A brief description of commonly available commercial insurance products:-
This cover is required by law for most companies but there are some exceptions. For the vast majority of employers, this cover is compulsory, even if your ‘employees’ are ‘labour only subcontractors’. It is designed to cover the cost of legal expenses and compensation to employees who are injured at, or become ill through work, where you are shown to be responsible at law.
This cover is designed to cover the cost of legal expenses and compensation which arises from the allegation of a negligent act by third parties. In the main these will be liabilities which emanate from your business premises or from actions of your workers at other locations, in connection with your business activities.
The purpose of this cover, is to cover the cost of legal expenses and compensation , for which you are legally responsible, for third party property damage or third party injury, which arises from the supply of products; a product is generally anything you handle, alter, process, store, assemble, manufacture or supply.
Policies in this area are designed to provide cover for the cost of legal expenses and compensation, for financial losses which flow from alleged negligent advice, error or omission. They cover only professional activities; such as design, advice, specification, formula and non-manual supervision.
The covers, collectively described as Management Liability are designed to cover the cost of legal expenses and compensation which arises from the allegation of a negligent or wrongful act by a Director of a Company or the Company itself in the management of the business. It differs from Public Liability described above, in as much as the emphasis of these covers is about the corporate governance of the business itself, rather than its operations. There are 3 areas of cover in this space;
Directors and Officers, which provides Directors protection where there is an allegation of a direct causational link between an alleged error, negligence or wrong doing and the loss by a third party.
Employment Practices Liability which provides cover for issues which arise out the allegation of some form of wrongful act, in relation to employees.
Entity cover which provides cover for the business if they are accused of wrongdoing in the governance of the business, this last section is usually only available to private limited companies.
Policies available in this class are designed to provide an indemnity to you for the consequences of a loss of data. The cover is focused on providing mitigation and prevention of loss, in addition to compensation for affected third parties. Standard cover in this class does not extend to you losing your own money by cyber-attack, although some policies can be extended to provide cover in this area.
This cover relates to things you can see, feel and touch. Perils such as fire and flood damage to your own property are covered here. Cover is generally now based on an All Risks of loss or damage basis; this does not mean everything; it just means that cover is granted, unless it is specifically excluded.
Insurance purchased in the UK generally excludes cover for terrorist acts. Cover can be purchased as an additional cover from your Insurer, they will provide cover that is backed by Pool Re, with the UK governments standing ‘Insurer of last result’ alternatively, cover can be purchased in market in the same away as other insurance products with the same risks.
The covers referred to in this class are arguably the most important of all, for you the policyholder. Established businesses who suffer major loss are unlikely to survive, unless their cover in this space is correctly arranged. Cover is provided for the increased costs of working and /or the loss of revenues flowing directly from Insured material damage.
This class provides cover for loss of cash. There is less need than in the past, but still very valuable cover for some.
This class of insurance covers loss of property including money by theft, fraud or deception including by electronic means, cover differs widely and advice is needed in order to know what is right for you.
Movement of goods
This area is very widely misunderstood by goods owners. The golden rule is, if you own goods (anything physical) which is transported anywhere locally, nationally or internationally, you should arrange insurance to protect those goods, irrespective of who is actually transporting them. We can tell you individually more about your exposures, but the statement above will always apply.
This covers damage to machinery whilst being moved. There are specialist needs for this type of cover for some trades, but a lot of manufacturers move their own machinery around their own works themselves and need to be aware of this area of cover, more importantly, that without it they may well be exposed.
Covers in this area are about providing cover for the value of goods which will form part of a contract. This might be building materials in a classic construction sense, or may be quite complicated machinery in an engineering installation environment. If you have exposures in this space you need our advice. There are a lot of things to consider in this area and we are just mentioning it here to draw your attention to this class. Within this area generally comes cover for hired in plant and own plant, both of which can also be purchased alone.
Motor Insurance designed to cover your liabilities to third parties, is compulsory in the UK under The Road Traffic Acts. In addition, you can generally purchase cover for damage to the vehicles themselves. Cover is available in single vehicle policies, fleet and motor trade road risks. There are also covers available for what are known as special types i.e. plant/agricultural vehicles.
This is just a glimpse of the covers available. There are a great many more that have not been mentioned here. This information is designed to give you a flavour only, of the covers available and the kind of questions you should be asking. We would be very pleased to guide you through the choice of appropriate covers for you.