face potential exposure to claims from the following areas:
- Downloading of Viruses
- Unauthorised Access
- Infringement of Copyright
- Failure of Web-sites
The Internet enables companies to reach a global audience. Therefore, this exposure to claims can come from any part of the world where the nature of the law and court awards can be very different from the UK. Cover under Cyber Liability can include:
- Infringement of intellectual property rights
- Breach of confidence or infringement of any right to privacy
- Misuse of any information which is either confidential or subject to statutory restrictions on its use
- Inadvertent transmission of a virus
- Fraudulent use by an employee of your electronic signature or external e-mail
- Damage to your own website
- Damage to your computer network or any data you hold electronically arising from unauthorised access.
Director's & Officer's Liability
Covers unspecified directors and officers, and the company to the extent it indemnifies them, for civil or criminal defence costs, legal representation expenses, damages (whether compensatory, punitive, exemplary or aggravated), judgements and settlements on account of claims by shareholders, employees, creditors, customers competitors, regulators and other third parties.
Employers' Liability insurance is a compulsory class of insurance. You may receive a claim from an injured employee who alleges:
- that they have been injured
- have contracted an industrial disease from exposure to harmful substances at work.
Employers' Liability Insurance protects you and your business against such legal liability claims and provides for the payment of compensation to employees who have been injured at work.
This type of insurance only provides compensation in the event that you have:
- been negligent and failed to provide a safe place of work
- not maintained plant and equipment in a safe condition
- failed to supply suitable and sufficient training
The cover will also pay for legal representation if an Enforcing Authority such as the Health and Safety Executive or an Environmental Health Officer from the Local Authority prosecutes you.
A firm can face claims from members of the public who enter your premises who may suffer injury through slipping or falling whilst on your premises. You would not be protected against such claims under your Employers' Liability policy. For these eventualities you should consider purchasing Public Liability insurance.
Employment Practices Liability
Protects the company, its directors, officers and employees for a claim brought by any current, prospective or past employee for a broad range of employment-related allegations, such as, wrongful dismissal, breach of employment contract, discrimination, breach of data protection laws, etc. Often this cover is packaged with a Directors and Officers Liability policy.
There are a number of statutory regulations that require the inspection and testing of plant and machinery on a regular basis. Equipment such as:
- boilers and pressure vessels
- ventilation and extraction systems used to remove hazardous substances from the workplace
- fork lift trucks and lifting equipment
All plant has to be inspected on a regular basis. This is generally done by means of engineering insurance. Engineering insurance is provided by specialist insurers and provides cover against electrical and mechanical breakdown. The cover will also include an inspection service that will meet the statutory requirements outlined above.
Protection is available against any or all of the following key exposures:
- Civil liabilities e.g. when contamination migrates from one site to another, threatening to harm land, buildings, personal property, businesses (revenues and profits) and people.
- Clean - up (regulatory) liabilities e.g. the Environment Agency can enforce the landowner to render the site safe and this could involve hundreds of thousands of pounds per acre in addition to legal and technical costs.
- Criminal liabilities e.g. Directors and Officers can be fined or even imprisoned, for contravening UK environmental law by breaching a Statutory Notice requiring a site to be remediated.
- Associated legal and technical costs e.g. professional costs either to bring or defend a legal action if all or any of the above liabilities are incurred.
Fidelity Guarantee Insurance
Cover is available for loss of money or property by reason of the default of an employee in fraud or dishonesty.
- Credit: Indemnity against non-payment of monies owed by creditors, usually due to insolvency.
- Bonds: A contract of guarantee whereby the Surety guarantees that a contractor's obligation, under his contract, will be performed.
- Warranty & Indemnity: Insurance against the non-performance of general or specific warranties entered into within a Sales and Purchase (or Asset Sale) Agreement. Indemnities are available to both vendors and purchasers.
Goods in Transit Insurance / Marine Cargo
You can insure on an All Risks basis for loss or damage to goods in transit by your vehicles and if required in transit by other means or other parties on your behalf e.g. haulier, sea or air freight.
Remember if you rely on your haulier to check the extent of cover and any limitations for damage to goods being transported.
Group Personal Accident
Provides lump sum and/or weekly benefits in the event that an accident renders an employee either permanently or temporarily disabled (can be extended to include sickness).
Hired in Plant Insurance
You require cover for legal liability to the owners of the plant hired-in (for use at your premises or site) for loss or damage to the plant and your liability to continue Hire charges while plant is out of commission. This liability arises under the conditions of Hire.
Cover is available in respect of loss due to, for example, not holding good title to land/property i.e. Defective Title indemnity.
Kidnap and Ransom Insurance
Provides cover for kidnap and ransom expenses for individuals and companies operating in high risk areas of the world.
Cover for costs incurred in defending actions brought against the company or costs of pursuing actions against third parties. Firms can face many types of claims in today's litigious society. There is a continuing growth in employment disputes involving unfair dismissal, harassment, discrimination and similar. Whilst your EL policy includes some legal expenses cover it does not cover these types of dispute and you may wish to consider taking out Legal Expenses cover.
Insurance cover for legal costs and expenses is available under the following heading of cover
- Employment Disputes
- Property Protection
- Employment Restrictive Covenant
- Tenancy Disputes
- Criminal Prosecution Defence
- Jury Service Compensation
- Statutory Licence Protection
- Contract Cover
- Data Protection Defence
- Tax/Revenue investigations and VAT appeals
In addition all year round telephone legal advisory services can be provided and manuals on tax and employment matters are available. Legal advisory service can also be on a group basis for the benefit or employees.
This type of policy relates to loss or theft of money in transit or held at the premises, and may be supplemented by Assault cover for your employees handling money.
Motor Fleet (company and employee owned schemes)
Tailored protection for small and large fleets, whether company or employee owned vehicles. A wide variety of cover, use and excess are available in respect of all vehicle types from private cars through to heavy goods vehicles and special types.
Pension Trustees Liability
Protects the organisation, the scheme, directors and officers, and employees involved in management of the scheme against a comprehensive range of allegations including, breach of statute, negligence, administrative error or omission etc.
Political Risks Insurance
Involvement with overseas subsidiaries and suppliers and or customers can give rise to significant exposures and new risks that warrant careful consideration. A range of covers exist which can offer you protection including:
- Non-delivery of goods purchased
- Export or Import restrictions
- Currency inconvertibility
- Contract cancellation or repudiation
- Confiscation Expropriation or Nationalism
- Riots, Strikes or Civil Commotion
- Product Extortion
Legal liability to compensate third parties in respect of financial loss arising from a breach of professional duty due to any negligent act, error or omission alleged to have been committed by the company or its employees. Could result in a claim against you as a result of omission, neglect or errors in any advice, design, formula, drawings or specifications supplied by you.
Public & Products Liability
Public Liability insurance is necessary to protect you against claims from persons who are not employees but might have been injured by your business. A typical example would be a claim from a customer who slipped and fell on your premises. Some businesses supply food and drink to members of the public. This carries the risk of illness such as food poisoning. If your business manufacturers and supplies products, your customers may be injured if the product is faulty, or if the instructions do not clearly state and describe the correct method of use. If your business is involved in the supply of goods then both covers are often packaged together under the one policy.
Products Liability Extensions:
Product liability protects you against legal liability for death, injury or damage to third parties arising from goods sold, supplied, repaired, altered or treated or their containers or related material (this excludes the cost of replacing the goods).
Cover is also available for:
- Product Recall cost for the expenses and losses involved in recalling and inspecting sound products in order to find rogue products
- Product Guarantee for claims arising out of the failure of a product to fulfil its intended function, covering also the cost of replacing or repairing the defective product. This wide form of cover is not easily obtained.
- Financial Loss cover deals with the loss arising from your legal liability to a third party because of defective or faulty products even though the third party may not have sustained any injury or damage to his own property
- Product Extortion protects organisations that are vulnerable targets to malicious product tampering or property damage extortion.
Terrorism is defined as "act of persons acting on behalf of or in connection with any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of Her Majesty's government in the UK or any other government de jure or de facto" (Reinsure (Acts of Terrorism) Act 1993).
The Terrorism Risk is an exclusion under commercial Insurance policies (other than employers' liability insurance where a limited statutory indemnity is provided). Cover can be purchased for an additional premium. Cover provided is on an "All Risks" basis including losses from chemical, biological or nuclear acts of Terrorism that result in physical damage to property. War and Cyber Terrorism Risks currently still remain excluded.
NEED TO KNOW MORE...?
For more information please get in touch with one of our branches.
Aberdeen: 01224 865410 | Edinburgh: 0131 221 6730 | Fife: 01592 205605 | Huntly: 01466 799830