Originally written by Edward Murray on Small Business
Small businesses are the heartbeat of the UK economy. They are built on innovation, passion and commitment. They support millions of business owners and employees and for many they are more than a job, they are a way of life. Business insurance is an important safeguard for small businesses, their owners, their employees, and all those with whom they come into contact.
Here we look at some of the key insurances to consider and the protection they provide.
Business insurance required by law
As an employer you are responsible for the health and safety of your employees when they are at work. If an employee suffers an accident, injury or illness as a result of working for your business, then you could be liable.
Employers’ liability insurance is there to help cover the cost of defending and settling claims from past and present employees who believe you failed in your duty of care to look after them.
If your business is located in the UK and has at least one employee, then it is likely employers’ liability insurance is a legal requirement, although there a limited number of exceptions.
If you are not exempt, the law says you must
Tag Archive for Business insurance
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What is public liability insurance, and does it cover Covid-19 claims?
by Edward Murray • • 0 Comments
Originally written by Edward Murray on Small Business
At some stage in their day-to-day activities, most businesses come into contact with members of the public in one way or another. Companies have a duty to ensure these interactions are safe and well-managed. Where they lead to accidental injury, death, disease, illness or property damage, public liability insurance can help pay for the resulting legal costs and compensation.
Who needs public liability insurance?
Any business that comes into contact with people who are not employees has a potential need for public liability insurance.
Perhaps you are a retailer and so people come in and out of your shop all day long. Do you have commercial premises that customers and/or suppliers visit? Maybe you work from home and have clients coming to the house for meetings? Are you an event organiser bringing lots of members of the public together?
You also have to think about where you and your employees go during the working day. Are you out and about on business, mixing with other people? Are you visiting other companies’ offices or delivering goods to people’s homes?
If your business, or any of its employees, come into contact with third parties whilst carrying out their business duties,
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What is professional indemnity insurance?
by Edward Murray • • 0 Comments
Originally written by Edward Murray on Small Business
What is professional indemnity insurance?
Every business wants happy clients. Do a good job for them and you will get repeat business, generate referrals and build a great reputation. But sometimes things do not go to plan.
If you give professional advice, you may face claims from clients if they think it was not up to scratch and has had a negative impact on their finances and their brand. Professional indemnity insurance can help meet the costs of defending and settling these claims.
Who needs professional indemnity insurance?
Professional indemnity insurance is not a legal requirement, but many professional bodies and/or sector regulators stipulate that practitioners must have cover in place.
For example, the Solicitors Regulation Authority sets out minimum insurance requirements, while accountancy bodies such as the Institute of Chartered Accountants in England and Wales also requires members to have cover.
But the need for professional indemnity is wider than the traditional professions. It could extend to virtually every person or business giving advice to clients.
This includes life coaches, tutors and health practitioners, as well as web developers, graphic designers and management consultants. It also includes people who work as freelancers or sole traders.
The Chartered Insurance Institute sums
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Small firms win pay-outs in COVID business interruption insurance ruling
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Tens of thousands of small businesses who faced COVID-19 earning losses during the first lockdown are set to receive insurance pay-outs.
The Supreme Court has ruled in favour of small businesses to get pay-outs from their business interruption policies.
Many businesses claimed on their policies in spring 2020 to recover lost earnings. However, insurers refused to pay because they say that only their most specialist policies had cover in such unprecedented circumstances.
The judgement says that ‘it substantially allows’ the appeal from the Financial Conduct Authority (FCA) and campaign groups Hiscox Action Group and Hospitality Insurance Group Action. Insurers including Arch, Argenta, MS Amlin, RSA and QBE had their appeals rejected.
It was agreed that a number of policy wordings should be contested in court to set the parameters of what would be a valid claim. This ruling gives guidance for 700 different insurance policies, potentially covering 370,000 small businesses.
High Court and Appeal Court judges had appealed largely in favour of policyholders earlier in the pandemic. In September, the High Court ruled that most claims should be paid where the policy has pandemic or disease clauses.
However, that ruling said that losses arising from general fall in customer
Hot Business News Today
Small firms win pay-outs in COVID business interruption insurance ruling
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Tens of thousands of small businesses who faced COVID-19 earning losses during the first lockdown are set to receive insurance pay-outs.
The Supreme Court has ruled in favour of small businesses to get pay-outs from their business interruption policies.
Many businesses claimed on their policies in spring 2020 to recover lost earnings. However, insurers refused to pay because they say that only their most specialist policies had cover in such unprecedented circumstances.
The judgement says that ‘it substantially allows’ the appeal from the Financial Conduct Authority (FCA) and campaign groups Hiscox Action Group and Hospitality Insurance Group Action. Insurers including Arch, Argenta, MS Amlin, RSA and QBE had their appeals rejected.
It was agreed that a number of policy wordings should be contested in court to set the parameters of what would be a valid claim. This ruling gives guidance for 700 different insurance policies, potentially covering 370,000 small businesses.
High Court and Appeal Court judges had appealed largely in favour of policyholders earlier in the pandemic. In September, the High Court ruled that most claims should be paid where the policy has pandemic or disease clauses.
However, that ruling said that losses arising from general fall in customer
Hot Business News Today
Wait until next year before any business interruption insurance payouts
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses will have to wait until next year before they see a penny of Covid business interruption insurance payouts.
This is despite a High Court ruling last month, siding with small businesses on many points when it came to whether insurers should honour business interruption insurance which specifically covered pandemics.
The High Court ruled on 21 sample insurance contracts in a test case designed to clear up disputes over whether insurers should pay up.
>See also: Covid expected to cost small businesses £69bn
The eight insurers involved in the High Court ruling have said not to pressure from the financial regulator to settle insurance payouts following the court ruling.
Instead, they will appeal where the High Court sided with watchdog the Financial Conduct Authority (FCA) over wordings in the policies.
Up to 370,000 businesses will be affected by the outcome.
The FCA said: “We had hoped to reach an agreement with the insurers by today [Wednesday] on the interpretation of some important elements of the judgment affecting which small businesses get paid and how much. This would have allowed for faster pay-out for policyholders with eligible claims.”
The nub of the issue is that even when small businesses took out
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Small business celebrates win over insurers refusing to pay out over Covid
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses that bought policies from insurers specifically against disease celebrated today now that the High Court has sided with them.
The Financial Conduct Authority took a test case to the High Court, legally testing business interruption policies from eight insurers to see if they had to pay out.
Insurers argued that business interruption policies were null and void because Covid was not officially recognised as a disease when those policies were taken out.
But the High Court has ruled that insurers are liable to pay out in the majority of 21 different types of policy wording judges considered.
However, becasue each insurance policy must be considered on its own merits, this is far from a blanket rubber-stamp for insurers to pay out over Covid.
Fran Tremeer, a solicitor at Royds Withy King, predicted that any comfort for some businesses would be “short-lived” and that, despite being in a precarious situation since March, businesses will continue to be frustrated over uncertainty.
Indeed, insurers will continue to fight this all the way to the Supreme Court, predict lawyers. However, the result of any High Court appeal would not likely be handed down until 2021.
Stephen Netherway, head of insurance at law
Hot Business News Today
Small business celebrates win over insurers refusing to pay out over Covid
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses that bought policies from insurers specifically against disease celebrated today now that the High Court has sided with them.
The Financial Conduct Authority took a test case to the High Court, legally testing business interruption policies from eight insurers to see if they had to pay out.
Insurers argued that business interruption policies were null and void because Covid was not officially recognised as a disease when those policies were taken out.
But the High Court has ruled that insurers are liable to pay out in the majority of 21 different types of policy wording judges considered.
However, becasue each insurance policy must be considered on its own merits, this is far from a blanket rubber-stamp for insurers to pay out over Covid.
Fran Tremeer, a solicitor at Royds Withy King, predicted that any comfort for some businesses would be “short-lived” and that, despite being in a precarious situation since March, businesses will continue to be frustrated over uncertainty.
Indeed, insurers will continue to fight this all the way to the Supreme Court, predict lawyers. However, the result of any High Court appeal would not likely be handed down until 2021.
Stephen Netherway, head of insurance at law
Hot Business News Today
How to make a successful business interruption insurance claim
by Steven Skiba • • 0 Comments
Originally written by Steven Skiba on Small Business
A crucial High Court ruling is set to determine whether insurers will have to pay out under business interruption insurance policies, to meet claims for COVID-19-related losses.
While the Financial Conduct Authority (FCA) test case is set to provide much-needed clarity to businesses and insurers alike, paying close attention to the wording of individual policies is key to making a successful business interruption insurance claim.
So, what else do businesses need to consider in order to maximise their chances of success, and what are their options in the event that a claim is rejected?
Landmark High Court case
The issue of whether business interruption insurance policies cover pandemic-related losses is one of the most controversial legal issues resulting from the coronavirus crisis. In bringing its test case to the High Court, the FCA is aiming to provide a roadmap to businesses and insurers regarding how to interpret the wording of policies and therefore the amount that should fairly be awarded.
Worth potentially billions of pounds, the case has involved examining 17 policy wordings from eight different insurers in order to determine whether COVID-19 triggers a pay-out. However, the ruling is expected to have ripple effects for the entire
Hot Business News Today
How to make a successful business interruption insurance claim
by Steven Skiba • • 0 Comments
Originally written by Steven Skiba on Small Business
A crucial High Court ruling is set to determine whether insurers will have to pay out under business interruption insurance policies, to meet claims for COVID-19-related losses.
While the Financial Conduct Authority (FCA) test case is set to provide much-needed clarity to businesses and insurers alike, paying close attention to the wording of individual policies is key to making a successful business interruption insurance claim.
So, what else do businesses need to consider in order to maximise their chances of success, and what are their options in the event that a claim is rejected?
Landmark High Court case
The issue of whether business interruption insurance policies cover pandemic-related losses is one of the most controversial legal issues resulting from the coronavirus crisis. In bringing its test case to the High Court, the FCA is aiming to provide a roadmap to businesses and insurers regarding how to interpret the wording of policies and therefore the amount that should fairly be awarded.
Worth potentially billions of pounds, the case has involved examining 17 policy wordings from eight different insurers in order to determine whether COVID-19 triggers a pay-out. However, the ruling is expected to have ripple effects for the entire