Business Interruption Insurance, do you have enough cover?

If a fire causes your facility to be temporarily unusable, what would you do next? Would your business be able to pay utilities, wages or any other standing charges without any income? It could take months before the damaged property is rebuilt and the stock, machinery and equipment are repaired or replaced. Ideally, you would move to a temporary location while your permanent place of business is being repaired. Yet, traditional Property Insurance does not cover this move or a loss of income when a business must temporarily close. With Business Interruption Insurance, this setback can be minimised by simply adding this cover to your Property Insurance policy.

What can be included in a Business Interruption Policy?

  • Compensation for lost income if has to vacate its premises as a result of disaster-related damage covered under a Property Insurance policy.
  • Compensation for the gross profits that would have been earned based on previous financial records, had the major loss/peril not occurred.
  • Covers operating expenses, such as utilities, that must be paid even though business temporarily ceased.
  • Covers the increased cost of working, including expenses of operating in a temporary location while repairs to the permanent location are completed.

Considerations for Business Interruption Insurance

  • Business interruption insurance cannot be purchased on its own—it must be added to an existing insurance policy, such as property or office insurance.
  • Purchasers must also determine that the policy’s maximum indemnity period is sufficient to cover the amount of time it will take for the business to recover following a major loss. This includes considering the worst damage or disaster that the business could incur, estimating how long it will take to repair or replace buildings, machinery and stock, and determining the length of time it will take to recover customers and market share. Typical maximum indemnity periods range from 12 months to 36 months, in 6 month increments.
  • Price of cover depends on the risk of disaster to the premises. This may depend on the business location, nature of the business and how easily the business could function at an alternate location on a temporary basis.

Insurance experts estimate that Business Interruption Insurance is one of the most, if not the most, valuable cover available. Yet, it is often overlooked by business owners. Since Property Insurance only covers the cost of physical loss or damage and contents of a business in the event of a disaster, Business Interruption cover is invaluable in covering the loss of income while the permanent business location is being repaired. Contact Direct Insurance Corporate Risks at 01277 844 360 (Head Office), 01905 675 780 (Midlands Office) & 01260 547 030 (Northern Office) today to learn about our business continuity resources and to make sure that your business can survive an interruption.

website: www.dicr.co.uk

Work in the transport sector? Then your drivers could be about to face steeper fines…

Beginning on 5 March, Driver and Vehicle Standards Agency (DVSA) traffic examiners will begin issuing on-the-spot fines to any lorry, bus or coach drivers for drivers’ hours offences committed in the last 28 days, such as exceeding daily driving limits or not taking enough breaks. Previously DVSA examiners could only fine drivers for offences committed that day, or ongoing offences such as manipulating tachograph records.

If drivers are caught breaking the rules, a DVSA traffic examiner can fine them up to £300. However, in a single roadside check, the traffic examiner can now issue fines for up to five separate offences, which means a driver could be fined up to £1,500. This applies no matter where the offence occurred.

What’s the Problem?
Driving tired is a serious problem. About 40 per cent of sleep-related accidents involve commercial vehicles, while driving tired is responsible for 20 per cent of all accidents, and up to 25 per cent of all serious and fatal crashes, according to government data.

What Rules Will DVSA be Scrutinising?

Here are the rules that the DVSA will be enforcing:

• Drivers (and employers) cannot and will not manipulate tachograph records.
• Drivers can work an average of 48 hours, but no more than 60 hours in a single week.
• Drivers can drive no more than 10 hours each night, unless there is a workforce agreement to work longer.
• Drivers must take a 30-minute break for every six to nine hours of work. If drivers work more than nine hours, they must take a 45-minute break. (Note: Breaks can be broken up into 15-minute segments.)
• Drivers must take a 45-hour rest break at least once every two weeks. Since 1 November 2017, DVSA has the authority to fine drivers up to £300, if they spend their full weekly rest breaks parked in places where it causes a problem, such as a layby.
• Drivers must take their weekly rest after six consecutive 24-hour periods of working.
• Drivers must not take their weekly rest breaks completely in the cab of their lorry.

What Counts as Work?
Here is what the DVSA considers work for drivers:
• Delays at a distribution centre
• Time spent travelling in the vehicle, but only if no work is carried out, such as navigating
• Reporting for work before being informed that no duties are to be undertaken for a specified period
• Accompanying a vehicle being transported by boat or train

How Can I Comply?
If your organisation employs lorry, bus or coach drivers, or you yourself are a driver, here is some simple guidance to help you comply with the DVSA’s driving rules:
• Plan where in your route you will take your breaks as well as daily and weekly rests.
• Be aware of the signs of fatigue, which include restlessness, lapses in attention and dizziness.
• Get a good night’s rest and avoid indulging in too much caffeine, nicotine and other stimulants.

Be Smart, Be Mindful, Be Safe
For more information on the latest news about fines and regulations, contact Direct Insurance Corporate Risks today.

website: www.dicr.co.uk

email: info@direct-ins.co.uk

Telephone: 01277 844360