Covering Bases and Turning Stones - Talking Fraud

One of the best ways to ascertain whether you need a certain cover or not is to look at a ‘real-life’ claims scenario and apply it to your business… could this happen? If the answer is yes then the next question must be ‘what is the maximum possible loss?’. Once you have worked that out then ask yourself whether you could swallow that without any disturbance to your business. Today’s example (a true story) reads as follows…

An employee is dealing with some supplier invoicing and has some correspondence from a regular supplier notifying of a change of bank details. The letter is on the same headed paper as they have always received and even has a number to call to verify the authenticity (although the number takes you through to the fraudster). Changes to the bank details are made and over the subsequent weeks three payments are released totalling close to £400,000. Discovery of the fraud occurred when the genuine supplier contacted the firm stating that they had not made any payments. The money was never recovered.

This sort of fraud is increasingly common, particularly as in the world of email and electronic paperwork a company logo, names and even signatures are readily available to fraudsters. Seemingly a legitimate piece of post can result in a significant loss. Theft by deception is not generally an insured peril and in fact on most policies (including your motor policy) theft by deception is specifically excluded. In addition the money in your bank account is not insured under your commercial policy. So what is the solution? Well we are pleased to confirm that this scenario, amongst others, can be insured under a crime policy. Other covers available under a crime policy include

·         Internal Crime (fraud / dishonesty of employees)

·         External Crime (forgery, counterfeiting etcetera as in the scenario above)

·         Cheque Fraud (a customer altering a cheque and cashing for a higher amount)

·         Computer Fraud (stealing monies, intellectual or physical property through cyber means – hacking in and getting goods delivered to a different location for example)

·         Transfer Fraud (the fraudulent transfer of money)

·         Corporate Card Fraud (where corporate cards are stolen and used fraudulently

There are other extensions available but the covers below are the key inclusions. Although if we go forward we will need a proposal form it is possible to get an indication of the cost with the following details

·         Name

·         Trade

·         Company Locations

·         Turnover and Wage-Roll

·         Number of Staff

·         Loss History Relevant to the Cover

Please do not hesitate to contact us should you want to talk about this cover further.

Yours

Alistair

Talking Shop - Insuring / Ensuring the High Street's Future

It is always important for us to keep an eye on what is going on in the property market so that we can continue to make sure that we are able to provide cover that reflects the needs of the sector. Aviva's recent edition of 'Property View' kept us up to date with many hot topics in the property market but perhaps none more pertinent than the plight of the independent high street retailer. As a Broker with a strong local presence it is key for us to be able to support the insurance needs of independent retailers as a loss is likely to effect such a business to a greater degree than a high street giant. 

Whilst the Economy is clearly performing at a 'pre-recession' level this has come from areas such as manufacturing and it's clear from a walk down any local high street that the smaller retailers continue to feel the pinch. Speaking with a wholesale supplier of children's clothing accessories last week it was clear that the high street pinch is being felt at their level as orders and indeed clients have begun to drop and he is having to identify more niche avenues not covered (and in some cases lorded over) by giants such as Tesco, Sainsburys and Asda who are no longer content with simply selling broccoli and beans but who we are now just as likely to go to for boots and beanies.

In 2011, retail and high street guru - TV's Mary Portas - was tasked by the government to review the plight of the high street and suggest ways in which it can be revived and sustained. So what did the no nonsense personality uncover? Well the review came up with 28 seperate suggestions which can be found here - 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/6292/2081646.pdf

So what did the government say? Well broadly speaking it appeared to have taken on board and accepted Ms Portas' findings. They created a £10,000,000 High Street Innovation Fund to assist 100 Local Authorities tackle the issues of riots and empty shops. In addition they have been offered advice and support by high street retailers (led by Boots) for 12 towns chosen for 'revive the high street' pilot schemes. So did the review have a lasting effect and is the High Street surviving or thriving (or indeed neither)? 

There is some conceding that nothing suggested would be a quick fix. Years of high street decline was not going to be reversed easily. In a more recent review of how things are progressing Mary Portas is upbeat and positive on the future of the high street. Citing Government investment but conceding that it has been slower in coming than perhaps was ideal. She states that perhaps the realisation of the downward spiral was enough for people in the community to invest in the high street, both in terms of money and time. The pop-up shop scheme has really taken off and I can think of several examples where this has occurred locally. In addition there is a real shift in the attitudes and values people attach to independently crafted or 'artisan' goods. Bakery's, craft / art collectives, local food producers have all been able to use vacant properties to kick start their business, either through a pop-up scheme or by using locally funded discounts on business rates or similar. 

Once up and revived a high street needs to be sustained. Proper Insurance should be seen as part of this protection. It is important to us that you as a business owner (large or small) are properly protected. This doesn't mean taking out every product under the sun but benefiting from a) a proper review of your insurance needs and b) ongoing risk management advice. - in this equation a + b = peace of mind. 

We love hearing from our clients and so would love to know where you think the high street is in terms of growth, what your struggles might be, whether you have any concerns etcetera. 

You can read Mary's further musings on her high street review by visiting:

http://www.portasagency.com/wp-content/uploads/2014/05/WhyOurHighStreetsStillMatter_MaryPortas.pdf

Alistair

The Best Laid Plans of Mice and Men and Businesses.....

As a reservist in the Army I am constantly bombarded with rhetoric about planning. There are numerous acronyms to be used during the planning stage of any operation and there will always be some old guard shouting something about failing to prepare being akin to preparing to fail or every old and bold sergeant's favourite - 'Prior Preparation Prevents Poor Performance. Actually the adjective 'poor' is extended slightly by the use of a rude word but this is a professional blog, not the 1950's national service. Suffice to say that for every little task in the Army preparation and planning is key. There always needs to be a plan b and for that matter a c & d. So why do we not see this as much in the world of business?

If you are a business owner then imagine for a second your premises has been burned to the ground, if you are a home owner imagine it to be your home. How have you planned to deal with that situation? I suspect the immediate and most obvious answer is 'I've got insurance'. Well that is important so that there is at least a mechanism for paying for the physical rebuild of said property and lost contents, stock etcetera (and because it keeps me in a job) but now imagine that it takes 4 weeks for a full fire and if necessary police site investigation to be carried out before you are properly able to assess the site with an insurers loss adjuster. It then takes 8 weeks to find an appropriate architect to draw your new house / office / warehouse etcetera. Another 6 weeks for the planning to get granted, 2 weeks of tooing and frowing. We are now 5 months in before any building has even been done.... Then there is sourcing materials, a contractor, building, final fix, furnishing and fitting... All starting to seem a bit daunting.

A race against the clock to get building work done puts me in mind of a kids book I used to have (a good few years ago now) called Mike Mulligan and his steam shovel. Maybe I was destined to write this blog all these years later.

Business Interruption is a section within most commercial policies or can be purchased as a separate, bespoke cover if necessary. Often for small businesses a standard cover will apply which is what many people settle on, particularly as the benefit of the cover is not as tangible as something like fire or theft cover. This is the danger of obtaining your cover through an online search engine, there is no one there to give you the proper advice. Business interruption is exactly that, cover for the consequential losses following an interruption to the business. This can be covered in the form of Loss of Income, Increased Cost of Working or more commonly the Loss of Gross Profit. This cover will continue to pay out until such time as you are trading to the same level you were prior to the loss NOT, it is important to note, simply trading again. Anyone in business who supplies a product or service knows that retention of customers is key, especially if whatever you do is generally repeat business. Assuming your customers need this product or service on a reoccurring basis you can imagine even the most loyal customer is going to need to source their items / service from somewhere else whilst you get back on your feet. If getting back on your feet takes a year then it will be a hard task to persuade these customers to come back. How will that occur? Will you need to spend money on additional PR? Who will pay for that? Well luckily if you have had the correct insurance advice these expenses could be encompassed within your cover.

Adding the length of time to win back your customers to the timeline we have already discussed with regards repairing the physical loss could take us a huge length of time and still most purchasers of online cover still only opt for a 12 month period of indemnity - clearly inadequate as we have discovered.

The Insurance Times recently ran an article (see their September edition) which highlighted a case from the Buncefield disaster from back in 2006. Not far from our offices here it highlights immediately that it is not just incidents at your own premises that might trigger the need for business interruption cover. The Insurance Times referenced a firm that supplied laser cutting equipment whose building was damaged along with some stock and delivery vehicles. Whilst the company found new, near-by premises within a couple of weeks, replacement equipment and stock took between one week and fourteen months to get hold of. It was reported that 50% operational capability was restored within six months and 75% within a year. Delays through this incident in processing orders meant the company lost 62% of it's revenue for the first year post-incident and then 27% the next. All told the company was fully back on it's feet and trading at its pre-loss capacity 21 months after the event. Unfortunately for the company they only had a 12 month indemnity period and so the company were reportedly unable to recover around £1,700,000 from the insurers, £1.2 million of which was gross profit and £500,000 additional costs.

So I hope the above has illustrated how important it is to consider the 'what-ifs' and to have a plan in place. Prepare the ground by having alternative suppliers identified, a means of liaising with your clients to try to retain as much as possible, identify alternative sites. Insurance should form part of your preparation and recovery plan but of course it cannot be the whole answer. If you haven't spoken with your Broker about business interruption cover then the chances are that you are not adequately insured. For solid, honest advice please contact us. We'd be happy to chat through your business interruption needs, even if your policy is not due for renewal. Waiting until renewal might just be waiting too late.

Alistair

A man's home is his castle..... and you wouldn't leave a castle uninsured would you?

A recent study by the Insurance Times noted that premium was not the primary concern of people obtaining home insurance. As opposed to motor insurance, which is still predominantly a price driven market, it seems that people are more concerned about their worldly possessions and the roof over their head and how they can be adequately protected. Once the right cover is there then people focus on the price.

So what seems to be the main areas of concern for people?

Those little extras - Often overlooked are purchases throughout the year. At renewal we lay down our overall sums insured but also specify the items which need to be noted individually (valuables, antiques etcetera). Often insurance policies require you to note specifically items like mobile phones, laptops etcetera and so if these are upgraded during the year and not specified on the policy you could find yourself unable to claim. Bicycles are another perfect example. Most insurers will offer bike insurance free of charge but there will be limits on the value, the number, the activities the cover and the storage so if you are a bit of a cyclist then take a look at the policy wording.

When is a house not a house - The lines between what is buildings and what is contents is often a very blurry line and greyer than John Majors spitting image puppet (quite a niche reference there). As a general rule contents is anything that would fall out if you picked up the property and shook it about. This point is largely not a concern if you are insuring both buildings and contents with the same insurer however if you have separate policies or you only insure one aspect - either the building or the contents - then you might want to check the definitions in the policy wording. Whilst as a leaseholder you might consider buildings to encompass the lovely avocado coloured 1980's fitted bathroom that was there when you moved in - what happens when you replace that? Are you expecting the freeholder to pick up the cost of your expensive taps and hand carved Moroccan tiles when a claim comes in? Again, please check your policy wording to make sure you are putting the right sums insured in the right box.

Grand Designs? - Many of us, particularly in recent years have elected to extend up, down, sideways rather than move altogether but had we considered the implications of such work. Who is buying the materials - you or the contractor? How is the property secured? Does your contractor insuring the temporary works. Without exception your insurers will need to know that you are having work done on your property and there are always (to varying extents) conditions applicable. Whether it is some light decoration, a small extension or total refurbishment check with your insurer as to what must be done. It is much better to deal with these things in advance rather than pick up the pieces when you find out that there is no cover in place.

Whatever your main concern is it is vital that your home insurance fits with your lifestyle and that you don't let it become an afterthought but instead a front-line defence in protecting your way of life. If you need more guidance on the above or you want to ask any specific questions whether already our client or not we would love to hear from you. Please call our Personal Lines team on 0845 3315012 to discuss anything insurance related.

Alistair

Construction H&S Wisdom From Our Friends at Aviva (Other Friends are Available)

The Construction (Design and Management) Regulations 2007 (CDM) 

In an effort to try and bring some legislation and risk management info to you I have once again called upon our friends at Aviva who provide the following information. It is certainly worth reading through whether you are a contractor, employer, client  as there are implications for all! 

Enjoy,

Al

Introduction

The principal aim of the updated CDM Regulations, which came into effect on 6th

April 2007, is to raise the standard of construction health and safety management by trying to anticipate health and safety problems at the design stage.

The CDM Regulations place duties on clients, CDM Coordinators, designers, principal contractors, contractors and the self employed to plan, co-ordinate and manage health and safety throughout all stages of a construction project. This also includes maintenance work after completion and ultimately the demolition of the structure.

When does CDM apply?

CDM applies to all construction projects where people are at work, but projects lasting 30 days or more, or 500 person days or more will require notification to the Enforcing Authority and appointment of CDM coordinator, Principal Contractor and Designers. The arrangements for carrying out demolition and dismantling work must be recorded in writing.

CDM also applies to any design work no matter how long the work lasts.

The CDM Regulations place duties on clients, CDM Coordinators, designers, principal contractors, contractors and the self employed to plan, co-ordinate and manage health and safety throughout all stages of a construction project. This also includes maintenance work after completion and ultimately the demolition of the structure.

Clients

Client duties include:

• Make timely appointments of competent and adequately resourced CDM Coordinator, Designers and Principal Contractor

• Allow sufficient time for design and construction of the project

• Pass on relevant project health and safety information to those who need it (pre construction information)

• Ensure that an adequate Construction Phase Health and Safety Plan has been developed and that adequate welfare facilities are on site before work commences

• Make sure after completion, that the Health and Safety File is maintained and available for all who need it

• If the property is sold/leased then the Health and Safety File must be passed on to the new owners/lease holders

CDM Coordinator

The CDM Coordinator will usually be a team of experts rather than an individual. The main duties include; advise and assist client with their duties; coordinate design, planning and preparation work where relevant to health and safety; produce or update the Health and Safety File and deliver to client at end of project. The CDM Coordinator is also responsible for notifying the enforcing authority of all construction work expected to last more than 30 working days or 500 person days.

Designers

Designs must be developed which avoid or minimise risks to health and safety during construction, maintenance and demolition. The designer must provide information about significant risks. Design includes the preparation of specifications and is not limited to drawings.

Principal Contractor

The principal contractor should take account of health and safety aspects when preparing tender documents.

The pre-construction information is developed by the principal contractor who then co-ordinates the activities of all contractors to ensure effective compliance with health and safety legislation.

Contractors and the self employed

Other contractors and the self employed must co-operate with the principal contractor and provide risk information relating to their activities.

Health and Safety for Property Owners

Some advice for Property Owners from our friends at Aviva. Their risk management bods have put together this quick reference guide for Risk Management (including some legal obligations) for Property Owners. It is not always obvious what is and what isn't a legal requirement, particularly as the information doesn't always come to you - until now.

Health and Safety for Property Owners

Introduction

The Health and Safety at Work etc Act 1974 (Section 4) requires persons in control of premises to make broad provisions for the health, safety and welfare of people (including visitors and other users). These duties are described more specifically in the Workplace (Health, Safety and Welfare) Regulations 1992 and associated Approved Code of Practice, which establish a consistent set of standards for most premises.

Maintenance (Regulation 5)

The premises, equipment and devices and systems should be maintained in an efficient working order. Such maintenance is required for systems, equipment and devices which could cause a risk to health, safety or welfare if a fault occurred.
Where appropriate, a suitable system of maintenance ensures that:
a) regular maintenance including (as necessary), inspection testing, adjustment, lubrication and cleaning is carried out at suitable intervals;
b) any potentially dangerous defects are remedied and access to defective equipment is prevented in the meantime;
c) regular maintenance and remedial work is carried out properly; and
d) a suitable record is kept to ensure that the system is properly implemented, and to assist in validating maintenance
programmes.

Lighting (Regulation 8)

Good lighting is essential in all areas, particularly stairs and corridors to enable people to move about safely.

Cleanliness and Removal of Waste Material (Regulation 9)

Floors and indoor traffic routes should be cleaned weekly. Removal of waste should be carried out as necessary by an effective method and waste should be stored in suitable containers whilst awaiting collection.

Conditions of Floors and Traffic Routes (Regulations 12 and 17)

Floors and traffic routes have to cater for access and egress and movement of persons about the premises, either as pedestrians or in vehicles arriving at or leaving the site. Holes and defects to roadways, paths, floors and floor coverings should be identified and repaired promptly, particularly those on staircases. Where immediate repairs cannot be affected it may be necessary to prevent people passing through the area or to post appropriate warnings.

Falls and Falling Objects (Regulation 13)

The aim is to prevent people from falling from edges and to prevent objects from falling onto people. A variety of issues need consideration, including the provision of fencing or covers, fixed ladders, roofwork, etc. Secure fencing will always be required where someone could fall a significant distance, but a risk of falls from lesser heights also needs to be considered.

Windows and Transparent or Translucent Doors, Gates and Walls (Regulation 14)
Windows and transparent or translucent surfaces in walls, partitions, doors and gates in certain locations may pose a risk of injury. Where necessary for reasons of health and safety, vulnerable areas need to be identified and unless made up of safety material, protected by other means against breakage. Transparent or translucent areas may also need to be marked or incorporate features to make them apparent.

Any door or gate which can be pushed open from either side should be provided with a viewing panel to allow a clear view of the area close to both sides.

Windows, Skylights and Ventilators and Ability to Clean Windows (Regulations 15 and 16)
Windows, skylights and ventilators which are provided for the purpose of ventilation need to be capable of opening, closing or adjustment without risk to health and safety. Additional controls or devices may be necessary to protect against falls from height through or out of open windows. Arrangements should be made to ensure that window cleaning can be carried out safely.

Doors and Gates (Regulation 18)

Doors should be designed so that they can be easily opened. Power-operated doors and gates should have safety features to prevent people being struck or trapped and where necessary, should have a readily identifiable and accessible control switch or device so that it can be stopped quickly in an emergency. Upward opening doors
or gates need to be fitted with an effective device to prevent them falling back.

Electrical Safety

Electrical equipment should be designed and installed to a suitable standard e.g. BS7671 Requirements for electrical installations and maintained in a safe condition. All persons carrying out work on electrical systems should be confirmed as competent to do so.

Passenger Lifts

Lifts should be constructed to a suitable standard. The lift should be thoroughly examined every 6 months by a competent person. Lifts should be adequately maintained in accordance with the manufacturer's instructions.

Gas Safety

All boilers and central heating systems should be installed and serviced regularly under contract by competent persons only. Such work on gas fired boilers should only be done by businesses which are members of the Accrediting Body for Installers, currently Gas Safe.

Asbestos

Owners have a duty to manage the risk from asbestos containing materials, by identifying the amount, location and condition; keeping records, checking its condition and assessing the risk.

Putting a management plan into action and providing information to anyone who is likely to work on or disturb it.

Fire Safety

A special fire risk assessment should be completed for the common parts of the premises to which occupiers, visitors, contractors and others are allowed access. Individual occupiers will have similar duties within their own areas other than single domestic residences

Legionnaires Disease

Those with responsibilities for water systems in premises are responsible for ensuring the risk of exposure to legionella infection is assessed and that appropriate control measures are introduced.

Outdoor Safety

Steps and paths should be kept in good condition and free from obstructions which may lead to tripping hazards e.g. refuse and gardening equipment. Steps should have a suitable handrail. Steps and paths which are used in the hours of darkness should be provided with outdoor lighting. It is important to consider the dangers posed by snow and ice in the winter and to take reasonably practicable measures to remove accumulations of snow and prevent ice forming. Checks should be made to ensure any water features do not pose a significant risk to health and safety. Property owners may also need to consider the risk management of trees, including risk assessments and where appropriate routine checks by a competent person.

Contractors

All contractors hired to work on premises have their own duties to comply with health and safety legislation. However, they may need to be given information about the premises to ensure their health and safety. Enquiries should be made about the contractors own procedures so that they will not endanger themselves or other persons.

Security

Consideration should be given to preventing access by unauthorised persons to the premises, either by some means of access control or by manning arrangements

Key Action Steps

·         Arrange for a suitable and sufficient risk assessment of the premises and activities undertaken there

·         Establish safe systems of work based on the findings of risk assessments

·         Carry out regular housekeeping inspections

·         Implement a planned preventive maintenance programme

·         Operate a structured approach to the selection and monitoring of contractors for both routine and occasional work

·         Keep records of action taken

References

·         Workplace (Health, Safety & Welfare) Regulations, 1992 - Approved Code of Practice and Guidance L24, available from HSE Books 01787 881165.

·         Electrical Safety and You INDG 231 HSE Books 1996.

·         Thorough Examination and Testing of Lifts Simple Guidance for Lift Owners INDG 339 HSE Books 2001.

·         Landlords: A Guide to Landlords Duties Gas Safety (Installation and Use) Regulations 2009 INDG 285 HSE Books 1999.

·         A short guide to managing asbestos in premises 2002 INDG 223 HSE Books.

·         Legionnaires disease - Essential information for providers of residential accommodation INDG376 HSE Books 2003

·         Guidance on fire risk assessment is available at www.communities.gov.uk/fire/firesafety/ firesafetylaw/

·         Guidance Note 7 - Tree Surveys: A Guide to Good Practice from the Arboricultural Association www.trees.org.uk

·         Hazards from Trees - Forestry Commission

Fairweather Flyers Ready for Action

On May the 11th all eyes (well at least all eyes in Gerrard's Cross) will be on the swathes of participants running, jogging, walking and hopping their way around this year's Gerrards Cross Fun Run. The event is run every two years and this is the fourth event we have not only taken part in (it's worth noting we won the team award in 2008... despite me being a part of it) but we have also been involved in sponsoring. The Fun Run is not only a great demonstration of Community Spirit but also does sterling work for local charity. 

This years beneficiaries are Kids in Sport and Home Start. I'd encourage all of you to take a look at the great work these charities do by visiting their websites. 

www.kidsinsport.com

www.home-start.org.uk

It definitely makes the decision to sponsor and support these events worthwhile knowing that money being raised is going to such excellent causes. 

Rumour has it that Fairweather Insurance will be putting out a reasonably strong team this year but sadly our quickest runner - Cracker the office dog won't be taking part. He says it is in order to allow the other competitors a chance. 

Even if you are not participating in the event why not come and show your support and join in the fun. For more information please visit the fun run website. www.gxfunrun.org.uk there is still time to register.

You don’t know what you’ve got until….. people tell you!

There is an old adage about insurance which says that you never really get to know the quality of the product until you need to use it. None of us want to claim because if we are claiming it means our house is falling down, our favourite car has fallen into a sink hole or the cat has exploded. I am sure you will note that none of these could be deemed an ideal situation. 

Therefore it is with great pleasure that I can reveal that the quality of Fairweather Insurance has been recognised by the Insurance Times (a leading industry publication). Fairweather Insurance has been shortlisted as a Finalist in the category - ‘Outstanding Broker Claims Team of The Year’.

It’s not luck either. Over the years we have developed a system in which a personal service comes first. Our dedicated claims handlers will take our clients from incident to satisfactory resolution with the minimum of fuss and the maximum peace of mind. They have been working hard, particularly of late, ensuring that many of our clients who have experienced flood damage have been able to continue with their business and / or lives with as little interruption as possible. This effort is part of our ongoing commitment and it’s great to be recognised for it.

So now you know that the quality of service you would get from Fairweather Insurance comes highly recommended and you haven’t even had to make a claim to find out!  

Contact us to find out more. 

Flood – Turning of the Tide for Insurers?

Sorry for the horrendous title. I would usually go for an amusing pun but given the serious nature of the topic I can’t bring myself to think of one.

Unless you have been abroad or on the moon since December you can’t help but have noticed the severe weather the country has experienced causing all sorts of damage. The most powerful effect of these storms has been flood - the more southern counties bearing the brunt. Fingers are being pointed all over the place but the truth is that no one can control the weather, not least the government or insurers.

So what happens now? With around 6,000 properties affected by flooding across the southern counties and Thames areas we have, unsurprisingly, seen a number of flood and storm damage claims over recent weeks with varying degrees of severity. In each case we have noticed insurers straining to keep up with the management of these claims. Although we can all see weather reports I think the severity and the longevity of the weather has taken everyone by surprise and Insurers are working extra hours and employing additional loss adjusters to get things moving quickly.

You also cannot help but have noticed the plethora of politicians in wellingtons wading through communities to demonstrate their concern. In a rather unhelpful gesture Leader of the Opposition Ed Miliband waved his knowledgeable hand and decided it prudent to suggest the Government put pressure on insurers to pay claims quickly. What it seems Mr Miliband does not appreciate is the existing pressure insurers are to manage these claims and actually it is already in the insurer’s interest to pay claims quickly or to make interim payments in order to ease their burden. What the government are quite rightly concentrating on now is the practical assistance that can be given, the army are getting their hands dirty… or rather ‘feet wet’ as are numerous other public services in an effort to assist residents. Also in the forefront of their mind is how the clear-up operation will be managed. It is not going to be an easy task and many local authorities have already had their wrists slapped by government for ignoring environmental health issues where sewerage is escaping or even charging residents for sandbags.

So what is the outcome for insurers? Well like all things time will tell. In the wake of 9/11 Terrorism insurance was taken away from insurers and a central pool set up for that particular type of cover. That was an extreme and catastrophic incident for a group of particular insurers and so could not be ignored. The flooding in this country is a little more spread out and so no one insurer is disproportionately affected. What I believe we will see moving forward is insurers using a more complicated and thorough system for ascertaining whether someone is at risk of flooding. I suspect that, like subsidence, flood will now necessitate a higher excess and I imagine that the peril of Flood and possibly Storm will now be an optional ‘buy in’ rather than standard cover – particularly in certain areas.

What we also might find, which already happens to a certain extent, is that insurers will have a certain capacity per postcode. That is to say a single insurer will not want to insure an entire post-code or area. Many insurers are careful about city centre risks already. You might recall the Bunsfield incident where there was a large explosion at an industrial complex. Many insurers had huge claims as a result because they insured entire streets or developments locally. The recent weather will only serve to highlight the risks that insurers face in providing ‘too much’ cover in a certain area.

What is certain is that the damage caused and claimed for this winter is likely to have an impact on future rates. Where does this leave you as a client? I really think this is where the value of a broker comes into play. With constant exposure to the market we can monitor and sometimes foresee changes in insurer’s attitudes and so will be in the best position to make sure you have the cover you need at a fair price. Ultimately providing you with the peace of mind that you need.

Alistair