If you are looking for an insurance policy, you might believe that the use of a middle man is a hindrance and not a help. In this case, you turn to price comparison sites to look for the cheapest policy. This may not always be the best way, as some policies that you will be offered may be fairly generic. You could also be underinsured, which could compromise a claim process. So why use an insurance broker?

In this article, we will cover five reasons why using a broker might be the best choice.

1. Impartial and expert advice

Because insurance brokers are independent companies, they are not tied to any one insurer. They can offer impartial advice tailored to your personal and business needs. A chat with you is usually all they need to find a suitable policy from the insurers they work with. This means you get the right cover at the right premium. Also, you probably do not have the time to study the technicalities of, say, professional indemnity insurance. However, a lot of brokers have, and that makes them an expert. You benefit from that expertise when they speak to you about the cover you need. That same expertise extends to mid-term changes and queries, too, with the bonus of personal service in some cases. That is not always the case with large direct operations or comparison sites.

2. Cover

Insurers can only offer you one policy: theirs. This is often written for the mass market, and it will not be tailored to your specific needs. Multiple business activities, high-value property or exceptional contract requirements could mean you need something different. A broker recognises extraordinary requirements, identifies the cover you need, arranges it with a suitable insurer and ensures that your documents are correct. They will also tell you if you are already covered by your existing policies so you don’t overlap.  Certain insurances such as professional indemnity and public liability insurance can sometimes be complex; if you are unsure of where to start, asking an impartial expert could prove useful.

3. Cuts through the jargon

Insurance policies can be challenging to understand because covers are technically spelt out. Getting an insurance broker who understands the details and can explain each policy is a huge step into finding the right insurance. For example, if you are insuring your home or starting a new business venture, trying to understand terms like uberrimae fidei, subrogation and indemnity could be confusing. An insurance broker cuts through the professional jargon to determine which policy will protect your business and possessions. This means you can focus on decorating your home or making your business profitable.

4. Manages your claims

This is probably one of the best reasons to use a broker. When the worst happens, you need all the help that you can get. If you need to make a claim, a broker might speak to loss adjusters and the claims departments to ensure the process is hassle-free. Also, brokers understand the technicalities of your policy, therefore they can argue your case in the event of a disputed claim.

5. Know your options

Brokers can help point out the types of cover available and what cover you need. They also take the time to explain the fine print of your policy so you know what you are signing up for. Situations might change in future, and your insurance needs to reflect this. Brokers ensure that you continue to get the right cover at the right price.

The post Why Use an Insurance Broker? appeared first on Cowens.

Edward Hamilton comments- “This is the process of convincing a victim to willingly send money to a Hacker using very, VERY convincing conversation.

I have personally had experience of three friends in the last few months who were on the verge of losing money to these types of attacks and whilst it is most likely you will get a call from these hackers as a home user, the benefit of this advice does also carry over to your work. I am not attempting to scare with the following points, but these hackers are professional and organised. So please pay attention on these brief guidelines to stop you becoming their next victim:

• If in ANY doubt when someone calls you from a Bank or Internet Service Provider or Software Company, hang up and call them directly using a previously known number. Even if you were expecting a call from that company. This is the same advice as don’t reply to a suspicious email, just use existing contact details you already trust. If the Hacker calls you back, do the same thing again – Call the company directly or get advice from your local trusted IT Manager. Just to note, you will never receive a legitimate call from Microsoft – tell them you will alert the police and to not call back.

• No-one and I mean NO-ONE that you do not trust implicitly, will EVER ask you to download and run a file on your Computer. If they do, do NOT do it. This allows the hacker full access to your computer. Once that happens, literally everything you access is now compromised. Once you realise what has happened, you will (or should) spend the next few days changing the passwords on literally everything. And your online identity is also now at risk and you have now been added to a list of targets that is shared amongst criminals. You can then expect more calls of a similar nature.

• There are various, very clever ways of convincing you the caller is legitimate. This is called Social Engineering and several very switched on individuals I know, have been caught out.

• If you pay these criminals, in most cases you will not be able to recover the payment from the bank because ‘you’ paid them and the money was not stolen.

• So – you get a call, you think it is legitimate. You allow them to run some stuff on your PC. At some point you think – this does not feel right. You must immediately kill your internet connection. Simplest way is to turn off your main router. That will buy you some time to speak to your bank to freeze your account but you must act quickly. It becomes a race against time to stop money disappearing from your online bank accounts and remove access to critical things like your email account. Your computer must also be checked for any surreptitious software before it is allowed back onto the internet.

If you are a business and are concerned about your cyber risks, please contact Cowens on 01623 649931 or info@cowensgroup.co.uk

Cowens- Insuring your future today…Ensuring your future tomorrow

The post How to spot Social Engineering- An interview with Edward Hamilton, Cowens IT Manager appeared first on Cowens.

In light of HMRC’s recent warning against fraudsters using email, text and even social media to scam money from unsuspecting taxpayers, it’s never been more important to ensure you have the right policy in place to cover all eventualities.

Many people don’t realise this type of incident is actually covered under a crime insurance policy. It covers real money rather than a cyber policy aimed at losing data and subsequent associated costs. This is where it becomes confusing and an easy mistake to make when the criminals have used cyberspace to facilitate their fraud.

Karl Sutcliffe, Broking Director at Cowens Survival Capability, commented: “Almost all of us have received a scam HMRC ‘tax rebate’ or something similar and businesses are no different. Scam phone calls and emails come through to some businesses on almost a daily basis containing fraudulent invoices, requests for bank details or cheque signing. These operations are well-thought-out and extremely convincing.

“In cases such as the HMRC scams, where actual money is moved from an account, crime insurance is essential. We’ve noticed a surprising number of businesses who believe their cyber policy will fully cover theft of this type, but sadly it isn’t the case. The good news is that a crime insurance policy can be easily added to your commercial programme, and the premiums are tailored to individual risks – we ensure all clients understand the difference in cover and that they have in place exactly what they need as these scams become increasingly widespread and professional.”

Some cyber policies offer a crime extension, but this still may not cover a business for all eventualities. CEO at Cowens, Paul Chaplin, said: “The issue with crime extensions on cyber policies is that the cover is often quite a lot narrower, even in cyberspace. Some extensions only cover pure electronic theft; therefore, if the insured is involved in any way – for example, if they open an attachment or transfer the money to the criminal, there is no cover at all. It’s also essential to remember that a cyber policy will not cover theft by an employee or a face-to-face trick, and a simple crime extension won’t cover the vast majority of standalone crimes. I cannot emphasise enough how important it is to have a competent insurance broker who understands the differences in cover.”

Karl continued: “In cases like the HMRC scams and similar, your employees can be your biggest weakness. I’ve seen a business lose thousands because a scam was sent to a busy employee who wasn’t briefed properly or wasn’t paying attention! Start with communication and strategy; every staff member should receive step-by-step training on what to do if they believe they are at risk and should know who to report any concerns to. Businesses should put a whistle-blowingCrime concept.

Procedure in place – your IT Manager must alert your Financial Director of any suspicious activity, for example, and appropriate action is taken.

“Businesses should have a minimum two-step authentication process on all payments and quarterly fraud risk assessments across the whole business. You should work together with your insurance broker and bank to ensure all precautions are in place, as this will ensure your insurer will assist and settle any claims should the worse still happen.

“Finally, remember if something seems too good to be true, it usually is! Always encourage staff to be vigilant, put precautions in place and together with a tailored commercial crime policy, the potential impact on the business will be significantly reduced.”

For more information on putting a crime insurance policy in place for your business or assessing your other insurance requirements, contact Cowens on: info@cowensgroup.co.uk.

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What is a Management Liability Policy?

The covers, collectively described as Management Liability, are designed to cover the cost of legal expenses and compensation which arise from the allegation of a negligent or wrongful act by a company’s director or the company itself in the management of the business. These covers are about the corporate governance of the business itself, rather than its operations. There are three areas of cover in this space;

Directors and Officers cover provides directors protection where there is an allegation of a direct causational link between an alleged error, negligence or wrongdoing and loss by a third party.

Employment Practices Liability provides cover for issues that arise from allegations of some form of wrongful act concerning employees.

Entity cover 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.

What is a wrongful act?

According to the Association of British Insurers, wrongful acts include:

• Breach of duty
• Breach of trust
• Neglect
• Error
• Misleading statements
• Wrongful trading

Mistakes happen. However, even if a director or officer acted in good faith and did not intend to commit a wrongful act, this could still trigger a claim.

How Management Liability Insurance protects you

It pays your defence costs and any final settlement or compensation award following legal action against you or your company. Your policy covers a wide range of claims, from wrongful trading to breach of trust.

Why you should consider Management Liability Insurance

• Your senior leaders could lose their positions as directors if a claim is brought against them and they don’t have management liability insurance.
• The cover extends to anyone who makes a claim against your company, including competitors, shareholders, suppliers and employees.
• You are protected against the fallout from rising company regulation and greater scrutiny of directors’ duties, actions and responsibilities. The Companies Act 2006 highlights statutory obligations that a director must comply with and could be held personally liable in the event of a breach.

The post Why You Need Management Liability Insurance appeared first on Cowens.

KP snacks have been the latest high profile company that have been hit with a cyberattack. In a statement, KP Snacks said: “On Friday, 28 January, we became aware that we were unfortunately victims of a ransomware incident. As soon as we became aware of the incident, we enacted our cyber-security response plan and engaged a leading forensic information technology firm and legal counsel to assist us in our investigation.

We have been continuing to keep our colleagues, customers, and suppliers informed of any developments and apologise for any disruption this may have caused.”

In these types of cases, hackers will gain entry to a computer network, steal data, and then copy the victim’s sensitive documents. In return for deleting and decrypting these files, hackers demand a sum of money, which often comes at a very hefty price point.

Last June, the largest meat processing company in the world, JBS, suffered a ransomware attack which caused disruption to meat supply lines in several countries. To resolve the situation, the company forked out the equivalent of $11m (£7.8m) in ransoms to the criminals who hacked them.

You may think that cyber crime is only relevant to large organisations but SME businesses and individuals are being targeted on a more regular and frequent basis, with just as devastating conclusions for a SME and an individual as the aforementioned larger organisations, especially as SMEs and individuals lack the IT protection clout of a large organisation.

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• The school children who recycle and ensure landfill waste is reduced
• The young couple that builds a carbon-neutral house with green roofs
• The retired couple that fit solar panels into their roof
• The family that invests in an electric vehicle to reduce fossil fuels
• The community centre that encourages tree planting to improve air quality
• Support of local businesses to develop local communities
• Businesses such as Cowens that have an agile working environment that reduces commuting impact and enhances employee wellbeing

It can be agreed that this commitment helps us develop a healthier community.

So, what’s the issue?

As we move towards a sustainable world, it is essential to understand the challenges involved in making this transition. This is not to be negative but to promote awareness around implications that supports a safer future.

Solar Panels

All electrical installations, by their nature, carry some fire risks. Although the fire caused by solar panels (PV) are rare, evidence shows that fire outbreaks involving a building with a solar panel can present an increased risk to residents and firefighters. The potential causes of fire incidents have been linked to poor installation or incorrect and faulty equipment. Also, there have been reports of installations of AC isolator switches having been used in DC circuits, resulting in a heat build-up within the switch enclosure, causing a fire. Thus we can conclude that electrical fault and improper installation are the leading causes of a fire outbreak. These factors must be considered to reduce or prevent fire incidents.

Yet, if most electrical connections are placed underneath the solar panels fixed to the roof, how are the connections maintained or inspected? Often, a scaffolder would be required to access the panels, plus the expertise to remove or replace each panel to inspect the electrical connections. It should be noted that PV systems are marketed and sold as being maintenance-free.

Also, there are no installation regulations even though solar products must meet the UK’s quality assurance standards. To reduce fire risks, you can consider roof access for maintenance, cleaning and replacement if necessary. Also, put an emergency response plan in place in case of a fire outbreak.

Electric Vehicles

Electric vehicles are generally considered cheaper to run because of the electricity cost, cheaper VED road tax, congestion charge exemptions, and other incentives. But one aspect is inevitable; if the vehicles are more expensive, damage claims will be costly, leading to higher insurance premiums. Currently, electric vehicles/fleets are still in their infancy. Given the extra costs involved in repair or replacement, motor insurance costs will likely increase rather than reduce. Therefore, if you consider purchasing an electric vehicle/fleet, these are factors you should consider.

From an insurance point of view, other factors to note are insurance for the batteries and charging points, third party liability risks, placement and implications on your home insurance policy. If it’s a commercial vehicle, here are things to consider: are you installing charging points in employee’s homes? have you considered the insurance costs? Are you installing charging infrastructure on your sites? Do you need to insure charging points, and where will they be located? Do you need a battery cover? For commercial risks, check your insurance policy; there may be restrictions or exclusions for charging electric vehicles unattended, i.e. overnight.

Modern Construction Methods (MCM)

Homebuilding has relied on locally sourced materials and regional variety to create various construction methods and materials in the UK. However, there is a gradual shift from traditional brick, block and concrete towards modular, pod and timber frames. This is fuelled by the desire for more sustainable building solutions to building cheaper homes quicker. Although the construction process is generally quicker and simpler,  a high level of precision and attention to detail must be used to stop fire outbreaks in modular buildings. MCM offers some advantages over traditional construction methods. For instance, on-site labour has been reduced, and modular factory-based parts production results in consistent construction quality.

Despite some of these advantages, there have been some concerns over the limited understanding of risks involved in MCM. For instance, properties constructed this way, especially modular construction, can be challenging to insure adequately. Replacing part of a ceiling damaged by a water leak will not be as straightforward as cutting out the affected area and replacing it. Replacing a part of a load-bearing panel may cause structural issues. Therefore, whole sections of a building might need to be rebuilt to address a small amount of damage.

Fire is a particular concern with MCM. Timber-framed properties are vulnerable to fire, especially during the construction phase, because the material is combustible. Also, if a panel is compromised, the risk of a fire outbreak is increased. The materials used in construction could impact the level of insurance cover required and the premium. Any property which has been constructed using out of the ordinary building techniques may likely need bespoke broking. In other cases, some insurers may avoid what they see as challenging to cover nonstandard construction in favour of traditionally constructed properties. Cover may be offered at a higher premium or declined, which could be challenging for clients who need to protect these properties adequately.

Before embarking on a construction project involving MCM, you must understand what you are getting into and be prepared for the risks involved.

Recycling

Recycling is an important aspect of achieving a sustainable company. However, in many cases, the recycled items will have to be held on-site for a considerable time until a quantity is reached that can be economically removed. This can cause issues with your insurance arrangements, as many insurers have conditions in place that cover the storage and frequency of removal from buildings and/or waste sites, including items going to recycling in many cases. If recycling is being held within the building or the collection is less frequent than weekly, you must check your policy conditions to ensure you comply with the terms. It is quite likely you or your broker will need to amend the policy terms. Equally, if you are reprocessing waste in any way, you should make your insurer aware.

For more articles about the challenges of a sustainable world, sign up for our newsletter. For more information about corporate and commercial insurance get in touch with Cowens today. 

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