Specialist Risk Management Approach Leads to Premium Saving

The Business Situation:

Our client is a leading Waste Management facility, servicing London-based, Hertfordshire and Home Counties waste management and local authority collectors.

The facility operates a source segregated process, handling predominately dry commercial waste. Following its first year of trading, the client experienced considerable growth and have forecasted continued growth into the next financial year.

The client initially approached Direct Insurance Corporate Risks due to our specialist knowledge and understanding of the sector. Our Lloyd’s division, Direct Insurance London Market operates exclusive Recycling & Waste Management facilities covering the following classes – property, business interruption, employer’s liability, public liability, plant and motor fleet.

The Solution:

Direct Insurance Corporate Risks operates a unique risk management process and approach to all new business risks. Our Account Executives met with the client at their business site to undertake a thorough technical review of all existing insurance coverage and a risk assessment of the facility.

During the risk assessment process, several instances of breach of warranty were identified which would have rendered sections of the clients existing insurance cover invalid. It is paramount when working with clients, that insurance coverage and any applicable warranties are carefully explained. Ensuring that processes meet the expected standard stipulated within the policy wording.

Our Account Executive quickly advised the client whilst on site as to what they should do to remedy the breach of warranties and this led to the client immediately transferring cover from their existing broker to Direct Insurance Corporate Risks.

The combination of our unique risk management process, ability to understand the client’s requirements and extensive knowledge of this sector allowed our team to obtain rate reductions on both the material damage and liability covers, saving the client a significant amount of money on their renewal premium (circa 30% on their existing liability cover), which they were able to invest in the business in other areas.

The Key Facts & Benefits:

  • 30% premium saving on their liability cover
  • Full risk assessment – leading to breached warranties being rectified
  • Commitment to finding solutions to operational storage issues
  • Enhanced coverage
  • Dedicated in house claims team

Contact us today for a no obligation insurance quote or visit www.dicr.co.uk to learn more.

Does My Policy Meet My Needs?

If you are reviewing an existing policy or looking for a new one, you need to ensure that it covers what you actually require for your business. A general policy, bought on-line, may not have the exclusions and covers suitable for the needs of your business.

Think about your company and what you might encounter that could need insurance – do you employ staff, perform a service for customers, own property or sell products that could fail? Have you got the value of your contents correct, or have circumstances changed, perhaps you are holding more (or less) stock?

You should not be paying for anything you do not need – for example, if you run a clothes shop, there is no point in holding cover for freezer contents, or if you have an office, shop front cover is no use to you! It is just not enough to choose the cheapest insurance – there may be exclusions that you require.

Of course, you do not need to get a new policy to get specific cover. Talk to your broker and they will be able to add or delete specific covers as your business develops – you may have started as a self employed electrician and have expanded to be an employer, or used to work from home but have decided to now rent an office.

Don’t forget to also review the excess on your cover. This is what you pay if you claim, and you may have the option to change it – if you increase your excess, you will reduce your premiums, as you are covering less.

Consult with the insurance professionals at Direct Insurance Corporate Risks we can write a bespoke policy that helps avoid any extraneous liability and ensures a smooth path for your business to keep delivering the goods to your clients on schedule well into the future.

 

Do You Require Commercial Property Insurance?

Your property is subject to many risks, including social and catastrophe perils, structural issues and even disputes with tenants. By purchasing a commercial property insurance policy, you can make sure that you are protected against these risks.

Insurable Perils

Basic commercial property insurance policies provide one of two basic levels of cover: all risks, and named or defined perils. All risks cover generally applies to all losses caused by perils that are not specifically excluded by the policy. Named or defined perils are enumerated in the policy and can include the following:

  • Fire
  • Explosion
  • Lightning
  • Smoke
  • Floods
  • Windstorms
  • Hail
  • Acts of terrorism
  • Riots or civil commotions
  • Theft
  • Malicious damage
  • Vehicles and aircraft
  • Subsidence
  • Accidental damage or loss

Make sure you know what perils are covered under your current policy, and what perils are excluded.

Buildings Insurance

Typical commercial property insurance includes cover for buildings on your property. Buildings insurance covers the cost of rebuilding or repairing buildings after loss or damage due to the perils listed above. Items typically covered under buildings insurance include:

  • Structure (walls, roof, floors, etc)
  • Fixtures and fittings, such as kitchen units
  • Outbuildings
  • Gates and fences
  • Car parks and garages
  • Pipes and ducts
  • Cables and wiring equipment

Property owners commonly insure their premises on a reinstatement basis, rather than on an indemnity basis. This means that instead of the insurance settlement having a deduction for wear and tear (indemnity basis), the settlement would allow you to repair or replace the covered buildings as new (reinstatement). The reinstatement cost is based on the sum insured value of the property—that is, the total cost to rebuild and repair. These costs are determined at the time of the loss, not when the insurance was actually purchased.

When you purchase insurance, it is important to select a sum insured value that takes into consideration the cost inflation throughout the duration of the policy period. Because it is difficult to assess inflation trends, many commercial buildings are insured on a ‘day one’ basis. This entails assessing reinstatement costs and declaring a value for the building at the time the insurance policy takes effect (‘day one’ of the policy). An agreed percentage is then added to the declared value to cover inflation costs. Typically, 15 to 30 per cent is enough to cover inflation during the period of insurance and period of reinstatement.

Loss of Rent

When you are leasing a building or building space to a business or company, you could lose your rental income if your tenant must relocate after a covered peril. Check your commercial property insurance policy to see if it covers loss of rent. If not, you can purchase it as an extension. Keep in mind that this will not cover instances where your tenant refuses to pay rent owed.

Property Owners’ Public Liability

Property owners’ liability covers you for costs and damages—including medical—if a member of the public, or someone visiting your tenant, is injured while on your property. This cover is often included in commercial property insurance policies, but you may need to add it as an extension.

Unoccupied Property

Unoccupied buildings are more susceptible to fire, vandalism, undetected repairs and other losses. If you own unoccupied property, it is advisable to purchase unoccupied property insurance to protect against risks.

Other Insurance to Consider

As a property owner, you may also want to consider the following covers:

Employers’ liability. If you employ administrative or maintenance staff, you are likely required by law to carry employers’ liability insurance. This insurance protects you against claims due to employment-related injuries or illnesses, including compensation and costs for accidental bodily injury to anyone you employ, including temporary staff and volunteers.

Legal expenses. Legal expenses insurance provides cover for legal costs that result from incidents on your property. Covered legal costs may include property protection, repossession, tenant default, legal defence, contract disputes, debt recovery, tax protection and bodily injury.

One of the most important aspects of owning a property is making sure that you have purchased enough cover to be adequately protected. At Direct Insurance Corporate Risks we understand that determining your property’s value is critical, so we’re here to help. Contact us at 01277 844 360 to learn more about our insurance and loss control solutions to protect your property.

Efficiencies and savings for London Based ELV & Nuisance Vehicle Specialist

The Business Situation:

A leading End of Life Vehicle (ELV) and nuisance vehicle contractor, operating across 26 local authorities in and around the London area required a thorough technical review of their existing insurance coverage.

The company had been with their existing broker for over 25 years and had recently experienced an increase in claims frequency. After feeling unsupported by their current broker, due to a lack of, communication and support with risk management and steady premium increases they felt a new approach was necessary.

The client had been in discussions with an existing customer of Direct Insurance Corporate Risks regarding their insurance coverage and our team came highly recommended. Our service driven approach, extensive risk assessment capabilities and cost effectiveness were all highlighted by our existing client as reasons to work with us.

The Solution:

In May 2018 the client invited Direct Insurance Corporate Risks to review and quote for their insurance portfolio with a particular focus on Motor Fleet insurance.

The customer operates within a highly regulated environment and must adhere to stringent guidelines, it is paramount that the correct level of coverage is in place. In accordance with our standard work practices the team carried out a full technical review of all cover types to assess any potential gaps in cover. A thorough risk assessment was also undertaken before any recommendations were made to the client.

Following a full portfolio review our team made the following recommendations; enhanced coverage for their plant and machinery requirements, monthly claim reviews, access to our in house claims team and a significant cost saving on premium.

The combination of our unique access to the market via our wholesale arm, Direct Insurance London Market and our award winning services saved the client time, resources, and produced tangible premium savings of around 20%.

The Key Facts:

  • £120,000 premium saving
  • 3 year long term agreement
  • Access to an online portal for Increased risk management support, guidance and advise of how to reduce claim frequency
  • Enhanced coverage
  • Dedicated in house claims team