Riots may not last very long, but the time to put a community back to where it was takes a lot longer.

For a business or property owner the work ahead can be daunting.

The actual damage to each premise needs to be accessed and repaired.

This can take time and may depend on whether adequate insurance was taken out to cover the damage.
If adequate insurance is in place insurance companies need to access the damage.

Putting Things Right

There maybe damage to the property, injury to staff, residents, tenants and owners.
Tenants maybe homeless. New temporary accommodation needs to be found.

Loss Adjusters need to be appointed to look and access the damage and give authority for repair work to commence. Quotations from repairers have to be given and of how long and when work can commence once agreed.
Immediate remedial damage may need to be repaired eg windows boarded up, broken glass cleared, any unstable structures removed .

Removal of goods not stolen need to be placed in a secure area to avoid further loss. Further accommodation and storage space may need to be found.

Vehicles may need to be hired if transport or commercial vehicles have been damaged. This can also delay work be carried out if contractors have damaged vehicles as well.

Evaluating Business Continuity and Business Interruption

Shop keepers and property owners have to decide if they can continue to trade and should ask themselves the following question:

Is the structure safe?

Do they have still have goods to sell?

Is there chance of further rioting?

If thieves have raided the shop will new stock have to be ordered?

How long will the stock take to deliver?

Are supplies of gas, water and electricity working ?

Have staff been injured or mugged?

Can staff get to and from work?

Are staff involved in the riots in any way?

Have they been arrested or injured?

Will they need time out because their homes have been damaged?

Are there any customers or are they too scared to enter the area or have police closed the area?

Claim

If you have been affected by the riots it is imperative that you contact your insurance company immediately to pursue a claim. If you do not have insurance but have been affected and have suffered loss, visit your local police station and report the incident and inform them you wish to make as claim under the Riot Damages Act of 1886.

For more information on the various types of business insurance and commercial property insurance available for riot and civil commotion cover, visit UK Commercial Insurance.

Related posts:

1. Business Insurance: Business Interruption Cover Explained
2. Making Business Insurance Decisions Easy for Business Owners
3. Police Negligence Fails to Mitigate Riot Insurance Losses

As you may recall from earlier articles within this series, both the Romans and the Greeks had contributed to the development of insurance, shaping it into the complex financial product that it is now quite considerably. However it was from the ashes of the Roman empire that we see insurance start to fully develop.

As we move through history and reach the medieval period which is universally acknowledged as beginning when the western Roman Empire fell in 471AD, we see the Guilds rise to prominence and amongst their functions is something remarkably akin to that of the early Roman Burial Clubs. However, they also provide rudimentary medical insurance, fire insurance, marine insurance and even personal accident insurance to their members as well as a whole host of other social and economic benefits.

In fact despite the fall of the Empire the insurance practices that have become part of every day life across Europe for Merchants, Noblemen and Serfs alike remain in place. With the importance of insurance now firmly established as a key element within any society with commerce at its heart, the varieties of insurance and the complexity of the products continues to develop throughout the Middle Ages.

Again it was Maritime insurance which proved to be the area which established itself as both the innovative and indeed original category of insurance. This is of course is easily attributable to the fact that at this point in history, the overwhelming driving force in any economy was the merchants of the sea. Boat Insurance developed more rapidly and technically than any other form of insurance at the time out of sheer economic necessity.

After the fall of the Western Roman Empire, a number of successful city-states developed to fill the vacuum created by the failure of Rome. These included Pisa, Milan, Venice and Genoa. Each of these mini- empires have a rich and fascinating history, but for the world of insurance, it was Genoa who would play the major role.

In fact Genoa is able to lay a fairly indisputable claim to be the home of modern insurance.

It was here in the fourteenth century that we saw some huge landmark moments appear on the insurance development time-line. It is at this point in history that we start to see commercial insurance begin to establish itself as a product independent of investment. This is evident from both the inception and invention of insurance contracts which were neither included as a guild benefit, nor based on a loan.

The earliest ever recorded insurance policy discovered to date is believed to be between Amiguetto Pinello (the insurer) and Tomaso Grillo (the insured) and is dated the 13th February 1343. The contracts between the two parties are hugely important in that they mark the first steps away from what are now the ancient and archaic traditions of Marine Loans.

Whilst traditional marine loans of ancient Rome and Greece (and even Mesopotamia before them) had provided adequate coverage throughout the ancient and early medieval periods, as the commercial revolution that was rapidly spreading throughout the coastal micro empires of Italy and the Mediterranean grew, these archaic laws no longer succeeded in meeting the requirements of the modern ‘sedentary merchant’.

So the need for insurance to once again evolve led to the birth of the stand alone insurance contract.

A fascinating insight into the politics of the time is hidden away in this original contract. In fact much of the content of this original contract was necessarily fictitious. This fictitious wording was required to cloak the contracts within the phraseology of Roman Law, as at this point in history insurance contracts still had no legal standing Per Se.

In fact the work of these early pioneer insurers was constantly frustrated by existing clerical usury law and the insistence of those in authority that despite the legislation being out dated, it was relentlessly enforced.

It seems that there are more similarities than we could have imagined then!

In the next article within this series we shall look at post-renaissance Europe and perhaps arguably the most important period in the history of insurance ever – the 17th Century. This is where we see insurance arrive at what is now regarded as it’s modern day home – Lloyd’s of London.

Related posts:

1. A Brief History of Insurance: Part 2 Early Marine Insurance
2. A brief history of Insurance: Part 3 Roman Life Insurance
3. A Brief History of Insurance: Part 1 The Ancient World

The What, When, How, Where and Why Guide to Indemnity Insurance for professionals.

Professional Indemnity Insurance is designed to protect you when a problem arises with any professional work you have done. In today’s litigation culture, this form of insurance is becoming increasingly relevant for a range of professions.

Are you thinking about Professional Indemnity Insurance?

Before you buy, it pays to consider the crucial 5 questions:

What exactly is Professional Indemnity Insurance?
Professional Indemnity (PI) Insurance is designed to protect you in the case of professional error. In the course of your working life an instance may occur where unfortunately, the professional skill you exhibit is deemed inadequate. In this situation, a dissatisfied client may seek some form of compensation, resulting in financial implications for you and your business. This is where PI Insurance comes in: it provides financial support for defence costs, withheld fees and any compensation which may be awarded against you. In simple terms, Professional Indemnity Insurance is financial protection against professional error.

Why do I require PI Insurance?
This type of insurance is typically relevant for professionals who regularly give advice to their customers, and/or who are responsible for customers’ data and other intellectual property. It can loosely be regarded as protection against non-physical but nonetheless detectable damages. PI Insurance can be voluntary, but it is mandatory for some professions, such as Architecture, Accountancy and some IT Consultancy.

How does PI Insurance benefit me?
If you are at all liable to be challenged in the competency of your work, or there is scope for your services failing to meet the expectations of your client, then PI Insurance will certainly benefit you. PI Insurance will provide you with financial support if you are accused of professional negligence, misuse of intellectual property, loss of data, dishonesty and defamation incurred by your business. Despite best intentions, no one is immune to mistakes or accusations of mistakes – PI Insurance tackles the consequences of these errors.

When does the cover come into action?
Most forms of PI Insurance work on a claims-made basis. This means that the insurance only covers the claims made during the policy period. If an incident occurs whilst you hold the policy, but the claim is made after you have discontinued the insurance, then the claim will not be covered. On the flip-side, if an incident occurred before the time of holding the policy, but the claim is made once you have the insurance, then you can be protected. Each claim is treated individually – as the policyholder, you can usually select your own limit of indemnity.

Where are there exemptions and conditions?
To ensure the most comprehensive insurance, it is advisable to thoroughly research the policy options available. Many providers of PI Insurance offer industry-specific policies. Requirements are different for each sector: for some, cover is restricted to business carried out within the EU, for example. The policyholder will usually be required to pay an excess for each claim, and the amount varies according to policy. Suitability of Professional Indemnity Insurance can be achieved by the varying levels of cover available. This suitability can be further tightened by bespoke policies which can be continually amended.

Insurance Blog would like to point out that it is particularly important to tailor Indemnity Insurance to the requirements of your individual business. The insurance is ultimately designed to protect you in the case of professional mistakes – choosing the right Professional Indemnity policy is the first step towards annulling these errors. There are many established business insurance specialists out there such as Hiscox that are can help provide would be insurers with further information regarding specialist cover for other areas of your business, a quick internet search will yield the many options and services available!

Related posts:

1. Mortgage Indemnity Insurance Explained
2. Tradesmans Insurance – What does it cover?
3. Business Insurance: Business Interruption Cover Explained

A Guide to Tradesmans Insurance Online

It’s the oldest online commercial insurance and the widest sold type of business insurance in the UK, but what exactly is Tradesmans Insurance?

If you own or manage a small business, you will require at least some type of liability insurance to protect your company against the various risks and possible claims, that your business will face.

Small businesses and tradesmen are required by law to have employers liability insurance at the very least in order to carry on business. Employer’s liability cover  protects the workforce and allows the business to pay any claims against it which may be brought by a worker who was injured carying out his or her duties.

Public liability insurance is essential if you work with members of the public who may pursue claims against you and motor insurance or van insurance is also likely to be a necessity.

If the business has plant or machinery which must have a periodical statutory inspection, it will be usual to arrange for this to be done by a specialist engineering insurer under the terms of an engineering inspection contract, with or without insurance.

Tradesman’s insurance is more often than not sold online as a small business insurance package policy. A package will include all elements of cover required by a small business or self employed trader such as basic employers liability and public liability covers and theft of tools. Trademans insurance quotation systems allow you to vary the levels of indemnity required for liability insurance in a typical range of between £1 million and £10 million. The higher the levels of indemnity required the higher the premium. Tools cover is usually rated on a replacement new for old, sum insured basis, where you define the value of your tools.

Most trades and small business will have premises that need protection against buildings perils such as fire and flood. Small commercial property insurance is available to cover all buildings insurance risks and is often sold as a package for a particular type of trade. For example Shops Insurance, Dentists and Surgeries or Builders Insurance Packages.

Trademan’s premises packages contain commercial contents insurance for business premises, which covers office and business equipment including files and data processing against the common perils. For companies and trademan that keep stock, this type of business contents insurance can be extended to cover risk such as deterioration and damage.

For the small tradesperson who works from home these covers are often available with strict limits of indemnity, as a bolt on to a standard home buildings and contents policy. This type of cover is often  only effective for self employed people with just a computer and a home office.

Other tradesman insurance covers

One of the largest problems faced by a small business or trades with premises is that of how to continue in business should a catastrophe happen, for example a fire that destroys the premises or machinery or stock. In order to deal with this Business Insurance companies have devised a cover called ‘Business Interruption Insurance’.

Premiums are based on your previous years annual turnover. BI covers your company against all losses caused by interruption to trading due to any of the perils mentioned on the policy and will pay out on a indemnified basis for the period of cover agreed in the policy. Most policies will also offer some type of alternative trading accommodation to enable you business to continue whilst the premises are being repaired.

Additional small business and trades insurance risks

Because commercial insurance is designed to cover all classes of business, there are many various trade or business specific covers available which can be added to a combined policy.

Examples of these covers include loss of licence to trade, book debts, hauliers cover, warehouse cover, and plant inspection services. Various people protection policies are also available for businesses including Keyman insurance which provides cover against the loss of key people within your organisation. Business mortgage protection provides a monthly payment for business premises should you suffer and accident or sickness. Group ASU policies are also available to protect your staff and employees.

Buying Tradesman Insurance Policies

Commercial insurance and tradesman risks covers for tradesmans insurance are widely available online today and it is a simple process to find a website where you can compare trademans insurance quotes.

However, purchasing trademans liability insurance can be a daunting experience for the uninitiated small business owner  or tradesman just starting off in business, and unless the risks are straightforward and can be underwritten online, it is advisable for all companies to approach the services of a local or regional commercial insurance broker who deals with speciifc tradesman liability insurance and covers for risks in your particular trade.

Related posts:

1. Commercial Insurance Risks Explained
2. Commercial Insurance Explained – Small Business Insurance Advice
3. Business Insurance: Business Interruption Cover Explained

If you haven’t taken out unemployment insurance yet, there may still be a little time, although given latest figures you will have to move as fast as the postman with the redundancy notices, as UK Unemployment hit record heights.

Here’s the facts of the state of Britains Economy

The employment rate for those aged from 16 to 64 for the three months to November 2010 was 70.4 per cent, down 0.3 on the quarter.

The number of people in employment aged 16 and over fell by 69,000 on the quarter to reach 29.09 million.

The last time there were larger quarterly falls in the employment level and rate was in the three months to August 2009.

The number of people working full-time fell by 37,000 on the quarter to reach 21.16 million and the number of people working part-time fell by 32,000 to reach 7.93 million.

Part Time Working at all time high!

The number of employees and self-employed people who were working part-time because they could not find a full-time job increased by 26,000 on the quarter to reach 1.16 million, the highest figure since comparable records began in 1992.

The unemployment rate for the three months to November 2010 was 7.9 per cent, up 0.2 on the quarter.

The total number of unemployed people increased by 49,000 over the quarter to reach 2.50 million.

Male unemployment increased by 43,000 on the quarter to reach 1.48 million and female unemployment increased by 6,000 on the quarter to reach 1.02 million.

Youth Unemployment at record levels!

The unemployment rate for those aged from 16 to 24 increased by 1.0 on the quarter to reach 20.3 per cent, the highest figure since comparable records began in 1992.

The number of unemployed 16 to 24 year olds increased by 32,000 on the quarter to reach 951,000, the highest figure since comparable records began in 1992.

Redundancies on steady increase.
There were 157,000 redundancies in the three months to November 2010, up 14,000 on the quarter.

The number of people claiming Jobseeker’s Allowance (the claimant count) fell by 4,100 between November and December 2010 to reach 1.46 million, although the number of people claiming for up to six months increased by 7,200 to reach 960,300.

The total number of male claimants fell by 6,600 on the month to reach 1.02 million but the number of female claimants increased by 2,500 to reach 439,300.

The inactivity rate for those aged from 16 to 64 for the three months to November 2010 was 23.4 per cent, up 0.2 on the quarter.

The number of economically inactive people aged from 16 to 64 increased by 89,000 over the quarter to reach 9.37 million.

Early Retirement at Record levels !

The number of people who were economically inactive because they had taken retirement before reaching the age of sixty-five increased by 39,000 on the quarter to reach 1.56 million, the highest figure since comparable records began in 1993.

Wages Stay the Same!
The earnings annual growth rate for total pay (including bonuses) was 2.1 per cent for the three months to November 2010, unchanged from the three months to October.

The earnings annual growth rate for regular pay (excluding bonuses) was 2.3 per cent for the three months to November 2010, unchanged from the three months to October.

The Oulook.

Very Bleak!  The current situation is comparable to the early Thatcher years and the axe has yet to fall on 600,000 public sector workers. The knock on effects to the high street of this contraction in money flow will damage small to medium sized businesses as demand inevitably drops. Further unemployment within the already contracted private sector is inevitable as orders dry up and the unemployemt queues will increase.

All sectors of the economy will suffer from this so called ‘double dip recession’ particularly high end products and high street businesses will suffer. Insurance will not have an easy time either! Already we are seeing once profitable sectors like shop insurance virtually disappear as a viable large market as the number of shops rapidly decreases. When was the last time you saw a high street travel agents or hardware store? The pattern is being repeated across all sectors of the UK Commercial Insurance market.

Coupled with this we are under immense inflationary pressures from energy prices and global food markets which inevitable, although foolishly, will lead to the Bank of England be foreced to politically raise Interest rates. After all, there are no more weapons in the economic arsenal.

Darwinian ConDemNation.

The future is blue and orange and civil commotion – If you are not a merchant banker, are you fit enough to survive?

Related posts:

1. New Year Recession Fears
2. Unemployment to hit North of UK First warns Specialist Insurer
3. Bank of England is Steady at the Helm with Sensible Interest Rate

Business Interruption Insurance is usually sold as part of a Commercial Insurance combined policy or package and provides a layer of insurance against not being able to trade following a claim.

In addition to the physical loss of the claim, the financial loss to the business stemming therefrom needs to be dealt with by an interruption policy.

Formerly called ‘consequential loss’, ‘loss of profits’ and/or ‘profits insurance’, which can be misleading terms, the protection granted is in accordance with a policy formula, i.e. rate of gross profit applied to the reduction in turnover of the business in consequence of an insured peril, together with the increased costs to minimise an aggravated loss (but not exceeding the loss so saved) arising within the maximum indemnity period (as selected to be insured).

Provision is made for the accountancy definitions and the business, the premises and the insured to be defined. In any claim, adjustment can be made to the precious financial account figures so that the loss is in respect of the ‘would have been’ results that would have applied if the damage had not occurred.

The perils insured (for which there must normally be counter-part physical damage cover) can extend to include those normal to property insurances and such special perils as failure of public electricity or gas supply, loss from infectious disease for hotel and similar trades, or electrocution of cattle in farming risks.

Machinery breakdown covers can usually be arranged on selected plant. Advance profits covers can be arranged for new ventures and these may include marine transit risks.

Provision can be made, with first-loss limitations applying, to extend interruption insurance to protect the financial trading of the business following damage to other people’s premises (those of suppliers, subcontractors, customers, etc.) and in transit.

It is normal, in the current economic conditions, to insure 100 per cent of the remuneration of all employees at a reduced-rate level, but more employee cover can be arranged in this respect in suitable cases. This limited cover is largely a ‘social’ protection to staff and their retention after a loss is thus safeguarded. While savings can be made by non-replacement where employees leave, the cover is not on the basis of the insured having to minimise the loss by dismissals.

The indemnity period, usually at least 12 months, is the limit up to which the recompense under the policy continues. It needs to be sufficient not only to restore the physical equipment and buildings but to allow turnover to reach the ‘would have been’ level. The sum insured is the forecast amount (including a margin to avoid under-insurance) that might be at risk for the 12 months from the end of the renewal period of the policy. Where the maximum indemnity period insured exceeds 12 months the figure is then proportionately increased. The premium is adjusted normally only to the extent of over-insurance.

For the small and medium-sized businesses, it is now possible to buy Commercial Insurance on what is termed a declaration basis. The cover may or may not include a maximum sum as a limit, but there will be no reduction applicable in the event of under-insurance (or a high sum insured limit is applied to avoid this); the premium is adjustable on the annual declaration,which must be received in a limited period from the end of the insured’s financial year.

The cover automatically provides for the cost of auditors in preparing financial details from the accounts, but not for the preparation of the claim itself.

It is often found that consequential losses will arise such as liquidated damages, above-economic increases in cost of working, deterioration or wastage of undamaged stock, etc. special items can be added to deal with these exposures. This section has indicated the need for individual review when arranging an interruption insurance and for the policy accountancy definitions to be suitable to the system of accounting adopted.

A further form of special cover called ‘book debts insurance’ provides for the loss flowing from the un-8urecovered monies from trading prior to the damage through the destruction of the account records and the inability to collect the outstanding debts. The essence of the insurance is the monthly declaration of outstanding book debts, which serves as a datum against which after damage the shortfall in recovery of book debts can be measured. A low rate is involved and the degree of duplication, protection of the records and sum insured determines further reduction to it.

It is in the field of interruption insurance that the importance of the assistance from loss adjusters and others arises, since as witnessed in the spate of recent natural disasters that have occurred, much can be done in emergency conditions to minimise the potential loss.

Related posts:

1. Commercial Insurance Risks Explained
2. Commercial Insurance Explained – Small Business Insurance Advice
3. UK Government to underwrite business loans

Understanding Commercial Insurance Risks and Business Insurance Covers

By Dave Healey

If you own or manage a business, either large or small, you will require some type of insurance to protect your company against the various risks and potential multitude of claims, that your business will face.

Commercial insurance or Business insurance as it is commonly known, is a complicated area of underwriting and because all businesses are different, and face different risks depending upon the nature of the company, various packages and combined policy covers have been introduced by insurance companies and commercial broker schemes, to make the process easier.

An example of a small business insurance package which is commonly sold online is the Tradesman’s insurance package, which includes all elements of cover required by a small business or self employed trader such as basic liability covers and theft of tools.

Other small business insurance packages that are trade specific and can often be obtained online are available for shopkeepers, offices, surgeries, hotels and guest houses, restaurants, public houses and builders.

Large companies will be offered what is known as a commercial combined policy which has many different elements of cover which can be combined to make a bespoke policy for the enterprise. Most large companies will require some degree of risk assessment before the policy is underwritten, which may often include a visit to the business premises or site, and for this reason these types of larger business usually employ the services of specialist commercial insurance brokers.

Business Risks

The largest risk that a business faces is from liability to others, and the potential costs and damages a company could face if a claim was made against it.

All companies are required by law to have in place liability cover, called Employers liability insurance or EL, to protect their staff against all potential risks and accidents while in the workplace.

Business liability insurance is usually sold as a package and will always include Public Liability, often just known as PL, which protects the company against claims from the public whilst on the business premises.

A further type of liability insurance called Product liability is also available to companies under a commercial liability policy which protects the company against claims made for design or manufacturing faults in the product.

Company directors can also protect themselves against liabilities with Directors and Officers insurance (D&O) cover.

Property Damage

Most business large and small will have premises that need protection against buildings perils such as fire and flood and commercial property insurance is available to cover all buildings insurance risks. Similarly commercial contents insurance for business premises is available which covers office and business equipment including files and data processing against the common perils. For companies that carry stock, this type of business contents insurance can be extended to cover risk such as deterioration and damage.

For the small businessman who works from home these covers are often available with strict limits of indemnity, as a bolt on to a standard home buildings and contents policy. This type of cover is often effective for self employed people with just a computer and a home office.

Business Contingency Cover

One of the largest problems faced by a business is that of how to continue in business should the worst occur, for example a fire that destroys the premises. In order to deal with this Insurance companies have devised a cover called ‘Business Interruption Insurance’. Based on your previous years annual turnover, this protection insurance covers your company against all losses caused by interruption to trading due to any of the perils mentioned on the policy and will pay out on a indemnified basis for the period of cover agreed in the policy. Most policies will also offer some type of alternative trading accommodation to enable you business to continue whilst the premises are being repaired.

Additional Commercial Risks

Because commercial insurance is designed to cover all classes of business, there are many various trade or business specific covers available which can be added to a combined policy. Examples of these covers include loss of licence to trade, glass cover, goods in transit cover, book debts, commercial vehicle insurance, hauliers cover, warehouse cover, engineering insurance and plant inspection services, and theft by employees.

Outside of most combined policies are additional risks more often sold under separate policy covers, that should be considered to protect your business against all eventualities.

Examples of these are, Commercial Legal Expenses insurance cover which protects the company against claims made by employees for unfair dismissal and allows you to bring cases against suppliers.

Various protection policies are also available for businesses including Keyman insurance which provides cover against the loss of key people within your organisation. Business mortgage protection provides a monthly payment for business premises should you suffer and accident or sickness. Group ASU policies are also available to protect your staff and employees.

Purchasing Business Cover

Purchasing commercial risks insurance can be a daunting experience for the uninitiated small business owner and unless the risks are straightforward and can be underwritten online, it is advisable for all companies to approach the services of a local or regional commercial insurance broker. Insurance Brokers will not only be able to assess the complete range of risks that your business is exposed to, and provide the correct levels of cover, they will more often than not have a unique local knowledge of the risks involved and will be able to negotiate premiums that reflect the nature of the risks. Furthermore, in the event of a claim, and as most businesses will be faced with claims at some point in their trading life-cycle, the broker will handle all the settlement negotiations with the insuring company and allow you to continue what you do best – running your business.

Commercial insurance and tradesman risks covers for small business insurance are widely available online today. For larger commercial enterprises it is strongly advisable to visit commercial insurance brokers for a detailed assessment of the risks your particular business is exposed to.

Article Source: http://EzineArticles.com/?expert=Dave_Healey
http://EzineArticles.com/?Understanding-Commercial-Insurance-Risks-and-Business-Insurance-Covers&id=2601731

Related posts:

1. Commercial Insurance Explained – Small Business Insurance Advice
2. Small Business Commercial Insurance Forum
3. UK Commercial Insurance Sector Set To Recover

However, things are not always what they seem and as Kris Oldland reports, there appears to be green shoots of recovery for the spring……..

SME Commercial Insurance Sector sees promise in 2010

After a year which has been tricky for some and catastrophic for others we could be forgiven for looking towards 2010 with some trepidation and in some of the more morose corners of industry dare we say it, a heavy dose of doom and gloom? Well those hardy soles in the ever exciting SME market are having none of it – despite the sector being hit harder by the recession than most.

At least that is what the results of a recent report from British communication giant BT would seem to suggest.

The 2009 BT Pulse report has revealed that an overwhelming three quarters of SME’s predict the economy will see an upturn in 2010. Further to this over 60% of the respondents were confident about their businesses prospects for the coming year and an impressively confident 35% even predicted their situation will have improved as soon as January 2010.

The report surveyed 7,200 Directors of small and medium sized enterprises and a strategy director at BT commented that the findings “show that the economy is at a tipping point. Despite the obvious knock to confidence, positivity about when the upturn will come is encouraging.”

With 45% of the respondents going as far as saying that they have streamlined their business so that they are now operating even better as a result of the downturn, it seems that many of these SME operators are primed to thrive as soon as the market catches them up.

These bold predictions have also been echoed by the Institute for Chartered Accountants in England and Wales (ICAEW), who have also recently released a similar statement that “confidence among business professionals has turned positive for the first time in two years.”

However not all quarters of the UK industry are predicting quite such a swift return to the good times as the British Chambers of Commerce (BCC) has issued a slightly more ominous statement that although the recovery may have started, the economy still faces considerable risk.

According to the organisation, GDP will drop by 4.3 per cent this year, followed by growth of 1.1 per cent in 2010 – an improvement on the BCC’s June prediction of 0.6 per cent.

David Kern, chief economist at the BCC, says: ‘While we expect a gradual improvement over the next two years, the pace of UK expansion is likely to be weak by pre-recession standards. It is critical that wealth-creating businesses have adequate capacity to respond to an upturn in demand when the recovery strengthens.’

However despite the general confidence, many SME’s are still walking a dangerous tightrope leaving themselves unnecessarily open to adverse risk as they cut their policies and leave themselves underinsured.

Of course should these buoyant entrepreneurial companies live up to the high expectations they are piling upon themselves then it follows that their insurance needs will grow too and with the aid of a good broker they may just be able to manage the balancing act of ensuring that their cover is adequate and competitively priced.

With the SME sector looking once again to rise like a phoenix from the ashes the role of the high street commercial insurance brokers could once again become a crucial link between the sector and the general insurance industry.

About the Author:

Kris Oldland is an Insurance Journalist with particular interest in Commercial Insurance and UK business Insurance

Article Source: ArticlesBase.com – SME Commercial Insurance Sector sees promise in 2010

Related posts:

1. Commercial Insurance Explained – Small Business Insurance Advice
2. Small Business Commercial Insurance Forum
3. Risk Management – Transport Sector heading in the right direction?

By Insurance Blogger Kris Oldfield

Call it a credit crunch, an economic downturn or just a plain old recession the current financial situation is impacting in some form or another upon just about every single one of us and in many cases we having to adapt to survive. A recent survey by Marsh has highlighted the changes in attitude and strategy that are moving through the transportation and haulage insurance sector with nearly three quarters of Europe’s leading transportation firms set to review their approach to risk management in the near-term.

Freight Forwarders and Hauliers Insurance at risk?

With just over half the respondents admitting that the Transportation sector had been hit harder than others the general mood is one of caution. Tellingly the research also shows that more than 80% of those questioned felt that Risk Management was of a much higher priority amongst senior management at their organisations since the economic downturn.

However despite the overwhelming majority of respondents seeing the need for re-assessing their risk management strategies, the research suggests that there is not necessarily a reduction in risk appetite as one may assume. The amount of respondents who felt that their board had become more risk adverse was equally matched by those who saw no change in their risk appetite (40%). Interestingly there was also a sizeable faction (14%) who believe that their organisations have actually increased their risk appetite as they look to prosper, by boldly maximising the opportunities created by their competitors caution during the downturn.

Unsurprisingly the biggest concerns in the sector are customer debt and in the near-term, credit risk. Nearly two thirds of the respondents stated that customer debt was their most significant concern with many citing the increased risk of credit lines and delayed or non payment as some of the key challenges they face. Over a quarter of all respondents also admitted that credit risk was a concern for their organization and one in six admitted that their company was either ‘fairly’ or ‘significantly’ affected by the reduced levels of trade credit available at present.

Mark Pollard, head of industry practices for Europe, the Middle East and Africa at Marsh, commented that it was unsurprising that the European Transportation sector felt that it had been hit particularly hard by the recession as the industries primary function is the delivery of goods and passengers – demand for which historically has been shown to decline in periods of recession.

However in addition to this Pollard added that the fact that firms have been able to use the recession as a springboard to make essential reviews to their approach to risk management and improve upon their existing resilience was “extremely encouraging”.

With nearly a third of those surveyed confirming that they anticipate increasing their risk management spend, the signs seem to indicate that Pollard may well be correct – especially as this comes at a time when many other areas of business are being subjected to ruthless budget reviews and cost cutting measures. In fact less than 10% of Transportation companies have indicated that they believe that they will be reducing the expenditure of their risk management budgets, a statistic that seems a clear indicator of the direction in which the sector is now heading.

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InsuranceBlogger is not surprised that Risk Management in the Transport sector is thriving despite the recession. The recession itself has led to an increase in haulier cargo insurance and marine cargo insurance claims through piracy and modern day Dick Turpin highwaymen.
The old adage ‘it fell off the back of a lorry’ appears to never has been as true, as the rise in cargo and goods in transit theft continues despite major Police offensives. InsuranceBlogger believes that the ‘black economy’ is the main driving force behind this as consumer spending polarises to the ‘boot sale’ economy. Watch this space for a detailed look at risks to the haulage industry!

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Despite the recession there are many small business start-ups hasppening at the moment so we reprint on of Insurance bloggers articles here that explains to small and large businesses the wide and varied range of commercial risks that need to be assessed on an individual company level and purchased appropriately.

Understanding Commercial Insurance Risks and Business Insurance Covers
By Dave Healey

If you own or manage a business, either large or small, you will require some type of insurance to protect your company against the various risks and potential multitude of claims, that your business will face.

Commercial insurance or Business insurance as it is commonly known, is a complicated area of underwriting and because all businesses are different, and face different risks depending upon the nature of the company, various packages and combined policy covers have been introduced by insurance companies and commercial broker schemes, to make the process easier.

An example of a small business insurance package which is commonly sold online is the Tradesman’s insurance package, which includes all elements of cover required by a small business or self employed trader such as basic liability covers and theft of tools.

Other small business insurance packages that are trade specific and can often be obtained online are available for shopkeepers, offices, surgeries, hotels and guest houses, restaurants, public houses and builders.

Large companies will be offered what is known as a commercial combined policy which has many different elements of cover which can be combined to make a bespoke policy for the enterprise. Most large companies will require some degree of risk assessment before the policy is underwritten, which may often include a visit to the business premises or site, and for this reason these types of larger business usually employ the services of specialist commercial insurance brokers.

Business Insurance Risks

The largest risk that a business faces is from liability to others, and the potential costs and damages a company could face if a claim was made against it.

All companies are required by law to have in place liability cover, called Employers liability insurance or EL, to protect their staff against all potential risks and accidents while in the workplace.

Business liability insurance is usually sold as a package and will always include Public Liability, often just known as PL, which protects the company against claims from the public whilst on the business premises.

A further type of liability insurance called Product liability is also available to companies under a commercial liability policy which protects the company against claims made for design or manufacturing faults in the product.

Company directors can also protect themselves against liabilities with Directors and Officers insurance (D&O) cover.

Property Damage

Most business large and small will have premises that need protection against buildings perils such as fire and flood and commercial property insurance is available to cover all buildings insurance risks. Similarly commercial contents insurance for business premises is available which covers office and business equipment including files and data processing against the common perils. For companies that carry stock, this type of business contents insurance can be extended to cover risk such as deterioration and damage.

For the small businessman who works from home these covers are often available with strict limits of indemnity, as a bolt on to a standard home buildings and contents policy. This type of cover is often effective for self employed people with just a computer and a home office.

Business Contingency Cover

One of the largest problems faced by a business is that of how to continue in business should the worst occur, for example a fire that destroys the premises. In order to deal with this Insurance companies have devised a cover called ‘Business Interruption Insurance’. Based on your previous years annual turnover, this protection insurance covers your company against all losses caused by interruption to trading due to any of the perils mentioned on the policy and will pay out on a indemnified basis for the period of cover agreed in the policy. Most policies will also offer some type of alternative trading accommodation to enable you business to continue whilst the premises are being repaired.

Additional Commercial Insurance Risks

Because commercial insurance is designed to cover all classes of business, there are many various trade or business specific covers available which can be added to a combined policy. Examples of these covers include loss of licence to trade, glass cover, goods in transit cover, book debts, commercial vehicle insurance, hauliers cover, warehouse cover, engineering insurance and plant inspection services, and theft by employees.

Outside of most commercial combined policies are additional risks, more often sold under separate policy covers, that should be considered to protect your business against all eventualities.

Examples of these are, Commercial Legal Expenses insurance cover which protects the company against claims made by employees for unfair dismissal and allows you to bring cases against suppliers.

Various protection policies are also available for businesses including Keyman insurance which provides cover against the loss of key people within your organisation. Business mortgage protection provides a monthly payment for business premises should you suffer and accident or sickness. Group ASU policies are also available to protect your staff and employees.

Purchasing Business Cover

Purchasing commercial risks insurance can be a daunting experience for the uninitiated small business owner and unless the risks are straightforward and can be underwritten online, it is advisable for all companies to approach the services of a local or regional commercial insurance broker. Insurance Brokers will not only be able to assess the complete range of risks that your business is exposed to, and provide the correct levels of cover, they will more often than not have a unique local knowledge of the risks involved and will be able to negotiate premiums that reflect the nature of the risks. Furthermore, in the event of a claim, and as most businesses will be faced with claims at some point in their trading life-cycle, the broker will handle all the settlement negotiations with the insuring company and allow you to continue what you do best – running your business.

Commercial insurance and tradesman risks covers for small business insurance are widely available online today. For larger commercial enterprises it is strongly advisable to visit commercial insurance brokers for a detailed assessment of the risks your particular business is exposed to.

Article Source: http://EzineArticles.com/?expert=Dave_Healey
http://EzineArticles.com/?Understanding-Commercial-Insurance-Risks-and-Business-Insurance-Covers&id=2601731

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No seriously we really do think it just media hype! Although a major viral crisis would damge the UK economy.
Uncertainty and fear have been jamming the enquiry lines of call centres of UK insurance companies and brokers, up and down the country this week, following the sporadic outbursts of Swine Flu, influenza variant strain H1N1, associated with travellers returning home after vacation in Mexico.
Unlike the questions regarding travel insurance which have been covered extensively in the national press, it appears the UK public are more concerned about their individual personal covers, should Swine Flu become pandemic.
We asked some of the UK’s leading Insurance Business characters for their thougfhts on how Swine flu in the UK, was going to affect their insurance products and claims.

Hayden Powers, Customer Services Manager at Burgesses Ltd the UK’s largest online supplier of independent income protection insurance and mortgage protection insurance for Sickness and ASU products http://www.burgesses.com explained,
“The majority of sickness insurance protection products sold by online independent providers such as ourselves in the UK, cover Flu and it’s associated sickness, and we can assure all our clients and direct customers that they are covered ‘back to day one’ of a period of sickness caused by swine flu.
It is important that a sickness insurance policy includes the back to day one cover, as most income insurance and mortgage payment protection policies for sickness have a thirty day excess period before you can claim. If your swine flu sickness period only lasts three weeks and you have a thirty day excess period with no back to day one of your sickness cover, then you will not be able to claim.”

Robin Rankin of UK Commercial Ltd http://www.uk-commercial-insurance.com the online UK Commercial Insurance broker network, confirms that many small business owners are very concerned about the effects of swine flu on their business.
He said,
“They are concerned about the interruption to their business that widespread Swine Flu might bring. We have had enquiries as diverse as from freight forwarder insurance customers that do business in Mexico with imported goods, through to clients who have Keyman insurance who are concerned about business continuity if these key players fall victim to the flu. However most enquiries have been from small businessmen concerned about additional pressures on their already struggling businesses that swine flu might bring, in particular business insurance coverage under the contingency sections of business interruption.
A major problem will arise if companies are forced to close due to a swine flu pandemic, and the nature of the risk becomes fundamental. In this scenario the UK Government will have to step in to rescue falling businesses.”

Dave Healey underwriting expert at online specialist car insurance comparison site http://www.car-insurance.tv warns of the dangers of driving with swine flu.
He said,
“We are warning our clients against driving if they are suffering the effects of flu or on medication prescribed due to having contracted swine flu. Aside from any legal obligations, persons doing so are at a much higher risk of having an accident”

It’s apparent that the UK insurance industry is bracing itself against the Swine flu outbreak as the situation worsens, but it is as yet unclear whether they are in a proper position to deal with a full scale influenza pandemic, as seen in 1918 with Spanish flu.

Good news is that despite all the bad economic news and the credit crunch, productivity is up.
There has been a hundred per cent drop in the number of employees calling in sick saying they have the flu!

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The Government measures include:

* A £10bn Working Capital Scheme, securing up to £20bn of short term bank lending to companies with a turnover of up to £500m

* An Enterprise Finance Guarantee Scheme, securing up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m

* A £75m Capital for Enterprise Fund (£50m from Government augmented by £25m from the banks) to invest in small businesses which need equity

Whilst we welcome measures to assist small businesses during the current credit crunch for falling into liquidation, questions must be asked of a socialist Governments role in underpinning a free enterprise society.

SME businesses can save on their commercial insurance in 2009 by shopping around the many online business insurance websites that now offer commercial insurance packages online for virtually every trade and profession.

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Any way the good news is you can now do something about it – well you can shout loud and will get listened to!
UK Commercial Insurance Ltd the Uk’s largest online small business commercial insurance provider, has asked us to point out to you a forum run by the Federation of Small Businesses where you can exchange passionate views with members not just of your own trade but issues which affect all small businesses including small business insurance

You can find the forum at the Federations website http://www.fsb.org.uk
You wil need to register to participate, which is a simple process, but the posts make very interesting reading alone.

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