By Emma Hughes, New Business Broker
The final quarter of the year brings about increased levels of activity within the retail sector. The surge in consumer demand sees the stockpiling of goods, greater number of staff and longer working hours. During this hectic time it is unlikely you will stop to think; am I covered for this?
Check and Don’t Chance
You may find that the increased stock you are holding over the festive period leaves you open to underinsurance. In the event of underinsurance the insurers will apply the clause of Average. The clause of Average influences how much of a claim will be paid. For example, if you have insured your stock for £10,000 but during the month of December this increases to £20,000 then the Average Clause would be applied and any claim would be reduced by 50% in-line with the underinsurance.
Some Insurers may offer a ‘Seasonal Stock Increase’ extension to their Retail packages. This extension offers a discretional increase of 20% to 30% typically during the busier months. It is important to check whether this extension is included and whether the uplifted sum is adequate to cover your increased exposure. If you are unsure then it is best to make insurers aware immediately of the change.
It is also important to make insurers aware of any other changes that may happen over the festive period; from Santa Clause meet & greets to the loaning of a Fork Lift Truck in order to move stock more easily. Anything that is out of the ordinary for your business needs to be disclosed to insurers.Read article »
By Emma Hughes, New Business Broker
As we say goodbye to our glorious summer it is time to start thinking about winter and how to keep yourself and loved ones safe on the roads. The clocks going back signals the start of dark evening commutes, increasing road accidents between the hours of 5pm and 8pm by 34%. With this in mind we have put together 5 top tips to ensure you are prepared for winter driving.
Lights Make sure that your headlights are free of dirt, switched on and in good working order – no matter the time of day. The darkness coupled with adverse weather conditions means visibility is reduced and the likelihood of an accident increases.
Speed Inclement weather and poor visibility means that you may have to react quickly to unforeseen situations, try to keep below the speed limit allowing for easier adaptation of speed. You should aim to maintain a moderate and steady speed.
Pedestrians Although your lights may be in tip-top shape be aware that others, particularly cyclists and pedestrians, may not be as well prepared. Darker clothing and no lights can make people difficult to spot so be vigilant.
Tyres Seasonal hazards such as slippery leaves, mud and ice can be treacherous so make sure that you have checked your tyres. If they are looking borderline then don’t risk it, get a new set and consider investing in specialist winter tyres.
Visibility The low winter sun and headlights can cause glare; avoid excessive glare by keeping your windscreen clean (inside & out) and making sure your wiper blades are in good working order. Also, make sure your windscreen wash is topped up regularly with anti-freeze solution.
For further information see Insure The Box’s full study: https://www.insurethebox.com/beware-fright-night-as-the-clocks-go-back-this-weekend/Read article »
By Emma Hughes, New Business Broker
‘Cyber’ is an emerging risk and SME businesses need to be aware of the level of exposure they face. Typically a business would want to protect their physical assets but when it comes to cyber you are insuring the intangible – data, customer information, and intellectual property. Arguably data or information has become one of the most important assets to a business and worth many times more than the physical equipment it is stored upon.
There is no doubt that the implementation of GDPR in May 2018 shone a spotlight on the growing need for cyber insurance with 66% of organisations more concerned about their cybersecurity than they were a year ago. Despite growing concerns 43% of British SMEs admit to having no business continuity, disaster recovery or crisis management plans in place. In order for these businesses to create a thorough business continuity plan they must first understand and identify the risks they face.
After the catalyst of GDPR businesses are now beginning to address cyber exposures but the focus on data breaches is detrimental in providing a comprehensive cyber risk solution. For example, almost a third of CFC’s (a top UK cyber insurer) cyber claims are a result of the theft of funds, which is a significant risk for almost any business and has been for quite some time. Cyber insurance goes beyond simply providing cover, ultimately cyber insurance has a role to play in helping businesses to understand where to put their limited IT security spend, and hopefully put it in better, more effective areas.
Cyber-crime is the fastest growing crime in the world, affecting businesses of all sizes and sectors. In Britain 46% of SMEs admitted to suffering at least one cyber security breach or attack in the last 12 months. To illustrate this the insurer Hiscox has set up a typical small business server to record how many attempted cyber-attacks happen in real-time. By mid-day almost 27,000 attacks had been attempted.
Every cyber-attacker will have their own purpose ranging from the ransom of data to malicious destruction. Often breaches are not discovered until weeks or months after the event, by then untold damage could have been caused.
Businesses need to start asking themselves what would they do if they found out that they had been the victim of a cyber-attack? WannaCry in May 2017 and NotPetchya in June 2017 raised the question of when businesses are affected, who do they call? There is no state-provided IT security service. Although the UK has the National Crime Agency and GCHQ they are focused on protecting national infrastructure, rather than individual businesses [..] the state has not provided the services to support businesses, and that is what the cyber insurance industry is doing.
The impact of a breach can be felt for many months, even years after an event. Although a system may be back up and running within a matter of days the effects of reputational damage and lost data can be felt long after. Every single breach will be different and there is no ‘one size fits all’ solution. For example a business that receives their income on a contractual basis could be more exposed to long tail financial loss, as the cancellation of monthly or annual contracts could very quickly result in sizeable financial losses being incurred. It is unlikely a traditional business interruption policy would respond in this instance so it will have to be written in to the cyber coverage. Regardless of your business type or size there is an exposure to be mitigated.
Now is the time to start addressing Cyber as a very real and tangible risk to your business. The threat of a cyber-attack is ever growing and it has the potential to impact your business in the same way as fire or flood. Please do not hesitate to contact us on firstname.lastname@example.org or 01642 240400 if you would like to discuss Cyber cover for your business.
Graham, Luke. “Cyber Insurance, the Great Fire of London, and the need for digital fire figthers in the modern day” Accessed October 24th, 2018. http://dev2.cityam.com/263335/cyber-insurance-great-fire-london-and-need-digital-fire
CFC News. “Cyber Claims Case Study: Software Shutdown” Accessed October 24th 2018. http://cfcunderwriting.com/media/3219?topic=1
CFC News. “Top Five Reasons To Buy Cyber” Accessed October 24th, 2018. http://cfcunderwriting.com/media/3186?topic=1
CFC News. “2018 Survey Reveals Concern About Cybercrime Continues To Rise” Accessed 24th October 2018. http://cfcunderwriting.com/media/5632?topic=2
Aviva PLC. “Supporting UK SMEs to address vulneratbilities” Accessed October 24th, 2018. https://broker.aviva.co.uk/news/article/695/supporting-uk-smes-to-address-vulnerabilities/
CFC News. “Beware The Data Breach Bear Trap” Accessed October 24th, 2018. http://cfcunderwriting.com/media/3283?topic=1
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Erimus Insurance Brokers is a trading name of Teesside Insurance Consultants Ltd. Registered in England No. 2043783.
Authorised and regulated by the Financial Conduct Authority No. 307660.
Directors: P.J. Davison, S.D.E. Hughes, I. Miller ACII, S.S. Pinnell. Non Executive Director: G. Lumby MBE, FCIBS.
Company Secretary: C. L. Nolan.