Advanced Loss of Profit (Delay in Start-up)
This provides cover when a project, for example, construction or infrastructure, takes longer than planned, causing a financial loss. The triggers may vary depending on the project and the relationship of the insured to the project, and generally, the cover is for the Gross Profit only.
This protects against sudden or unexpected breakdown or loss of machinery or other equipment allowing you to repair, replace or be paid the value of the machinery at the time of loss. This cover would not protect you against breakdown which is due to wear and tear or gradual deterioration.
Machinery Breakdown BI/Consequential Loss
Sudden or unexpected breakdown of machinery or equipment can have a significant impact on business operations. The following loss of profits or revenue can be insured under this cover.
Sometimes a product you supply or an element of contract work completed may cause damage to property months or years later. This is a problem where any maintenance or defects liability period in your CAR policy has expired. Part Product extensions provide cover for any damage to the building or its decoration, even where these are considered part of the insured product you have provided and would therefore be excluded under your PPL policy.
Statutory Inspection Service
There are statutory requirements to inspect particular types of equipment that have more potential to cause injury. Annual inspection services can also be bought with insurance to transfer the risk of incurring costs when items need action following inspections.
This insurance covers the specific risks associated with agricultural vehicles and can be varied depending on the mix of different sizes and types of vehicles insured, the amount of road use, etc.
It is important to ensure that all vehicles used for commercial activities are insured correctly for their purpose, as commercial use will not automatically be covered by every Motor policy.
Lease Gap Cover
Generally following a total loss, Motor insurance will cover the current value of the vehicle. This cover can fill the gap between this and the amount for which the vehicle is leased, ensuring that there is no outstanding cost.
Loss of Use
For companies operating a fleet, this provides reimbursement when a vehicle cannot be used following an insured peril. It is worth paying attention to how any loss will be calculated: considerations can include the size of the fleet and the value of the vehicle that is unavailable.
It is important to ensure that Motorcycle cover is clearly specified given the different risks associated with Motorcycles vs other vehicles.
Following a loss on a standard motor policy, you will have to pay an excess. This insurance runs alongside your motor insurance policy and provides cover in respect of this following settlement with your main insurer, effectively reducing your excess to zero.
Where Private vehicles are insured by a business, it is important to ensure that the cover fits the purpose for which the vehicle is to be used.
Uninsured Loss Recovery
Provides the policy with legal expenses cover to pursue a guilty third party for uninsured losses, e.g. policy excess, hire car costs etc.
Aviation Product Liability
If any products are supplied into the Aviation industry they will likely be excluded from your standard Products Liability policy and will require a separate cover.
Contractors All Risks – Construction – Contractors Plant, 6.5.1
JCT 6.5.1 refers to the Joint Contractors Tribunal clause 6.5.1, which requires insurance to be arranged, in the joint names of the employer and contractor, to protect the employer in respect of their legal liability for injury or damage to any property, other than damage caused by the negligence of the contractor or sub-contractor. Risks covered can include: Collapse, Subsidence, Vibration, Weakening or removal of support, Lowering of groundwater, etc.
Drone or Unmanned Aircraft Liability
The use or operation of drones is increasingly common, however, it is standardly excluded from public or product liability policies. Therefore you should consider purchasing a bespoke policy to provide protection in case of any damage or injury caused to third parties and their property.
Environmental Impairment Liability
This provides cover for claims for clean-up, bodily injury and property damage arising from pollution. Cover under public liability policies is usually limited to pollution which is “sudden unintentional and unexpected”. Wider pollution cover is available from specialist insurers under a specific policy called Environmental Impairment. Given the different timescales when this kind of damage can occur, this cover can be bought with a retroactive date, and/or with an extended forward-looking date until which impacts will be covered.
Excess Liability cover provides coverage above the maximum limit of the primary policy. Excess cover can be a cost-effective way of accessing significantly larger limits of coverage if you believe that there is potential for an employee injury, or a public liability claim or a Third Party Motor claim to extend beyond the limit offered in the primary policy.
Liability policies require there to be damage or injury for a third-party claim to be covered. This extension provides additional cover in respect of losses of a purely financial nature such as costs incurred by a third party arising from the defective product for which you are legally liable
This general cover can provide legal defence costs for a range of disputes, including Contractual disputes, H&S investigations, Tax investigations, etc. You should ensure that any emergency contact number provided as part of your policy is called before costs being incurred.
Libel, Slander and Infringement of Rights
This provides cover when you are sued for something you say or write. The insurance can cover the costs of defense and can extend to cover the costs of a legal settlement against the policyholder.
Malicious Tamper and Extortion
This is an extension to a Product Recall policy, ensuring that if a product is deliberately targeted for interference, the cover responds. The extortion element covers demands made as part of a threat to tamper with the product.
If damage or injury is caused to third parties or their property by products sold or supplied by you both your defense costs and any ultimate liability can be covered by extension to a standard Public Liability policy. This doesn’t require you to have manufactured the defective product, for example, it could also be suitable for second-hand suppliers of equipment.
Efficacy insurance provides cover for legal liability for injury or damage arising from a failure of a product to perform its intended function or service failing to perform its intended function.
This can be purchased as a separate policy or as an extension to your liability policy. It covers acts or omissions such as misdiagnosis or harm caused to patients committed by healthcare providers, e.g. an on-site nurse or doctor.
Also known as Errors & Omissions insurance, this covers you where you are alleged to have provided inadequate advice, services or design to a client, and can cover both legal costs associated with defending the claim, and compensation due to your client. This cover is required by several professions as part of regulations, but increasingly non-traditional advice sectors are including advice and services and hence can carry this exposure. It is important to remember that even if advice is not incorrect you can incur costs associated with defending an accusation.
Product Recall and Product Guarantee
If a product or range of products has to be recalled from the market due to safety or quality issues it can lead to substantial financial losses which are standardly excluded under Business Interruption and Product Liability policies. Product Recall insurance provides cover where the product in question has the potential to cause bodily injury or property damage to third parties.
Product Guarantee insurance can go beyond this and provide further cover for the recall, repair, or replacement of a product that fails to perform its intended function.
Charity and Trustee Indemnity
This protects the individual trustee and the Charity as a whole from liability arising from a wrongful act by a trustee. Given increasing amounts of regulation around the operation of charities, this exposure is increasingly concerning for even small charities, and without an insurance policy in place, the assets of the individual trustee can be at risk.
Employment Practice Liability
Simply put, this covers wrongful acts arising from the employment process. This covers a wide range of different scenarios, and the burden of proof in these cases generally sits heavily with the employer, meaning that this is an increasingly important coverage. This cover is often sold as part of a Management Liability package and can form part of D&O coverage.
Pension Trustee Liability
This covers defence costs, awards, damages, and investigation costs of anyone like trustees, secretaries or administrators involved in running the pension scheme who are accused of mistakes or oversights in their duties. This coverage is often needed despite any internal indemnities held, as the extent of these can be limited by design or by law.
This insurance protects the directors, officers and managers of a company (which may include any employee acting in a managerial or supervisory capacity and shadow directors as defined under the Companies Act 2006) against their personal exposure to claims made against them arising out of their decisions and actions. This can include protection against wrongful acts arising from the employment process, such as accusations of sexual harassment, discrimination or wrongful discipline.
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