Download Issue 74 Low-resolution - Gift Focus magazine

Neil McFarlane, Managing
Director of T.H. March &
Co Limited
QI am bringing in extra stock and
some new giftlines in anticipation of
a Christmas rush. Will this have an
impact on my insurance?
ASome policies incorporate an automatic
clause which extends your insurance cover
during busy periods (such as in the run-up
to Christmas) when you are likely to be
carrying extra stock. But you must check with
your insurer as this may not be the case with
your particular policy. In addition, you should
advise your insurer of any change in the kind
of products you normally stock immediately
to ensure that they are still prepared to
offer cover. They will take into consideration
whether your new products pose an increased
fire risk or perhaps an increased risk of theft.
You may be required to step up security
measures. If you are in any doubt, as always,
contact your broker or insurer for clarification.
Q
A
Storage space in my premises is limited
so I plan to store extra Christmas stock
at home. Will my business insurance
cover this?
No, and I suspect neither will your household
insurance. Any changes you make to your usual
arrangements should be discussed with your
broker or insurer.
Security of the proposed storage will
obviously be an important consideration as
will the transportation of goods to and from
your business premises. You should also make
certain that you don’t leave goods unattended
in your vehicle unless you have arranged cover
specifically for that purpose.
Q
A
My partner and I jointly own and
manage a gift shop. However, after
being run off our feet last Christmas,
we have decided to take on some
temporary seasonal help. Do we need
extra insurance?
In a word, yes! If you take on an employee,
even temporarily, you will need to have
56 giftfocus
insurance solutions
Gift Focus readers put their insurance queries, concerns and questions to
leading brokers T.H. March
Employers’ Liability Insurance. This is a legal
requirement under the Employers’ Liability
(Compulsory Insurance) Regulations 1998 and
subsequent amendments.
Even if your temporary member of staff
has not been given a contract, or if they are
part-time, this law still applies and you must
arrange cover.
In the past it was important that Employers’
Liability certificates of cover were kept on
file – even when they were no longer in date.
This is because a claim could be made against
you long after the temporary staff member has
left your employ. The full impact of many kinds
of injuries and illnesses can take a very long
time to materialise so it could be months, even
years later that a claim is made. That being the
case it was vitally important that you had proof
of cover.
Now that the Employers Liability Tracing
Office – ELTO – has been established, it
centrally records details of all Employers
Liability cover in force. It records information
by logging the employer’s ‘Employers Reference
Number’, or ERN, which is allocated and used
by HMRC.
There have been overnight breakins
to retail premises in my area and
I’m worried that my business might
be next. Do I need to increase my
insurance cover?
Undoubtedly your local police have already
made a visit to all premises in the surrounding
area to give advice on security measures.
With regards to your insurance, provided
you are working within any standard policy
minimum security standards, which will either
be contained within your policy wording, or
as part of the security answers on your last
completed proposal form, this should not be a
cause for added concern.
However, you should also talk to your
broker or insurer, as they will undoubtedly
have practical and up to date advice on
Q
A
loss prevention either physical, electronic or
procedural. Unfortunately crime evolves and
adapts, so it really isn’t an option to always
leave things as they are.
My town council has approached myself
and other traders in my street for
permission to erect small Christmas
trees and lights above our shop
windows as part of the high street
decorations. Who is responsible for
the insurance?
Generally confirmation should be obtained
from the council that it is responsible for the
decorations, their erection and any damage
caused to or by them. It is also sensible to
inform your broker or insurer, just to ensure
Q
A
they are happy with how the decorations are
erected and secured. g
Further information:
T.H. March is a chartered firm of insurance
brokers. Established in 1887, the company
has offices in London, Birmingham,
Manchester, Glasgow and Sevenoaks as well
as its National Administration Centre in
Yelverton near Plymouth.
To find out more T: +44 (0)1822 855 555,
E: giftware@thmarch.co.uk, or visit the
website www.thmarch.co.uk