Has your insurance programme been reviewed recently?

Has your insurance programme recently been reviewed by an insurance professional with knowledge of your industry sector?

If the answer to the above question is no then you may want to read on to find out if your business is properly protected…

Why should I have a technical review..?

Under-insurance or gaps in cover pose a tangible risk to the future trading of a business and can also impact the personal lives of its employees and directors. Don’t wait for the worst to happen…

Why choose Direct Insurance Corporate Risks..?

  • Our team specialise in your industry sector
  • We have insurance professionals that understand your sector and it’s needs
  • We have an in-house specialist claims team on hand should the worst occur

What will we do..?

  • We will meet or arrange a call with you to discuss your insurance program at a convenient time
  • We will then conduct a full technical review of your program and provide a report of our findings
  • The report will highlight the positives, any areas of concern and, or any gaps in your cover
  • We can then provide an immediate solution using our specialist products to resolve any issues and concerns
  • You’ll also receive a full specialist quotation

Why not put us to the test?

Our regional Business Development team cover every corner of the UK. We’d love to come and speak to you about our commercial insurance offering… To arrange a visit simply email info@direct-ins.co.uk or call the team on 0203 960 2944.

To learn more about our exclusive offering visit www.dicr.co.uk today.

Public/Products Liability Insurance

The only way to effectively protect the assets of your business is to carry adequate insurance cover. Liability insurance protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable.

What Does Public/Products Liability Insurance Cover?

A comprehensive public and product liability policy provides cover for claims of bodily injury or other physical injury, personal injury, advertising injury and property damage as a result of your products, premises, or operations. As a safeguard against liability, the policies allow you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. Liability policies also provide cover for the cost to defend and settle claims. Following are some other things that typical liability policies may cover:

  • Personal and Advertising Injury – Protects against offences made by you or your staff during the course of business, such as libel, slander, disparagement or copyright infringement in advertisements.
  • Defence Costs – Provides cover for legal expenses for liability claims brought against your business, regardless of who is at fault.
  • Medical Expenses – Provides cover for medical expenses if someone is injured on your premises or by your products.
  • Premises and Operations Liability – Provides cover for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
  • Products Liability – Provides cover for bodily injury and property damage sustained by others as a result of your products. 

How Much Cover Does Your Business Need?

The amount of cover that your business needs depends on three factors: perceived risk, where you operate your business and the type of products you manufacture.

Perceived Risk – Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more cover than another organisation that manufactures stuffed animals.

Type of Product Manufactured – If you manufacture a dangerous product, you may want to carry higher limits of liability. 

Other Ways to Protect Your Business

  • Establish a high standard for product quality control at your organisation.
  • Keep all company records up to date and accurate.
  • Train your employees thoroughly and properly.
  • Ask Direct Insurance Corporate Risks for safety and compliance information.

Typical Exclusions and Limitations

  • There will typically be an excess requirement for each claim. The excesses will vary depending on the policy and covers sought.
  • Injury to your own employees or to your own property is not covered under Public/Products liability insurance. Make sure you have Employers’ Liability insurance and adequate Property insurance.
  • War, terrorism or nuclear risks are typically not covered.

Direct Insurance Corporate Risks understands that your business needs to be protected, and we are here to help! Please contact us today at 01277 844 360 to learn more about our risk management and insurance solutions.

Waste and Recycling Insurance

The waste and recycling industry is vital for keeping communities clean and providing environmentally friendly ways to reduce waste. Due to heavy investment in evolving technology and government support, this industry continues to grow. But, it also remains hampered by its own methods, which are perilous for workers. The dangerous nature of waste and recycling work can make insurers wary. But, without bespoke waste and recycling insurance, you risk letting your business go up in flames.

Who It Covers

The waste and recycling industry encompasses a wide variety of businesses differentiated by the materials they handle, the methods they employ and the equipment they use. Daily operations at some waste and recycling businesses can be radically different from those of other businesses in the same industry.

What links these different businesses together is that they all interact with waste materials. The broad range of businesses in the waste and recycling industry has pushed insurers to offer policies which can address the industry’s diverse needs. Waste and recycling insurance policies can cover the following businesses:

  • Skip hirers
  • Waste management
  • Landfill operations
  • Incineration plants
  • Waste to energy plants
  • Trade waste collection
  • Recycling operations
  • Consultants
  • Waste brokers

This list is not exhaustive. At Direct Insurance Corporate Risks we can work with your business to ensure it is covered. If you work with waste and recycling, we will fashion a policy that is perfectly tailored to your business.

Common Covers

The wide disparity between businesses in the waste and recycling industry means that waste and recycling insurance is not one-size-fits-all. You need a bespoke policy to cover your business’ distinct risks. Your policy should at least include the following common covers:

  • Employers’ liability
  • Public liability
  • Property damage
  • Business interruption
  • Fixed and mobile plant and machinery
  • Environmental impairment liability
  • Motor fleet

Policies vary among insurers for many reasons. Ensure yours addresses all of your business’ risks.

Common Extensions

Because waste and recycling policies are usually tailor-made for businesses, insurers must be able to offer a variety of options for businesses to choose from when constructing the best bespoke policy. Some common extensions include:

  • Legal expenses
  • Contingent motor liability
  • Sudden and accidental pollution
  • Defective premises
  • Spoilt melts
  • Personal accident
  • Clean-up costs
  • Landfill sites and waste tips

Again, this list does not represent the entirety of waste and recycling policy extensions. Talk to us for a full list of offerings to make sure your business is protected on all sides.

Common Exclusions

Although waste and recycling policies may seem like a blank slate, ready to be filled with a mixture of covers unique to your business, there are certain covers which the majority of insurers will always exclude. These exclusions include the following:

  • Asbestos and lead-based paint
  • Nuclear hazard
  • Natural radioactive material
  • Underground storage tank(s)
  • Divested location and property
  • Communicable diseases

Check your policy to find out what your exclusions are, since there is no standard waste and recycling policy. You may be able to cover normally excluded hazards by paying higher premiums.

Bespoke Is Best Your industry may be dangerous, but that does not mean the future of your business needs to be. Rely on the insurance professionals at Direct Insurance Corporate Risks at 01277 844 360 today for the resources and expertise to safeguard your waste and recycling business

Directors’ & Officers’ Liability Insurance

In today’s business climate of corporate transparency and accountability, an organisation’s officers and directors face a myriad of employment-related exposures. Claims can come from many sources, employees, regulators, shareholders, creditors, customers, etc. Ever-changing regulations, increased employee awareness of employment rights as well as the rise of shareholder activism means directors are more frequently at risk, translating to rising claims and escalating settlement costs.

In the wake of recent unprecedented corporate scandals, clearly the trend of corporate accountability applies to large corporations. But smaller privately held companies, including not-for-profits, are not exempt from litigation arising out of the management decisions of their boards. They, too, are at risk.

Regardless of your company’s size, the legal cost to defend a director is substantial, as are the potential penalties that can be personally incurred. Due to liability risks, protecting boardroom talent can be a challenge. To help ensure both your officers’ as well as company’s well-being, a directors’ and officers’ liability insurance (D&O) policy is part of a comprehensive risk financing strategy.

D&O Fills the Cover Gap

Unlike liability policies that provide cover for claims arising from property damage and bodily injury, a D&O policy specifically provides cover for a ‘wrongful act’, such as an actual or alleged error, omission, misleading statement, neglect or breach of duty.

For example, a manufacturer told one of its suppliers to increase inventory because they were expecting a large increase in production. As predicted, demand for the manufacturer’s product grew but the manufacturer increased its inventory with another supplier instead. The original supplier successfully sued the manufacturer, alleging they suffered damages as a result of having relied on the manufacturer’s promise.

A D&O policy provides defence costs and indemnity cover to the entity listed on the policy declarations, which may include:

  • cover for individual directors and officers;
  • reimbursement to the organisation for a contractual obligation to indemnify directors and officers that serve on the board; and
  • protection for the organisation or entity itself.

Indemnification provisions are typically included in the charter/bylaws of a company. While an important risk component, small to medium-sized enterprises or not-for-profit organisations often do not have the financial resources to fund the indemnity provisions, making the bylaws hollow. A D&O policy can provide an extra blanket of security in the event of a covered loss.

A ‘fraud’ exclusion is typically included in a D&O policy, which eliminates cover for losses due to dishonest or fraudulent acts or omission or wilful violations of any statute, rule or law.  D&O cover can be tailored to your needs but be aware that D&O insurers are not consistent with their policy forms. This fact, plus the complexity of D&O claims, requires the insurer to have market commitment and deep expertise as well as the financial resources to handle potential claims.

There are also additional forms of cover to adequately protect directors and officers, including:

  • entity cover;
  • payment priority for insured persons;
  • severability of the insured as well as severability of the application;
  • cover over time, meaning cover responds to past, present and future directors and officers;
  • pay on behalf clause; and
  • duty to defend clause

Consideration for Not-for-Profits

Many not-for-profit organisations with directors and officers often report some difficulty in affording the cost of D&O insurance. To minimise the costs, brokers should recommend choosing only those policy provisions considered most critical. For example, a volunteer-run not for profit without paid staff may skip employment practices cover until it hires staff. To defray the cost of premiums, some not-for-profit organisations consider charging board members a portion of the policy cost.

We’re Here to Help

Whether you are a not-for-profit, privately held or a public company, it is likely that your business can benefit from a D&O policy. Since there is no such thing as a ‘standard’ policy, a professional broker is invaluable when purchasing D&O cover. We understand your organisation and can knowledgeably help design policy language to meet your needs. Contact Direct Insurance Corporate Risks at 01277 844 360 today to learn more about the appropriate protection for your company against potential directors’ and officers’ liability.

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 the team on 01277 844 360 today to learn more about our insurance and loss control solutions to protect your property.