August Newsletter - Are self-employed workers taking insurance risks seriously?

In this month's edition, we start off by revealing the safest and most dangerous places to drive your van in the United Kingdom, according to the results of a new study.

We also detail what the insurance industry is expecting from new Prime Minister Boris Johnson, we explain the finer details of car insurance excess and finally, research suggests that self-employed workers may not be taking insurance seriously, leaving themselves at serious risk. 

Are self-employed workers taking insurance risks seriously?

 

It’s easy to see why being self-employed is so attractive to so many people across the UK. The chance to be your own boss and escaping repetitive office or site environments is certainly appealing, but being self-employed comes without the relative protection offered by companies, including insurance coverage when things go awry.

A recent survey of self-employed workers by an insurer has revealed some highly interesting data about the sector’s approach to insurance, with 53% of those questioned disagreeing that protection was necessary alongside 29% who advised that they had no insurance at all.

Such statistics are somewhat alarming, given the extra responsibility on anyone self-employed to manage every aspect of their work. Risk exposure increases to a high level when you work on your own, meaning that should a mistake be made that has negative consequences on a client or third party, such as incorrect advice or damage to a client’s public image, then you could be left without any protection in the event that you are sued.

Other details from the survey expand on the above:

17% have never considered insurance at all
8% are looking to buy it
1% can’t find the right policy
1% say they are self-insured
5% stated ‘other’ reasons

So why have insurance in the first place?
With the best will in the world, mistakes happen, and they can frequently be out of your control. Some examples of the sort of scenarios you could find yourself in as a self-employed worker include:

• professional negligence (for example, a small mistake on work for a client)
• loss of data and documents
• libel and defamation
• loss of goods or money
• unintentional breach of copyright or confidentiality

An incident of any one of the above types could leave you footing a gigantic bill from a dissatisfied customer, and could leave you in danger of bankruptcy or being forced to close your enterprise.

Professional Indemnity Insurance can help
Also known as PI insurance, this is a type of cover designed to offer protection for companies and businesses of all sizes with exactly the scenarios detailed above. Contact our experts today to find out how Professional Indemnity Insurance could provide you with vital cover.

Insurance industry spells out its aims for new Prime Minister

 

With new Conservative Prime Minister Boris Johnson now in place, the insurance industry has wasted no time in outlining its expectations to the country’s new leader, with the implementation of Brexit unsurprisingly topping the agenda.

“Boris Johnson inherits a huge set of challenges and we should all hope that he will be able to overcome the current impasse and implement Brexit in an orderly fashion, with a transition period in place,” offered the Association of British Insurers director general, Huw Evans.

“The crucial longer-term test is whether our future economic relationship with the European Union avoids the UK’s world-leading insurance and long-term savings sector becoming a rule-taker.

“Beyond Brexit, we want to see the incoming Prime Minister and his new government support our thriving and world-leading industry by improving the competitiveness of our tax and regulatory environment, boosting savings for retirement, keeping the cost of insurance down, improving the safety on our roads, and building a social care system that works for all.”

Mr Johnson has been vocal about delivering Brexit and was a key part of the Vote Leave campaign during the original vote in 2016. It remains to be seen how the new Prime Minister and his recently announced cabinet will supply an outcome that will satisfy every industry come the deadline of October 31st, but given the lack of clarity on the subject that was a common feature under Theresa May’s leadership, you can expect insurance to push hard to clarify what the terms of Mr Johnson’s exit are.

Revealed - the safest and most dangerous places to drive your van

 

A leading UK insurer has revealed the safest and most dangerous cities in the country for driving vans. The research, reported by Automotive Blog, also highlights the worst region for van thefts in the country, with London perhaps unsurprisingly featuring prominently. 

 

Least likely areas for van accidents		Most likely areas for van accidents
Rank	Area	Rank	Area
1	Belfast	1	London – NW
2	Inverness	2	London – SW
3	Dumfries & Galloway	3	Ilford
4	Aberdeen	4	Harrow
5	Shrewsbury	5	Bromley
6	Llandudno	6	Sutton
7	Darlington	7	London – W
8	Hereford	8	Watford
9	Blackpool	9	Uxbridge
10	Galashiels	10	Dartford

 

Northern Ireland takes the crown for the safest city to drive a van, with Scotland featuring three times in the top five thanks to Inverness, Dumfries and Galloway and Aberdeen all reporting low accident rates.

All ten of the most likely areas for van accidents in the United Kingdom are either in or around the capital city, however, with London dominating the list. The North West and South West boroughs appear to be the most dangerous areas for vans.

The research data also provides us with a rundown of which regions are most susceptible to van theft, with London once again topping the list:

Van thefts by region

Rank	Region
1	Greater London
2	Yorkshire
3	W Midlands
4	East Midlands
5	South East
6	North West
7	North
8	South West
9	Wales
10	East Anglia
11	Scotland
12	Northern Ireland

Understanding Car Insurance Excess - what you need to know

 

Financial service comparison website GoCompare has recently conducted research to discover which elements of car insurance are the most misunderstood, with voluntary and compulsory excesses two issues ranking high with drivers unsure of how they relate to their policies.

Whilst it can be a challenge to stay on top of the terms mentioned in your car insurance, it’s important to understand how excess works when it comes to your policy, particularly when you need to make a claim.

What does Car Insurance Excess mean?
Excess refers to the amount of money that you’ll be required to pay should you make a claim on your insurance. This will be applied to any claims you make as a result of fire damage, theft, accidents and car write-offs.

What’s the difference between voluntary and compulsory excess?
Voluntary excess – the policyholder chooses this amount when the policy is set up, and it refers to the amount of money that a driver is prepared to pay should they need to make a claim. A higher voluntary excess means that you will be required to pay more should a claim need to be made, but it could lower your premium.

Compulsory excess – this is set by the insurer and determined by several elements, including the type of car in question, the age of the policyholder and their driving experience.

For example, if a policyholder agrees to a voluntary excess of £300 and a compulsory excess of £350, then they would have to pay £650 towards the cost of a claim. This charge could be paid back or waived in some circumstances, such as an accident in which the other driver has admitted fault.

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