Macbeth Insurance Brokers

Taken to the cleaners!

2010-10-13T01:52:00.000-07:00

Some cleaning contractors may be exposing themselves to risk that are not insured by choosing to take the most basis form of public liability cover.
Although these contractors will undoubtedly be paying a lower premium, they will be exposing themselves to some risk that can be insured under the range of policies more specifically designed for the cleaning industry.

A specialist cleaning contractor’s policy will generally include the following risks:

• Damage to property being worked on
• The security to customers premises (i.e. a cleaner fails to lock up properly)
• Loss of keys
• Misuse of customers phones
• The treatment risk in respect of carpet cleaning
• Theft by employees (this can normally be cover for an extra cost)

For more information on the various products available please contact Tony Gibbs on 0118 9452944 or email tony.gibbs@macbeths.co.uk

Employers Liability Crackdown!

2010-10-13T01:06:00.000-07:00

The Health & Safety Executive (HSE) are cracking down on employers who are neglecting to insure their compulsory employer’s liability risks. The HSE can impose fines of up to £2500 for any day on which an employer is without suitable insurance. If they do not display the certificate of insurance or refuse to make it available to HSE inspectors when they ask, they can be fined up to £1000.

Recent statistic revealing that up to 20% of small business may be running the risk with no insurance. Unfortunately, lack of knowledge is no excuse as far as the HSE is concerned and they have already set up a telephone helpline where employees can report their employers’ if they believe they do not have the correct cover.

For further advice on employer’s liability insurance contact Tony Gibbs on 0118 9452944 of email tony.gibbs@macbeths.co.uk

Macbeth's in Insurance Professional Magazine!!

2010-09-22T11:03:00.000-07:00

Macbeth's were recently mentioned in an excellent article in Insurance Professional which is a leading publication from Axa Insurance.

Why not take a look by by clicking here

David Mann joins the Macbeth Team

2010-09-21T03:47:00.001-07:00

Reading based Macbeth Chartered Insurance Brokers (MCIB) have announced the appointment of David Mann as senior client manager.

Prior to joining MCIB, David was commercial account handler at Jelf Group. He has 25 years experience in the insurance sector having also worked for Axa as a motor fleet underwriter, and for BJP and AON in commercial account handling roles.
Paul Macbeth, Managing Director of MCIB said, “This is a terrific appointment for us as David brings a wealth of experience and expertise with him.
"He will be an important asset to our business as we strive to become recognised as the specialist insurance broker for both wealthy individuals and commercial organisations in Berkshire and surrounding counties, including the M4 and M3 corridors, and London.
“MCIB prides itself on providing a very high level of service to our clients and providing them with suitable professional advice on their insurance needs - underlined by our Chartered status.”
Mann said, “MCIB is a professional modern business with a fresh approach to insurance that offers experience, integrity and an extremely high level of personal customer service, and I look forward to being part of that team.

www.macbeths.co.uk

Type rest of the post here

David Mann joins the Macbeth Team

2010-09-21T03:47:00.000-07:00

Reading based Macbeth Chartered Insurance Brokers (MCIB) have announced the appointment of David Mann as senior client manager.

Prior to joining MCIB, David was commercial account handler at Jelf Group. He has 25 years experience in the insurance sector having also worked for Axa as a motor fleet underwriter, and for BJP and AON in commercial account handling roles.

Paul Macbeth, Managing Director of MCIB said, “This is a terrific appointment for us as David brings a wealth of experience and expertise with him.
"He will be an important asset to our business as we strive to become recognised as the specialist insurance broker for both wealthy individuals and commercial organisations in Berkshire and surrounding counties, including the M4 and M3 corridors, and London.

“MCIB prides itself on providing a very high level of service to our clients and providing them with suitable professional advice on their insurance needs - underlined by our Chartered status.”

Mann said, “MCIB is a professional modern business with a fresh approach to insurance that offers experience, integrity and an extremely high level of personal customer service, and I look forward to being part of that team.

The Cost of Beauty

2010-09-21T02:06:00.000-07:00

One of my asscociates recently visited a client’s property and met a very risk aware client.

She had a number of vanity mirrors on dressing tables that looked out over the garden and rambling fields beyond. I advised her of the perils of vanity mirrors and how they can easily cause fires if angled in such a way to deflect the sun’s rays onto combustible material. She told me that she knew of this problem only too well and showed me the effects of what can happen. Fortunately, she was in the property at the time, smelt burning and discovered the smouldering makeup container and small chest of drawers before it had a chance to fully ignite and catch the curtains that were nearby and potentially engulf their house in flames.

They were underinsured. Following my visit the buildings went from £600,000 to just over £1,000,000, the contents from £125,000 to £150,000 and the antiques from £12,000 to just over £20,000. If the whole house had gone up including the general contents, fine arts and buildings they could potentially have been out of pocket to nearly £450,000!

If you would like more details about high value home insurance or advice regarding your sums insured, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk

What is meant by Business Continuity Planning?

2010-04-07T00:13:00.000-07:00

Disaster management, business interuption call it what you like, effective Buisness Continutiy Planning is now a major issue for Insurance companies.

Business continuity planning is a holistic management process that identifies impacts that threaten a company and provides a plan for building resilience and capabilities for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value creating activities.

Primarily, it is a management process that identifies potential threats that will impact on a business' ability to provide its customers with its products or services and the actions needed to ensure the immediate future following any major disruption. Or causes your business 'interuption'. How long can your company survive and 'interuption' before you start to lose money, your place in the market or your reputation?

Everyone involved in business has a duty of care in respect of the hazards it may cause to anyone. To take it one stage further a business needs to be able to demonstrate that it is able to meet its service levels and will cope with disasters competently because it has planned to do so.

If you would like more information on business continuity planning contact
Tony Gibbs on 0118 9452944.

www.macbeths.co.uk

Homes over £500K may have insurance gaps

2010-03-22T13:18:00.000-07:00

Hundreds of people with homes over £500,000 in Reading and the surrounding area could be leaving themselves open financially when it comes to insurance according to Reading based specialist insurance broker Macbeth.

This especially applies to people who also have contents worth over £75,000 plus jewellery and watches over £10,000.

Paul Macbeth, Managing Director of Macbeth’s said, “You can basically divide the home insurance market into two – higher value home and standard policies. They are very different in both scope and design, and in today’s market too many people do not understand there is a difference and select on price alone without realising they are leaving costly gaps in their cover.”

Higher value home insurance is designed for higher than average sums insured or for people seeking a better quality form of insurance for their homes, possessions and valuables.

Cover is restrictive in many respects and conditions will be applied. Typical limits of cover being £300,000 for buildings, £50,000 for contents and £5,000 for jewellery/watches although it may be possible to insure an additional, expensive item that exceeds the single article limit but charges to do so are usually expensive.

Paul Macbeth added, “And when it comes to claiming, the insurer’s service will generally be quite rigid with claimants being directed to the insurer’s own suppliers and repairers. There is no doubt standard insurance policies are great value for money if you have the average sums to insure. However, if you have an expensive home, contents, jewellery etc then a higher value home policy will be the most effective and competitive way to insure and avoids the tears.”

If you would like more details about high value home insurance, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk

Higher profile for Reading’s Macbeth

2010-03-22T13:13:00.000-07:00

Macbeth Chartered Insurance Brokers has hired specialist agency Concise PR to handle its public relations activities.

Reading's only Chartered firm, Macbeth, specialises in insurance for wealthy individuals and commercial organisations, and is looking to expand further throughout the Thames Valley and London areas.

Macbeth’s Managing Director, Paul Macbeth said: “Concise specialise in the insurance and financial services sector and we look forward to working closely with them to raise Macbeth’s profile as a provider of modern and professional insurance solutions which are tailored to each client’s requirements.”

Visit www.macbeths.co.uk

Jewellery Insurance - Why is it so difficult to insure single items

2010-03-21T09:41:00.000-07:00

Insuring single items of high value jewellery can be a real problem. Most 'standard' home insurance providers are unlikely to cover items of jewellery worth over £10,000.

The reason for this is that insurance companies like risks that are balanced and, if the level of jewellery is disproportionate to the general contents sum insured, it will fall outside the acceptance criteria of most insurers.

So if you have been to Graff, De Beers or Tiffany & Co and have purchased an expensive item, what do you do to ensure you have the right type of cover for a realistic price?

Macbeth have a number of solutions. If you would like more details about jewellery insurance, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk

What exactly is high net worth insurance?

2010-03-20T08:38:00.000-07:00

High net worth insurance is intended for individuals with higher than average buildings and contents. Typically these types of policies cover homes valued over £500,000 with contents exceeding £100,000. High net worth insurers can cater for the higher levels of fine art, antiques and jewellery than standard insurers can cope with.

Although premiums are likely to be more than standard home insurance, the cover is always much wider with far less exclusions and claims are dealt with quickly and sympathetically.

If you would like more details about high value home insurance, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk

Tie me Kangaroo down sport!!

2010-03-20T00:58:00.000-07:00

Macbeth clients, the Lemongrove Gallery are showcasing a new collection of Rolf Harris originals at their Harpenden gallery. The exhibition starts on Saturday 20th March 2010 and runs until Sunday 28th March 2010.

As well as insuring art galleries, Macbeth also offer art insurance to individuals or corporate art collectors.

Be prepared for the thaw

2010-01-13T06:19:00.000-08:00

The cost and personal inconvenience caused by a burst pipe claim can be considerable with claims often running into many thousands of pounds. Just a small fracture can release hundreds of gallons of water into your property; damaging carpets, walls, ceilings and also personal items.

The chance of suffering these losses can be reduced and we would recommend taking the following steps to do this:

General tips:

Check the location of your stopcock.

Check whether your boiler needs servicing.

Check the insulation on your water pipes and cold water tank, those in the attic or other vulnerable spaces should be lagged or similarly protected.

Modern methods of insulation can be so effective in keeping heat within your property that attics can become very cold, this could cause a pipe to freeze. We therefore recommend you keep your loft hatch open if you have pipes in the attic to keep this area warm.

Keep doors between heated and unheated rooms open to allow warm air to circulate.

Keep cupboard doors open below sinks to allow warm air to circulate around the plumbing.

Seal any holes or gaps that may be letting cold air into your property.

Make sure any valleys and gulley’s on your roof are kept clear and free from debris.

Make sure any external taps are turned off and disconnect any hoses.

If you discover a frozen pipe don’t wait for it to burst. Turn off your water supply and then slowly thaw the affected pipe by introducing gentle heat to the area e.g. hair dryer, space heater, hot water bottle. DO NOT attempt to thaw the pipe with a blow torch or other open flame such as a cigarette lighter or matches.

What if you are going away or the property will be unoccupied?

Keep your property heated to reduce the chance of a pipe freezing.

If you are going away for an extended break drain and shut off your water system.

Ask somebody to check on your property daily. This may not prevent a loss but early identification of an escape can help reduce the ultimate cost.

Ensure you have complied with any unoccupancy conditions or warranties listed in your policy.

What if the worst happens?

Turn off the water supply at the stopcock. This should prevent any more water escaping into your property.

Where practical try and catch any excess water in a bucket or other container.

Do not use any electrics if you believe these may have been affected by the escaping water. You will need to have these checked by a professional electrician.

Tips for insuring Fine Art & Antiques

2010-01-13T00:51:00.000-08:00

Some useful tips for insuring fine art and antiques, from a specialist:

Wide territorial limits: the cover should include whilst the art is removed from its normal location, including the transit. Examples of this include cover for when the art work is loaned out to a museum or exhibition, and whilst it is displayed at a different home (or office).

Depreciation cover: If the art is damaged and then repaired, the insurance should not only pay for the repair cost but also the decrease in the value of the painting after it has been repaired.

Cover whilst damaged by a professional restorer: If art is restored, and the professional restorer damages it, this should be covered by your insurance policy. This is because some restorers may not have the right insurance to cover this on your behalf, or may lack the financial means to compensate you in the event that they damage the art work.

Automatic cover for new acquisitions: New acquisitions of art should be automatically covered to some extent. This would give you the flexibility to add to your collection and have it covered immediately as it comes into your possession and ownership, without the inconvenience of having to notify insurers before it becomes covered.

If you would like more details of Fine Art & Antiques Insurance,please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk

Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

GUIDANCE TO EMPLOYERS DURING BAD WEATHER

2010-01-05T07:36:00.000-08:00

With the recent weather conditions we have received several queries regarding providing safe access and egress to workplace premises. Hopefully the following guidance will enable you to identify slip, trip and fall hazards, assess risk and keep your premises safe and hazard free during the coming winter weeks.

The following guidance has been issued by HSE.
As an employer and business you have a duty of care to employees and all those who may be affected by your business or activities, this includes visitors, contractors and members of the public accessing your premises.

Slip and trip accidents increase during the Autumn and Winter season for a number of reasons: there is less daylight, leaves fall onto paths and become wet and slippery and as you state cold weather spells cause ice and snow to build up on paths. There are effective actions that you can take to reduce the risk of a slip or trip.
Ice, frost and snow

To reduce the risk of slips on ice, frost or snow, you need to assess the risk and put in a system to manage it.

Identify the outdoor areas used by pedestrians most likely to be affected by ice, for example: - building entrances, car parks, pedestrian walkways, shortcuts, sloped areas and areas constantly in the shade or wet.

Monitor the temperature, as prevention is key.
You need to take action whenever freezing temperatures are forecast. Keep up to date by visiting a weather service site
Met office website
BBC weather website
Highways agency website
There are also smart signs on the market, available to buy at low cost, which display warning messages at 5 0 and below.

Put a procedure in place to prevent an icy surface forming and/or keep pedestrians off the slippery surface
Use grit (see separate article below for more detail) or similar, on areas prone to be slippery in frosty, icy conditions.
Consider covering walkways e.g. by an arbour high enough for people to walk through, or use an insulating material on smaller areas overnight.
Divert pedestrians to less slippery walkways and barrier off existing ones.

If warning cones are used, remember to remove them once the hazard has passed or they will eventually be ignored.

Gritting - the pros and cons
The most common method used to de-ice floors is gritting as it is relatively cheap, quick to apply and easy to spread. Rock salt (plain and treated) is the most commonly used 'grit'. It is the substance used on public roads by the highways authority.

Salt can stop ice forming and cause existing ice or snow to melt. It is most effective when it is ground down, but this will take far longer on pedestrian areas than on roads.

No tests have been carried out on how much grit to use. As a guide, on roads a rate of approximately 10-15gms/m 2 for precautionary salting and 20-40gms/m2 during ice and snow conditions is recommended.

Gritting should be carried out when frost, ice or snow is forecast or when walkways are likely to be damp or wet and the floor temperatures are at, or below freezing. The best times are early in evening before the frost settles and/or early in the morning before employees arrive. Salt doesn't work instantly; it needs sufficient time to dissolve into the moisture on the floor.

If you grit when it is raining heavily the salt will be washed away, causing a problem if the rain then turns to snow. Compacted snow, which turns to ice, is difficult to treat effectively with grit. Be aware that 'dawn frost' can occur on dry surfaces, when early morning dew forms and freezes on impact with the cold surface. It can be difficult to predict when or where this condition will occur.

Bags of rock salt can be purchased from most large Builders Merchants.

Other slip hazards can also arise from:
Wet and decaying leaves
Fallen leaves that become wet or have started to decay can create slip risks in two ways, they hide any hazard that may be on the path or they themselves create a slip risk.
Put in place a procedure for removing leaves at regular intervals; you might even consider removing the offending bushes or trees altogether.
Rain water

When fitting external paved areas ensure that the material used will be slip resistant when wet.

Discourage people from taking shortcuts over grass or dirt which are likely to become slippery when wet. Consider converting existing shortcuts into proper paths.
On new sites, before laying paths, think about how pedestrians are likely to move around the site. Putting the path in the right place from the start may save you money in the long term.

Many slip accidents happen at building entrances as people entering the building walk in rainwater. Fitting canopies of a good size over building entrances and in the right position can help to prevent this.

If a canopy is not a possibility, consider installing large, absorbent mats or even changing the entrance flooring to one which is non-slip.

For further health & safety information visit www.macbethrisksolutions.co.uk

5 Question poll on internet security

2009-12-17T09:45:00.000-08:00

We are interested on your views on internet security. Internet/cyber liability insurance is a relevantly new class of insurance, we are gathering information on how risk is perceived for companies with an online presence.

To complete the short poll please follow this link

To find out more about cyber liability insurance contact Tony Gibbs on 0118 9452944

New high value home policy launched

2009-12-17T08:17:00.000-08:00

Ecclesiastical Insurance have recently launched their Heritage Residential product which has been designed for clients with high value properties and/or fine art collections. Ecclesiastical estimate that as many as 72% of listed properties are either under or over insured.

One of the main benefits of the new contract is the expert building valuation service using a dedicated in house team. Ecclesiastical have a wealth of experience insuring listed properties and are committed to sympathetic restoration in the event of a claim.

If you would like more details of the Ecclesiastical policy or would like to discus listed property insurance further, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk
Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

It's a recession, so it must be a Rembrant sale

2009-12-08T23:29:00.000-08:00

Ahead of Christie’s forthcoming Old Master sale tonight (8 December) in London, Robert Read, fine art expert at specialist art insurer Hiscox, comments:

“If ever there was a painting to test the recessionary times it’s Rembrandt’s ‘Portrait of a man with arms akimbo’ which was last sold in 1974 during the oil crisis, and prior to that was sold in the Great Depression of the 1930s.

“That it’s up for sale again at the tail end of what many have labelled as the deepest recession since the 1930’s may be a coincidence but a world record price would be no surprise, given its quality, rarity and strong provenance.

“Both the Rembrandt and Raphael’s ‘Head of a Muse’ which is also included in tonight’s sale would, if they sell well, reinforce the pronounced shift in collectors’ appetite over the last year for more established, traditional and painterly works. Richard Wright’s Turner prize winning fresco, though temporary in existence, also proves that it’s not just the Old Masters reinforcing today’s demand for more ‘traditional’ art whether new or old, rooted as it is in the skills of the Renaissance fresco makers.”

If you would like to discuss your fine art insurance insurance further, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk
Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

Rich in cash, poor in psyche

2009-12-07T04:03:00.000-08:00

The recession has knocked the confidence – but not the cash reserves – of Britain’s Working Wealthy, according to a study released today by specialist insurer Hiscox.

The recession has left its mark on the psyche of the Working Wealthy with a lack of confidence impacting their perceptions of wealth and appetite for risk. Whilst two in five (41%) say the recession has not had an impact on the amount of money they have to spend, almost an equal number (44%) say they are fearful of the future and have been steadily stockpiling cash.

Three in ten (30%) are taking less risks financially compared to pre-recession and a similar number (26%) admit they are actually taking less risks in all areas of their lives.
As a result, the Working Wealthy have made cutbacks across the board – spending on socialising and restaurants has been slashed by 49% of them, as well as holidays (41%), weekend breaks (43%) and home décor (38%). In fact, one in three (30%) are spending more in discount stores.
Nearly a quarter (24%) have not been directly affected by the recession but feel they need to behave differently anyway. Furthermore, when they are spending, over a quarter (28%) say they are less conspicuous because they know people that are struggling financially.

Rich redefined

Despite owning valuable art (10%) and jewellery (11%), having savings of more than £25,000 (26%) and going on two or more overseas holidays a year (25%), the Working Wealthy believe that to feel truly rich in 2009, they would require an average household income of £152,865****, as well as:
• Owning more than one property (35%), or a holiday home (27%)
• More than £20,000 per year disposable income (48%)
• Being mortgage free (31%)
• Driving a luxury car such as a Ferrari (26%)
• Owning original pieces of art (13%)

Looking after what’s important

While they may not consider themselves to be rich, the majority (68%) of the Working Wealthy believe it is very important to be happy with what they do have, with many citing family (85%), health and well being (80%) and new life experiences (22%) as top priorities. For those questioned, 60% class their home and 11% class their possessions as very important, which comes as no surprise considering the amount of investment made – according to Hiscox data, the average Working Wealthy household says they own over £88,000 worth of household goods and £11,000 worth of valuables such as jewellery and watches*****.

Steve Langan, managing director, Hiscox UK, says: “The report shows that whilst the economic downturn may have left the wallets of many of the Working Wealthy intact, they have suffered a crisis of confidence and have scaled back their spending and exposure to risk.

“However, it’s more important than ever for the Working Wealthy to keep stock of what they do have and understand their affluence. Because they don’t feel well-off, it is all too easy to underestimate the value of what they do have. This means there is a real danger of them not making enough provision to protect themselves and their possessions which they hold dear - an interesting paradox given that many feel that they are taking less risk generally.”
The Hiscox Wealth Review 2009 also reveals:
• Over half (56%) think they will have to work past retirement age because of the recession
• More than one in five (22%) say the reduction in interest rates means their household now has more disposable income
The Working Wealthy Regional ‘Rich’ List:
Region Average annual household income needed to feel ‘rich’
North East £178,238
London £177,704
Northern Ireland £172,781
South East £163,296
East Midlands £155,297
Wales £152,677
West Midlands £151,341
East of England £146,322
Scotland £144,873
North West £136,047
Yorkshire & Humberside £131,409
South West £128,912

SME bosses risk legal action over ‘office antics’

2009-11-30T08:35:00.000-08:00

SME bosses could be leaving themselves open to legal action by being unaware of the level of sexism, swearing and shouting in the workplace, according to a new study* by specialist business insurer Hiscox.

At the same time, the study found seven in ten (70%) UK workers claim that bad behaviour is rife in their place of work - admitting that the regular occurrence of racist jokes, arguments and bullying could offend colleagues.

The study separately questioned UK SME bosses and UK workers about behaviour in the workplace. Comparing the responses revealed a considerable gap in attitudes between bosses and employees towards ‘office antics’.

SME bosses (70%) say they are ‘unconcerned’ about the threat of legal action, suggesting they are unaware of potential pitfalls. Even in today’s politically correct society, half (50%) find it acceptable to display ‘sexy celebrity’ calendars or rate the relative attractiveness of colleagues (49%), which may potentially cause offence. This is despite more than half (55%) of those workers surveyed claiming they would consider legal action if office behaviour crossed the line.

In fact, almost nine in ten (87%) SME bosses say staff need to be ‘grown up’ over office antics, with eight in ten (82%) believing there is nothing wrong with office banter and two in five (42%) saying it is not their role to regulate it. Half of UK employees (51%) disagree and believe their boss should do more to reign in unacceptable behaviour.

With the Christmas party season approaching, employers should be especially aware of the fact that ‘banter’ can easily cross the line to harassment. Over half (58%) of the UK workers surveyed expect colleagues to get drunk and misbehave at their festive bash, and two thirds (66%) think conduct is worse if parties are held in the office – as many companies are likely to do this year to cut costs.

Questionable conduct seen regularly in UK workplaces includes:

1) Use of nicknames for colleagues (61%)

2) Swearing (59%)

3) Use of pet names such as ‘love’, ‘babe’ and ‘hon’ (47%)

4) Hugging (42%)

5) Banter of a sexual nature (35%)

6) Arguments/shouting (33%)

7) Jokes of a religious, racial or sexual nature (28%)

8) Discussions about most/least attractive colleagues (16%)

9) Bullying (15%)

Callum Taylor, small business expert at Hiscox, comments: “In the modern workplace one employee’s banter can easily turn into another employee’s lawsuit. With 70% of employees citing behaviour in the workplace as often offensive, our research highlights an area of workplace culture that SME bosses must be more aware of in order to avoid unexpected legal action.

“This is a year round issue but one that will become particularly relevant in the office Christmas party season, particularly with many companies opting to cut costs and have their celebrations in the office. Having in place a clear code of office conduct and ensuring that behaviour falls within acceptable boundaries could help prevent a damaging and expensive legal action.”

Macbeth Chartered Insurance Brokers are business insurance specialists. Based in Reading, we have particular specialist knowledge in Property insurance, Business combined insurance, Liability insurance, Professional Indemnity insurance, Cyber Liability insurance and Motor Fleet insurance. For further information, visit www.macbeths.co.uk or call Tony Gibbs on 0118 9452 944.

Tips for businesses in the run-up to Christmas

2009-11-18T00:04:00.000-08:00

Businesses should be aware of the additional risks they face in the run-up to Christmas. Why not follow these top tips:

■Make sure your sums insured are adequate for increased stock
■Don’t block intruder alarms, sprinkler systems or fire exits with piles of Christmas stock
■Make sure you have alarms, sprinklers or other security equipment in good working order particularly if you are closing premises for any period over the Christmas holidays
■If you’re taking on additional staff, carry out thorough background checks and provide adequate training
■Consider extra security to protect your staff against drunken behaviour and prevent theft
■Regularly remove cash from tills during the working day and place takings within a safe (preferably with a time delay) – this will reduce the amount of cash stolen should a hold-up attack occur
■If large amounts of cash need to be banked or collected on a regular basis, then the safest method is to employ a recognised cash carrying company
■Be aware of how much money your policy will cover while on site, off site and during transit

Macbeth Chartered Insurance Brokers are business insurance specialists. Based in Reading, we have particular specialist knowledge in Property insurance, Business combined insurance, Liability insurance, Professional Indemnity insurance, Cyber Liability insurance and Motor Fleet insurance. For further information, visit www.macbeths.co.uk or call Tony Gibbs on 0118 9452 944.

AXA warns business owners to be prepared for crime over Christmas

2009-11-18T00:03:00.000-08:00

Business crime statistics from AXA show that Halifax currently tops the league for overall business crime, with businesses in Wolverhampton most at risk of theft and those in Kilmarnock of arson.

The company has this week unveiled its Business Crime Index (details below), revealing that some areas which have been hit hard by the economic crisis such as the North and the West Midlands are suffering as people turn to crime. The fear is that this will only rise in the run up to Christmas – particularly for retail businesses which will be more attractive to criminals due to increased stock levels and cash on premises.

AXA figures show that for the first half of 2009, the Halifax postcode area was the UK’s hotspot for crimes against businesses. Around one in 16 businesses in the area was a victim of crime during the first six months of this year with malicious damage the most likely type of offence to be committed.

On a wider regional basis, Greater London was the hardest hit area of the country with six postcode areas in the top twenty, followed by Yorkshire & the Humber, North West England and the West Midlands, largely reflecting statistics that show the recession is hitting the West Midlands and North the hardest. In Scotland, only one postcode region, Motherwell, appears in the top 20 and that is right down at 17th place although Kilmarnock placed higher than anywhere else for arson, or wilful fire-raising as it is called in Scotland.

Top 20 UK postcode areas for overall business crime in H1 2009

1. Halifax
2. Manchester
3. Bristol
4. Croydon
5. London SE
6. Northampton
7. London EC
8. Oldham
9. Sutton
10. Bradford
11. Doncaster
12. Wakefield
13. Dudley
14. Enfield
15. Liverpool
16. Wigan
17. Motherwell
18. Walsall
19. St Albans
20. Southall

Protecting businesses
AXA’s Business Crime Index looks at the levels of crimes against businesses based on claims received by the company. These include arson, forcible theft , non-forcible theft and malicious damage.

The average cost of all claims is around £3,806 with an average forcible theft claim standing at nearly £4,500 for the first half of 2009 while arson claims average a massive £17,200.

Christmas Crime

As retail businesses increase stock levels for Christmas it provides richer pickings for thieves. As takings rise and shops stay open longer, the potential for lucrative hold-ups also increases.

Alongside this drunken revelry can lead to malicious damage or even arson attacks on business premises – a particular concern this year as the number of unoccupied and unprotected premises has increased with recession.

Doug Barnett, head of customer risk management at AXA says: “Crime against business is a serious issue and this year we are concerned that the continuing recession could prompt a rise around the Christmas period. We would urge all businesses to work with local communities and police to protect themselves as well as taking sensible precautions, not least making sure they are properly insured should the worst happen.

“With 36,200 businesses predicted to fail in 2009, we can’t stress enough the importance of insurance to avoid becoming part of that depressing statistic.

“Business crime can have a devastating impact on a business and its employees – we hope we can work with the business community to keep this to a minimum this Christmas.”

Macbeth Chartered Insurance Brokers are business insurance specialists. Based in Reading, we have particular specialist knowledge in Property insurance, Business combined insurance, Liability insurance, Professional Indemnity insurance, Cyber Liability insurance and Motor Fleet insurance. For further information, visit www.macbeths.co.uk or call 0118 9452 944.

Driving in Europe : Ten tips on accidents abroad

2009-11-17T00:13:00.000-08:00

An estimated two million British tourists take to their cars for driving trips to neighbouring European Union countries each year. We advise drivers in Germany to be extra careful, as about two-thirds of the Autobahn network still has no speed limit

Ten tips on accidents abroad:

■If you break down on a French autoroute, you must use the SOS boxes to call for help, as it is illegal to call by any other means, eg mobile phone. The driver and all passengers must also have visibility vests when they leave the vehicle
■Visibility vests are also compulsory in Austria, Belgium, Italy, Norway and are likely to become compulsory throughout the EU
■In Germany it is obligatory to report all incidents to the police at the time it occurs, even a minor bump
■In Belgium it is highly recommended to carry a fire extinguisher in the car, as it is compulsory for all Belgian registered cars
■EU countries have stricter drink driving laws than in the UK, with blood alcohol levels being 0.5mg/ml instead of 0.8mg/ml
■The number for emergency services across Europe is 112
■If you have an accident with a lorry and trailer, remember to take down both the lorry registration number and trailer number, as well as most European countries have different registrations on the trailer and recoveries are not possible without the trailer registration
■In Switzerland, pedestrians normally have the right of way and will expect your vehicle to stop for them
■In Spain, if you wear glasses, you must carry a spare set in the car when driving
■If you’re going on a booze cruise to France, remember that five cases of wine is roughly equivalent to having another passenger in the car. Overloading could damage your car’s suspension, burn out the clutch or cause punctures and uneven wear on the tyres

Article courtesy of www.news-insurances.com

Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars. Visit www.macbeths.co.uk/premier-clients.htm

Winter holiday warning as new figures reveal that 11.3 million people travelled without insurance this summer

2009-11-11T00:50:00.000-08:00

Winter holiday warning as new figures reveal that 11.3 million people travelled without insurance this summer

■Over 2 million people don’t feel they need travel insurance(1)
■Those without insurance face collective costs of around £58 million
■Those under 34 are least likely to buy insurance cover(1)
■Sainsbury’s Travel Insurance offers a 10% online discount

Sainsbury’s Finance is warning winter holidaymakers to make sure they have adequate travel insurance, as it estimates that some 11.3 million Britons, over a third (37%) of those who went on holiday this summer, did so without any travel insurance to cover their trip. The new research from Sainsbury’s Travel Insurance(1) indicates that those under the age of 34 were most likely not to bother buying travel insurance.

With the travel insurance industry paying out just under £400 million each year according to the Association of British Insurers, Sainsbury’s Finance estimates that those travelling without insurance have collectively faced costs of more than £57 million which would otherwise have been covered by their insurer.

It is estimated that some 39% (1.6 million) of those aged 16-24 years and 43% (1.9 million) of those aged between 25-34 who travelled abroad this summer, did not or did not intend to take out travel insurance.

The most common reason for people not taking out travel insurance was because they felt they did not need it, with just over 2 million people (18%) saying so. Another 1.9 million people (17%) not taking out cover said that they could not afford it, which may be a reflection on the current economic climate.

Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

“Crash for cash” scammers earn an average of £16,000 per accident

2009-11-11T00:45:00.000-08:00

“Crash for cash” scammers earn an average of £16,000 per accident, according to the body set up to combat this type of fraud.

Richard Davies, deputy chairman of The Insurance Fraud Bureau (IFB), estimates that the fraudulent “crash for cash” claims submitted amount to £350 million a year.

He said: “Crash for cash is an exceedingly common problem. Back in 2006 it was worth around £200 million a year.

“You can make serious money from this. You can make an average of £16,000 per accident on this scam.”

Mr Davies said that typically, the staged accident involved a low speed collision and the “victim” who has been shunted claims for personal injury, vehicle damage and replacement vehicle hire.

He said: “The crash may have involved a car with just one person in but by the time the claim is put in the number of passengers jumps.”

Claimants often use the services of an accident management company (AMC).

Mr Davies said that some AMCs provide a complete service to the claimant, from arranging their car hire – the cost of which often exceeds the value of their own car – to coaching them in what to say to a doctor.

He said: “We often find that the car hire company is related in some way to the accident management company. There’s a gap that needs to be examined.”

Mr Davies said that insurance fraud costs consumers around £44 on their car insurance premiums every year. He said: “Crash for cash was first seen in the North West in 2001-02. It’s still the case that the North West of England is a hotspot. Since then it’s spread across the country.”

The top 10 hotspots for crash for cash fraud include Bradford in first place and Luton in last place. Blackburn, Oldham and Bolton are all in the top 10.

Mr Davies said: “It’s a pretty big problem, it’s the reason why the bureau was set up.”

The IFB has a database containing 250 million records which help them to analyse claims and pinpoint fraudulent activity. It is currently involved in 28 suspected crash for cash scams across 13 police forces, according to Mr Davies.

He said: “We want to ensure members of the public understand the impact of the crash for cash.”

Steve Chelton, Insurer Development Manager, for Swinton, the UK’s leading high street retailer of car insurance, said: “These staged car crashes are on the rise and not only do they cost the industry thousands of pounds and cause premiums to rise, more they also put innocent lives at risk.

“We estimate that these cash for crash scams cost the insurance industry over £200 million a year, and it is British motorists who are feeling the consequences with skyrocketing motor insurance premiums.”

Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

Fradulent car crashes staged costs insurance companies £350 million every year

2009-11-11T00:42:00.000-08:00

Fradulent car crashes staged costs insurance companies £350 million every year.

“Crash for cash” cons are becoming more common and sophisticated, detectives warn, with the schemes offering high rewards for low risks.

A specialist unit has been set up by the Metropolitan Police to tackle the problem, which involves fraudsters deliberately causing accidents before ripping off insurance companies.

The bogus claimants cash in by billing insurers up to £50,000 for bogus courtesy car hire, vehicle storage, personal injury claims and legal fees.

Detective Chief Inspector Nick Chalmers, of the force’s traffic crime unit, said it is only a matter of time before someone is killed in a staged crash.

He added that a recent report by the Serious Organised Crime Agency (Soca) suggests that the cost of similar scams could be £350 million every year.

Mr Chalmers said: “It is dangerous not just to the car targeted but to other people confronted with carnage on the roads.”

Detectives at the Met’s traffic crime unit have started training frontline uniformed officers to watch out for the signs of a suspicious crash.

Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

Holiday Home Landlords set for windfalls

2009-10-08T09:25:00.000-07:00

Landlords who rent out holiday homes in Europe are set for a surprise windfall as changes announced in the Budget could allow them to claim millions of pounds in tax rebates, according to Target Chartered Accountants.

In certain circumstances, landlords may now be able to offset any losses they have made on their property within the past five years against their personal tax bill and may also be able to claim back capital gains tax paid on the sale of a property in Europe.

The changes are designed to give those with properties in other European countries the same rights as those with holiday homes in the UK. However the advantages will be short lived as the tax breaks will be abolished completely for both sets of owners from April 2010.

The rules apply to “furnished holiday let” (FHL) properties. Whilst there are strict rules as to what may qualify as an FHL, where properties are commercially let on a short-term basis for at least part of the year, they will normally qualify.

Mark Tuckwell, tax director with Target Chartered Accountants, says the changes will affect those who have suffered “losses” on the letting of the property since 6 April 2003 or those who have sold the property at a profit during the same period.

He explains: “Around a million UK residents own holiday homes overseas, mostly in Europe, and many of them let out their property for large periods. Although they may not have considered it this way in the past, technically they are likely to be making a loss for tax purposes and one that they can offset against their UK tax bill.

“This will be a surprise windfall for overseas holiday home owners, and one that could save them a significant sum in tax. So for example, a higher rate taxpayer who has been making a loss of £5,000 a year for the past five years would be entitled to reclaim £10,000, while someone who sold their property and paid £30,000 capital gains tax may now be able to claim back as much as £28,000.

Anyone who thinks they could qualify for a rebate should take advice from a tax professional. “This is vital, as with the current state of the Nation’s finances, HMRC are unlikely to be immediately forthcoming with tax rebates. I would also urge some urgency, as in the face of mounting liabilities, it is quite possible that HMRC could bring forward the cut-off point for such claims”

The changes in the Budget follow a decision by the European Court of Justice which meant that the UK could be in breach of European law by giving tax breaks to those with holiday homes in the UK but not in Europe. Extending the tax breaks will cost the taxpayer an estimated £15m a year so the government has decided to remove it entirely from the start of the 2010 tax year.

HOW THE REBATES WORK OUT IN PRACTICE
Example 1 – a current owner
Mr Smith owns a Spanish villa which, apart from a couple of weeks private usage, is let commercially throughout the year. The seasonal nature of the business means that year on year, a loss of around £5,000 is suffered.

Mr Smith may now be able to make a claim to use this loss to set against UK income tax over the last five years. As a higher rate taxpayer, this would generate a tax repayment of around £10,000 (5 years x £5,000 x 40%).

Example 2 – a former owner
Mrs Jones acquired a holiday property Portugal in 2001 for the equivalent of £100,000. The property was let out for five years and sold in 2006 for £200,000. She paid capital gains tax in the UK of £30,000 on the sale after all available tax reliefs. It may now be possible to and amend the calculation to include further reliefs which would reduce the taxable gain to around £2,000. This would save Mrs Jones £28,000

If you would like to discuss your high value holiday home insurance further, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk
Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

Macbeth in the Daily Mail

2009-09-24T10:57:00.000-07:00

We are delighted that the Daily Mail recognised Macbeth as an expert in insuring wealthy individuals in a recent article titled "It's expensive to repair a listed property...so don't scrimp on cover" Read on for details!

Living in a listed property may seem like a dream, but while the appeal of a beautiful and historic home is obvious, the hidden costs are not. There are more than 500,000 listed properties in the UK and specialist insurers are warning that many owners of period and listed homes are unknowingly underinsured.

The cost of rebuilding and repairing damage is high because the character of the property has to be maintained. This usually means finding specific and often rare materials, along with skilled craftsmen and builders. With the arts of thatching, stone masonry and glazing dying out, even repairing a small amount of damage can be expensive.

NFU Mutual, which offers specialist valuations and buildings insurance for listed homes, says detailed and regular valuations by surveyors who understand listed buildings are essential. It recommends they are done at least every five years.

Retired GP Jeremy Barnes, 72, from Ashleworth, Gloucestershire, and his wife, Mary, 70, a retired magistrate, are the owners of a Grade II-listed farmhouse
Finding the right insurer is also important. Tracey Warren at the Listed Property Owners Club says owners of listed buildings should not rely on insurance from mainstream providers.

'Homeowners who just go onto comparison websites or buy basic cover online usually won't be asked if their property is listed and this can be dangerous,' he says.

'Ordinary insurance policies will miss the fact that the rebuild cost of a listed building can be substantially higher than the value of the property. We've seen terrible cases of underinsurance where a High Street insurer has refused to pay up because it says it was the owner's responsibility to inform them the property was listed.

'We recommend owners of listed properties seek specialist valuation and insurance advice from a broker.'

Always check reinstatement or rebuild cover against the property valuation on your policy. English Heritage, the charity that protects and promotes historic buildings, can insist that you use like-for-like methods and materials to rebuild a listed property. These will usually be more expensive than the modern equivalents.

If you are thinking about buying a listed property check that any alterations have been approved.

Warren says: 'Buyers can find themselves liable for costs of returning the property to its original state if it is found that the alterations did not have official approval or are detrimental to the fabric of the building.'

A number of insurers - such as Adrian Flux, Aviva, Ecclesiastical and Norwich & Peterborough Building Society - cover listed properties, although for homes with thatched roofs there is a smaller selection. Many insurers who specialise in wealthy clients, such as Hiscox and Macbeth, will also cover period homes.

If you would like to discuss your high value home insurance further, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk
Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

Fashionistas and fashionmisters defy recession but risk losing out on home insurance claims

2009-09-21T02:45:00.000-07:00

Fashionistas and fashionmisters defy recession but risk losing out on home insurance claims - almost a third do not know if their wardrobe contents are reflected in their home insurance cover

Dedicated followers of fashion are being urged to put an accurate price on their image as new research* reveals two thirds (69%) of British adults have no idea how much the contents of their wardrobes are worth, leaving them at risk of underinsurance.

As London Fashion Week begins, the ‘Fashionable Finances’ study commissioned by specialist insurer Hiscox, reveals the average Brit spends almost £1,000** a year on their wardrobe. But for many ‘fashionistas’ and ‘fashionmisters’ this figure is much higher with as many as one in twelve (8%) spending between £200 - £400 every month on new togs. The recession hasn’t had an impact for over half (56%) who admit they have spent the same in the last year on clothes as they would do normally and a further four per cent admit to spending more.

On average people buy three designer items each year and the most expensive item in their wardrobe comes in at an average of £293. But there are many who prefer to treat themselves more regularly or more expensively; one fifth (20%) buy three or more designer items every year and nearly one in ten (9%) have an item in their wardrobe that cost them £500 or more.

Wardrobe neglect

Despite this, when asked to estimate the worth of their ever-expanding wardrobe of clothes, shoes, bags and sportswear, the average came in at only £2,838, and almost a third (30%) did not know if the value of their wardrobe contents is reflected in the amount of home contents cover they have.

More than a quarter (27%) admit they didn’t add up the value of their wardrobes when taking out their home contents policy, while over a third (35%) say they concentrated on items like TVs and furniture and just didn’t think to include their fashion items.

Austyn Tusler, household insurance expert at Hiscox, comments: “Our research shows that the British are dedicated followers of fashion. However, many don’t have a grasp of the value of the clothing and accessories they have accumulated over the seasons.

“As a result many people may be underinsured when it comes to their wardrobes and, as quite often is the case, they could be underinsured when it comes to the rest of their household contents too. One female customer for example gave us an estimate of around £3,000 to cover her wardrobe contents but, once we had reviewed it with her, the total was actually more than £25,000 – over eight times the value she had thought.

“When people consider their wardrobe, many think only of the current pieces they wear each season, rather than taking into account the wealth that has mounted up over the years. Other items such as high tech performance sportswear and outdoor clothing can also significantly increase the value, yet one in five (20%) admit they don’t know how much their sportswear is worth. It is important that people spend a bit of time totting up the costs of replacing their items to make sure their full wardrobe is covered. That way, in the unfortunate event that they have to make a claim, they will have enough insurance cover to bring their wardrobe back to its fashionable best.”

If you would like to discuss your high value home insurance further, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk
Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

Hike in value of home contents can leave newlyweds underinsured

2009-09-14T10:13:00.000-07:00

New research* reveals that over half (53%) of professional couples in the UK risk losing valuable wedding gifts and possessions by failing to tell their insurer about new belongings once they have tied the knot.

The study, by specialist insurer Hiscox, looked at professional couples who got married in the last five years or are planning a wedding in the next year. It reveals the average increase in value to a newlywed couple’s home contents is nearly £12,000** following their wedding.

The art of gifting

However, the generosity of wedding guests can result in gifts far exceeding this amount. One in ten (10%) couples receive gifts alone totalling £10,000 or more, with one lucky couple polled claiming they had received gifts worth as much as £200,000. In addition, nearly a quarter (23%) of gifts are designer goods and one in seven (14%) couples say that family heirlooms, fine art and antiques were the most valuable gifts they received.

Protecting new assets

Despite this wealth of new assets, over one third (38%) of couples do not know if wedding gifts and expenses such as wedding dresses are covered under their contents policy at the time of marriage. Over half (53%) of couples who have got married in the last five years have not reviewed their contents cover and informed their insurer of any uplift in contents.

Putting their homes at further risk are one in five (21%) couples who widely told their local community when they were going away on honeymoon, therefore highlighting the fact they were leaving their house empty. Despite this, only one in ten (12%) claim they were worried about their home getting broken into while away.

Austyn Tusler, household insurance expert at Hiscox, said: “One of the last things on your mind when you are thinking about table plans and dress fittings, is whether your new gifts or rings will be covered for loss or damage. But the accumulated value of these items can be huge, so it’s worth having a quick look at your contents policy to see if your insurer includes immediate cover for new items.”

“At Hiscox, we automatically give our customers a 25% increase in the amount insured for up to 60 days after they receive new items for the home***. This means newlyweds can celebrate the big day, relax on honeymoon and, when they get back to their routine, take a little time to send their thank-you letters whilst re-examining the value of their contents.”

Diamonds should be forever

The study reveals that over a quarter (28%) of couples have not considered insurance for their engagement and wedding rings, and over one in twenty (7%) don’t know if their rings are covered. Nearly one in ten (9%) couples say they have not got round to insuring them, despite 10% spending over £5,000 on them. Just under one in six (16%) have no idea how much their rings are worth.

Austyn Tusler adds:

“Don’t take your wedding and engagement rings for granted. Include them when you tot up your contents to make sure you have enough cover. Think about when you are outside of the home too as, unlike Hiscox, not all insurers cover items outside of the home as standard****.”

If you would like to discuss your high value home insurance further, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk
Macbeth are Chartered Insurance Brokers based in Reading with a premier client division dedicated to providing advice and insurance solutions to wealthy individuals. Our area's of expertise include high value homes, fine art and antiques, valuables, second homes and overseas homes and high value cars.

* Research carried out by Opinion Matters between 12/08/2009 and 19/08/2009

Sample: 500 ABC1 adults who have been married in the last 5 years / intend to get married in the next year

** Taking into account the total value of the average couple’s wedding gift list, jewellery and wedding outfits, the average increase in value to a couple’s home contents is £11,957

*** Hiscox allows an increase in the amount insured for contents of up to 25% to cover any items clients acquire during the period of insurance. We ask clients to inform us about new possessions within 60 days of acquisition

**** Hiscox insures contents up to the sum insured against physical loss, or physical damage which happens during the period of insurance. This cover applies while contents are at the address shown in the schedule and while temporarily removed anywhere else in the World (for up to 60 consecutive days with Hiscox 505 home and contents insurance and an unlimited number of days for Hiscox 606 high value home insurance)

Better safe than sunk

2009-08-14T06:56:00.000-07:00

Plant Safety – Easier than you think?

For the average business, the number of Rules and Regulations governing the checking of lifting, pressure or processing machinery can feel daunting.

It’s natural to want to skip the odd check, but it’s also very dangerous – as one skipped check could sink your whole business. Look at the possible consequences once an accident occurs.

• Fines.
• Prosecution of directors - even corporate manslaughter charges.
• Your insurer has to meet employees’ claims with no chance of defence.
• Prohibitive rises in the cost of insurance - or no insurance at all.
• Invalidation of your existing cover leaving you to meet any claim or cost of damage yourself.

Whichever way you look at it, you’re exposed.

So do I have to spend all my time checking?

It’s not quite that bad. Statutory requirements as to the frequency of checks has given way to a less stringent, risk-based approach, so the period between inspections can be longer for infrequently-used equipment. For larger businesses with a plant register, a plant manager and strong control systems this may be useful but, for most, a more prescriptive approach means less chance of error. The statutory inspection column (shown on the following page) indicates which plant and equipment needs checking and the recommended frequency. Unfortunately the Law is constantly changing which can mean even the most diligent small business could still fall short.
A safer alternative

Outside independent examination lets you get on with business without the trouble of making endless checks yourself.

Since the industrial revolution insurers have always been major players in the inspection and checking of plant and equipment. Today, three or four major specialist companies carry out most of the work. They offer national coverage and all the advantages of economies of scale. As your broker, with knowledge of your needs and existing insurances, we’re perfectly placed to arrange this service. We’ll obtain tenders on your behalf, make supplier recommendations and arrange it so that all inspections dovetail precisely with your existing insurance programme.

Asbestos in Farm Buildings

2009-08-14T06:48:00.000-07:00

Asbestos containing materials were banned in 2006 in all new builds.

In 2006, the Control of Asbestos Regulations brought together three previous regulations regarding the management of asbestos in buildings. These regulations banned the use of Asbestos Containing Materials in all new builds.
This regulation requires employers and others – “dutyholders” to have effective arrangements in force for the management of asbestos in buildings for which they have control.

This means that, even though you may not own your farm, you may still be responsible for managing the risks arising from the presence of asbestos-containing materials in your premises. This responsibility may arise through a Contract of a Tenancy Agreement e.g. a full repairing lease.

The Regulations require the dutyholder to:

• Investigate whether Asbestos Containing Materials are present
• Check their condition
• Carry out a risk assessment
• Prepare a written plan specifying the measures to be taken to manage the risk
• Inform anyone who might disturb the Asbestos Containing Materials, or who might work on the material, of its presence
What do you need to do?

Find – you must carry out a risk assessment of your premises. Draw a plan of your farm buildings and mark the presence of asbestos.

Identify – if you are unsure of the type of asbestos or you are proposing to carry out any work on the buildings, arrange for samples to be taken using a UKAS accredited laboratory.

Condition – you must check what condition the material is in. Decide whether the asbestos should be removed or sealed, taking into consideration its location and condition.

Remove – arrange for any removal to be undertaken only using a licensed contractor.

Inform – inform employees and contractors of the presence of asbestos and make sure they do not disturb it

Record – keep a register and check the condition of the asbestos regularly by inspecting it.

Other implications of asbestos in farm buildings relating to insurance

The Employers’ Liability (Compulsory Insurance) Act 1969 makes it compulsory for all employers to insure against liability for injury or disease to employees arising in the course of their employment. It is also a requirement to retain either a paper or an electronic record of your insurance for 40 years. Asbestosis and mesothelioma disease can be present for many years before manifesting themselves. There are over 3000 deaths every year as a result of asbestos related illnesses. A claim against a former employer can arise many, many, years after their employment ceased – do you hold Employers’ Liability Insurance? The removal of asbestos costs approximately 4 times the cost of removal of other building waste. If you had a serious fire today, would your sum insured on your farm buildings be sufficient to not only rebuild your farm buildings but also pay for architects and surveyors fees and the removal of asbestos?

Health and Safety Regulations state that all buildings containing Asbestos Containing Materials should be identified with an appropriate sign. In the event of a serious fire, the Fire Brigade would be unable to enter a building if there was a possibility of asbestos materials being present. Even with breathing apparatus, they would be helpless and would have to stand and watch your livelihood go up in smoke.

Age Discrimination and the Credit Crunch

2009-08-14T06:36:00.000-07:00

Since the introduction of age discrimination laws in 2006, older workers are bearing
the brunt of lay-offs.

On the second anniversary of the Age Discrimination Act, research shows that claims are fast catching up with those levied for sex discrimination and already outweigh disability, with 11% of the older workforce reporting negative treatment in the workplace.

As the credit crunch tightens and cutbacks and redundancies increase, employers face their toughest test yet. “An employees’ age may once have been a traditional factor in cutting staff but such methods are no longer legal. Employers who are in the process of laying off staff must tread very carefully or they could face significant compensation awards”. Any discrimination in the selection of employees or in the payment of redundancy money is unlawful under the Employment Equality (Age) Regulations 2006 - unless it can be shown to be objectively justified and proportionate. Caps have been removed from the damages which can be awarded for such discrimination – and the burden of proof lies with the employer. It is up to them to demonstrate innocence to employment tribunals.”
Wise employers can protect themselves against the risk of substantial losses with employment Practice Liability Insurance, which provides comprehensive cover against all major Employment Law disputes. According to the latest Government statistics, unemployment amongst older workers – those aged 35-49 and 50 to 64 – jumped by 21,000 and 20,000 respectively in May to

July last year, the largest rise of any age group. Some employees still feel that the responsibility for policing ageism in the workplace should fall to the HR teams but realistically it is a burden that should be shared across the entire company, with Directors holding the final responsibility.

Fleet Risk Management

2009-08-14T06:30:00.000-07:00

On 6 April 2008 the Corporate Manslaughter and Corporate Homicide Act came into force, making it possible to prosecute a company if a death is caused by a gross breach of its duty of care. This includes at-work road deaths.

The offence

Previously, to convict an organisation of manslaughter following a work-related death, it had to be proved that someone senior in the organisation, often referred to as the “directing mind”, was also guilty of manslaughter. This made prosecuting large organisations difficult.

The new offence does away with the requirement to prove the guilt of a “directing mind”. In the future an organisation will be guilty of corporate manslaughter if death is caused by a gross breach of its “Duty of Care” towards its employees and third parties that is substantially due to senior management failure. Thus the failures of a number of senior managers can be aggregated to prove the case.

The Jury will be asked to consider how serious the organisation’s failure was and how much of a risk of death it posed. The Jury may also take into account the “attitudes, policies, systems or accepted practices” of the organisation relevant to the failure (in other words the organisation’s “safety culture”) and relevant Health & Safety guidance. From a general Health & Safety point of view this would include the Health & Safety Executive’s (HSE’s) Successful Health & Safety Management (HSG65) and specifically for Occupational Road Risks (ORR) HSE’s Driving at Work: Managing Work-Related Road Safety (HSG382).

Causation

The breach of duty does not have to be the only cause or indeed the major cause of death, only one of the causes.
Continuous assessment

You will be expected to regularly monitor vehicle maintenance, accident and damage records, traffic offences and other driver behaviour. Then you will need to have a system in place that can identify those at risk so that you can take effective measures to reduce it.

Health and safety

If there is a prosecution, organisations are likely to be prosecuted for breaching the Health & Safety at Work Act 1974 (HSWA) as well as the new offence. An organisation would be guilty under the HSWA if it failed to take reasonably practical steps to prevent exposure to its employees (Section 2) or non-employees (Section 3) of risks to Health & Safety arising from its business.

A conviction does not require proof of a failure by senior management nor is it necessary to prove that failure caused death – only an exposure to risk. Although there is no specific Health & Safety legislation relating to ORR this does not prevent a prosecution under the HSWA.

Fines

As with a breach of HSWA, a convicted organisation will face an unlimited fine. The starting point will be the level of fines imposed for serious breaches of HSWA where the organisation’s failure is found to have caused or contributed to the death.

The insurance position

What insurance will do is pay compensation to insured parties and the associated legal costs. What it will not do is make your business and people safe, replace key people and assets, run your business for you during an investigation, pay any fines, prevent criminal culpability, replace your customers, clients and sales, repair public image and business reputation, or restore your share price.

Only the rigorous application of a practical system to manage work related road safety can protect your company from such consequences.

Personal responsibility

Mistakenly, people believe the new Law means there will be no prosecution of directors or senior managers; however senior individuals can still be prosecuted under the existing Law for manslaughter (which is not altered by the Act) under Section 37 HSWA if the Health & Safety failure is caused by the consent, connivance or neglect of a director.

An individual convicted of work related manslaughter is likely to receive a custodial sentence of around two to three years. In 2007 a Managing Director was fined £75,000 and ordered to pay costs of £103,500 for a breach of Section 37 HSWA.

The Court of Appeal ruled in a previous case that a director can be guilty of breaching Section 37 HSWA through neglect even if he/she did not have direct knowledge of the relevant failures that led to the incident but ought to have done so.

It is now very clear that Section 37 of the HSWA presents considerable danger for management and directors alike:

Work-related road safety is a risk that has to be assessed like any other workplace risk. Clear guidance is given in HSG382 ‘managing work-related road safety’. Given the nature of the risk and that driving is part of our everyday lives, it will be difficult for any director or manager to say he does not understand the risk

Why ‘senior’ can mean ‘junior’

What places a manager in the category of “senior management” is whether his functions are as described by Clause 1 (4) (c) - see below. The person who has these functions may have a modest position in the organisation’s hierarchy and may not be “senior” in any other sense.

The forthcoming Corporate Manslaughter and Corporate Homicide Act, Clause 1 (4) (c) states:

“senior management”, in relation to an organisation, means the persons who play significant roles in –

(i) the making of decisions about how the whole or a substantial part of its activities are to be managed or organised, or

(ii) the actual managing or organising of the whole or a substantial part of those activities.

So a relatively junior manager who fits the definition may find himself bearing the burden for widespread systemic bad practice.

What should you do about it?

If you are responsible for the health and safety of employees in any capacity – and that includes at work driving – you need to ensure that you have risk-assessed their duties and the environment in which these duties are performed.

You will need to manage that risk so that it is constantly minimised. You will also need to demonstrate that you have proper systems in place to manage risk and safeguard employees as well as other persons affected by your company’s business activities.

Identifying and managing the risk through appropriate remedial action will enhance the organisation’s day to day operational capacity and efficiency as well as allowing it to comply with its “Duty of Care” responsibilities.

Duty of Care - Fleet Management

2009-08-14T06:05:00.000-07:00

Regardless of how many vehicles you operate, there is legislation that governs road safety, including the various Road Traffic Acts and Regulations supported by the Highway Code.
In addition, there are a number of related Statutes that are intended to safeguard road-users. These include Regulations covering the construction and use of vehicles, special health and safety legislation and Regulations covering the carriage of dangerous goods by road.

The main responsibilities imposed by this legal framework fall on the shoulders of road users and vehicle owners.

When vehicles are being used or driven on the highway by persons working for an employer under a Contract of Employment, the employer has duties of care which are responsibilities under the Health & Safety at Work Act 1974 and also they have a Common Law duty of care. This means that under this ‘duty of care’ an employer must take reasonable care to protect employees from the risk of foreseeable injury, disease or death whilst they are at work.

It is important to note that the vehicle is considered to be a place of work.

The main responsibilities under the Road Traffic Acts are towards the driver of the vehicle. He/she is responsible for driving a safe vehicle, adequately maintained and insured, in a safe manner having due regard to other road users and pedestrians. The employer has a duty towards providing a safe vehicle and insurance if the vehicle is owned by the employer.
There are three key areas for risk management that you need to give attention to:

Driver

• Driver vetting and selection
• Induction procedures
• Licence checks
• Accident reporting procedures

Vehicle

• Vehicle suitability
• Vehicle maintenance and inspection
• Vehicle security

Journey

• Journey planning
• Managing driver fatigue
• Speed management
• Journey type

The Health & Safety Executive (HSE) has an occupational road risk publication.

A copy of the ‘Driving at Work’ leaflet can be downloaded at:

http://www.hse.gov.uk.pubns/indg382.pdf Persons found guilty of breaching Road Traffic Law can be subject to a wide range of penalties including prison for serious offences. Breaches of Health & Safety Law may result in a fine or imprisonment. Directors may be liable if it can be shown that their negligence contributed directly to an injury.

Corporate killing

A criminal offence of corporate manslaughter has been drafted, making it easier to prosecute companies responsible for fatal accidents.

The offence will apply when someone has been killed because senior management “grossly fails to take responsible care for the safety of employees or others.”

The maximum penalty will be an unlimited fine.

The employer’s responsibility also extends to ensuring that private vehicles used by employees on “company business” are also operated in a lawful manner.

Checks by the employer should include a vehicle’s mechanical fitness i.e. MOT test (if over 3 years old for cars), service and maintenance records and regular vehicle condition reports.

They must ensure that the driver has “business use” insurance cover and that the driver is suitably licensed to drive that vehicle.

Key action points

• Carry out a risk assessment
• Produce a Health & Safety Policy, which includes your procedures to manage driver safety
• Ensure all licences are checked at least annually
• Regularly record maintenance and service details
• Record all training that has been completed

Business Continuity Planning

2009-08-14T05:59:00.000-07:00

Is your business prepared for the worst? Any business can experience a major emergency - so what can you do about it?
Any business can experience a major emergency – such as flooding, severe weather from blizzards to heat waves, flu epidemics and terrorism – or serious incident – fire, explosion, loss of power and loss of personnel – that prevents it from continuing normal operations.

You have invested heavily in your business and you need to ensure it remains safe, secure and viable.

Therefore, it is most important for your business to be prepared for all eventualities and to have a plan in place to enable it to return to normal as quickly as possible. It will reassure your customers and suppliers that you take the resilience and security of your business seriously and is good business practice. Also, small firms tendering for work with large organisations, including Local Authorities, could come under increasing pressure to demonstrate their own preparedness.

A Business Continuity Plan describes the practical steps your business needs to follow if a particular problem arises. The planning process will involve:

• Identifying potential disasters or emergencies

• Looking at how you can minimise risks

• Deciding how you intend to react to eventualities
Why do I need a plan?

If you have a Continuity Plan in place, you will be better prepared to cope in a crisis and should be able to minimise disruption to both your business and your customers.

It will ensure that staff know their roles and responsibilities and respond by following recognised, practised and agreed procedures.

The most important functions, services and systems that are essential to running your business will be up and running in the shortest possible time frame. The impact on your business will be limited.
Assessing the risks

It is important to identify the risks to the most critical aspects of your business.

List the potentially serious incidents or points of failure that could affect your business and assess how each particular occurrence may affect the business. This will help you to determine what you would need to do if one of these things actually happened.

To decide what impact an event might have on your business think about some worst-case scenarios and how they might affect you.

What would happen if your premises were destroyed by fire? How would an explosion or fire in your neighbours’ premises affect your daily operations?

If you lost all the information you held on customers through a computer virus, how would you recover the information and how would you contact your customers?

If your staff rely on public transport to get to work, what would you do if the station was closed or the roads blocked by severe weather or due to a terrorist attack?

What would happen if there was a sudden and continuous power failure; how would you operate machinery or be able to see?

What if you lost key staff, through death or sudden illness?

What if there was a break in your supply chain e.g. a key supplier going out of business?

What should your plan contain?

If your business is large enough, form a disaster recovery team who will have responsibility for developing and implementing your Continuity Plan, but assign overall responsibility for the Plan to one member of staff. That person would be responsible for recording the Plan, testing and ensuring it is kept up to date.

The plan should include:

• Immediate actions to be taken, e.g. contacting emergency services and key members of staff

• Which business functions you need to get ‘up and running’ as a priority and how this will be achieved

• What resources you will need to get these priority functions operating • What each individual’s role will be if there is a disaster or emergency. Who will deal with any media enquiries. Who will deal with the insurers.

• Details of alternative premises to be used – make reciprocal arrangements with other local businesses to share premises temporarily.

• Details of where and how key data and information is backed up and instructions for how to access those back-ups

• Contact details of those who need to be notified, e.g. insurance companies, customers, suppliers, utilities providers etc

• Details of service providers who can help, e.g. plumbers, electricians etc

• A map of the layout of your premises to help the emergency services

The Plan should be in writing and kept securely. It can be retained on the premises but there should also be a copy kept away from the premises, e.g. at the home of a senior employee or at the Bank or Solicitors. A checklist approach will be helpful as key steps can be easily identified and this will enable you to tick things off once they have been done. Make sure that all staff are aware of and familiar with the Plan.
Testing your Plan

Disaster Recovery Plans should be tested on a regular basis, which could involve a simple paper
exercise, including a run-through by the people involved.

The Plan should be in the right order so that your business can be up and running as quickly as possible.

Check the contact details contained in the plan regularly to ensure they are correct.

A full test may involve a simulation of an emergency. Record the procedures and results of the plan and use this to review and fine tune the plan if necessary.

If your plan is ever invoked to contend with a real incident, learn as much as you can from the experience and refine your plan to reflect where you think improvements could be made.

Minimising the risk

There are several things you can do to prevent disasters occurring in the first place, or to minimise their impact:

• Make health and safety a priority

• Make sure there is a qualified first-aider

• Install fire and security alarms

• Keep paper documents in metal cabinets to minimise fire damage

• Keep copies of irreplaceable documents away from the premises

• Protect IT systems with antivirus software, keeping back-up data away from your premises

• Keep records of your business systems and procedures

Why bother?

Disasters have no boundaries and whether you are a small or large business you may be affected.

Research has shown that around 80% of businesses that suffer a disaster such as loss of computer data, damage caused by flood, fire or a major incident, cease trading within 12 months of the disaster.

Without an effective continuity plan your business could suffer from:
• Loss of trade
• Damage to image/reputation/brand
• Loss of customers
• Loss of staff
• Loss or damage to equipment and/ or premises
• Impact on insurance premiums

With no recovery plan your business has less chance of survival therefore, the time spent in putting together a business continuity plan is good for your business, staff and reputation.

The Civil Contingencies Act 2005 placed a duty on Local Authorities to provide advice and assistance to local businesses and voluntary organisations.

Business Fraud

2009-08-14T05:54:00.000-07:00

Commercial fraud or Fidelity Guarantee insurance cover has been available for many years. However, many businesses have been reluctant to take this cover either because they felt they had a loyal and trustworthy staff or it seemed to demonstrate a distrust of the staff. Sadly, evidence suggests that many businesses have been seriously hurt financially following fraud by an employee.
Specific fraud risks are:

Fraudulent diversion of funds

Fraudulently creating and approving purchases

Falsifying, either individually or in collusion with others, the financial accounts to enable the payment of salaries etc

Helping external parties falsify the provision of goods and services

Theft of stock by employees or in collusion with a third party

Theft of your own or client funds

Stealing or forging company cheques

Recently commissioned research showed directors or senior managers committed almost two thirds of the fraud cases surveyed. A third of all fraud was committed by long standing employees of between 10 and 25 years service. One half was done in collusion with others and youngsters under 25 make up a very small proportion of perpetrators.
There are potential pointers to fraud such as:

Certain customers or suppliers dealt with exclusively by one employee

Personal lifestyle not matching income

Refusal to take holiday entitlement

Mundane tasks retained rather than delegated

The cost of Fidelity Guarantee cover can be relatively low in relation to the potential financial loss you could suffer. It is sensible to add this cover to your existing insurance portfolio alongside other policies intended to protect your business from specific unforeseen financial harm. We would be happy to obtain a quotation for you.

Car Crime - Drivers Beware

2009-08-14T05:22:00.000-07:00

Drivers are increasingly falling victim to a new kind of car crime - staged or deliberate motor accidents where someone deliberately causes an accident with an innocent motorist, with the intention of making a false or inflated insurance claim.

Since 1999 there have been over 22,500 fraudulent staged and induced motor accidents. Research by Royal & Sun Alliance (R&SA) reveals that 41% of British drivers have never heard of this crime. A further 4 out of 10 would not know if they had been in a staged accident and only around half of British drivers would know what to do if they suspected they had been involved in an intentional collision.

A typical staged accident occurs when someone deliberately causes an accident with an innocent motorist. The fraudsters frequently increase the amount that they are claiming from the victim’s insurance company in various ways, such as by adding non-existent or phantom passengers to the claim. The criminals may also use “friendly” third parties, such as mechanics and doctors, in their claim to make it look genuine. The innocent victim can then be left with an increase in their motor insurance premium and can often lose their valuable no claims bonus.

Countering fraudulent claims

RSA’s UK counter fraud manager, ex-Metropolitan Police Detective Superintendent John Beadle, has recently been made chairman of the new Insurance Fraud Bureau (IFB) – an organisation launched in July 2007 by insurers with the aim to clamp down on and expose organised insurance frauds such as staged motor accidents.
He said: ‘Staged motor accidents are on the rise and are potentially extremely dangerous. Not only do they cost honest drivers millions of pounds each year, but they also put innocent motorists in danger. Staged or deliberate motor accidents are on the increase.

We urge people to take note of our guidelines in the event that they may become victims of this crime.

There are usually some tell-tale signs that you have been involved in a fraudulent collision. Motorists should pay extra attention to people braking suddenly in front of them for no apparent reason or otherwise driving erratically.

Product Recall

2009-07-30T05:54:00.000-07:00

In 2006 Cadbury’s recalled one million chocolate bars as a result of a contamination at its Marlbrook plant. In spite of all its rigorous quality checking, small traces of salmonella entered the manufacturing and processing chain.

The contamination was caused by a leaking pipe at Cadbury’s Malbrook plant, near Leominster, Herefordshire. The leak was discovered in January 2006 and subsequently samples were sent to an independent laboratory for analysis and a stem of salmonella was identified. As a result, Cadbury’s had no alternative but to recall all the bars suspected of contamination.

This cost Cadbury’s millions of pounds. The frequency of recalled goods is increasing and it now seems most editions of newspapers carry a product recall notice. This is not because quality standards have fallen but because safety standards, consumer demands and controls have increased.

If a business becomes aware of or suspects its product has a defect that could cause harm, it has no choice but to recall it at great cost. No insurer would protect a business if the goods were knowingly left on the market and then caused injury or damage. Directors may be held personally responsible if they allow unsafe products to remain on the market and businesses face possible prosecution, or fines, from regulators as a result.

A defect may be caused because of a faulty component, raw materials not up to specification or an ingredient that is contaminated before delivery. In these cases the supplier, manufacturer or importer may be liable for all the recall costs and be subject to claims for damages or loss of reputation. This can be a frightening prospect for already squeezed suppliers.
All these issues have insurance implications. Cover may be available against the cost of a product recall and this should be seriously considered by businesses in the retail consumer chain and investigated by others involved in the supply of volume goods where recall costs could be high. The number of insurers prepared to provide cover is low but sensible businesses, with our help, should weigh up the cost against the risk and then make a business decision.

Are you covered for Product Liability?

If you are in the supplier chain in any sector and are concerned if you provide a faulty component, product or ingredient, there is a possibility that your Product Liability policy could offer some protection. However, this is a complicated issue and if you are concerned you should contact us as soon as possible. We can assess the situation and make suitable recommendations as to the level of cover required and whether the limits already in place are adequate for any potential exposure.

Insurance can play an important role in ensuring that a sour taste does not remain too long, so if you have any concerns, are in any doubt about your existing cover, or require cover, please do not hesitate to get in touch.

Taking in personally

2009-07-30T05:19:00.000-07:00

Employment legislation, compensation and blame culture. Does your business insurance measure up?

Running a business is becoming increasingly complex, compounded by extra regulation, advances in employment legislation, new laws and the growing compensation and blame culture. This has meant that the traditional insurances recommended to you by some brokers are unlikely to be sufficient to protect you against all claims that may be made now against your business or you personally.

It used to be sufficient to protect yourselves against employees who are injured or suffer illness at work and from claims from third parties as a result of injury or property damage because of something you have or have not done. However, there are now a large number of other areas where you can be sued. These risks have the potential to seriously affect your business or perhaps, more frighteningly, can mean your own personal bankruptcy, losing everything you have worked for. A whole range of extra covers have been designed to mitigate these extra risks which now should be considered as part of your insurance portfolio.

The major ones are:

Directors & officers liability

This is perhaps the most important as it protects the key people in an organisation against any personal liability they might have as a result of running the business. It also applies to charities and those taking up voluntary positions. Increasingly, directors, trustees etc are being held personally liable for acts or decisions that they make in the course of their business. This can range from corporate manslaughter, preferential treatment of creditors, discrimination, breaches of health and safety and other regulations and fraud perpetrated by other officers. The maxim seems to be if there is no one to sue, then take action against the director and/or officer, especially if he/she has some assets. It would seem sensible for most businesses to arrange cover to protect all the key people in the organisation against legal costs and most types of compensation awarded
Employment practices

This is a specific cover against tribunal or other civil cases made by employees. The number of instances where wrongful dismissal claims can be made is growing and so are the types of cause where Courts can award damages above the normal limit of £50,000. Recent publicity has been given to a sex discrimination case which had the potential for damages of £5m to be awarded. Provided you have good employment practices, cover against costs and awards is readily available.

Internet & email liability

Use of this media is now an everyday part of business life but brings risks. Email libel, defamation, breach of copyright or intellectual transmission of viruses etc. Once again cover is available to protect you against any actions.

Commercial legal expenses

As well as claims from employees, businesses can be sued for a whole range of commercial issues such as breach of contract, tax and VAT issues, data protection issues, property and neighbour disputes, breach of regulations and many others. Cover can be obtained for the legal expenses incurred or costs awarded against you and, in some cases, your own costs in pursuing a claim of your own.

When business was simple, so was insurance. As part of our service to you, we will seek to keep you abreast of new risks you may face and how you can protect yourself.

That Sinking Feeling

2009-07-30T05:12:00.000-07:00

A feature of our climate now seems to be heavy rain rather than extreme temperatures. Persistent rain can often lead to flooding and can be devastating for businesses.

The media tends to concentrate on household flooding but flooding of business premises can be just as costly – especially as many modern business parks are built on flood plains. Disasters attract far less political and public sympathy and, whilst insurers feel they have a duty currently to offer flood insurance to households, they are more selective in providing cover on commercial property.

There are a number of locations in the UK where cover is difficult to obtain or is highly priced. Maps of high risk areas are available on the Environment Agency website www.environment-agency.gov.uk/business/topics/flooding and businesses can subscribe to a flood alert system by calling 0845 0988 11 88. However even if your business is not in a flood-prone area, it can still be hit by flooding caused by a sudden downpour which the drains cannot cope with.

Business continuity plan

It is sensible for those at risk to have a business continuity plan. This should cover all the essential issues regarding contacts, employee evacuation, shutdown procedures, dealing with hazardous materials, protection and security of assets, salvage procedures and details of specialist drying contractors. Alternative working options should also be investigated in case of a prolonged shutdown.

There are a number of ways a business can minimise the impact of flood in advance. Some of these cost little and others are more expensive and will depend upon the degree of risk of flooding anticipated.

We are aware of all the potential flooding locations in our area and have access to UK maps re potential flood locations. We can also provide you with more detailed advice if you require. If the worst happens and a flood occurs we will be available immediately to help in dealing with any claim.

Good practices

• Consider the height at which goods are stored; the higher the goods the less chance of damage

• Look carefully at equipment stored at or below ground level. Certainly electrical equipment should be kept at as high a level as possible, perhaps on platforms

• Identify a suitable site for evacuation of vehicles to higher ground

• Install back flow valves on all toilets and drains

• Raise electrical sockets above potential flood levels

• Store stock on pallets or shelving

• Raise cabling or position in suspended ceilings above ground level

• Consider purchasing an emergency power generator

• Look at the range of permanent or semi permanent flood protection products available.

If the worst happens and a flood occurs then you need to consider the following:

• Ensure it is safe to enter your property - there may be structural damage

• Be very careful of downed power lines. These could make the building an electrocution chamber

• Do not enter the building until you are sure all mains electrical supplies are disconnected and gas is turned off

• Be careful of slippery surfaces and have the drinking water tested as it could be contaminated

• Watch out for debris as it could be polluted by sewage

• During clean up, wash your hands thoroughly and often

• Keep staff and public away until all health and safety checks have been cleared.

Swine Flu - steps to protect your business

2009-07-27T23:23:00.000-07:00

Only 37% of the South East’s small and medium sized enterprises have plans in place to deal with a major emergency. Business owners should act to help protect staff from swine flu and prepare for possible disruption to their operations.

As the spread of the swine flu virus accelerates, business readiness is growing in importance. Business Link has produced a guide detailing steps you can take to protect your employees and ensure your business is prepared.

1. Improve workplace hygiene

The more your employees know about how to prevent infection, the more resilient your business will be. To help minimise the risk of spreading the disease you could consider providing the following and encouraging their usage:

Antiseptic hand gel dispensers for each member of staff or in key locations such as the kitchen and/or reception areas. Soap and water is perfectly effective but these dispensers may be more convenient.
Tissues (these should be used once and disposed of promptly).
Antiseptic wipes to keep all common work areas germ-free including telephones, keyboards, door handles and work surfaces.

Other current guidance regarding hygiene includes:

Put signs up to remind employees and visitors of their responsibilities to maintain personal hygiene.
Continue running air conditioning systems as normal if provided.

2. Put contingency plans in place

The main challenge businesses face is the likelihood of high levels of staff absence. To reduce the impact of potential problems, businesses should consider the following:

Identify the basic requirements of the business and any critical activities that must be maintained.
Create a list of the transferable skills of each employee and consider who could be retrained or redeployed in the event of staff absence.
Carry out any required training which could be as simple as one staff member showing another how to do a particular element of their job.
Ensure IT systems can cope with high numbers of employees working from home.
Encourage methods of communication that reduce face-to-face contact.
Ask your suppliers about what plans they have in place to cope with reduced staff numbers.
Read our guide about crisis management and business continuity planning

3. Manage employee absence

There could be a number of reasons for increased staff absence during an influenza pandemic. These could include staff who are:

Ill with flu, or ill for other reasons.
Caring for others who are ill.
Absent due to fear/avoidance of infection.
Employers should promote an environment in which staff who become unwell feel they are able to stay at home until they are better, and actively advise employees to do so.

It is important that you consider the procedures you have in place to manage the potential increase in absences and communicate your position to employees. These include:

Confirming the process for calling in sick. Who should employees notify? Should they call in each day they are sick?
Considering how to treat 'worried well' employees who are anxious about the risks of coming to work. The legal position is that employees are not entitled to refuse to come to work on the basis of fear alone. Providing information about the facts surrounding swine flu and promoting good hygiene should help allay any fear.
Using existing technology to encourage employees to work from home, where possible.

4. Communicate with your employees

Ensure there is an effective flow of information to employees, suppliers and customers (where appropriate) regarding any changes in working practices and the latest medical advice. Creating and circulating a list of emergency contact details for key staff could be of use. Ensure you have employee permission to share their details.

All of the suggestions detailed here require careful implementation, and it may be necessary to revise or add to the existing employment policies you have in place including:

Absence and sickness
Flexible working
Health and safety

If your business doesn't currently have a business continuity plan in place, please contact Tony Gibbs, Sales Director on 0118 9452 944 or tony.gibbs@macbeths.co.uk to discuss the options available to you.

Macbeth Achieves Chartered Insurance Broker Status

2009-07-21T01:52:00.000-07:00

The Chartered Insurance Institute has awarded the prestigious 'Chartered Insurance Brokers' title to Macbeth, one of Reading'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 & Conduct reinforcing the highest standards of professional practice in their business dealings.

Macbeth Insurance Brokers specialises in providing independent, professional advice on all types of insurance for businesses and affluent individuals.

Paul Macbeth, Managing Director, who holds the individual Chartered Insurance Broker title, says that securing Chartered Insurance Brokers status is a landmark for his company: “Our business has been built by providing exceptional customer service in an industry which isn’t always renowned for doing so, and we have always prided ourselves on being very professional in everything we do. To receive external recognition in this way is fantastic and it compliments our existing Investor in People accreditation. As Chartered Insurance Brokers, we can signal our commitment to providing the highest levels of service and advice to our customers.”

To date, only some 50 firms have achieved Chartered Insurance Brokers status, indicating that this is a highly exclusive and prestigious award reserved for the leading firms of the broking industry.

For further information, contact Paul Macbeth on: 0118 9452 944 or visit www.macbeths.co.uk

Notes to editors:

Macbeth Chartered Insurance Brokers

Established in 1992 and based in Reading, Macbeth Chartered Insurance Brokers specialise in arranging insurance for businesses and affluent individuals.

Macbeth provides independent, professional advice on every type of business insurance cover, from business combined and property to professional indemnity and cyber liability. Macbeth Premier Clients is a specialist division dedicated to providing bespoke insurance solutions to people with valuable homes and possessions. www.macbeths.co.uk

CII

The CII has 90,000 members in 150 countries and is the world’s largest financial services professional body.

Serving the insurance, savings and financial services markets it works to enhance professional, ethical and technical standards.

The CII partners with corporate business to develop organisation-wide solutions to ensure competitive advantage through technical and professional competence of employees at every level. Individually, CII’s members keep up their personal development and maintain their professional standing though an unrivalled range of learning services.

Pop memorabilia market still strikes a chord with investors and collectors alike

2009-07-09T07:45:00.000-07:00

London, UK – Ahead of tomorrow’s (July 1) rock and pop memorabilia sale at Christie’s, Robert Read, collectables expert at specialist insurer Hiscox, comments:

“This pop memorabilia sale is likely to be spirited as particular performers will always drive demand and prices upwards. The Beatles are a great example of a band that, in terms of buying or selling, are to memorabilia what Picasso is to paintings.

The death of Michael Jackson is boosting the market for anything Jackson-related. That ticket holders for the cancelled concerts are being offered the chance to buy the actual tickets themselves as an alternative to a refund, is a real sign that the pop memorabilia market has matured significantly. Ten to 15 years ago such an option would have been inconceivable.

“Lot 54 in Christie’s sale which is a photograph of the Jackson Five dedicated and inscribed by the band members, has a guide price of £400-£600 and I would expect it to go for much more.

CLARIFICATION OF NATIONAL SPEED LIMITS FOR VANS

2009-07-09T07:34:00.000-07:00

Many of our members have staff driving as part of their job, we have become aware that companies are not fully aware of the differences in the national speed limit when driving vans/delivery vehicles. Please ensure that if you have any employees driving vehicles over 7.5 tonne that they are aware of the reduced maximum speeds on the carriage ways.

It is very important for drivers to bear in mind that vans (and all goods vehicles not exceeding 7.5 tonnes) are subject to lower national speed limits than cars on both single and dual carriageway roads.

Whilst a car may travel at up to 60 mph on single carriageways and 70 mph on dual carriageways vans are only allowed to travel up to 50 mph on single carriageway roads and 60 mph on dual carriageway roads.

The speed limits quoted here are national limits, a lower speed limit will apply in built up areas and on many local roads. Where a lower speed limit is signed you must comply with those lower limits.

The national speed limits are set out in Schedule 6 of the Road Traffic Regulation Act of 1984 and they are summarised in regulation 124 of the Sept 2007 version of the Highway Code.

The main reason for these lower speed limits is that goods vehicles are designed to be able to carry heavier loads and when laden they will tend to take longer to slow down than a car travelling at the same speed.

Some people make the mistake of thinking that if a van is in the same tax or registration class as a car then it is subject to the same speed limits. However the two issues are unrelated and they are governed by different legislation. National speed limits are set out in the 1984 legislation are based on the possible load capacities of the vehicle and whether or not it is used for carrying passengers.

These speed limit rules have been in place for well over 20 years and there are no plans to change these limits to allow vans to be driven at higher speeds because ministers remain to be convinced that it would be safe to do so.

You can find speed limit controls at the following link on the Government Website http://www.direct.gov.uk/en/TravelAndTransport/Highwaycode/DG_070304

SUSPENDED PRISON SENTENCE FOR HOTEL FIRE SAFETY FAILURES

2009-07-09T07:29:00.000-07:00

We have recently been made aware by the Fire Prevention Association (FPA) of the prosecution of a Landlord under the Regulatory Reform (Fire Safety) Order 2005.

THE LANDLORD of a Nottingham public house has received a nine-month prison sentence, suspended for 12 months, together with 180 hours' unpaid community service and an order to pay £2,200 costs, following serious contraventions of fire safety requirements.

Following a complaint, Nottinghamshire Fire and Rescue Service visited the premises at The public house in Nottingham, the ground floor of which landlord was using as a bar, with the upper floor used as bed and breakfast sleeping accommodation. The premises lacked any fire alarm or other basic fire safety precautions.

The prosecution followed the landlords breach of a prohibition notice instructing him not to use the upper storeys as sleeping accommodation until remedial work had been carried out. His continued use of this accommodation for paid guests had exposed them to further serious risk. The Judge observed that this was the first breach of a prohibition notice to come before Nottingham Crown Court under the Regulatory Reform (Fire Safety) Order 2005.

Commenting that action would be taken against any hotel owner found in breach of fire safety regulations to protect guests against risk of fire, the Head of fire protection at Nottinghamshire Fire and Rescue Service, said: 'Hotel-type accommodation presents a potentially serious risk, as there are people sleeping on the premises who are also unfamiliar with the layouts. It is vitally important that hotel and sleeping accommodation is managed properly... I hope that the outcome of this case will serve as a warning.'

The seven charges are summarised as follows:

-contravening a prohibited area of the premises by using it as sleeping accommodation;

-failing to make a risk assessment to identify the general fire precautions necessary to comply with the Order

-failing to ensure that premises were equipped with appropriate fire fighting equipment and with fire detectors and alarms (the fire fighting equipment was out of test)

-failing to ensure that routes to emergency exits and the exits themselves were kept clear at all times

-failing to ensure that emergency routes and exits were indicated by adequate signs to the escape route across a flat roof and down an external staircase into the rear yard

-failing to ensure that emergency routes and exits requiring illumination were provided by adequate emergency lighting

-failing to ensure that in the event of danger it was possible for persons to evacuate the premises as quickly and safely as possible by providing self-closing doors to any of the rooms being used as bedrooms on the first and second floor, or the kitchen on the first floor.

Don't be the next. You can use the download area of the website to obtain fire risk check-lists and assessments. The A-Z gives you additional guidance on fire safety and prevention.

If in doubt, you can always ask the expert.......

DRIVING CHALLENGE!

2009-07-09T07:11:00.000-07:00

The Department for Transport has developed an interactive driving challenge, that is both a little bit of fun but very eye opening! We would like to share this challenge with our members.

The Health and Safety at Work etc. Act 1974, requires you to ensure, so far as is reasonably practicable, the health and safety of all employees while at work. You also have a responsibility to ensure that others are not put at risk by your work-related driving activities. (Self-employed people have a similar responsibility to that of employers.)

As you are aware Driving at work should be risk managed as any other work activity, but what are the benefits of managing road related risk?

The true costs of accidents to organisations are nearly always higher than just the costs of repairs and insurance claims. The consequences of an accident on the self-employed and small businesses are likely to be proportionately greater than on a larger business with greater resources. The benefits to you from managing work-related road safety can be considerable, no matter the size of your business.

It allows you to exercise better control over costs, such as wear and tear and fuel, insurance premiums and legal fees and claims from employees and third parties.

It also allows you to make informed decisions about matters such as driver training and vehicle purchase, and helps you identify where health and safety improvements can be made.

You and your staff who may drive as part of their job will find this very interesting, especially the results!

It should take no more than 5 minutes, but it does require the volume to be up and to be viewed where you will not disturb others.

http://www.dft.gov.uk/drivingchallenge/

Hiscox launches new Professional Indemnity products for media and technology companies

2009-07-09T07:04:00.000-07:00

Specialist insurer Hiscox has introduced a new range of Professional Indemnity (PI) and Hacker Damage policies for the media and technology sectors.

Having serviced these sectors with PI cover for over 15 years, Hiscox is now offering new, combined policies for large or small media and technology companies, providing wider PI cover for areas such as unintentional breach of contract claims brought by a client (the cause of over a third of all PI claims*) as well as providing this cover for the first time for marketing and advertising consultants. The policies can also be packaged with Hiscox’s office contents and/or management liability cover to provide one comprehensive insurance solution.

With the economic downturn increasingly exposing companies to new liabilities it has never been more important for those operating in either the technology or marketing industries to make sure they have full cover for their professional exposures. In addition to breach of contract, these policies will provide:

-cover on a duty to defend basis – on receipt of a claim, the policy will defend the entire claim even if some aspects are not covered (allocation of non-covered parts occurs at point of settlement)

-cover for the insured’s own advertising and website – covering not only the insured’s work with their clients but also their own advertising and website

-cover for negligent transmission of a computer virus.

Commenting on the new products, Suzy Kemble, Head of Hiscox Media and Entertainment, said: “Our experience shows that more than a third of professional indemnity claims are based on an alleged breach of contract and it is critical that companies operating in the media and technology sectors assess this threat to their business. Our new professional indemnity products provide wider cover for breach of contract claims as well as cover on a ‘duty to defend’ basis and can be combined with our office package to provide a comprehensive, insurance solution.”

Macbeth Insurance Brokers are specialists in arranging professional indemnity, cyber liability, directors & officers and office insurance for the media and technology sectors. If you would like to discuss any area further or for some free advice, contact Tony Gibbs, Sales Director on 0118 9452 944 or tony.gibbs@macbeths.co.uk

Motor Fleet - Are you complying with health & safety?

2009-06-10T00:39:00.000-07:00

It is not widely recognised that the health and safety legislation covers employees when driving company vehicles as well as when they are based at their their office desk, laboratory, factory, warehouse etc.

The responsibilities of managers and directors extend to these employees and therefore the need to carry out risk assessments to cover these employees is as relevant as if they working within the confines of a building. In the case of a road accident, fines could be handed to both the driver and the employer if negligence is proved.

Adopt the 3 Rs approach of :

* Risk Assessment
* Take any Remedial Action you think necessary
* Record the actions you have taken

It is becoming more common for insurers to demand a skills assessment prior to renewing motor fleet cover. As with many other skills, continual development and assessment will enhance your employees' ability to perform the tasks needed to provide your company's service. Our driving expert, the ex-head of a major police driving school, reminds us that most accidents are avoidable, including the 11 fatalities that occur daily.

For more information about Motor Fleet Insurance, contact Tony Gibbs on 0118 9452944.

First prosecution brought under Corporate Manslaughter Act

2009-05-27T09:10:00.000-07:00

The Corporate Manslaughter and Corporate Homicide Act 2007 came into effect in April 2008 after a number of failed corporate prosecutions – including those relating to the Southall rail crash. There was much debate as to the implications and as to how widely it would be used. One year on the first prosecution is taking place. Most business people have heard about the Act, but many have not appreciated how wide the remit can be.

Potentially a prosecution under the Act can cover a vast range of circumstances and can occur many months after the event in question. It is targeted at making management take health and safety seriously and enabling prosecution where the management approach has permitted serious health and safety failings which have resulted in a fatality or fatalities. Penalties can include a fine, an order to take steps to remedy failings and a publicity order detailing failings and any remedial action ordered.

The first business to feel the teeth of the Act is a geotechnical firm – Cotswold Geotechnical Holdings. The prosecution relates to the death of an employee, Alexander Wright, a junior geologist, who was taking soil samples within a pit when it collapsed in on him in September 2008. The company has been charged with the criminal offence of corporate manslaughter under the Act and its director, Peter Eaton is being prosecuted individually – for the common law offence of gross negligence manslaughter. It was previously debated as to whether the Act would be used to pick up smaller businesses who do not properly manage health and safety as well as large organisations. Perhaps not surprisingly, the prosecution is against a business in the construction field and is in relation to an employee – this area being one of high risk and where the government and Health and Safety Executive are keen to identify and address high accident rates and safety issues.

Factors to consider under the Act:

· For there to be a prosecution there must have been a fatality. However that fatality need not have occurred straightaway as a result of the events in question – and these events need not be the only factor in the resulting death. It is sufficient for the failures of the business concerned to have contributed to the death.

· The Act applies to any corporate entity operating within the UK and to partnerships where there are employees.

· A prosecution will only take place if there has been a gross breach of the duty of care owed by the business to the victim. However the duty of care is not limited to employees but covers any visitors to premises, consumers of goods and services, and those affected by the commercial activities of the organisation. Potentially therefore the scope is extremely wide and a company may be unaware of those that have been affected, possibly until a prosecution is instigated.

· However the test is reasonableness – the way in which the business was managed or organised must fall far below what could reasonably have been expected.

· The Act focuses on senior management – but the definition is wide ranging, covering those making the decisions but also those effectively running the day to day activities.

· As shown by the recently announced prosecution, while the Act is aimed at companies, individual directors can still be prosecuted for common law manslaughter by gross negligence.

What can you do? The Act does not impose more onerous obligations on businesses. If business are operated in accordance with current health and safety legislation, they should have nothing to fear. However, where businesses are not up to date with legislation or not complying or considering its scope, then if a fatality or fatalities arise which can be linked to their activities, this is likely to prompt consideration of the possibility of prosecution. If significant failings are found, then a prosecution is likely. It is felt that the Act may well be used to highlight areas of health and safety that are often overlooked and to make examples of companies, as well as addressing cases of obvious relevance. It is also likely to be used to address companies where health and safety issues are not taken seriously on the ground and the operative culture fails to implement and enforce appropriate practices. It is not sufficient to have policies and procedures in place – they must be seen to be implemented and monitored and there will be a real focus on the culture.

Philippa Luscombe, a partner in the personal injury group at Penningtons Solicitors LLP which provides a full range of services for those making personal injury claims, comments: "Companies would be well advised to consider carefully their compliance and to seek advice – showing that health and safety is taken seriously will go a long way towards establishing a 'reasonable' approach and providing protection. One of the key things is to consider who would be defined as 'senior management' under the Act and therefore subject to scrutiny – it may be far wider than people think."

Paul Macbeth awarded Chartered Insurance Broker status

2009-05-26T09:23:00.000-07:00

We are delighted to announce that our Managing Director Paul Macbeth has been awarded Chartered Insurance Broker status by the Chartered Insurance Institute.

At present only 2,000 insurance brokers worldwide have achieved this Chartererd title which shows that Paul has attained and maintained the highest and most prestigious level of professional achievement.

Increase to statutory holidays April 2009

2009-05-20T12:48:00.000-07:00

The sunny spells we have been having over the last few days are a good lead in to this month’s hot topic which is an update on the recent increase to statutory holiday entitlements and how this may affect your business.

A recent YouGov survey of 2114 adults found that 21% of full-time workers said that they were entitled to less than 27 days’ holiday per year including bank holidays: although this would imply that not everyone is aware of his/her rights, employers should ensure that they offer at least the statutory minimum entitlement.

Increase to statutory holidays
It's now more than 10 years since the Working Time Regulations came into force and gave workers in England, Wales and Scotland the right, for the first time, to paid holiday entitlement.
The intention was to ensure that all workers received the equivalent of four weeks' holiday each year in addition to bank/public holidays, however, there remains no right to have time off on a bank holiday, only to the overall minimum annual entitlement. The entitlement was increased to 4.8 weeks with effect from 1st October 2007 and then again increased to 5.6 weeks (28 days for full-time workers) on 1st April 2009.

Even after the increase the UK still remains at the bottom of the EU league for paid holiday entitlement. In Belgium the total figure is 30 days, in the Czech Republic it is 33 days and in Germany (where the law grants minimum annual leave of 24 days plus an entitlement to a further 10-15 days of public holidays) the total is a possible 39 days! And many employees in Germany are legally entitled to 30 days' annual leave under their collective agreements, plus the public holidays, making in some cases a total of 45 days.

Points to note
Whilst most people talk about their holiday entitlement as one single, total allowance, there is a distinction between the statutory "annual leave" allowance of four weeks and the statutory "additional leave" allowance of 1.6 weeks - which enables the government to apply different rules to the two sorts of holiday. (This of course is also not to be confused with bank/public holidays - which some people think of as statutory holidays when they are not!)
Points to note are as follows:
There is no qualifying period for statutory annual leave nor additional leave.
Part-days do not have to be rounded up to the nearest full day (but cannot be rounded down!)
Subject to contractual arrangements, the additional leave, if untaken, can be carried forward to the next holiday year with the agreement of both employer and employee.
Statutory annual leave (the initial 4 weeks) cannot be carried forward.
Payment cannot be made in lieu of any of the statutory annual leave entitlement (including the additional leave), other than on termination of employment. (Different rules applied to the additional leave until April 2009: until this date any of the initial 0.8 weeks' additional leave could be replaced by a payment in lieu if not taken as holiday.)
Where a worker is absent (eg on maternity or sick leave) and would normally be required to take a bank/public holiday as part of the statutory leave entitlement, he/she should be allowed to take this at a later date.
Payment in lieu of any contractual holiday on top of the statutory total of 5.6 weeks is permissible.
Employers can still require holiday to be taken at specified times (eg bank holidays or periods of shutdown) or to refuse requests to take leave at specified times (eg during busy periods or to provide necessary cover). Those who normally work on bank or public holidays can continue to do so provided they are given sufficient paid time off at another time.
Statutory annual leave is excluded when calculating average weekly hours for the purpose of the Working Time Regulations but days of additional leave are included.
Workers who work a six-day week are limited to a total maximum of 28 days.

How this may affect you
Employers currently offering at least 28 days in total:
There is minimal impact on employers who already offer four weeks plus the bank/public holidays but there are a few traps!
Where workers are on maternity or unpaid sick leave on a bank/public holiday, you should ensure that they still receive the appropriate minimum statutory holiday and, if necessary in order to ensure this, they may be entitled to carry the day forward to take at a later time. Check your records and ensure that your managers (or whoever keeps the individual leave records) is aware of this and makes the appropriate amendments for these staff.
Other than on termination of employment, pay in lieu of leave is not permitted for either ordinary statutory leave (or additional statutory leave after April 2009), although employees can "buy out" of contractual holiday in excess of this. Review your policies on buying additional holiday or pay in lieu to ensure that you are not in breach and notify your staff of any changes.
If you automatically nominate all bank/public holidays as paid holiday, where an employee leaves or joins part-way through the holiday year, you should double check to see that the employee receives at least the pro rata total amount of statutory holiday and additional statutory holiday due. As bank and public holidays are not spread evenly throughout the year you may find it easier to change your contracts to an overall entitlement which includes the bank/public holidays to ensure a fair pro rata entitlement is given, see the following example:
an employee has 20 days' holiday plus 8 bank holidays making a total of 28 days' holiday
your holiday year runs from 1 Jan - 31 Dec
she leaves on 30 June, 6 months into the holiday year and is therefore entitled to 6/12 x 28 = 14 days
she will have taken the following 5 bank holidays: New Year's Day, Good Friday, Easter Monday, May, late May - this leaves her with 9 days to take as she wishes
so far she has taken 6 of these days, therefore she will be paid in lieu for the remaining 3 days if she does not take these before she leaves.
Be careful regarding overtime payments for those who work on bank/public holidays - whilst you are still free to offer a premium, or enhanced payment, if the bank/public holidays form part of the total statutory entitlement, you must allow the time off at a later stage. You cannot pay for the bank/public holiday instead of it being taken as holiday.
Employers currently offering less than 28 days in total:
If you currently fall below the minimum requirement the action to be taken is as follows:
Recalculate the leave entitlements from April 2009. If your holiday year starts at a different time to April you will need to calculate the increase pro-rata (see below).
Notify employees of the increase in their holiday entitlement within one month of the change taking place. Such notification does not have to be individualised - a simple note with the payslips will suffice.
Update your contracts for new employees to reflect the increased entitlement.
Review your policies and employee handbook and update these accordingly. You may need to review your rules on the making and authorising of holiday requests - especially if you predict greater competition for time off on or around the bank/public holiday dates.
Consider whether you wish to require your employees to take holiday on the bank/public holidays. If you do, remember to change your systems so that someone on long-term sick or maternity leave is able to carry forward the missed bank/public holidays to take at a later date. You may also wish to consider revising your contracts so that future holiday entitlement is expressed as a total amount, including the bank and public holidays, with a clause giving you the right to nominate bank/public holidays from the overall entitlement. This usually makes it easier to calculate pro rata holiday for part-timers and those on fixed-term contracts.
As above, if you count the bank/public holidays as part of the minimum 5.6 weeks, check your overtime arrangements for those who work on a bank/public holiday. Whilst there is nothing to stop you paying enhanced pay, you should ensure that time off in lieu is given (rather than just payment) so that the employee can take the day at a later stage.

Calculating the additional leave
BERR provides examples of how leave should be calculated where the additional entitlement only applies to part of the employer's holiday year and for employees working part-time. It suggests multiplying the proportion of a worker's holiday year remaining after the enforcement date by the additional holiday entitlement of 1.6 weeks. As most employers' holiday years run from the start of a month, whole months can be used to calculate the proportion. If a holiday year starts mid-month, a proportion using the number of weeks or days remaining in the holiday year would have to be used.
An example of someone whose holiday year runs from 1 January 2009 and who works a five-day week:
12 months x four weeks' basic statutory holiday plus
3 months x 0.8 weeks (0.8 x 3/12) and
9 months x 1.6 weeks (1.6 x 9/12) = 5.4 weeks (27 days) of which 1.4 weeks (seven days) can be carried forward.
For the year 2010, the annual leave entitlement will be 5.6 weeks of which 1.6 weeks (8 days) can be carried forward.

Ensuring workers take their statutory entitlement
There is a legal obligation to allow workers to take their statutory entitlement but not to insist on them taking it, although there are clearly reasons, not least of which health and safety, to encourage annual holiday to be taken.
It would seem that fear, rather than love of work, is leading people not to take their holidays and to keep in touch throughout! Of 994 jobseekers surveyed on TipTopJob.com, 51% had cancelled or were likely to cancel their holidays due to the recession; 53% said they were more likely to be in contact with the office whilst away on holiday and 48% believed taking holiday whilst redundancies are being made meant they would be more likely to lose their job.
Best practice is to remind employees around nine months into the holiday year of what holiday they still have outstanding. They can then plan to take their outstanding holiday or run the risk of losing this. Otherwise you can end up with lots of last minute holiday requests made right at the end of the holiday year which are not always convenient to the business!

Payment in lieu of holidays
Although not a legal entitlement, employers may allow additional leave (1.6 weeks above statutory annual leave) to be carried forward into another holiday year but payment in lieu may not be made unless the employment is being terminated.

Rolled up holiday pay
Following an ECJ judgement on 16 March 2006 and more recent judgements in UK courts, rolled-up holiday pay (RHP) is considered unlawful and payment for statutory annual leave should be made at the time when leave is taken.
If you still operate this system (commonly used for casual staff and for those who have no regular working hours), you need to be taking steps to phase it out immediately.

Part-timers and bank holidays
Part-time workers are entitled to the same leave as their comparative full-time colleagues, but on a pro-rata basis.
Difficulties may arise with bank holidays. If you currently have a process of giving paid bank holidays only if they fall on an employee's normal working day then you may be OK if you operate a seven-day week and the detriment applies equally to full-timers who don't work on Mondays, provided also that your part-timers all get at least the statutory minimum number of days.
However, when working a 5 day week, as most bank holidays fall on a Monday, those part-timers who never work on these days will be entitled to proportionately fewer days off than full-timers who regularly work on these days. In these circumstances, the disadvantage could be removed by giving all part-timers pro-rata entitlement.
BERR suggests that part-time workers should be given a pro-rata entitlement of bank holidays according to the hours they work, so that part-timers and also both job-sharers in a job-share arrangement are treated fairly and equally - so someone working three days per week will get 3/5 of the full-time allocation. This means that if they work on Mondays they may have to use some of their annual holiday entitlement to cover the bank holidays (and it's advisable to have a clause in the contract requiring them to do this), whereas those who work other patterns get more "holiday" to take when they choose - but not more paid holiday. We consider the pro-rata approach to be the fairest (and to avoid doubt it's worth considering expressing your holiday entitlement as a total number of days, including the bank holidays within this - and to have a clause saying that time taken off on bank holidays will be deducted from this total entitlement).

Holidays and maternity leave
During the whole of the maternity leave period, employees are now entitled to the benefit of all terms and conditions of their employment, except remuneration, including all statutory and contractual holiday leave entitlement which will continue to accrue during this period.
However the employer is free to apply normal rules to holiday not taken at the end of the leave year. It is important therefore to agree with the employee prior to leave, wherever possible, how holidays are to be taken. Where business shut-downs occur during leave, the employee will be entitled to take that holiday before or after the leave period.
Interestingly, there is no rule that entitlement to annual holiday must come out of working time. If it were otherwise "teachers, professional footballers and other workers who did not work during certain periods of the year because there was no work for them to do, could not be regarded as being on leave during those periods and so would be entitled to leave out of the periods when they were working" (Craig & Taylor v Transocean International Resources). This may be taken to mean that for example, full-time staff on maternity leave who return on a part-time basis could use up any outstanding holiday entitlement on days when not normally required to work.

Holidays and long term sickness
Workers still accrue their statutory holiday (the basic four weeks) even whilst absent from work on long-term sick (whether for the whole year or part of it) and they must be given the opportunity to take this. This is a recent ruling of the European Court of Justice and EU Member States will have to decide whether this should be taken during the holiday year in question or carried over to another year but, either way, the employee will be entitled to the paid annual leave at some point. On termination of employment, workers are entitled to a payment in lieu of annual leave they have been unable to take.
It will also be up to each Member State to decide whether annual leave can be taken during a period of sickness - so domestic rules can either prevent the taking of or receiving payment for holiday leave whilst absent on sick leave, or permit this. Member States can also prevent the carry over of unused holiday into a subsequent holiday year provided a worker has actually had the opportunity to exercise his/her right to that leave. But a worker who is unable to take leave due to sickness absence (whether absent for the entire year or part of the year) must be allowed to carry over the leave into a subsequent leave year.
If after a number of years' absence the worker resigns or the employer terminates the employment, the ECJ's decision would also imply that payment should be made in lieu of all the holiday accrued but not taken - presumably paid at the normal salary.

Managing holidays
However unique you think your business is, it's amazing how the same problems arise in different environments!
Read our guide to managing holidays to give you a few tips on how best to do this: http://hiscox.businesshr.net/docs/guides/holidays.html
Our page on the increase in statutory holidays has a useful chart showing the proportionate increase, depending on when your holiday year starts: see http://hiscox.businesshr.net/docs/legal/stathol.html Do take advice from us if in doubt - we know from experience that many of you find such calculations particularly troublesome!
Our legal overview on working time also gives details on the statutory holiday entitlement - see http://hiscox.businesshr.net/docs/legal/workingtime.html
Finally BERR has advice on its website (see: http://www.berr.gov.uk/whatwedo/employment/holidays/index.html) as does Directgov ( http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/index.htm) and an ACAS leaflet "Holidays & Holiday Pay" also gives guidance on statutory holiday entitlements ( http://www.acas.org.uk/index.aspx?articleid=806).

Enjoy your holidays!
We hope you have found the above useful and would like to take the opportunity to wish you all a wonderful holiday season!

Macbeth Insures Jacko Exhibition

2009-05-13T00:11:00.000-07:00

Macbeth recently arranged insurance for the exhibition of Jacko in the atmospheric surroundings of Wilton's Music Hall, London.

Mark Jackson is an exciting artist who we are delighted to be working with. The exhibition was held in support of Help for Heroes and The Kipungani Schools Trust.

Jacko started his studies at the Charles H. Cecil Studios in 2003. Having painted in London for a few years, he returned to Florence to continue studying and, latterly, to teach sculpture. Seeking to combine passions for painting and travel, landscaping trips have ranged from West Scotland to East Africa; commissions have also generated visits to Southern Afghanistan and Baghdad.

If you would like to learn more about Jacko, please visit http://www.jackoart.com/

Picture courtesy of http://www.davidbrook.co.uk/

At Macbeth, we specialise in fine art and antiques insurance, arranging worldwide ‘all risks’ cover for individual collectors, dealers and exhibitors, along with museums and galleries. We also design bespoke policies for fine art professionals such as auctioneers and valuers.

Our private client division, Macbeth Premier Clients is a specialist division dedicated to providing bespoke insurance solutions to people with valuable homes and possessions. As a Premier Client, you have a single point of contact for everything from quotations to claims. Using our extensive partner network, we negotiate the best possible policy terms for the lowest possible premiums. We can even arrange a single portfolio policy to cover your home, cars and boats - making life a lot easier when it comes to premium payments and renewals.

If you require advice regarding high value home insurance, fine art insurance, antique insurance or jewellery and watch insurance, please contact Paul Macbeth ACII Managing Director on 0118 9452 944 or paul.macbeth@macbeths.co.uk

To infinity and beyond!

2009-04-10T00:45:00.000-07:00

It's not every day we are to asked to insure a spacecraft but when the call came in we were certainly up for the challenge. The spacecraft in question was in fact a modified Smart Car that was used to promote the new 3 part series of Red Dwarf on Dave TV over the Easter weekend.

We arranged cover for the £15,000 prop whilst it was in transit as well as public liability insurance at the location in Barclay Square, London.Insurance cover for props as well as film production insurance are specialist areas that we are experienced in dealing with.

For more information about prop insurance and film production insurance contact Tony Gibbs on 0118 9452944

Number of equal pay cases increases ten-fold over five years

2009-04-07T06:08:00.000-07:00

Figures released by the Tribunals Service today show there has been a significant increase in the number of equal pay claims going to Employment Tribunals...

Over 60,000 equal pay cases were accepted between April 2007 and March 2008 - accounting for a third of all cases at Employment Tribunals throughout Great Britain. This was more than treble the number of cases received in 2005/06 (17, 268) and more than ten times the number of cases received five years ago in 2003/04 (4,412).

Although there was a slight decrease in the number of sex discrimination cases from the previous year (26, 907 down from 28, 153), it was still an increase of almost 10,000 cases compared with five years ago (17,722 in 2003/04).

The total number of employment tribunal claims for 2007/08 was up by over 40 per cent on the previous year (from 132,600 in 2006/07 to 189,300 in 07/08). This was due in part to an increase in Working Time Directive cases, rising from 21,127 in 06/07 to 55,700 for 07/08. This includes approximately 10,000 airline workers' cases relating to annual leave entitlements which are resubmitted every few months to ensure that when the case is eventually heard it takes account of all leave entitlement up to that point.

For the full publication, information on Employment Appeal Tribunals statistics and to view statistics from previous years, please visit http://www.employmenttribunals.gov.uk/Publications/Publications.htm

Save some tax now

2009-04-07T05:28:00.000-07:00

Most of us pay tax at some stage in our lives and many of us pay right the way through until death and sometimes beyond! Here are a few simple things you can do to ensure you don’t pay too much tax...
Check your tax coding and make sure you are not paying too much tax.
Make sure any money in savings accounts is in the name of the person who pays at the lowest tax rate – the lower the tax rate the lower tax you pay

Take out an Individual Savings Account (ISA) every year as these grow free of tax

Make contributions into pension plan and if you haven’t got one yet then make sure you do have one. Where else can a 40% tax payer make 40% on an investment straight away? Plus pensions grow free of tax

Make a Will and ensure you take advice on Inheritance Tax – sometimes even just the value of your home means your children or grandchildren will lose some of their inheritance to the taxman

If you have your own business paying the majority of your earnings as dividends could save you another form of tax - national insurance

Ensure you make use of your Capital Gains Tax allowance if you have investments such as shares, unit trusts or OEICs

Consider an “offset” mortgage account where your net rate of saving is at the mortgage rate you are paying

If just one of the above helps you pay less tax then it’s been worth reading the above. Consult an independent adviser if you need to know more...

Simon Claxton is an Independent Lifestyle Financial Planner and part of 2Plan which is a nationally backed company delivering a local service. As well as a totally unbiased fee based approach, Simon can also offer the traditional products which can in some cases generate commissions to pay for the advice processes.

Simon has 25 years of experience in financial services dealing with personal and corporate financial planning including employee benefits.

Simon believes that being sorted financially is a bit like getting fit and staying fit. He says “you can’t expect to go to the gym once or perhaps twice and expect to stay fit for life. It just doesn’t work that way. Financial planning is the same. You can’t do a ‘one off’ financial plan and expect it to work for the rest of your life. It’s a long term process that involves careful and regular monitoring, and that’s why we are offering a long term service.”

To discuss any area of this article further, contact Simon on 01635 202 001, 07870 616969 or email simon.claxton@2plan.com

Life Policies in Trust

2009-04-07T05:14:00.000-07:00

Worrying figures provided by the UK life insurance industry show that only 1% of life insurance policies are written in trust. There are major benefits to putting life policies in trust so many thousands of people are missing out...

Sometime ago you may have been sold a life insurance policy, either by a financial adviser or insurance broker. Good financial advisers would explain the options around setting up either a joint policy or a policy each which can be more tax efficient. Other options such as “life of another” may be more appropriate together with a specific trust. Today we can buy life insurance cover over the phone, on the internet and even when we do the weekly shop. These life cover providers are not always in a position to advise on the many options so you never get told about them. This is because most people are primarily concerned with price but could be making an expensive mistake by not taking professional advice. If you need life assurance then speak with an independent financial adviser (IFA) who can source a competitively priced policy and show you the best way of setting your policy up.

So do you need life insurance in trust?

Well this very much depends on your own personal circumstances. The main benefits are that the policy proceeds are paid out very quickly, no need for probate, and the policy payout does not form part of your estate for inheritance tax.

There are three parties needed for a trust:

The Settlor - This is you. You are gifting this policy into the Trust

The Beneficiaries - These are the people who will receive the policy proceeds in the event of death. You can nominate spouses, children, grand-children etc and also specify amounts of money or percentages they will receive

The Trustees - These are the people that oversee and look after the Trust. Trustees need to ensure that funds are distributed according to the trust deed.

Significant Inheritance Tax (IHT) savings can be made by placing life insurance policies into trust as the policy proceeds are paid to the Trust and not your estate. A good Financial Adviser can provide basic trust documents for free so there is no additional cost unless your situation is particularly complex. An adviser can also make sure you have the right policy. For example, in many cases having a policy each for mortgage protection can be very similar in cost compared to just having one joint life policy between you so what would you rather have?

Make a start today by contacting an independent financial adviser. They can assess your requirements and take you through the steps needed to set your life insurance up correctly.

Simon Claxton is an Independent Lifestyle Financial Planner and part of 2Plan which is a nationally backed company delivering a local service. As well as a totally unbiased fee based approach, Simon can also offer the traditional products which can in some cases generate commissions to pay for the advice processes.

Simon has 25 years of experience in financial services dealing with personal and corporate financial planning including employee benefits.

To discuss any area of this article further, contact Simon on 01635 202 001, 07870 616969 or email simon.claxton@2plan.com

Simon believes that being sorted financially is a bit like getting fit and staying fit. He says “you can’t expect to go to the gym once or perhaps twice and expect to stay fit for life. It just doesn’t work that way. Financial planning is the same. You can’t do a ‘one off’ financial plan and expect it to work for the rest of your life. It’s a long term process that involves careful and regular monitoring, and that’s why we are offering a long term service.”

Seven in depth ways of saving on IHT

2009-04-07T04:57:00.000-07:00

Did you know that earlier this year the Conservatives announced their plans to raise the inheritance tax limit to £2 million for married couples? This means that when the last survivor now leaves an estate on death with a value of up to £2million, there could be no Inheritance Tax to pay. This of course is only a proposal so anything can happen...

You may already know that George Osborne, the Conservative Shadow Chancellor proposed raising the inheritance tax limit to £1 million last year. However, this threshold can now effectively be doubled for married couples who, under Mr Osborne’s proposals, would have a staggering £1 million allowance each. The £1 million individual allowance can be transferred to the surviving partner after their spouse’s death.

Right now though, inheritance tax is charged at a whopping 40 per cent on any estate with assets over the inheritance tax threshold of £312,000. If you just take property alone a huge number of ordinary folk will be over this threshold. If you then added in people’s savings, investments and personal possessions then no doubt even more people will be affected.

Now the Tories aren’t realistically going to have a chance of getting into power until 2010. What then can be done if you want to ensure your children, grandchildren and any other beneficiaries don’t end up having to pay £1,000s in Inheritance Tax now? Well here are seven simple things you can do right now to save Inheritance Tax.

1. Use the nil-rate band

As mentioned already, anyone can leave up to £312,000 to the beneficiaries of their estate via their Will free of inheritance tax. This could include friends or family. This limit is called the 'nil-rate band', and only relates to the amount of money you leave to your heirs. Assets that are passed between spouses (or people who have entered into a civil partnership) are free of inheritance tax, regardless of what they are worth.

The current Chancellor, Alistair Darling, announced in October 2007 that married couples, and civil partners, can now inherit each other's unused part of the nil-rate band when one of the couple dies. This now gives them a joint nil-rate band of £624,000. This will increase to £700,000 in 2010-2011). This simply means that the total estate value needs to be more than £624,000 currently for any Inheritance Tax to be charged.

With the current trend of more people choosing not get married things can get a little more complicated! If you live together you both still have your individual allowances of £312,000 (rising to £350,000 in 2010-11). You can still pass on £624,000 inheritance tax-free to your friends and family. BUT, you cannot leave assets which are worth more than £312,000 to each other without facing an inheritance tax bill. This could cause problems if one of you dies.

2. Give your property away

To save Inheritance Tax, you can use the following annual exemptions:

Each tax year (6th April to 5th April) you can give away up to £3,000 outside of being liable for inheritance tax. Any unused allowance can be carried forward from the previous year too.
You can also give away £250 to any one person each tax year. This is a popular exemption used to cover Christmas and birthday gifts to grandchildren.

Gifts made at a wedding are also exempt. Each parent can give to any child £5,000 each. Grandparents can also make gifts of £2,500. And if anyone else is feeling generous they can also give the newlyweds £1,000. Make sure the gift is made shortly before the marriage as it only becomes exempt from inheritance tax when the marriage takes place.

Parents often want to give their son or daughter money for a deposit on a house and this could be as much as £22,000 in one year. Parents can use both their allowances this year (£6,000) plus last year's (£6,000). They could then make two wedding gifts of £5,000 each.

3. Make a will or check that your existing will is up to date

Dying without a will means that you will die 'intestate' and it is then the State who decides your money and assets go! In England and Wales, it is your spouse who gets the first £125,000, together with your personal possessions plus an interest for life in half the balance. The remainder of your estate will automatically go to your children in equal shares.

If you make a will you could transfer some of your assets to friends or family after your death within the nil-rate band free of any inheritance tax.You should ask yourself when you last reviewed your Will as it is important that you do this whenever your circumstances change. This could be when you marry, have a child or grandchild or your spouse dies or you become divorced.

4. Give away any surplus income

Surplus income year on year can be given away free of inheritance tax. This is fine as long as you are able to show that these gifts are part of your regular annual expenditure i.e. they don't affect your standard of living. A clever reason for doing this is to pay pension premiums or life insurance premiums for the benefit of someone else such as children or grandchildren.You should keep a record of these gifts and, if possible, a record of your income after tax just in case it is queried by the revenue. There is no upper limit on the amount of money you can giveaway so it's worth keeping records just in case.

5. Another form of gifting

At any time you can give away any assets such as property, cash or other investments. As long as you survive for seven years after you gave them away they will be deemed free of inheritance tax.Many people think that if you give away your home but continue to live in it rent free it will be safe from the grasp of the taxman. BUT in these circumstances, the taxman still considers it to be part of your estate. However, you can give your home away to your child and, if they live with you until you die or you go into a care home and both of you have contributed to the running costs of the property, then it may be deemed outside your estate and therefore free of any Inheritance Tax.

6. Gift to a charity.

Gifts to charities are completely exempt as are gifts to political parties with at least one MP and 150,000 votes. Money left to registered housing associations and gifts for national purposes are also exempt.

7. Get business property relief.

Some businesses and business assets may qualify for exemption from inheritance tax after a period of two years. This normally applies to a business interest such as a partnership or to shares in an unlisted company. Shares quoted on the AIM (Alternative Investment Market) can also qualify as long as you have held them for two years.

Simon Claxton is an Independent Lifestyle Financial Planner and part of 2Plan which is a nationally backed company delivering a local service. As well as a totally unbiased fee based approach, Simon can also offer the traditional products which can in some cases generate commissions to pay for the advice processes. Simon has 25 years of experience in financial services dealing with personal and corporate financial planning including employee benefits.

Simon believes that being sorted financially is a bit like getting fit and staying fit. He says “you can’t expect to go to the gym once or perhaps twice and expect to stay fit for life. It just doesn’t work that way. Financial planning is the same. You can’t do a ‘one off’ financial plan and expect it to work for the rest of your life. It’s a long term process that involves careful and regular monitoring, and that’s why we are offering a long term service.”

To discuss any area of this article further, contact Simon on 01635 202 001, 07870 616969 or email simon.claxton@2plan.com

Seven Bullet points to save on IHT

2009-04-07T04:45:00.000-07:00

Seven simple things you can do right now to save Inheritance Tax....

1. Use the nil-rate band. Anyone can leave up to £312,000 to the beneficiaries of their estate via their Will free of inheritance tax.

2. Use the annual gift exemptions. Each tax year you can give away up to £3,000 plus £250 to any one person each tax year. Each parent can also give to any child £5,000 each on marriage with Grandparents able make gifts of £2,500.

3. Make a will or check that your existing will is up to date. Dying without a Will means the State will decide where your money and assets go!

4. Give away any surplus income. Surplus income year on year can be given away free of inheritance tax subject to a few basic rules.

5. Another form of gifting. At any time you can give away property, cash or other investments. Survive for seven years after you gave them away they will be deemed free of inheritance tax.

6. Give to a charity. Gifts to charities and political parties are completely exempt.

7. Get business property relief. Some businesses and business assets may qualify for exemption from inheritance tax after a period of two years.

Simon Claxton is an Independent Lifestyle Financial Planner and part of 2Plan which is a nationally backed company delivering a local service. As well as a totally unbiased fee based approach, Simon can also offer the traditional products which can in some cases generate commissions to pay for the advice processes. Simon has 25 years of experience in financial services dealing with personal and corporate financial planning including employee benefits.

Simon believes that being sorted financially is a bit like getting fit and staying fit. He says “you can’t expect to go to the gym once or perhaps twice and expect to stay fit for life. It just doesn’t work that way. Financial planning is the same. You can’t do a ‘one off’ financial plan and expect it to work for the rest of your life. It’s a long term process that involves careful and regular monitoring, and that’s why we are offering a long term service.”
To discuss any area of this article further, contact Simon on 01635 202 001, 07870 616969 or email simon.claxton@2plan.com

Residential development land values halve in 12 months, according to Knight Frank index

2009-04-07T04:27:00.000-07:00

The value of development land across the UK fell by an average of 50% during the course of 2008, according to the latest figures from the Knight Frank Residential Development Land index.

No region has proved immune from substantial falls, with Outer London, the least affected area, seeing a 40% drop. Urban land in Yorkshire and Humberside experienced the steepest fall at 64%.

The latest index figures, released today, show that urban and greenfield land values dropped by an average of 17% and 14% respectively outside the capital during the final three months of 2008.

Prime London, which had until now remained relatively resilient, saw the steepest drops, with super-prime development land falling in value by 33% in the quarter alone. Development sites in Inner and Outer London lost a quarter of their value during the same period.

Jon Neale, head of development research at Knight Frank, said: “This unprecedented fall in land values – experienced right across the UK – is a reflection of the ongoing problems with securing finance for development and the continuing crisis in the housebuilding sector.”

“Very few developers have cash or can access bank finance, and those that are in a position to buy are adopting an extremely cautious strategy. Only extremely well-located sites, or those suited for larger family homes, are attracting interest – or, indeed, qualify for bank backing. Demand has dropped by between a third and a half, depending on location.”

“Indeed, many more in the development sector are looking to dispose of land, as a result of pressure from funders and the fact that reduced activity levels mean that many sites are superfluous to requirements. Nevertheless, supply has dropped as other landowners opt to wait for more optimum market conditions.”

The index also measures the market share taken up by various vendor and buyer groups. Housebuilders and other residential developers represent, at 27% of the market, the largest slice of those selling land. Meanwhile, speculative land investors are the single biggest buyer group, at 24% - followed by the housing associations and private landowners.

Neale added: “It is clear that the conditions are being created for a large-scale transfer of development land, from housebuilders to private investors and landowners as well as the public sector, in the form of Housing Associations backed by funds provided by the Homes and Communities Agency.

“There is little sign of any mass movement – indeed there are very few sales occurring at this moment in time. However, many players believe fair value is approaching and we believe prices have a further 10% to fall before stabilising over the Summer. After this point, transactions should become more commonplace.”

With the sales market still depressed, there is a danger than many new landowners may hold land undeveloped as a long-term asset, further frustrating government targets for housing delivery. There are also indications that many investors are considering the option of building properties that will be held as rental units in the short- to medium-term.

Neale said: “The first-time buyer market is likely to remain subdued for some time, particularly if the recommendations of the Turner report are followed and the mortgage market becomes highly regulated. This will help sustain demand for rental property in the longer term. With land values at a low ebb, it is unsurprising that some institutions and developers are seriously considering the option of buying land and building flats and houses as long-term investments.”

Typical land values outside London now range from around £250,000 per acre for more peripheral sites in cheaper regions to over £1m per acre for the best sites in the South East and East of England. London prices are far more variable – over £3m per acre is typical in inner boroughs, but over £15m per acre is achievable in prime locations.

Macbeth Insurance Brokers are property insurance specialists. We have access to several specialist schemes for all types of properties including high value homes, commercial buildings, blocks of flats, converted houses and unoccupied buildings. If you would like further information about property insurance, please contact Paul Macbeth ACII, Managing Director at Macbeth Insurance Brokers on 0118 9452 944 or paul.macbeth@macbeths.co.uk

London prices fall further, but activity rises sharply according to Knight Frank index

2009-04-07T04:16:00.000-07:00

Knight Frank Prime Central London Index - key findings for March 2009

Prices for prime residential properties in central London fell by a further 1.6% in March
The peak to trough price fall has now reached -23.9%
The rate of price falls has slowed sharply in recent months, with prices down only 6.7% in the first quarter of 2009 compared to 9.4% in the final quarter of 2008 The number of prime London properties exchanging during March was 13% higher than Feb and 26% higher than March 2008

Viewing levels have increased by 38% in March on a year-on-year basis

The number of new properties coming to the market in March fell by 42% on a year-on-year basis

Liam Bailey, head of residential research, Knight Frank, commented:
“Prices are still falling across central London – however the evidence is mounting that not only is the rate of decline slowing appreciably, from monthly falls approaching 4% before Christmas to 1.5% and 1.6% in February and March, but also activity in the market has increased noticeably in the last two months.

“The number of properties in the central London markets which exchanged rose by 26% on a year-on-year basis, and 13% on a month-on-month basis. Both February and March recorded more sales activity than the same period a year ago.

“On the supply side the number of new properties coming to the market has fallen appreciably, with 42% fewer properties coming to the market in March this year compared to the same month a year earlier. The pipeline of new properties which we expect to see coming to the market in April is down 60% over the same period.

“The key issue to hit the prime London market at the current time is the growing shortage of stock in key market areas. The stock of available properties to buy in the market is almost 30% below the level seen last March.

“The strongest local market in central London at the current time is Mayfair, where prices appear to have bottomed out in January – prices fell a marginal -0.3% here in March. Mayfair has been a particular beneficiary of the weakness of Sterling, with foreign buyers comprising almost 60% of the market. Viewing levels in Mayfair rose 94% in Mayfair in March on a year-on-year basis – the strongest performance across the London market – reflecting improved conditions in this market.”

Richard Cutt, head of Knight Frank Mayfair, commented:
“Mayfair has a reputation far greater than its geographic size and therefore it is often the case that demand outstrips supply. Over recent years the area has moved back to the forefront of the London market and is now seen as a very a sophisticated and fashionable district.

“The super prime London markets are supply driven and this is particularly the case in Mayfair. This has meant that good quality properties in the area have faired well in the recent financial storm and we are now seeing similar levels being achieved on successive sales demonstrating that we are at or very close to the bottom.”

Macbeth Insurance Brokers are high value home and property insurance specialists. We have access to several specialist schemes for all types of properties including high value homes, commercial buildings, blocks of flats, converted houses and unoccupied buildings. Our specialist private client division is dedicated to providing bespoke insurance solutions to people with valuable homes and possessions such as fine art and valuables. We have an excellent reputation within the high value home industry, and access to the UK’s leading high net worth insurers. If you would like further information about high value home or property insurance, please contact Paul Macbeth ACII, Managing Director at Macbeth Insurance Brokers on 0118 9452 944 or paul.macbeth@macbeths.co.uk

What are Cyber Liability risks?

2009-03-31T09:53:00.000-07:00

Cyber risks are losses and liabilities that a company faces as a result of using the internet, computer systems and email

The last 5 years have seen colossal changes in the way that information technology affects our lives. Faster and cheaper computers have resulted in millions of new users every year with access to the internet now common place at home and at work.

It has never been easier to trade online and as consumer confidence in e-trade grows, online trading is only likely to increase. Email and electronic newsletter are now used in abundance as a means of communication with customer’s suppliers and employees.

These advances in technology bring a whole new set of risks to be managed, risks which traditional insurers generally exclude from their policies. Examples include:-

Liability to a third party due to libel contained in an e-mail
Liability to a third party due to a virus transmitted by you
Liability to members of your staff due to them being exposed to sexual harassment via electronic systems i.e. pornographic images unintentionally viewed on a colleague’s PC
Damage to your computer network due to harmful virus or hacker
Loss of revenue due to downtime of a computer system caused by a virus or hacker
Theft of your money (or your clients) due to hacking or employee electronic theft
Threat or extortion relating to your computer system

Some examples of claims are:-

Norwich Union paid Western Provident £450,000 in order to settle an action that an email at Norwich Union incorrectly alleged that Western Provident was about to be investigated by the Department of Trade and Industry.

British Gas were forced to pay over £200,000 to an ex-employee arising from comments circulated via the internet that breached his privacy.
Citibank lost £6.25m to a hacker using an old computer in an accountancy office in St Petersburg. He was arrested in the UK and extradited to the US where he is now serving a prison sentence. The FBI has still not recovered £250,000 of the funds.

A computer engineer who had been employed to update the computer system of a sheet metal company was fired due to incompetence. When the company refused to pay him, he hacked into its computer system and deleted their files. It cost the company over £70,000 to rectify the damage.

In order to help assess whether your business could benefit from cyber liability insurance, ask yourself the following questions:

Macbeth Insurance Brokers have specialised in cyber liability insurance for several years and have access to a number of specialist underwriters.

If you would like a quotation for your cyber liability insurance please click here to download a proposal form. If you would like a rough premium indication prior to coompleting the proposal please telephone Tony Gibbs, Sales Director at Macbeth Insurance Brokers on 0118 9452 944 or email tony.gibbs@macbeths.co.uk

Mission Accomplished!!

2009-03-31T09:39:00.001-07:00

I am delighted to tell you that "Team Macbeth" successfully completed the Reading Half Marathon on Sunday 29th March.
This was the first of our planned fund raising ideas to help raise money for our charity fund - fun for life.
Thanks to the generosity of our clients, friends and family, we have managed to raise £2,500 for the Berkshire MS Therapy Centre in Reading.

For those of you that are interested, our times were as follows:

Paul - 1hr 58
Carl - 1hr 44
Lee - 1hr 58
James - 1hr 32
Rebecca - 1hr 50

So, it was a respectable effort all round although the last mile was a struggle for me!

Thanks again to everyone who donated towards such a fantastic local charity.

Best wishes,

Paul Macbeth ACII
Managing Director

Are you in a fix?

2009-03-29T14:11:00.000-07:00

The Bank of England has had a busy time slashing rates since last autumn...
The Bank of England Base Rate now stands at just 0.5% - the lowest since 1694. But how does this continued rate reduction affect you? Well, that depends on whether you are a borrower or a saver.
For some borrowers on a tracker deal there will be much to smile about. For the average borrower with a £120,000 mortgage tracking the base rate, the 0.5% cut will see their repayments fall by around £30 a month, depending on how many years the loan is set over. Some lenders have introduced a “collar” which restricts the falling rate to a certain level, beyond which there will be no further reduction. If your loan is linked to your lender's standard variable rate (SVR) you may find that they have not passed on any of the reduction at all simply because they are not contractually obliged to do so.
If you are one of the half a million or so borrowers on a fixed-rate deal, the latest rate cut will have no affect on your payments at all. For some people who locked into a fixed rate last year, when some fixed-rates were on offer at over 6%, paying the early repayment penalties and moving to a new deal may now be a real option. Anyone doing this should of course bear in mind that unless they move to another fixed-rate loan the Bank Base could start to move back up at some stage and therefore their repayments with it! Currently, five year fixed rates are around mid 4s with one lender allowing borrowers to overpay by as much as they want without penalty but able to redraw the overpayments at anytime at the same fixed rate – what a great financial planning tool.
Generally, interest rates on new mortgage deals have reduced. The best deals however are being targeted at borrowers who are looking to borrow no more than 75% of the property valuation.
For anyone looking to review their mortgage they should speak with a qualified independent financial adviser for a proper appraisal. Macbeth work closely with Simon Claxton of Fusion Financial Management. Simon is an Independent Lifestyle Financial Planner and part of 2Plan which is a nationally backed company delivering a local service. As well as a totally unbiased fee based approach Simon can also offer the traditional products which can in some cases generate commissions to pay for the advice process. Simon has 25 years of experience in financial services dealing with personal and corporate financial planning including employee benefits.
For further information, contact Simon on 01635 202 001 or email simon.claxton@2plan.com

IT consultants facing increased legal action from ‘dissatisfied’ clients

2009-03-29T13:55:00.000-07:00

Hiscox, a specialist insurer, has today warned that the economic downturn is likely to expose IT consultants to potentially costly legal claims for delivering a product or service that clients allege does not meet their expectations...

Listing a defective product or service from an IT supplier as being the top reason for a breach of contract claim, the insurer urges IT consultants not to over promise and focus on better scoping of IT projects from the outset, and tighter management of client expectations. Cases of breach of contract, where a company claims its IT supplier has failed to deliver a product or service in line with an originally agreed contract, made up more than a third (36%) of all the professional indemnity claims dealt with by Hiscox in the IT sector over a four year period (1). Of the largest 100 IT claims handled and paid at Hiscox, the main causes of claims were (2);·

68% claiming defective product or services - ‘it didn’t do what they said it would do’ 60% claiming inadequate project management

56% claiming inadequate initial scoping of the project According to Hiscox, breach of contract claims could increase during an economic downturn where companies, who may be short of money, look to make cutbacks and reduce investment. IT projects often come under cost cutting scrutiny and some companies decide that they can recoup some of their original investment, or get out of an existing contract, by claiming their IT contractor or company has not provided them with the IT system or service they were promised.

Sam Franks, specialist IT risks underwriter at Hiscox, commented: “The current economic downturn highlights the importance of IT suppliers, big or small, properly scoping a project from the outset to avoid costly legal action. It is critical that they set down in the clearest terms what they intend to deliver with realistic costs and timelines, and then by careful management of the contract and client expectations, ensure any potential room for misunderstandings or disagreements is minimised.

“Many IT companies also do not realise that their existing Professional Indemnity insurance may not provide adequate cover. It is absolutely critical that IT contractors and companies, from the one man band operators right up to the multi-million pound IT businesses, check that their professional indemnity cover provides for breach of contract. They should also notify their insurer immediately if they suspect there might be a problem, which often first shows itself through an unpaid client bill.”

EU brokers safer internet deal with 17 social networking sites

2009-03-29T13:41:00.000-07:00

Seventeen leading websites have agreed to put in place safeguards to protect young people from unwittingly risking their privacy and safety...

They include Facebook, MySpace, YouTube, the French video website Dailymotion and Habbo Hotel, the popular virtual world for children.

Online social networking has grown more than 35% in Europe over the past year. About 42 million people are regular users, a number expected to more than double by 2012.
Social networking sites encourage users to feel that they're among a close set of friends when in fact there could be millions of people reading about them. These digital warehouses of private information raise the risks a user will receive harassing messages or be approached by a sexual predator.

They are also a goldmine for online advertisers, because users post information about themselves and can then be targeted with products and services likely to appeal to them.
Under a deal signed during a ceremony marking Safer Internet Day, the 17 companies agreed to ensure that:

users can report abuse with a single click
the default setting for online profiles and contact lists is set to “private” for users under 18
private profiles of users under 18 will no longer be searchable
privacy options will be more prominent so users know who can see what they’ve posted
online - only their friends or the whole world.

The companies promised significant progress towards implementing the agreement by April 2009. In some cases the policies have already been put in place as networks try to protect themselves against claims of privacy violation and illegal activity. MySpace has purged 90 000 sex offenders over the past two years.

Viviane Reding, the commissioner for information society and the media, called the agreement an "important step" in making social networking safer for children.The commission has also launched a campaign against cyber-bullying – harassment via the web or mobile phone. A growing problem, this typically takes the form of hostile text messages or photos or videos posted to embarrass users.

As part of the campaign, a video clip about a young girl being targeted by cyber-bullies is airing on public and private TV channels across Europe.At Macbeth we specialise in cyber liability insurance, providing vital protection against every type of risk, from breaches of privacy and defamation to network damage and loss of revenue as a result of a virus or hacker attack.

If you would like to discuss the protection that can be provided by Cyber Liability Insurance, contact Tony Gibbs, Sales Director on 0118 9452 944 or tony.gibbs@macbeths.co.uk

Helpful hints from fine art and antique insurance specialists

2009-03-27T02:30:00.000-07:00

Hiscox’s in-house team of Risk Surveyors, together with various
Hiscox approved Fine Art Valuers and Restorers, have compiled
a few tips to help you prolong the life of your antiques and avoid
having to make unnecessary claims.

Paintings

The most secure way to hang a painting of any scale is to use two hooked plates screwed onto either side of the back of the frame. Then suspend these with brass chains onto rawl-plugged screws. Smaller paintings may be hung on the correct grade wire. The advantage of the former method is that if a fitting on one side fails there is still a good chance that the other side will hold
reducing the resulting damage to frame, painting or items below.

Direct light and heat are detrimental to many works of art and paintings. It is the fluctuation in temperature rather than excesses in temperature that causes the most damage. As wood expands and contracts so also does the canvas or panel support of a painting, and it is this movement that causes the less malleable paint surface to peel or crack, as well as veneers to crack and lift. A stable temperature should be sought around paintings and furniture, avoid positioning near radiators and, if possible, a humidifier installed.

Oil paintings that have been wax lined should not be exposed to the heat of the sun as this will melt the wax and badly buckle the painting.

Watercolours should never be hung n direct sunlight, or even in reflected sunlight. Ultraviolet rays bleach out certain colours selectively, even over a relatively short period of time.

Avoid using gold paint to fill areas of lost gilding on frames. It discolours in a short time and is time consuming and therefore costly to remove and restore.

Furniture

Do not use Brasso or similar products to polish furniture handles. The residue from the product seeps into the grain of the wood and discolours it. If you have damaged wood in this way, the
surrounding layers of wood will need to be taken back and recoloured.

Furniture should not be polished with silicon sprays. It should be dusted, and every six months polished using a pump polish or wax - your restorer can advise you on a quality product. Avoid traditional yellow dusters that are prone to snag and lift wood veneers and brass inlay.

When moving marble, particularly slabs or table tops, never carry on the flat - always on its end.

Much damage occurs in transit to salerooms and between properties. Invest in fine art specialists to pack, move and store items and ask in advance for a full specification of the proposed treatment for each piece. Hiscox Approved Services, available to all policyholders, has a list of approved shippers and packers for this purpose. A single initial capital (sentence case) should be used for body copy titles.

Statues

Wash any delicate items one by one with tepid soapy water, over a towel in the bottom of the sink.

Secure any external statues with alarms or chain them to bulky objects such as garden benches to discourage burglars.

Hiscox approved services

As a Hiscox policyholder you also have access to Hiscox Approved Services, a range of approved service and product providers. All have been thoroughly vetted by Hiscox to ensure the highest
standards of quality are guaranteed.

These include several security products that can further protect your valued possessions against theft.

Art guard

A portable alarm system using radio technology to protect your most valuable items, both indoors and out.

Smartwater

A solution that is painted onto your property that contains a unique forensic code exclusively assigned to you much like DNA. Details are kept on a database maintained by the Forensic Science Service.

Identidot

A synthetic DNA mark that is invisible to the naked eye and does not harm the object being marked. If the item is stolen, Identidot places a description and photograph of it on the 'stolen items register' on their website and liaises with major auction houses, the police and their own stolen objects search team.

Invaluable protector

Details of your valuable items are recorded and in the event of a burglary, the Invaluable Protector team will immediately begin searching nearly 1,000 auction houses worldwide to
find them.

To learn more about any of these products please call Paul Macbeth ACII Managing Director of Macbeth Insurance Brokers on 0118 9452944, email paul.macbeth@macbeths.co.uk or visit www.hiscox.com/services

What to look for in a new Insurance Broker

2009-03-27T02:19:00.000-07:00

Most business owners prefer to use an insurance broker for general and commercial insurance. To get the best value and most appropriate insurance to protect your business your choice of broker is important.

An insurance broker will help identify and present your risks, suggest improvements for business continuity, obtain quotes from insurance companies and assist you in making claims.

Ask questions to ensure the broker will be able to support your business, such as:

Will the broker provide help and support when you make a claim?
Can the broker find the most appropriate cover for your business needs?
What experience does the broker have in your business sector and of the risks that your type of business faces?
What recommendations or references can the broker offer that show they can help you?

Many insurance brokers offer a general service but some also provide specialist advice on particular business areas such as marine and aviation insurance.

Your business could have specialised risks such as working with hazardous substances or on high risk premises. Some industries have trade insurance schemes, agreed with an insurer and tailored to the needs of that industry.

A specialist high net worth broker will take time to talk with you and identify your needs. They will then create a bespoke presentation of your risk and send to insurers. If they understand your risk they are more likely to know the most relevant insurers to approach. The more time a broker spends talking with you, the more accurate and competitive the quotation will be.

Brokers can be found through:

Personal recommendations
Industry bodies or associations
Insurance industry associations
The Internet

The UK’s largest insurance industry body is the British Insurance Brokers Association (BIBA). BIBA members treat customers fairly and work to achieve your best interests so they will:

Ask you about your insurance needs so they can search for a suitable policy
Make your choices clear by telling you the range of products they offer
Explain any professional advice they give to you – clearly and honestly
Make sure you understand what is, and is not, covered by your policy

Changing insurance brokers is a simple process. If you would like further information about this please telephone Tony Gibbs, Sales Director at Macbeth Insurance Brokers on 0118 945 2944, email tony.gibbs@macbeths.co.uk or visit www.macbeths.co.uk

Public & Employers Liability Insurance Explained

2009-03-27T01:59:00.000-07:00

Macbeth Insurance Brokers have specialised in providing liability insurance solutions since 1992. Many businesses fail to understand the liability insurance product that they are buying. So, we have created a guide to help simplify the often complex area of liability insurance.

Public Liability

Although Public Liability insurance is voluntary for most businesses, the compensation and blame culture that has swept the UK makes it almost impossible to trade without such vital cover. Businesses that choose not to purchase this cover are risking both financial disaster and the future of their company.

Public Liability insurance covers you against any third party claims made against your business. For example, if you were held legally liable for personal injury, or for damage caused to property. The insurance will also cover you for any legal costs associated with defending claims against your business.

Even if you work from home you will usually still need Public Liability insurance. If clients often visit you at your home office, this type of policy will cover you if they injure themselves while on your premises. The policy will also usually provide cover for any work you carry out away from your home.

The level of premium will depend on the size of your business. For the smaller company, it will be calculated on the number of people working in the business and for the larger company, it will be calculated on your turnover and wage roll. The problem is working out what level of protection you think you need. The key is not to underestimate. The traditional limit of £1 million may sound like a lot but if you find yourself facing a large claim or a claim from more than one third party, the compensation awards and the legal fees involved could easily exceed such a limit. In more recent years, the majority of businesses, particularly those involved in a manual occupation will purchase limits of £2 million or £5 million.

For contractors, there is often confusion regarding the employment of sub-contractors.

There are two types of sub-contractor:

· Bona Fide – regarded as a company in their own right. They will often provide materials & equipment and will usually have their own insurance cover in place. They will not work under the direction or control of the principal contractor. This type of contractor does not need to be insured under the policy.

Example - ABC Building Services (principal contractor) employs XYZ Roofing Services (bona fide) to build and install a new roof on a newly built house. XYZ carry their own insurance and do not use any equipment or materials supplied by ABC. They do not work under the direction or control of ABC and do not need to be insured under the policy.

· Labour Only – generally regarded as an employee and solely provides labour and skills to the principal contractor. They will not provide materials or have their own insurance. They will generally work under the direction and control of the principal contractor. This type of contractor must be insured under the policy.

Example – ABC Building Services (principal contractor) employ Mr Smith (labour only) to work on a large building project. Mr Smith is self-employed but does not have his own insurance. He works for ABC, ultimately under their direction and control. ABC supply, both the materials and some equipment/tools for Mr Smith to carry out his duties. Mr Smith is ABC’s responsibility and must be insured under the policy.

It is also vital to keep your Public Liability policy up-to-date to reflect any changing circumstances in your business. As your business expands you’re likely to find your risks grow too.

Employers’ Liability

Employers’ Liability Insurance can be a particularly difficult issue; in fact a recent survey revealed that over 210,000 small and medium sized businesses in the UK are breaking the law by operating without such cover. That means there are possibly around 1.8 million employees that have no cover in the workplace.

If you are an employer in the UK, you are responsible for the Health and Safety of your employees while they are at work. If you employ anybody in your business – even if they are part-time or casual staff, you must purchase Employers’ Liability insurance.

Employers’ Liability insurance is compulsory. The Government first introduced the Employers’ Liability Compulsory Insurance Act in 1969. This ensured that all employers had the protection of a minimum level of insurance cover against claims from employees, should they seek compensation following injury or illness as a result of their work.
The introduction of the Employers' Liability (Compulsory Insurance) Regulations in 1998, resulted in a legal minimum cover of £5 million, although the more usual limit of indemnity offered by insurers is £10 million.

Employers' Liability policies cover injury that is caused during the period of insurance. Consequently, when injury or disease manifests itself years after the original cause, for instance an industrial disease, there is a need to identify the Employers' Liability insurers dating back to the when the original cause occurred.

You should display your Employers’ Liability certificate in a prominent position within your usual place of work, as you may need to produce it on demand. Failure to do this may result in a fine from the Health & Safety Executive. In addition, the certificates should be retained for a period of 40 years so you must ensure that adequate storage procedures are in place.

Products Liability

Although not compulsory, this is an important area of cover which is often provided in-conjunction with a Public Liability policy.

If you manufacture or supply goods, there’s always the possibility that your product could cause injury to a third party or damage their property. A small defect could lead to massive claims, so this cover is vitally important for any business in a product supply chain, particularly manufacturers.

Look for a policy that guards you against safety claims, manufacturing quality, spoilage and indemnity costs (medical bills and so on). And remember Products Liability is designed to cover you against unforeseen circumstances, if you simply make an inferior product or supply bad services then you’re not going to be able to make a claim.

You can reduce your premiums by taking quality control measures beforehand, and you should make sure your insurer knows of any measures you’ve taken – it could affect your premiums.

So how can you help reduce your premiums, particularly if you are in a high-risk business?

Initially, you should begin by making sure that you are complying with all of the relevant Health and Safety regulations and if you have a good record on Health and Safety make sure you can prove this to your insurer with the correct paperwork.

If you require any assistance with your Health and Safety obligations, please visit our sister company, http://www.macbethrisksolutions.co.uk/ for a complete, low cost, online solution to your Health and Safety needs.

There are specific types of businesses that have found it difficult to purchase Public and Employers’ liability insurance. Roofing Contractors, Scaffolding Contractors, Cleaning Contractors, Waste Disposal Contractors and any business involving the use of heat or work at height have experienced problems in arranging cover.

We have access to several liability insurers that specialise in providing cover for most high-risk trades.

For further information, contact Tony Gibbs, Sales Director at Macbeth Insurance Brokers on 0118 9452 944 or email tony.gibbs@macbeths.co.uk or visit http://www.macbeths.co.uk/

Business Continuity Planning

2009-03-25T01:36:00.000-07:00

We recommend the services of John Basinger who is running a series of workshops to help businesses plan in this vital area...

About us

John Basinger worked as a commercial loss adjuster for over 30 years, assisting companies to recover from disasters such as fires, floods, malicious damage and terrorist attack. The majority of those businesses had no business recovery plans in place and it was his job to help them to reinstate the physical and financial damage caused. Even with full insurance, it was clear that failure to pre-plan meant that recovery took a lot longer .In many cases, those businesses never did fully recover their pre-loss situation.

John has now created his own Business Continuity consultancy which is dedicated to helping business owners to anticipate what can go wrong and plan accordingly.

Why should you have a Business Continuity Plan?

Fundamentally, pre-planning makes good business sense. However, there are some specific reasons why you should have a BC plan:

Insurers are frequently asking for them
Customers are now increasingly asking new and existing suppliers for proof that they have a plan. No plan, no business!
Banks are becoming more demanding over lending criteria
Pre-planning accelerates return to normal after an incident
Gives employees confidence

Workshop detail

We typically work with a business owner on a one to one basis. However, with the current difficult trading conditions, we have developed a cost –effective service which is delivered in a one day workshop format.

The aim of the workshop is to provide business owners with an understanding of the Business Continuity process so that they can create their own plans from our templates. We anticipate that each workshop will have a maximum of 8 delegates.

The workshops are priced at £500 / delegate. In some cases, government grants are available for the full amount of the workshop. We can provide further information about these upon application to the workshop.

Book now!

You can register your interest in the workshops by either telephoning or e-mailing us.
Please also look on the website to find out more about us.

John Basinger ACII FCILA FIRM MBCI DipBCM

0800 731 7022
john@johnbasinger
www.johnbasinger.co.uk

The benefits of dealing with BIBA brokers

2009-03-02T11:40:00.000-08:00

As members of the British Insurance Brokers Association (BIBA), Macbeth Insurance Brokers will.....

Focus on the customer's needs.

Make choices clear by advising of the range of products or services we offer.

Explain any professional advice we give - clearly and honestly.

Make sure the customer understands what is, and is not covered

Clearly state the costs of the policy - including any fees we may charge.

Give clear information and documents - as well as any help needed with the paperwork - to make sure the policy is in place promptly.

Explain the support we offer in the event of a claim.

Explain the right to cancel.

The BIBA website is http://www.biba.org.uk/. There is a host of useful consumer information about insurance.

Growing redundancies leading to sharp rise in ‘unfair dismissal’ claims

2009-02-06T05:04:00.000-08:00

Hiscox, a specialist insurer for small businesses, has warned that in the current economic downturn it has seen a threefold rise in insurance claims over the last quarter from SME employers being sued by former employees for ‘unfair dismissal’...

In particular, Hiscox has found that businesses are not following the correct statutory procedures when it comes to making employees redundant which is leaving employers exposed to significant claims from former employees.

Making an employee redundant requires strict adherence to recognised procedures if a business is to protect themselves from suffering the consequences of a disgruntled employee feeling they have been singled out.

A former employee might claim discrimination on the basis of race, age, or gender and could perceive the redundancy process as having been unfair to them.

The top three claims Hiscox is seeing when it comes to redundancies are:
1. Failure to follow collective consultation procedures and obligations – necessary where 20 or more workers are at risk and are proposed to be made redundant within a 90 day period

2. Employers not carrying out a fair and reasonable selection process – for example, not properly pooling people when choosing which people to make redundant3. Employers making people redundant where the reason does not genuinely relate to redundancy.

Gary Head, SME expert at Hiscox, said; “In the current downturn we have seen a noticeable increase in claims from employers being sued by former employees. It is quite clear that many employers are not adopting the correct procedures when faced with the decision to make employees redundant. This is particularly prevalent amongst smaller employers who do not necessarily have access to the type of HR expertise that bigger companies do.

“Many SME owners will not necessarily have lived through a recession where redundancy has been a fact of working life and are unaware of what they need to do. All businesses should seek professional advice when it comes to making redundancies or they might find that what started out as a cost cutting exercise could cost them far more in the long run,” Head concluded.

Theft claims could double by end of 2009, warns Hiscox

2009-02-06T04:54:00.000-08:00

Specialist insurer, Hiscox, is anticipating the recession will lead to a sharp rise in theft-related insurance claims in 2009, and is warning individuals to take appropriate measures to protect homes and possessions. This warning coincides with the Home Secretary’s announcement today of a Burglary Summit...

Commenting on historical industry data* that shows the number of claims increasing in line with rising levels of unemployment, Hiscox estimates that insurance claims for theft could double by the end of 2009 for the UK insurance industry.

The insurer believes that despite the current gloomy economic climate, individuals have more to lose relative to previous recessions if their homes are burgled. The recent period of prosperity enjoyed by British home owners in the last decade and the rise of a consumer culture has led individuals to accumulate more valuable personal possessions, including home digital equipment (from flat screen televisions to iPods), jewellery, watches and fine art. Hiscox estimates that British home owners have, on average, three times more of these portable valuables than a decade ago. In addition, Hiscox’s data shows that the value of customers’ contents has increased by 20 per cent in the last five years.

Steve Langan, Managing Director, Hiscox UK, said: “The 2009 home contains a treasure trove of valuables for thieves. British home owners have been in accumulation mode for the past decade, and the values of what we own – from watches to Wii’s – have increased. It’s now time to take stock of the belongings you have and make sure they are appropriately protected.”

Hiscox has the following advice to help home owners beat the burglar:

Use the security you have – Over 60% of burglaries happen because people don't use the security protection they already have.

In one third of all house burglaries, thieves get through an open door or window without forcing an entry. Front doors should be solid and have 5 lever mortice deadlocks and hinge bolts fitted. This prevents thieves using credit cards to gain entry. Get all outside doors fitted with good key-operated security locks and bolts.

Don’t leave valuables, including ‘gadgets’, lying around – iPods, mobile phones, portable sound systems, games consoles (such as Wii players), are rich pickings for thieves. Leave your car keys upstairs or not on display. Thieves target people with valuable vehicles.

Install a safe for your most valuable items - You may find having two safes useful as in the event that you are forced to open one, the other can remain hidden. Store less valuable items in the first safe.

Hire reputable trades people – hire reputable trades people if carrying out works on your home and, for bigger projects, ensure sub-contractors are supervised by a professional project manager if you are unable to do so yourself.

Consider installing movement-activated or dawn to dusk lights - at the front and back of your home. These will help to deter prowlers.

Finally, it is important to check what your insurance policy covers in the event you are burgled. This includes single item limits on valuables such as jewellery, cover for fine art and damage to the home as a result of a breaking and entering, for example.

Trustee Indemnity for Charities

2009-01-19T09:40:00.000-08:00

Trustees are subject to what is called ‘joint and several liability’. This means that any individual trustee can be held responsible for the acts of any of their co-trustees...Charities themselves can suffer through a trustee’s negligence. Signing a document to release funds can be the responsibility of a trustee and, if done in error, can cause substantial damage to a charity and its reputation.

How charities can manage their responsibilities to trustees Charities should ensure that trustees, employees and volunteers go through an effective induction process so that they are fully prepared for the job they are taking on.

They should also make their commitment to their trustees clear. They can do this by making them fully aware of the true extent of their duties and by encouraging regular contact with co-trustees, and with the Charity Commission if necessary.

How insurance can help...
Charities have found it difficult in the past to recruit trustees, because people are more cautious about taking on the responsibilities placed on trustees.

Charity trustee insurance provides a reassuring safety net – if a trustee makes an honest mistake, trustee insurance is there to protect them. It is a demonstration of the charity’s commitment to their trustees.

Trustee indemnity insurance makes good certain financial losses suffered by a charity as a result of a trustee’s actions. It can also compensate third parties for their financial loss as a result of dealings with the charity. It does not, however, cover reckless acts.

There’s no substitute for professional standards and good risk management, but insurance can give trustees added confidence that they are protected.

For further advice on charity insurance, please find contact Tony Gibbs, Sales Director - 0118 9452944 tony.gibbs@macbeths.co.uk

Consultants Hit Hard By Recession

2009-01-19T09:28:00.000-08:00

Britain's management and consultancy sectors have been hardest hit by recent job losses, according to figures obtained by Sky News...

Unlike previous recessions, the current economic downturn has been toughest on "white collar" workers and a slump in recreational spending has seen significant redundancies in the leisure, food and drink industries.

Figures acquired by Sky News under the Freedom of Information Act show show a sharp rise in the number of companies registering their intention to make cuts with the Insolvency Service (IS).

In the last six months of 2008, the IS was given projections for 22,038 jobs to be cut in the head offices of the management and consultancy sector, an average of 848 job losses every week.
Mechanical engineering, shipping and civil engineering were also big losers. Between them 52,657 redundancy notices have been registered since June.

UK Job Losses By Sector

The figures also demonstrate how the drop in consumer spending has had a real impact on sectors other than high street retailers.
Sport, amusement and recreation companies have said they expect to lay off 10,516 workers, with the food and beverage industry planning a futher 10,692.

SECTOR JOB LOSSES JUNE-NOV '08
Management/consulting 22,038
Mechanical repairs/installation 21,721
Water transport 16,087
Civil engineering 14,849
Sports and leisure 10,516
Membership organisations 8,291
Drinks manufacture 6,846
Broadcasting 6,741

Analysts say the figures demonstrate for the first time the true character of the 'middle-class recession'. Former director of the Confederation of British Industry, Lord Digby Jones, said: "In the old days hundred of thousands of people lost their jobs in manufacturing, the pits and in textiles. "That's what you saw in the recession in '81 and '91. I was in Birmingham at the time, I know all about that.

UK Redundancy Notice Totals
*Firms cutting more than 20 jobs "That's not happening this time. It's a far wider economy and so opportunities can be matched by bad news.

"Will there be more bad news on the high street? Yes, I think there will in the next six months. "In the professional services sector we've seen the boom and the big fees, and what has happened is you get two people doing one person's job, you get people paying money they haven't generated and you get a bloated sector."

A survey by the Management Consultants Association revealed four out of five businesses had not been prepared for the downturn.

Chief executive Alan Leaman said: "It's understandable, but it means there's a lot of catching up going on.

"A lot of real new thinking has to be done to make sure people can get through this difficult time."

Brigid Simmonds from the trade organisation Business In Sport and Leisure blamed a drop in discretional consumer spending for the problems facing the leisure industry. "When your budget is tight you start looking at what you can cut, and you can't cut out in food, which is becoming more expensive, and you've got to travel and you've got to go to work, so I just think leisure is discretionary," he said.

The figures do not take into account planned job losses by retail giants such as Woolworths (27,000) and Marks and Spencer (1,000), which means the retail sector can be expected to rise significanly in the projected redundancy rankings over the next six months.

Health and Safety (Offences) Act 2008 raises the bar

2009-01-19T09:15:00.000-08:00

After several failed attempts by Parliament to increase penalties for breaches of health and safety law, the Health and Safety (Offences) Act 2008 (the “Act”) came into force today...

The new Act makes three main changes - it raises the maximum financial penalties available to the courts, makes imprisonment an option for a wider range of health and safety offences, and makes certain offences currently only triable in the lower courts, triable in either the lower or the higher courts (meaning that more cases will be open to an unlimited fine and a term of imprisonment).

The Act extends to both England & Wales and Scotland. Although it increases penalties for health and safety breaches, it does not impose any new obligations on employers by way of new offences. The principal duties of employers will remain as before under the Health and Safety at Work Act 1974 (“HSWA”).

Previously, under summary procedure, courts have been unable to impose fines higher than £20,000 for a breach of the HSWA, or a fine higher than £5,000 for the breach of a regulation (for example, a breach of the Management of Health and Safety at Work Regulations 1999). The Act changes the law by increasing the maximum fine for summary cases to £20,000, and introducing a term of 12 months imprisonment. For those on indictment, the existing unlimited fine has been buttressed by the availability of a term of two years imprisonment for individuals under the Act.

Until now, imprisonment has only been an option in certain very limited cases, such as where an improvement or prohibition notice had been breached. However, the Act now makes imprisonment available for a much wider range of offences, both in the lower and higher courts. That said, whilst the option of a custodial sentence may have been extended to breaches of the general duties imposed on “employers” under the HSWA, the extent of this change will be limited unless more directors, managers and officers are also prosecuted and convicted, along with the corporate entity, under section 37 of the HSWA (since “employers”, if companies, cannot be imprisoned).

The matter of imprisonment of individuals is significant, and of particular note are the sections of the HSWA relating to individual liability. An individual, whether a director, manager or worker, can be prosecuted under section 7 of the HSWA if they have not taken reasonable care for the health and safety of themselves or other persons affected by their acts or omissions. In addition, section 37 of the HSWA allows action to be taken against directors, managers and officers where a failure can be attributed to their “neglect, consent or connivance”. Under the new Act, following a breach of sections 7 or 37, a director, manager, officer or worker could now face a term of up to two years imprisonment.

The new Act, therefore, makes imprisonment (and higher fines) a reality for individuals following a breach of health and safety law, and companies (in particular, directors) should ensure they are well prepared by doing all they can to comply with existing health and safety legislation. Policies and procedures (and practices) should be evaluated to make sure that they are in compliance with the law, and appropriate measures and precautions should be put place. It may, in fact, be appropriate to arrange for a legal audit of procedures, to mitigate against the more stringent penalties now available in the event of a breach.

Redundancies could boost SME business start ups

2009-01-19T09:07:00.000-08:00

Despite growing redundancy figures, the current downturn may have a silver lining for the SME sector...

With the Government having already announced moves to offer cash and training for the jobless to set up in business and ahead of an expected announcement on a loan guarantee scheme, Hiscox, a specialist insurer for SMEs, welcomes any initiative that supports entrepreneurship and says that many new businesses have used redundancy as their launch pad for success.

Gary Head, SME expert at Hiscox, says: “Research we carried out last year indicated that 20% of UK entrepreneurs started their business as a result of being made redundant*.
A silver lining of this current downturn is that more people being made redundant will decide that now is as good a time as any to try and make a success out of that business idea that they’ve long had on the back burner.

“As such we welcome any Government initiative which provides additional support for the small business sector, a key part of the UK economy.”

Macbeth Insurance Brokers have specialised in arranging and helping SMEs with their business insurance needs since 1992 and have a wealth of experience in this area.

If you would like to discuss any area of business insurance further, contact Tony Gibbs, Sales Director on 0118 9452 944 or email tony.gibbs@macbeths.co.uk

Identity cards for foreign nationals

2008-12-23T07:05:00.000-08:00

The issue of identity cards to some foreign nationals commenced on 25th November and will be phased in over the next three years....

From this date any foreign national currently in the UK who applies for an extension of their permission to stay in the United Kingdom as students or as the husbands, wives or partners of permanent residents and dependants will be issued with the new card.

Other applicants will continue to receive a sticker (as now) in their passport, and the two systems will run alongside each other for a few years.
The card is evidence of the holder's nationality, identity and status in the United Kingdom. It is intended to help employers to understand what the migrant is entitled to and his/her right to work or study in the UK. Sponsoring employers must check the card carefully. It will show the person's entitlement to work, study or access public funds.

Although you are not legally required to check documents, we recommend that you do so for everyone you wish to employ. It will enable you to establish an excuse against payment of a civil penalty for employing an illegal worker, shows your recruitment process is open and transparent, and ensures your recruitment practices do not discriminate against anyone because of their race.

The introduction of identity cards does not change the checks you currently make on foreign nationals' right to be in the United Kingdom. Gradually, they will simply replace existing vignettes and other immigration status documents with a card that is more secure.

Planning for the Christmas Holidays

2008-12-23T06:54:00.000-08:00

Christmas and New Year 2008/09 will be a difficult year from two entirely different perspectives....

More and more employees are being required to work during the holiday period yet at the same time unemployment is likely to reach levels not seen for some 10-15 years.

Retailers will be desperate to maximise sales during what is usually their peak period and as a consequence hours will be stretched to 'catch-all'. It will be interesting to see what the previously upward trend in eating out does as less money is available for such luxuries but no doubt the hotel and catering industry will be hoping and planning to staff accordingly. Conversely manufacturing and construction will tend to shut down and hope that 2009 brings some relief.
Whatever your situation pre-planning is essential and we do have some tips and reminders for you.

Christmas cards and gifts
Let's put this one to bed! There is nothing wrong in sending Christmas cards, having a Christmas tree and decorating the office or workplace. However some sense does need to prevail - it would not be sensible to make a gift of alcohol to a Muslim and, if you do not know the recipient personally, send general greeting cards rather than those with a Christian theme.
Where business gifts are given and received then ensure that your own policy is circulated and adhered to and check out your client's policy. Be discreet - wrapping up lots of 'freebees' for customers in the general office will not go down too well if they have been told they are not having a salary increase again this year.

Shut Down
Employers do have the right to control when employees take their holidays but it is important to ensure that the rules are spelt out. Where there is a shut down it is essential that employees are informed about ensuring that sufficient entitlement is retained. Where you have new employees you will also need to spell out their position when they start employment. If they have insufficient holidays accrued then you have several options:

Treat the time off as unpaid leave (this must be made clear in their offer letter or contract)

Allow them to bring forward entitlement (in which case you need to ensure that you have a clear written agreement that they will have payments deducted if they leave your employment before accruing sufficient entitlement)

Holiday staffing
If you require some employees to attend work during the holiday period in order to maintain service levels or for security or production then it is important to ensure that selection is fair and that sufficient notice is given. The best option may be to look for volunteers initially - not everybody looks upon Christmas as a time to have off to enjoy themselves!
Absentees

There is always one at least who fails to turn in after the holiday, or who asks for time off which is refused and then coincidentally goes ill on the same days. Its good practice to remind staff well in advance what the arrangements are for taking holiday and returning to work. Some employers will require medical certificates from employees who are off ill immediately following the holiday. This may not be possible for some employees so a judgement may need to be made and providing it is spelt out in advance payment of holiday pay may be conditional upon your being reasonably satisfied that the illness was genuine.
Seasonal Workers

Recruitment of seasonal workers should not be an excuse for discarding good practice and your legal obligations.Health and safety training is essential as is the requirement to ensure that the worker is legally entitled to work in the UK.They are also entitled to receive at least the national Minimum Wage and be covered by the same Working Time Regulations as permanent workers.
Other Religious Festivals
It is essential (and a legal requirement) to ensure that members of all religions are treated the same.Requests for time off for religious observance should be considered seriously and either taken as part of holiday entitlement or unpaid leave.

The Christmas party
You may be cutting out Christmas parties this year but for those of you that are continuing this practice please put the usual checks in place:

Check the venue - make sure it is safe and an acceptable venue to all your workers.
Make sure everybody is included; including those on long term absence/maternity. Also include ALL partners - not just "spouse" or "husband/wife".
Remind people about drink driving rules and arrange transport if at all possible.
Look out for underage drinking - you have a responsibility for your younger workers.
Don't offer unlimited alcoholic drinks - you also have a responsibility for all workers and should not be surprised if the is alcohol fuelled trouble caused by your over generosity.
Remind employees that they are still covered by the terms of their employment as it is a work sponsored event.
Look out for harassment or any form of unwelcome personal attention. The office junior may have a smile on her face but does she welcome the close attention of her 50 year old boss?

Try and enjoy yourself!

Soaring Diamond Prices prompt insurance concerns

2008-12-18T04:48:00.000-08:00

With diamond prices are increasing by as much as 43% over the last six months, they are rapidly becoming an attractive alternative to the volatile stock market, as long as they are adequately insured.

Over the last year, the value of large diamonds has increased by an average of 30%, while the price of platinum has almost doubled, far outstripping general price inflation.

But insurance broker Macbeth Premier Clients says many jewellery collectors risk underinsurance in the wake of spiralling precious metal and diamond prices.

Paul Macbeth at Macbeth Premier Clients said ‘It is the responsibility of the policy holder, not the insurer, to ensure that their sums insured adequately represent the cost of replacing items. If they do not, in the event of a claim, they will receive no more than the sum insured or the single article limit, leaving them out of pocket’.

He said that the insurers generally apply index linking to insurance policies based on the general index of retail prices, rather than an index which specifically tracks changes in the cost of jewellery. While the sum insured for specified items will increase in line with inflation, it does not necessarily mean that it will keep pace with increases in the jewellery market.

Unspecified jewellery cover is also subject to index linking by insurers. Unspecified jewellery cover always contains a single article limit which can be easily exceeded if valuations are out of date.

When did you last review your contents sum insured?

2008-11-23T12:02:00.000-08:00

Statistics show that up to 70% of UK homeowners are underestimating the value of their personal possessions by as much as 30%.

Most people are reluctant to increase their contents cover, thinking the premium will shoot up. But the extra cost is often less than you’d expect – and well worth it if it means you’re properly protected. It also ensures that your claims are paid in full without deduction.

It is important to remember that you insure for the full replacement cost of your contents and not the market value at the time of a loss. Remember to include items such as CD’s, clothing, sportswear & sport equipment such as golf clubs or skiing gear. Surprisingly, the average sum insured for clothing in high net worth homes is £20,000.

Our asset calculator has been designed to help you calculate your sums insured.

Besides listing what you own, it's also good to do the following:

* Take photographs of any valuable or unique possessions
* Keep your purchase receipts for valuable items
* Obtain valuations for expensive items of jewellery, watches and other precious possessions such as fine art and antiques

It may seem like a lot of work, but you'll be happy to have this gold mine of information to assist your insurer in giving you protection against loss of your possessions.

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

Changing insurance brokers is a simple process and provides you with peace of mind that you are receiving the best deal, both in terms of cover and price.

If you would like to obtain a quotation from Macbeth, please telephone Paul Macbeth ACII, Managing Director on 0118 945 2944 or email paul.macbeth@macbeths.co.uk

Sub-contractors - to insure or not to insure?

2008-11-23T11:50:00.000-08:00

Determining whether you need to insure sub-contractors that you may use is often a complicated area. Our guide below will help you assess if you need to cover your sub-contractors but if you need further advice, please call us on 0118 945 2944.

Bona-fide sub-contractors (BFSC)

Bona-fide sub-contractors are generally deemed to be contractors who work without direction from the insured, hold their own insurance and usually provide their own materials and tools.
• As long as they are not working under your direction, have their own legal liabilities and insure for themselves, there is no need to include them in the count of employees for premium calculation purposes (Employer’s or Public Liability).
• Insurers are insuring your legal liabilities. If the act of a bona-fide sub-contractor produces a legal liability against you, then that is covered.
• What insurers will not do is extend the policy to include the legal liabilities of the bona-fide sub-contractor – they should have their own Public Liability insurance in their own name. It should be noted that it is a condition of the insurance that you check that bona-fide sub-contractors have their own Public Liability cover to at least the same limit of indemnity as you before they appoint them.

Labour only sub-contractors (LOSC)

Labour only sub-contractors should be treated as employees for the purposes of cover under the insurance. Generally they work under the direction of the Insured and do not provide their own material or tools.

Determining BFSC or LOSC status

Whilst it is difficult to provide an accurate definition, it is important to try and correctly determine the status of subcontractors to ensure that the cover provided by the policy is adequate.

As a general guide as to whether a worker is a LOSC or BFSC; if the answer is ‘Yes’ to all or most of the following questions, then the worker is probably a LOSC:

• Are they paid by the hour, week, or month?

• Can they receive overtime pay or bonus payment?

• Do they only supply their own small hand tools?

• Do they always have to do the work themselves?

• Can the principal contractor tell them at any time what to do, where to carry out the work or when and how to do it?

• Can they work a set amount of hours?

• Can the principal contractor move them from task to task?

If the answer is ‘Yes’ to all or most of the following questions, then the worker is probably a BFSC:

• Do they agree to do a job for a fixed price regardless of how long the job may take?

• Do they have a contract of service as opposed to a contract of employment?

• Within an overall deadline, are they able to decide what work to do, how and when to do the work and where to provide the services?

• Do they regularly work for a number of different people other than the principal?

• Do they have to correct unsatisfactory work in their own time and at their own expense?

• Do they hold their own Public Liability insurance in their own name?

• Do they pay the cost of all materials or supplies required for the work without being reimbursed? (Excluding minor items and consumables).

• Can they hire someone to do the work or engage helpers at their own expense?

• Do they risk their own money e.g. if they bid for a job and the bid is too low they have to bear the additional cost themselves?

• Do they provide or hire in the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves

Preparing your home for Autumn/Winter

2008-11-23T11:36:00.001-08:00

As we head into autumn and winter, homeowners should start carrying out maintenance checks now. This will help protect their properties in the months ahead.

Many common mishaps can be avoided by simple home maintenance.

If your client’s property has a chimney, make sure they have it checked and swept prior to the first fire. All chimneys should be checked at least once a year. This maintenance could prevent possible chimney fires.

No matter how the home is heated the heating unit should be checked to make sure it is working properly.

Make sure that pipes are well-insulated. Night-time temperatures can dip sharply, causing exposed pipes to freeze and break.

Autumn naturally means falling leaves. Leaves must be cleared from rain gutters at least twice a year to avoid water backup that can rot wood gutters; can rust sheet metal gutters; and can cause water penetration and moisture problems. If gutter drainpipes are clogged, flush debris down them with a hose.

Vegetation and other matter should not be allowed to build up against the house walls. Blocked airbricks can cause timber floors to decay.

Vegetation growing against walls should be cut back/removed or a trellis should be installed for the plants to grow up. Climbing plants should not be allowed to attach themselves to the brickwork.

Any loose slates or tiles on the roof should be replaced. Any loose ridge and hip tiles should be re-bedded. If the roof has a membrane under the roof covering, this should extend into the rainwater gutters. Certain types of membranes are prone to perishing; this should be checked as it can lead to water entering the structure at the eaves. Flat roof coverings should be inspected for blisters, bubbles or moss. These are the first signs of water getting into the structure.

Perished pointing or bricks should be repaired or replaced. If left, any damage will almost certainly be made worse over the winter period. Perished and loose rendering should be replaced to prevent water entering the structure. Render should not be placed over the damp proof course or down to ground level. Any damp proof course should always be left exposed.

Ensure all exterior lighting is in good working order. This will not only create a well maintained look and ambience around the home, but will help with security.

Consider appropriate security and lighting for the oil tanks. The theft of oil from domestic tanks has risen sharply recently.

In case of an emergency, all adults in the household and any staff should know where the following controls are located and how to turn them off:

Heating fuel main shutoff

Main electrical fuse/breaker box

Main water shutoff

Gas mains

Planning For Disaster

2008-11-23T11:27:00.000-08:00

Have you made steps to protect your business following a disaster?

A disaster could happen to affect both you and your customers.

Many businesses which experience a catastophic event never fully recover, as the following facts indicate:

80% of businesses that suffer a major catastrophe go out of business within 3 years

40% of businesses that suffer a critical IT failure go out of business within 1 year

90% of businesses that lose data from a disaster are forced to shut within 2 years

Forward planning can help avoid many of the pitfalls experienced by businesses following a disaster. This will help you to keep continuity and minimise the disruption for customers and suppliers.

Following a disruptive event, the right resources are required to maintain critical business functions. These include:

Sufficient people with the necessary expertise and motivation to lead and manage the orgnaisation

Access to key records and IT systems

Reliable means of communication with all stakeholders

The ability to carry on paying staff and to ensure their safety

The ability to procure goods and services

The ability to respond to demands from the media

Effective planning is the key to disaster recovery and it is vital the following are incorporated:

A senior member of staff should lead a designated crisis management team

Succession planning for key personnel should be incorporated

A robust telephone and/or e-mail cascade system should be organised, enabling all staff to be contacted outside working hours.

We work with a number of risk management experts who can work with you to develop an effective disaster recovery plan. If you would like us to recommend a consultant to you, please contact Tony Gibbs on 0118 9452 944 or tony.gibbs@macbeths.co.uk

New Driving Laws

2008-11-23T09:56:00.000-08:00

Drivers are being warned against distractions which can create the offence of 'causing death by careless driving' which came into force across the UK in August.

If you are driving a car you are responsible for your safety and the safety of others. It means motorists who kill whilst distracted could, for the first time, face up to 5 years in prison. Historically, careless driving has only been punishable with a fine, regardless of the consequences.

In addition to this, those who cause death by driving while uninsured, unlicensed or disqualified can also be imprisoned for up to two years.

Recent changes to driving legislation and practices include:

Smoking behind the wheel is a breach of the rules of the road and could be seen as a 'distraction' and a new law on (not) smoking in company cars was introduced last year.

Other 'distractions' from driving include: talking to passengers, using a mobile phone, both hand held and hands-free, listening to music, eating, drinking, touching technological aids, personal grooming.

Increased penalty points - from three to six - for those failing to provide information about the identity of a driver caught speeding which follows numerous incidents where motorists have claimed others were driving in order to avoid points on their licences.

Parents can receive a maximum fine for not ensuring that children are wearing seatbelts in the back of vehicles and this is being raised from £200 to £500.

A minimum six-month disqualification for anyone using a vehicle in a dangerous condition for the second time in four years." A maximum fine for failing to stop if requested by police increased from £1,000 to £5,000.

New traffic calming initiatives explained in latest Highway Code: quiet lanes, high-occupancy vehicle lanes and home zones.

New advice on the stopping powers of Highway Agency Traffic Officers, such as Vehicle and Operator Services Agency (VOSA) vehicles can wave drivers in on all roads in England and Wales, while the Highways Agency's Traffic Officers can also stop vehicles for safety reasons on the motorway. Not pulling over is an offence.

New advice to wear high-visibility or reflective clothing in the event of a breakdown.

Merging in turn rule from the latest Highway Code - "In congested road conditions do not change lanes unnecessarily. Merging in turn is recommended but only if safe and appropriate when vehicles are travelling at a very low speed, e.g. when approaching road works or a road traffic incident. It is not recommended at high speed".

New safety code for novice drivers, which includes 'don't show off or compete with other drivers'.

How to Insure your Jewellery & Watches

2008-11-23T09:29:00.000-08:00

Whether you already have expensive jewellery or are about to acquire some; it's important that you have the correct level of cover.

Be confident about your cover
First ask yourself if you want or need specialist cover? If the value of your jewellery is modest (basically less than £5,000) perhaps the limited cover provided by a basic, standard policy will be adequate.

However, when high values are involved, more specialist insurance cover should be bought.
The important step is to discuss the coverage options with your broker. Discussing the cover will allow you to understand exactly what you are covered for and how a loss will be paid. Does it cover mysterious disappearance (when you know the property is gone, but can't pinpoint when and how the property was lost) and other causes of loss? Do you need to specify any item’s on the policy schedule or are they automatically insured? Is cover automatically provided outside the UK?

Establishing the correct value
Answering this question may, initially, be quite simple. If the jewellery has just been purchased, the receipt or certificate from the retailer will form the basis of establishing the insured value.
Obtaining a valuation that affirms your jewellery’s current value is an excellent way to ensure that your property is properly protected. Insurers will generally request that expensive item’s are valued every 2 years to ensure that the insured value remains accurate.

Of course, it's prudent to be sure that the valuation is from a competent valuer and it's your responsibility to find out a valuer's competency. There are several professional jewellery associations such as the National Association of Goldsmiths that can give you information on valuers and appraising methods. And, of course, talk to a potential valuer to see if they know their stuff and how willing they are to explain their work to you. All of these items are important, especially since you have to pay a fee for a valuer's services.

How to make a claim
So, you’ve arranged quality insurance cover with an exceptional insurer but what happens in the event of a claim?

Well, high net worth insurer’s will provide you with complete flexibility over how to settle your claim and you can expect matters to be resolved extremely quickly. In the event of you suffering a loss, most standard home insurance providers will push you into using one of their approved suppliers for the simple reason that they have negotiated large discounts. In comparison, high net worth insurer’s will allow you to use your own chosen company to repair or replace damaged or lost item’s which is vital if you have had bespoke jewellery designed and made. In some circumstances, insurers will also consider providing cash settlements without deduction.

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

Changing insurance brokers is a simple process and provides you with peace of mind that you are receiving the best deal, both in terms of cover and price. If you would like to obtain a quotation from Macbeth, please telephone Paul Macbeth ACII, Managing Director on 0118 945 2944 or email paul.macbeth@macbeths.co.uk

How to insure your IT

2008-11-23T08:14:00.000-08:00

As IT becomes essential to running organisations, specialist policies are popping up to insure data and systems.

IT operations are beset by risk. Dangers lie everywhere, whether it's tornados flattening your data centre or script-kiddies flattening your website. You can work with insurance companies to build policies protecting your company against many types of risk but can you take out a policy covering the risks associated with computing?

Several companies do offer insurance policies for IT risk. Some specialise in liability insurance for IT service providers, while others also cover companies using IT for their businesses. This can either be done as part of an existing policy or as a dedicated policy with extensive coverage.
In the UK, for example, Chubb Insurance insures companies against the impairment of computer services as part of its commercial property policy. In the US it has a dedicated IT security insurance policy for financial data which covers electronic theft, denial of service, electronic vandalism and compromised data during electronic communication.

Assessing IT risks in monetary terms isn't always easy. When the Nationwide Building Society recently suffered the theft of an employee's laptop containing unencrypted customer data, it found out just how quantifiable its risk was - the FSA fined it £980,000. But such fines are uninsurable, explains Chris Fitzgerald, managing director of specialist IT insurance broker FRD Risk Solutions. "In the UK that would be construed as being against public policy," he says. "What you can insure against is the cost of a PR consultant to mitigate the reputational damage, and potentially the additional cost incurred to re-allocate client account details."

TJX Group, which lost millions of credit card records after malware was installed on its server, could have been insured, but such insurance would need a dialogue between the client, the broker and the underwriter. "Quite often when pricing structure is put forward for those covers, clients can baulk at the premium because it can be significant to say the least," Fitzgerald says.
But how are such premiums calculated?

Underwriters will often maintain partnerships with specialist IT risk assessment companies. The underwriter's expertise complements the broker's own investigation of the client's business processes and QA procedures. Chris Cotterell, a partner at large ICT insurance underwriter Safeonline, explains that the company divides policies into five risk levels. The first and lowest level addresses companies which simply use email and store data on office systems. The highest would address customers such as ecommerce companies who are totally reliant on the internet for their business.

"At a certain level, we ask for an audit to be done and use an outside firm to do that. But if it's a relatively small risk we'll just ask them a few questions," Cotterell says. They may be asked whether they have a privacy policy in the company for example, or whether they regularly monitor information on their premises or maintain a firewall. "If those questions are answered correctly then we'll give them the insurance," he says.

The cost of risks in first-party IT insurance contracts that compensate the owner of the policy are easier to quantify, says Paul Skinner, senior ICT underwriting specialist at Chubb Insurance. "On first-party, you can calculate the value of property and look at business interruption," he says. But third-party liability, where you're compensating someone else for the failure of your computer systems, is harder to quantify.

Understanding the cost associated with, say, compromised customer data is a difficult and inexact task. Whereas actuaries are used to dealing with detailed, tried-and-tested tables and equations for other types of insurance, things are less mature in the ICT industry, according to Cotterell.

"In 10 or 20 years' time there will be actuarial studies, and they will have arrived at an exact model, as they have with car insurance," he says. "We don't have that level of data yet, so we take what we think are reasonable rates based on reasonable risks."

Mark Greisiger, CEO of NetDiligence, which conducts IT risk assessment services on behalf of insurance companies, says: "The difficulty in this space is that people aren't willing to tell you truly if breaches occur, and if they occur, how much the average loss is."

Actuaries use the best information available - normally studies from organisations like the FBI and the Computer Security Institute - but even these figures are far from exact, he argues. Data breach disclosure laws in the US (and possibly soon in Europe) help with this to a certain extent but it's still far from an exact science.

"Everyone has their own figure for potential loss due to a breach or a problem. There isn't really a standard framework," warns Ken Newman, who grapples with such issues as vice president of security at the American Savings Bank in Honolulu. "But I know that we're spending more time evaluating the identity-theft space."

NetDiligence's Griesiger agrees that privacy has become a focal point in recent years following incidents with firms like TJX Group and others. He says: "Cyber policies have extended themselves to cover any type of exposure no matter where that data is. Often we'll see back-up tapes fall off the truck, laptops lost and so on. And then there are people improperly shredding information and putting it in a dumpster for it to be blown down the alley."

Greisiger adds that customers using outsourced IT services can be another risk for insurers. Depending on the nature of the service and the size of the outsourcing contract, outsourcing providers may not always indemnify their clients or provide details of their own risk avoidance policies for their customers to pass on to insurers. Insurance companies will often bite the bullet and insure an outsourcing customer anyway but working with a larger, more established outsourcing provider will definitely help, he adds.

Insuring against IT risk is still a relatively immature area but as regulators continue to badger board members about their corporate risk and internal controls, it may become an increasingly visible issue for companies. IT operations may already be at least partly insured in existing contracts but this isn't something that IT directors will want to leave to chance.

If you would like further advice regarding IT insurance, please contact Tony Gibbs on 0118 9452 944 or email tony.gibbs@macbeths.co.uk

How to Insure your Fine Art

2008-11-23T08:05:00.000-08:00

Insuring fine art and antiques requires a specialist insurance policy from a specialist company.

Our insurers include individual collectors, dealers and exhibitors as well as museums and galleries. We also offer insurance cover specifically designed for professionals in the world of fine art, such as auctioneers and valuers.

Cover:

Our broad coverage means all your possessions are automatically covered wherever you are in the world, including for breakage.
Agreed value approach - you can be reassured that your possessions are covered to the agreed insured value without quibble. In the event of damage or a loss, you will receive payment for the exact amount listed for the item - with no deductions.
Specified cover means you can agree on an insured value for individual valuable items. In the event of a loss, you will receive the exact specified amount with no deductions.
If an item is damaged, our insurers will pay to restore it as perfectly as possible. Plus we will compensate you for any loss in original value due to the damage.
Some items cannot be replaced like-for-like. So you have the choice of replacing an item with something similar from your own supplier, or keeping the full cash settlement.
We only require valuations for very expensive items and Macbeth has negotiated preferential rates with leading valuation companies.
If you lose one item of a pair or set, you can choose to receive the full replacement cost of that pair or set if you provide us with the remaining piece.

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

Changing insurance brokers is a simple process and provides you with peace of mind that you are receiving the best deal, both in terms of cover and price. If you would like to obtain a quotation from Macbeth, please telephone Paul Macbeth ACII, Managing Director on 0118 945 2944 or email paul.macbeth@macbeths.co.uk

Fire Risk Assessment

2008-11-23T07:12:00.000-08:00

A landlord has been sent to prison in the first custodial sentence to be given in London under the new fire safety regulations.

The landlord was sentenced to four months imprisonment and his company was fined £21,000 following conviction for serious breaches of the Regulatory Reform Order (RRO).

The prosecution followed a fatal fire at a flat in September 2007. After being removed from the building by fire fighters, a man was taken to hospital but died later from his injuries.

The Chairman of the London Fire and Emergency Planning Authority, which runs the London Fire Brigade, said, "This fire resulted in a man dying and highlights why landlords and businesses must take their responsibilities under the Regulatory Reform Order seriously. The London Fire Brigade works hard to bring irresponsible companies and individuals to court, which can, as this case has shown, result in a custodial sentence."

Sentencing of the company and their director took place in a Crown Court on 20th October after they pleaded guilty to eight breaches of fire safety.

The eight summonses are listed below. Are you confident that you have all your fire and evacuation plans in order?

Summons 1 - Article 9 - Failure to make a suitable and sufficient assessment of the risks to which relevant persons were exposed.

Summons 2 - Article 11 (1) - Failure to make and give effect to appropriate fire safety arrangements.

Summons 3 - Article 13 (1)(1) - Failure to provide appropriate fire-fighting equipment.

Summons 4 - Article 13 (1)(a) - Failure to provide appropriate fire detection measures, namely adequate smoke alarms in the common parts of the premises.

Summons 5 - Article 14 (1) - Failure to ensure that routes to emergency exits from the premises and the exits were clear (in relation to the gas fired boiler).

Summons 6 - Article 14 (2)(a) - Failure to ensure that persons were able to evacuate the premises as quickly and safely as possible, in that the escape route was not properly protected (because the intumescent strip and cold smoke seal were missing from the top edge of the second floor habitable room and there were combustible materials stored in the exit route including a washing machine, television, clothing and furniture).

Summons 7 - Article 14 (2)(g) - Failure to ensure that there was adequate signage at the premises to indicate the emergency exit and route.

Summons 8 - Article 15 (1) - Failure to establish and give effect to appropriate procedures to be followed in the event of serious and imminent fire.

So take time out, complete your Fire Risk Assessment today and if you require any support, remember our experts are on hand to help.

High Net Worth Policies v's Standard Policies - What is the Difference?

2008-11-09T10:53:00.000-08:00

The home insurance market is generally divided into two – high net worth policies and standard, off the shelf policies. The two are very different in both scope and design...

What are high net worth home insurance policies?

High net worth or high value home policies are designed for people with higher than average sums insured or for people seeking a better quality form of insurance for their homes, possessions and valuables. Policies can also include annual travel, holiday/second homes, high value cars and boats/yachts to create a single portfolio covering all of your domestic insurance needs.

What are the benefits of a high net worth home insurance policy?

Typically, features of these products include:
Worldwide “all risks” cover for all possessions
No under-insurance penalties or restrictive conditions such as alarm clauses
A single policy that can cover buildings, contents, fine arts, jewellery, other valuables, liabilities, annual travel, holiday/second homes, boats/yachts and cars
“New for old” replacement on all contents including clothing
Generous section limits and single article limits
Home emergency services
A super efficient claim service with many claims settled within 24 hours
The flexibility for you to use your own suppliers and contractors
Lifestyle cover including identity fraud, stalking, car-jacking, road rage and travel advice
Free courtesy appraisal of your home by a specialist valuer
Interest free monthly direct debit

What are standard policies?
Standard, off the shelf products are insurance policies that are designed to provide cover for average type risks in return for a very competitive level of premium. Such policies can be purchased through insurance brokers, banks or directly with the insurance company. Policies are not individually underwritten and premiums are calculated using a quotation system either by a broker or via the internet. Insurers are able to provide very competitive premiums and many are now calculated based on the number of bedrooms that your home has.

Cover is restrictive in many respects and terms, conditions and warranties will be in force. Typical limits under such policies are £300,000 for buildings, £50,000 for contents and £5,000 for jewellery/watches. It may be possible to insure additional, expensive item’s that exceed the single article limit but the charges to do so are usually expensive.

When it comes to making a claim, the insurer’s service will generally be quite rigid and you will be directed towards the insurer’s own suppliers or repairers in the event of a claim.

Standard policies are great value for money if you have regular sums insured. However, if you do have an expensive homes, fine art or high jewellery and watches sums insured, this type of policy will not be suitable, and a high net worth insurance policy will be the most effective and competitive way to insure.

At Macbeth, finding the right level of protection for you is only part of the services that we offer to our clients. Our dedicated and friendly team of high net worth experts provide an exceptional individual service that includes:

A dedicated account manager
An out of office telephone number for Paul Macbeth in case of emergencies
A home visit where necessary
A full, hassle free claim service designed to create minimal disruption
A “paper free” transaction
Advice on security
Recommending specialist valuers for fine art and antiques
Recommending professional surveyors

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

Changing insurance brokers is a simple process and provides you with peace of mind that you are receiving the best deal, both in terms of cover and price. If you would like to obtain a quotation, please telephone Paul Macbeth ACII, Managing Director on 0118 945 2944 or email paul.macbeth@macbeths.co.uk