business advice - Craft Focus Magazine

insurance
Neil McFarlane, sales and
marketing director, of
T.H. March & Co Limited
insurance solutions
Craft Focus readers put their insurance queries, concerns and questions to
leading brokers T.H. March
health & safety
We’re only a small business so we don’t need
to worry about Health & Safety - that’s only
for large businesses isn’t it?
Neil says: The issue and display of a Health
& Safety policy is a legal requirement for all
businesses that employ five or more staff.
Even if your business employs less staff,
having a Health & Safety policy in place will
demonstrate to your staff and insurers that you
take health and safety seriously and that you
are running a properly managed organisation.
You may even obtain premium discounts for
having such a policy in place.
It is also worth noting that Health & Safety
regulations will now also apply to home
workers – if you employ staff who operate
from their homes you, as their employer, must
carry out a Health & Safety assessment of risk
to health at their ‘home office’ environment.
buildings cover
I need to insure my business premises. All I
need to provide to my insurance advisor is
the market value of the building isn't it?
Neil says: In a word, no! Correctly arranged
insurance protection for your buildings should
be arranged on the current rebuilding value,
not the market value. The sum insured for
buildings cover under a commercial policy
is based on the full rebuilding cost of the
premises rather than the market value. There is
no relationship between the two.
It is also important to review the rebuilding
value on a regular basis to take into account
inflation and any improvements made to the
building. Many insurers provide for an ‘index
linking’ provision within their policies; the sum
insured is increased on a yearly basis to help
take into account rises in inflation. But it is
important that this figure is correct to start
with and still regularly reviewed.
To obtain a rebuilding value, contact your
local qualified chartered surveyor. By arranging
your policy on the correct basis, you will be
saving a considerable amount of premium in
most cases. If your building is listed however,
the rebuilding value may well be more than the
market value.
lost keys
What happens if I lose the keys to my
premises?
Neil says: Don’t rely on a coded key return
service. If you lose the keys to your premises,
change the locks or get new cylinders or
levers - immediately. Many criminals may not
use them straight away and may even return
them to you - after having taken a copy! Most
insurance policies will have cover for loss of
keys, subject to any policy excess.
employment dispute
What should I do if I have an employment
dispute and relevant legal expenses cover?
Neil says: Always seek guidance from the
insurers legal helpline before taking any action
regarding the employee. If you fail to do so, or
ignore the advise you are given, most insurers
will not support you through any subsequent
claim.
computer backups
Where should I store my computer backup
records?
Neil says: Always remove computer backups
from the premises, or place them in a fire safe
specifically designed for computer media. If
removing confidential data from the premises,
particularly any sensitive data such as lists of
customers, encrypt the data.
damage disruption
How should I estimate the indemnity period
under my business interruption insurance?
Neil says: Many underestimate their indemnity
period, that is the period during which your
turnover is affected as a result of insured
damage. Finding alternative premises, or
demolition, planning and rebuilding as a
result of major damage may take longer than
expected. Even when you are back in business
and trading, it may take longer to recover your
turnover than you think.
prompt action
What should I do to minimise the effect of a
burst pipe?
Neil says: First of all, locate where the
stopcock(s) are situated, in order that you can
turn off the water supply to your premises.
Also know how to turn off the electricity and
any boiler. Once turned off, drain pipes and
tanks by opening taps. Many insurers will have
details of approved contractors to call in such
circumstances. If not, find someone locally who
you can call in an emergency. Either way - keep
their details in an easy to find place !
Neil will be tackling more of your insurancerelated
queries in future issues of Craft Focus.
If you have a question you would like answered
email thmarch@publicasity.co.uk. C
Further information
T.H. March is a well-established family
business founded in 1887. With offices in
London, Birmingham, Manchester, Glasgow,
Sevenoaks and Yelverton near Plymouth,
the company has departments covering
household, motor, travel, commercial and
scheme insurance. To find out more visit
www.thmarch.co.uk.
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