During the next few weeks, drawers and cupboards in homes up and down the country will be filled with expensive Christmas gifts, and burglars know it! Jewellery can make up a large portion of Christmas gifts and will be most attractive to thieves, being both valuable, portability and sellable. If you’re buying an expensive Christmas gift that you would like to keep a surprise from a special person, don’t keep it a surprise from your insurance broker! Levels of additional cover over the Christmas period will vary from one insurer to the next, so you should read your policy documents carefully to know exactly what you’re covered for. If you throw out any branded boxes the gifts came in, break them down as much as possible, otherwise you’re advertising the contents of your home to potential burglars! If you’re lucky enough to receive a particularly valuable Christmas present this year, it might be worth a quick call to your insurance…

Employee wages represent a significant expense for most businesses, and can become a major cause of underinsurance in the event of a loss. When calculating gross profit sum insured, businesses need to decide whether or not to subtract employee wages – and if so, to what extent. Getting it wrong could have a substantial bearing on the adequacy of that business’s gross profit sum insured. Tackling wage roll misunderstandings When calculating gross profit, accountants will usually subtract employee wages to arrive at a final figure. However, for insurance purposes, the significance of wage roll needs to be determined before deciding whether or not to subtract it. This difference in approach is a regular source of underinsurance. Where does wage roll fit in? Depending on the nature of your customer’s business, a proportion of their wage roll might constitute an uninsured working expense (UWE). By declaring a UWE, you are stating that those wages will not continue following a loss, and…

Fires represent one of the greatest threats to tenants and properties, but fire doors can play a pivotal role in minimising losses. There are on average 162 building fires in the UK every day, with 80% occurring in residential properties. Fire doors, if fitted correctly, are a vital safety feature in buildings as they help to prevent the rapid spread of fire and are a legal requirement in a significant proportion of residential properties. However, they are not always used to best effect. Here, we look at some common challenges and explain what you can do to help improve fire safety in properties. Fire door failures are surprisingly common Figures from the London Fire and Rescue Service suggest that in around a dozen fires each year in the capital, there are significant failures due to fire doors having been replaced, left open or fitted incorrectly. Common fire door faults can include: Wedging open of self-closing doors Damage to, or removal of, self-closing devices (typically over-head closers)…

Whether you own properties in Scotland or England and Wales, you should be aware of new energy performance regulations that are coming into force, firstly in Scotland in September, and then in England and Wales in 2018. Energy performance regulations in Scotland Scotland’s new energy performance regulations, known as Section 63, came into force on 1 September 2016. The changes require property owners to produce an Action Plan for Carbon and Energy Performance (ACEP) at the point of marketing a non-domestic building for sale or let, outlining the measures the new owner should take to improve its energy performance. The required works could vary significantly from property to property, but may include changes to lighting, heating, cooling and ventilation systems. Energy performance regulations in England and Wales In England and Wales, landlords will need to meet Minimum Energy Efficiency Standards (MEES), which require a building to achieve at least an ‘E’ Energy Performance Certificate rating. Lack of awareness There will…

Machines have been making workplaces more efficient since the Industrial Revolution, but their impact on health and safety is a complex issue. Today, the emergence of robots is bringing significant health and safety benefits to a variety of workplaces, but also new challenges. What kinds of organisations are using robots? Robots are most commonly used in manufacturing, but are increasingly being introduced to a wide variety of industry sectors, from healthcare to retail. The health and safety benefits of robots Robots can carry out tasks that are dangerous for humans to perform, such as lifting or moving heavy objects, or working with hazardous substances. There is also a new generation of wearable robotics devices that can reduce the risk of injury, or aid the rehabilitation of workers who have been injured. However, as a number of well-publicised incidents have demonstrated – including the death of a worker at a VW plant in Germany and a similar incident at a factory…

From February 2016, fines for health and safety (H&S) offences, corporate manslaughter and food safety increased substantially. The increase applies to cases reaching the courts from February 2016, even if the incident that led to the prosecution occurred before that date. You may not be aware that H&S fines are now based on turnover. For example, a company with a turnover of less than £2m can now face a H&S fine up to £450,000; between £2m and £10m, the fine can be up to £1.6m, and a company with a turnover of £10m- £50m could face a fine up to £4m. So-called ‘very large companies’ will be subject to even higher fines. If you are part of a bigger group, it is possible that the court could seek to levy a fine based on total group turnover, and thus increase the level of the fine. These fines are in addition to court legal costs, and there is also potential for…

In this year’s March Budget, the Chancellor of the Exchequer announced Insurance Premium Tax (IPT) would rise from 9.5% to 10% from 1 October. There will be a concessionary period that will begin on 1 October 2016 and end on 31 January 2017. During this period, mid-term adjustments for policies with term start dates before 1 October 2016 will continue to be liable to IPT at 9.5% provided the premium is booked in insurers systems by 31 January 2017. For policies incepted or renewed prior to 1 October 2016 where the transaction date is prior to 1 October 2016 the IPT rate applicable for new business, renewals, mid-term changes (additional/return premiums) will be 9.5%. For policies incepted or renewed on or after 1 October 2016 the IPT rate for new business, renewals, mid-term changes (additional/return premium) will be 10%. For policies incepted or renewed prior to 1 October 2016 where the transaction date is on or after 1 October 2016…

The Insurance Act is a piece of legislation designed to modernise Britain’s insurance industry. The current regulations which govern the contracts between businesses and insurers are over 100 years old. The Insurance Act received Royal Assent on 12th February 2015 and will come in to force on 12th August 2016. The areas of legislation which are affected by the Act are as follows: • disclosure and misrepresentation • proportionate remedies • warranties • fraudulent claims. To read the Insurance Act 2015 in full go to www.legislation.gov.uk What the reforms mean for businesses The aim of the Act is to remove rules which no longer reflect good commercial practice and balance the interests of the insured and insurer to put both parties in a neutral position. The Government estimates businesses will benefit by about £100 million over the next ten years through lower litigation and transaction costs. What has changed 1. Disclosure and misrepresentation in business insurance contracts When obtaining insurance…

Property Owners insurance is designed to protect you as an owner of a property whether it be a Commercial or Residential let. It is to safeguard your assets and protect your investment. Ashleigh Mackay and Associates pride themselves in having many years’ experience in this field. Cover is generally on an “All Risks” basis so this will include Accidental Damage as well as the usual risks of Fire, or Water Damage. Major catastrophes, such as serious fire damage to your property would be covered for any rebuild or refurbishment required, so you would need to insure the rebuild cost of your property adequately to cater for this. Your Legal liability for claims made against you as owner of the property is also included for usual indemnity limit of £2,000,000. You would also be insured for your loss of rent in the event of the property becoming uninhabitable due to a fire or serious water damage, where the tenant would have…

For many, balconies provide the perfect setting to make the most of long summer nights – eating, drinking and socialising with friends. However, in recent years there have been a number of serious fires on balconies in private rental and social housing properties. While tenants, once educated on the matter, should take their share of responsibility, there is much that landlords and managing agents can and should do to minimise fire risk. Understanding the risks One of the biggest risks comes from barbecues. An estimated 1,800 people a year visit A&E in the UK having had an accident involving a barbecue, with burns and scalding the most common injuries suffered. Barbecues should not be used on balconies under any circumstances. A number of recent fires in private rental and social housing properties have demonstrated the potential hazards, for example: Falling embers burning items on the ground below Close proximity to other flammable objects, including the external face of a building…