PRODUCTS

A brief description of commonly available commercial insurance products for small and medium sized businesses:-

Employers’ liability

This cover is required by law for most businesses, but there are some exceptions. For the vast majority 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.

Public Liability

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.

Products Liability

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.

Professional Indemnity

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.

Management Liability

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.

Cyber Liability

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.

Material Damage

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.

Terrorism

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.

Business Interruption

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.

Money

This class provides cover for loss of cash. There is less need than in the past, but still very valuable cover for some.

Crime

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.

Lorega Loss Recovery

Loss Recovery Insurance provides you with the services of an expert loss adjuster, to help you prepare, negotiate and settle your eligible insurance claim(s) for material damage and business interruption claims, dependent upon the relevant sections of your commercial insurance policy being current at the time of loss.

Rent Guarentee Insurance & Legal Expenses

This cover provides protection to landlords against rent arrears and rent default of their residential let property.

Tools in Transit Cover

This cover provides Tools in Transit cover, providing peace of mind to workmen and women to quickly enable them to replace valuable tools in the event they are lost, stolen or damaged.