West Craven

The latest news from West Craven

Welcome to our July Newsletter from West Craven Insurance. This month we provide some helpful advice to keep you updated with the latest industry changes.

First up we update you on the cost of car insurance premiums. As society continues to resume activity there are more cars on the road; leading to higher risks. Next there have been many changes to landlord legislation, with the most recent change being electrical safety regulations. We update you on the new compliance requirements. Elsewhere we look at what is terror cover and whether you need it. To end we share all you need to know on Directors and Officers insurance and whether you need it to protect your liability.

We hope you enjoy this months edition!

Cost Of Car Insurance Post Lockdown To Rise

As lockdown eases this month, more people will resume commuting to their workplace rather than working from home, as has been the case for many of us over the past few months. With more drivers on the roads, insurance premiums are forecast to rise for up to 10 million people.

Recent data from a comparison website has estimated 10.5 million drivers could soon see an increase in their car insurance as some 61% of drivers expect to commute by car when they return to work – almost double the level compared to pre-coronavirus. With government advice encouraging those of us who can avoid public transport to do so in order to reduce the possibility of virus transmission.

For some, this will mean adding an element onto their car insurance policies – for example, those whose cover is for the standard ‘social, domestic and pleasure’ will have to add ‘commuting’ in order to be insured during their journey to work and back.

The extra volume of cars on the roads will result in the overall risk of accidents rising also, and insurers account for this into their policies – hence the potential for insurance price rises.

Dan Hutson, head of motor insurance at comparethemarket.com, says: “Motor premiums, which have fallen recently, could be about to jump once more. More drivers will need to adapt their policies to include cover for commuting and insurers may increase their prices in anticipation of more cars, and more crashes, on the road.”

If you would like to discuss your car insurance cover and whether you have the appropriate cover, please do not hesitate to contact us.

Electrical Legislation Update For Landlords

As a landlord, it is important to keep up with the latest legislation in order to keep your tenants and yourself secure. The latest change to keep abreast of is the government’s new electrical safety regulations – specifically for electrical installations in your properties. Fall foul of these rules, and you could be facing financial penalties of up to £30,000.

In recent years we have seen somewhat of a reform to the rental sector with seismic changes including the Tenant Fees Act, Fitness For Human Habitation Act and a potential review of Section 21 evictions. The new Electrical Safety Standards regulations will apply to all new tenancies from July 1 2020 and for existing tenancies from April 1 2021.

One of the key features of the legislation is electrical inspections, with landlords having to ensure that all electrical installations in their property are inspected and tested by an appropriately qualified electrician at least every five years. Documentation around these inspections then need to be shared with new, existing and prospective tenants as a legal requirement. Should the local authority request the paperwork, a landlord is also then required to supply this within 7 days of receiving the request.

Here is an overview of the changes;

• A landlord is required to obtain an inspection and test report from a qualified person, supply that report to each tenant within 28 days, and to the local housing authority within seven days of a request. A copy must be retained until the next inspection is due.
• For new tenancies, the landlord must supply a copy of the last report to any new tenant before occupation, or any prospective tenant within 28 days of a request.
• If the report requires further investigative or remedial work, this must be carried out within 28 days or sooner if the report suggests. Written confirmation of the work being carried out by a qualified person must then be given to the tenant and the local authority.
• If a landlord is in breach of the regulations, the local authority can serve remedial notices, if necessary, carry out the required works themselves recovering their costs from the landlord and can impose financial penalties of up to £30,000.

If you would like to read the full guide for landlords published by the government, you can do so here.

All You Need To Know On Directors and Officers Insurance

As a company officer or director, you can be held personally liable for decisions that you have made or actions that you have taken that go beyond the responsibilities of your role.

This means that should an employee, shareholder or regulatory body find fault with your decision making, they can make claims against you, with the cost of legal advice and paying damages coming out of your pocket.

Examples of claims could include a breach of trust, negligence or breach of care on your part. Claims can also be brought against you for wrongful trading, making misleading statements, or making other types of error or mistake.

Do you think you could manage the cost of rebuffing such claims? A Directors’ and Officers’ Liability insurance policy (D&O) can assist you with covering the cost of professional legal representation, as well as assist in the payment of compensation to the claimant(s).

Examples of claims

1. A rival business makes a claim against a director for allegedly slanderous comments made in public which damaged the reputation of the competitor’s company.
2. A director accuses another director of mismanaging fund.

A D&O insurance policy will usually cover every official within your company. It will also cover ‘wrongful acts’ committed by all current and former company officers and directors. When expanding, you may struggle to attract talented individuals to your boardroom if your company does not hold D&O.

D&O only covers you for future claims. Any legal action that you are involved in when purchasing the policy will be excluded from the terms of the policy. You may also be required to sign an agreement to confirm that you aren’t currently aware of any current or potential claims.

So, what do I need to consider?

The number of directors and officers that you have on your board.

A small business with 2 or 3 directors might need £1 million in cover.

The scope of your business and its activities

A larger organisation might need anywhere between £50m - £300m

Should you not hold a D&O policy, your directors and officers face a greater risk of being unable to afford the costs of defending themselves against:

• Civil proceedings which can carry considerable legal costs and awards for damages
• Disqualifications from holding the position of director
• Criminal prosecution which can lead to fines and possible imprisonment

Terror Cover - What Is It And Do I Need It?

With the coronavirus pandemic creating seismic waves through the insurance market, terror insurance has understandably taken a backseat compared to other seemingly more relevant policies such as cyber and business continuity. However, with recent events in Reading bringing terrorism back to the front pages, it is important to consider this cover for your business.

The tragic attack in Reading highlights that such an attack can occur without warning and being covered for such an eventuality can save your business from considerable losses.

Terror cover is not traditionally included in standard insurance offerings, and therefore if this is something which you would like to explore further then we can help you to understand the options available in the marketplace.

This type of insurance can cover you for different elements, including goods in transit, supply chain issues, contingent business interruption extensions and loss of business.

Jonathan Moss, a partner and head of transportation for lawyer DWF, reflected on terror cover: “The business interruption angle is important, in particular for smaller firms.” For example, following the London Bridge terror attack, Borough Market was closed for ten days.

“It’s not an easy risk to underwrite, and in my area, transport, one of the big concerns is about crewless ships and what a terrorist attack could mean. It should also be a factor for when driverless cars are introduced. But the market has shown it can respond, such as in the case of virus outbreaks or with cyber insurance policies.”

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