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.


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.



Telephone: 01277 844360

How to Prevent a Cyber ‘Meltdown’

Cyber-security researchers recently announced the discovery of two major security flaws that could allow hackers to bypass regular security measures and obtain normally inaccessible data. They’re called Meltdown and Spectre, and they’re both caused by design flaws found in nearly all modern processors. Hackers can exploit these vulnerabilities to access all of the data found in personal computers, servers, cloud computing services and mobile devices.

As Meltdown and Spectre are both caused by design flaws, experts believe that they will be harder to fix than traditional security exploits. Additionally, software patches that have already been released to help address the vulnerabilities can cause computer systems to slow down significantly, which may impact their ability to perform regular tasks. Here are some key details about each flaw:

  • Meltdown: This flaw can be used to break down the security barriers between a device’s applications and operating system in order to access the device’s data.
  • Spectre: This flaw can be used to break down the security barriers between a device’s different applications and access sensitive data like passwords, photos and documents—even if those applications adhere to regular security checks.

When Meltdown and Spectre were originally discovered in 2017, researchers immediately reported them to major hardware and software companies so work on security fixes could begin without alerting hackers. As a result, services and applications offered by companies like Microsoft, Google, Apple and Amazon have already been updated to help defend against the flaws. However, your organisation should not rely solely on a software patch to protect against these vulnerabilities. Here are some steps you can take to protect your computer systems and devices from Meltdown and Spectre:

  • Update all of your devices immediately, and check for new updates regularly.
  • Contact any cloud service providers and third-party suppliers you use to ensure that they are protected against Meltdown and Spectre. Cloud services and computer servers are especially vulnerable to the exploits, as they often host multiple customers on a single device.
  • Install antivirus and firewall systems to protect against regular malware. Researchers believe that hackers need to gain access to a device in order to exploit Meltdown or Spectre, so keeping your devices free of malware can help prevent data theft.

For additional guidance on how to protect your organisation from cyber-security threats, contact Direct Insurance Corporate Risks today.



Call: 01277 844 360

Is your business PECR ready?

For well over a year, the General Data Protection Regulation (GDPR) has dominated headlines for how it’ll create a marked shift in the way that business can digitally interact with customers and prospects. However, there is another law concerning electronic communications that is also getting a major overhaul that may have escaped your attention, the Privacy and Electronic Communications Regulations (PECR).

The PECR has existed since 2003 and is getting a major overhaul to supplement the GDPR and update electronic marketing rules. Think of the GDPR as the overarching data protection law, while the PECR applies those principles to electronic communications, such as email, cookies and texts. The new PECR introduces rules to simplify cookies, ban unsolicited electronic communications if users haven’t given their consent and incorporate the GDPR’s two-tiered fine structure.

EU lawmakers intend for proposed PECR changes to take effect on 25 May, the same as the GDPR, but there’s significant doubt as to whether they will make that deadline. These PECR changes are still in draft form, but you should still prepare for compliance starting 25 May.

One of PECR’s biggest proposed changes is making all forms of electronic marketing reliant on opt-in consent. Like the GDPR, this means pre-ticked boxes will not suffice. This will even apply to business-to-business communications, as under the GDPR, you need a lawful basis to process ‘personal data’, which is any information that can be used to identify an individual. This means that, would classify as personal data that requires John’s consent before you can market to him through email, even though it’s a business address.

But, this doesn’t sound the death knell for electronic marketing—it just changes it. Instead of inaccurate marketing email blasts that blandly ask for consent, gain consent under the new rules by providing prospects with a piece of relevant, useful content that incentivises them to tick that box. Other PECR- and GDPR-compliant electronic marketing strategies include obtaining double opt-in consent from prospects and ramping up your social media advertising.

For more information on the new PECR rules and how you can comply, read the EU’s press release and stay updated on the ICO’s page.

To learn more about the services we supply and how we can help your business with risk management and compliance simply visit our website at or get in touch via email