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
Tag Archive for small business insurance
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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
Insurer using small business Covid grants to justify cutting payouts
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
NFU Mutual, the insurance company, is using small business Covid grants already received by business owners as a pretext to cutting coronavirus payouts.
The insurer is paying less to struggling small businesses in the hospitality sector because it says they have received small business Covid grants.
The Government has paid more than £10bn to almost 900,000 small businesses in need in the form of one-off grants of up to £10,000, paid out by local authorities.
NFU Mutual said deductions made to reflect state aid are only applied to loss-of-profit claims, not to those made for loss of income. Determining a loss-of-profit claim settlement, it said, includes the need to consider “all taxable income”, including Government grants, as well as any other forms of compensation.
However, the Professional Association of Self Caterers UK (PASC) has branded the practice “highly immoral” and suggests NFU Mutual is using it to boost its own profits.
PASC UK executive chairman Alistair Handyside told insurance trade magazine NS Insurance that insurers should honour their contracts and not behave “so poorly”.
Handyside said: “Overwhelmingly our members are small, family-run, rural and coastal businesses for whom the Small Business Grant Fund is a critical lifeline intended to
Hot Business News Today
Insurer using small business Covid grants to justify cutting payouts
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
NFU Mutual, the insurance company, is using small business Covid grants already received by business owners as a pretext to cutting coronavirus payouts.
The insurer is paying less to struggling small businesses in the hospitality sector because it says they have received small business Covid grants.
The Government has paid more than £10bn to almost 900,000 small businesses in need in the form of one-off grants of up to £10,000, paid out by local authorities.
NFU Mutual said deductions made to reflect state aid are only applied to loss-of-profit claims, not to those made for loss of income. Determining a loss-of-profit claim settlement, it said, includes the need to consider “all taxable income”, including Government grants, as well as any other forms of compensation.
However, the Professional Association of Self Caterers UK (PASC) has branded the practice “highly immoral” and suggests NFU Mutual is using it to boost its own profits.
PASC UK executive chairman Alistair Handyside told insurance trade magazine NS Insurance that insurers should honour their contracts and not behave “so poorly”.
Handyside said: “Overwhelmingly our members are small, family-run, rural and coastal businesses for whom the Small Business Grant Fund is a critical lifeline intended to
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Remote working coronavirus: Am I covered by home insurance?
by Ben Rose • • 0 Comments
Originally written by Ben Rose on Small Business
When the UK government enforced social distancing back in March, hundreds of thousands of small businesses, and millions of employees, found themselves remote working almost overnight. The transition to the new working environment happened remarkably quickly, and for many businesses this digital-only world was completely new ground for them.
As we all settle into what’s been termed the “new normal” however, a number of questions are being raised about how secure businesses really are with their entire workforce working remotely, and what remote working insurance they need in place to ensure they remain fully protected.
>See also: Working from home – How to manage your time and increase productivity
Am I covered for remote working in my household insurance?
Probably not. It is unlikely that your household insurance will cover any business activities unless they have been disclosed to and agreed with your insurer.
This is because most household insurance policies are only intended to cover domestic activities and not commercial activities (which may include working from home). If you work for a company, then that company won’t be a party to your household insurance contract either, so it’s important that the company has its own insurance policy
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Can I claim on my small business insurance for coronavirus?
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Millions of businesses have taken out small business interruption insurance, but will your policy pay out if you have to shut down because of coronavirus?
Business interruption policies are usually taken out to cover acts of God such as flooding and fire. Insurance policies such as these physical damage at a property that results in the small business being unable to trade.
And only a small minority of larger business owners may have previously arranged an additional clause covering them in the event of a pandemic.
>Further reading: What kind of insurance does your small business require?
However, because Covid-19 was only officially named by government on March 5 as a “notifiable disease.” This means “registered medical practitioners” (RMPs) have a legal duty notify their local council or local health protection team of suspected cases of certain infectious diseases. This is one of the key criteria which insurance companies need to know before they pay out – any policies taken out before then will not cover coronavirus.
French insurer Axa has told customers that its general business interruption insurance does not cover losses caused by Covid-19 as it only protects against diseases specifically named in its policies. Covid-19 was
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Businesses forced to add data-loss cover on top of buildings insurance
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Businesses are being forced to add additional IT buildings insurance to protect themselves against data loss on top of existing cover.
Insurers have become worried that businesses’ increasing reliance on IT means that the cost of business interruption has become so expensive, they could face huge losses if swamped by claims.
>Further reading: What kind of insurance does your small business require?
By asking businesses to take extra IT cover in the event of fire or flood, they hope to build up a war chest against such claims.
Until now, IT outages and business interruption have been bundled with the cost of standard buildings insurance.
In many cases, insurers have traditionally paid out for losses from IT interruption if they result from traditional property damage, such as fire and flood, even though policy documents did not specifically mention them.
The pressure on business owners to take out extra IT buildings cover stems from the Bank of England and Lloyd’s of London concerns about the insurance market, according to the Daily Telegraph.
The BoE’s Prudential Regulation Authority (PRA) fears that vague policies could expose insurers to massive unexpected IT pay-outs, which could do serious financial damage.
Insurers have responded to the PRA’s
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How offering a death in service benefit can save you money
by Partner Content • • 0 Comments
Originally written by Partner Content on Small Business
A death-in-service benefit, which pays out a lump sum to family members if an employee dies suddenly, is the second-most-valued benefit after private medical insurance.
Thirty-seven per cent of employees say that group life insurance is one of the top three benefits they want from an employer.
Yet, according to insurance broker Drewberry, only 13.7pc of small businesses offer group life insurance to their employees.
>See also: Can you afford not to offer business medical cover to your staff?
For any small business thinking about expanding its employee-benefits package, a group life insurance scheme is the perfect complement to a workplace pension and is often the first building block.
For an employer, benefits of offering group life insurance include:
Attracting the best talent
Improving employee retention
Giving employees peace of mind
Being seen to be a paternal employer
Some policies also provide free access to Employee Assistance Programmes and other benefits, such as online GP services.
In a tight labour market – unemployment remains at or near record lows – recruiting and retaining employees is more important than ever.
>See also: What happens when a small business owner dies?
What is group life insurance?
Also known as death-in-service benefit, group life insurance insures staff against untimely death
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What insurance do I need for my beautician business?
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Beauty has more obvious risks than some other professions: straightener burns, allergic reactions to various creams, slips on tile floor spillages. That’s why you need beautician insurance.
Policies can cover a wide range of specialisms, including:
Hairdresser
Barber
Make-up artist
Nail technician
Manicurist/pedicurist
The individual treatments that are insured can be even more diverse and very much dependent on the policy.
Here is a rundown of the cover that you need by law, what is recommended and which restrictions you need to be wary of.
What insurance is legally required by beauticians?
If you have any employees at all, even an apprentice who’s working with you for a few weeks, you absolutely need employers’ liability insurance.
“Employers’ liability – even for volunteers and students – is a legal requirement as they can become ill or injured and take legal action against you,” says Jemma Holloway of Direct Line for Business.
“Or it could be for a spray tan treatment where they’re not told how to wear the mask properly and become unwell.”
You could face a hefty fine without this insurance, so make sure you have it in place.
What other insurance would be useful for my beauty business?
Public liability insurance covers you for any damage you
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What happens when a small business owner dies?
by Partner Content • • 0 Comments
Originally written by Partner Content on Small Business
The sudden death of a business owner may destabilise a business and can quickly lead to financial difficulties. Surviving business owners could lose control of a proportion or, in some circumstances, all of the business. The family may choose to become involved in the ongoing running of the business or could even sell their share to a competitor. This is where Shareholder Protection Insurance steps in.
According to financial advisers, Drewberry, half of small businesses do not have the legal structures needed to make sure they can buy a colleague’s share of the business from their family when they die. For many SMEs, that means the possibility of losing control of the business.
Only 43pc of business owners have any business life cover in place in the event of their death or incapacity.
What is Shareholder Protection Insurance?
Shareholder Protection Insurance allows the remaining partners or directors to remain in control of the business following the death of a business owner. If there is no share protection in place, the owner’s share in the business may be passed to family members uninvolved in running the business.
A share protection policy can help avoid these issues by providing the