Welcome to our November newsletter! In this edition; How public liability insurance could save your business, a guide to SME and professional indemnity insurance, car insurance premiums have risen by 16.3% in one year and finally, the global state of cyber crime. 

Until next time,

West Craven Insurance

A common misconception about public liability insurance, is that it is a legal requirement. Whilst this is untrue, it’s no lie that no business can do without the protection that public liability insurance offers.

Sometimes an accident is inevitable. You can defend against it, put every fail safe possible in place, but if something happens to a member of the public thanks to human error, what can you do? Public liability protects your business against any unwanted personal injury claims.

One of the most common accidents is a slip on a wet floor. If your staff fails to place a wet floor sign, then you’re liable for the customer’s injury. You could end up being on the receiving end of a lawsuit.

For a larger business, the cost of a lawsuit would be a PR nightmare, but probably wouldn’t disrupt a business. For a small or medium sized business however, a lawsuit could cause some serious financial problems that could end up ruining your business.

Public Liability insurance acts like a safety net, giving business owners peace of mind. Should an accident take place, you can be safe in the knowledge that your business is protected from the cost of expenses and medical treatment for the concerned parties as well as cover for the cost of the legal fees.

Recent changes made by the government means that the limit for small personal injury claims is now &5000 which is a big jump from the original limit of &1000. Small change to a large company but a month or two worth of revenue for a small/medium business. Public liability insurance can protect you against these types of damages and keep your business running.

If a company did not have the funds to cover the full cost of the damages, then their assets would be used to settle the cost. You could see business essential assets removed from your possession, leaving you unable to continue operating.

Here at West Craven, we understand that keeping on top of your business’ profits is your top priority. Public liability offers a much needed safety net that we believe no business should be without. We will find you the best public liability policy for a price that suits your business.  

The Small Medium Enterprise (SME) has become a sector in its own right. Over the last eight years the amount of people choosing to become their own boss or choosing to go freelance has jumped from 1.4 million to 1.9 million.

It’s easy to see why an SME might be appealing. The chance for a more fulfilling work/life balance, to explore careers that better suite your particular set of skills and to ability to escape from the traditional 9-5 way of doing things.

That’s not to say it’s all 12pm-3pm work days with Mondays off. You’ll need to learn the admin of the business, how to process your own taxes and National Insurance. As your business grows from small to medium, you’ll have to learn how to manage and employ staff. As your business grows, so will your client base and team of employees. How can you insure you’re protected should the worst happen? Professional Indemnity Insurance could hold the answers.

What is professional indemnity insurance?
Professional Indemnity Insurance is a product that is designed to protect you or your business against the things that might go wrong whilst you are providing your professional service. For example, a professional indemnity insurance policy can cover mistakes that created a financial expense for you or your client, negligence on your part or breaches of professional duty. Essentially, professional indemnity insurance protects you against human error, something that can’t always be accounted for. You can look at a professional indemnity insurance policy in much the same way as your home insurance policy. You have it for peace of mind, in the hope that you never need it, but if you ever do, it will ensure that your business can continue trading.

What types of businesses need professional indemnity insurance?
We currently live in a culture of blame, with people constantly looking for someone to point the finger at should things go wrong. Whilst in the past, professional indemnity insurance was protection for individuals or companies who provide services and advice upon which their clients depend (for example architects or accountants). Now however, it’s important that all businesses are protected against mistakes.

Looking for the right professional indemnity insurance? We can assist you in finding the best possible cover for your business at the best price. Get in touch today.

In the last year, the average car insurance premiums have risen by 16.3% (or approximately &82) with increased taxes, excess whiplash claims and price comparison websites taking the blame.

However, car premiums are still well below the record high seen in 2011 and they were steadily declining until the end of 2014.

Surprisingly, younger drivers have been the least affected by the price increases having only experienced an 8% rise over the past year, although their average premium has not broken the &2,000 barrier. It’s the elderly that seem to have taken the biggest hit, with drivers over the age of 61 seeing an average increase of 24%, although the average premiums are still relatively low at &418.

Both male and female drivers saw their premiums rise substantially over the last 12 months, but it is still males that have seen their prices creep up slightly more. Currently, male drivers can expect to pay a premium of around &781 and female drivers can expect to pay around &683. By comparison, three years ago the price divide stood at just &30 as opposed to &98 today, with men still paying slightly more on average.

The AA said premiums were driven up by continuing problems with whiplash claims and consumers’ growing tendency to shop around for a new policy each year.

Michael Lloyd, AA’s director of insurance, said: “We are witnessing sustained price increases once again, which is bad news for drivers. I can’t see an immediate end to the current upward trend.”

“The whiplash epidemic has dogged the British motor insurance industry for a decade and continues to do so,” Lloyd said. “I do recognise that whiplash can be a serious and debilitating condition. But the activities of claim firms make life more difficult for those with a genuine injury.”

Cyber Crime is one of the most common topics in the news at the minute. Several high profile businesses have fallen victim to attacks by criminals, fraudsters or foreign government agencies.

The fallout of an attack or fraud will often lead to a review of whether the company was to blame or not. Did the business take the appropriate precautions to safeguard customer data, was there any human error on the part of the business? The business will then need to deal with the financial implications of interruption to business, income loss, damage management and repair, as well as dealing with the PR fallout of the attack.

So what can businesses do to protect themselves?

Whilst several commercial policies protect against certain aspects of a cybercrime, many businesses are now buying a specialised cyber insurance policy. This policy offers protection for those who:
• Hold sensitive data belonging to their customers. I.e. names, addresses or bank details;
• Rely on an IT system to conduct their business
• Process payments via card information.

Cyber Insurance is designed to assist businesses that rely on IT, to rebuild following an attack. A policy will also include assistance with managing the incident, which can prove to be vital should there be any damage to your reputation or if you face regulatory enforcement.

When it comes to the cover offered, cyber risk falls into two categories, first or third party. A first party policy will protect the business’ assets, whilst third party is designed to protect the assets of others, such as your customers. Most policies will cover both, however most SME’s can’t afford or possibly do not require both which is why it’s possible to choose the level of cover.

With recent figures showing that cyber crime costs UK businesses &1bn a year, it makes sense to take steps proactively to protect yourself against an attack.