The insurance world moves into a new gear with major players trying to capture the commercial market, brokers and insurers are both fighting for space on the internet, in the major classes such as Professional Indemnity Insurance, Public Liability Insurance and Office Insurance. This battle is still to be own either B2B or B2C.
Insurance companies and software houses who offer their systems to brokers are all boasting to have the best products which are user friendly, in the hope of attracting interest either in thier products or concepts. Unfortunately the current market place is not sustainable, as brokers are not going to want to input in information into different systems to get quotes for their clients, and of greater importance is that SME clients are going be expect to be able to obtain quotes directly for themselves, at the time they want. It is already being seen that clients are more regularly choosing to purchase their insurance online outside of the traditional working hours, and if this facility is not available for them they will find a provider who can give the service they need.
Wednesday, 19 October 2011
Monday, 4 July 2011
Insurance when starting your own business
What insurances do you need to consider when starting your own business? This clearly depends on what your business activity is involved with as the insurances received could be somewhat different so we have selected a few fictitious businesses to illustrate the different possibilities and requirements, this of course is only a guide and you should always seek separate advice from your insurance brokers if in doubt.
Example 1: Tradesman/woman such as electrician, builder, carpenter, window fitter.
You need to consider the following insurances:
A start up business could consider a shorter list essential insurances and grow covers as the business develops. For instance the important protections such as Public Liability & Employers Liability Insurance and life cover may be first on your list closely followed by tools cover, contractors all risk insurances and personal accident insurance.
Example 2: Professional risks such as accountants, solicitors, computer consultants, brokers.
You will need to consider the following areas when starting your business:
Example 1: Tradesman/woman such as electrician, builder, carpenter, window fitter.
You need to consider the following insurances:
- Public Liability Insurance
- Employers Liability Insurance (possible)
- Contractors All Risk
- Tools Cover
- Office Contents including all risk covers such as laptops and mobiles
- Life Cover
- Personal Accidents & Sickness
- Pensions Arrangements
- Van Insurance
- Buildings Insurance
A start up business could consider a shorter list essential insurances and grow covers as the business develops. For instance the important protections such as Public Liability & Employers Liability Insurance and life cover may be first on your list closely followed by tools cover, contractors all risk insurances and personal accident insurance.
Example 2: Professional risks such as accountants, solicitors, computer consultants, brokers.
You will need to consider the following areas when starting your business:
- Professional Indemnity Insurance
- Public Liability Insurance
- Employers Liability Insurance (possible)
- Office Contents & Buildings Insurances
- Laptops, mobiles, blackberries etc
- Directors & Officers Insurance
- Life Cover
- Pension Arrangements
Tuesday, 21 June 2011
Professional Indemnity Insurance Explained
Professional Indemnity Insurance provides essential financial protection for a wide range of professional advisers including accountants, engineers and computer consultants. In the event that a client suffers financial loss as a result of alleged neglect, error or omission professional indemnity insurance will meet the cost of defending claims and any damages payable.
Any person who gives advice, designs, or offers similar services in a professional capacity is seen by clients as an expert. In these times of high consumer awareness, clients will not hesitate to pursue a claim if they feel that they have received sub-standard service. The need for professional indemnity insurance has never been greater.
While some professional people see professional indemnity insurance as an expensive and unnecessary overhead, we know from experience that any professional can produce substantial claims. Court awards have risen sharply in recent years. Without insurance, the financial security of a business is threatened. The following examples highlight the importance of professional indemnity insurance :
Any person who gives advice, designs, or offers similar services in a professional capacity is seen by clients as an expert. In these times of high consumer awareness, clients will not hesitate to pursue a claim if they feel that they have received sub-standard service. The need for professional indemnity insurance has never been greater.
While some professional people see professional indemnity insurance as an expensive and unnecessary overhead, we know from experience that any professional can produce substantial claims. Court awards have risen sharply in recent years. Without insurance, the financial security of a business is threatened. The following examples highlight the importance of professional indemnity insurance :
- A business wished to be known by a particular trade name. After consulting with company registration agents, it was told that there was no objection to its chosen name. Proceedings were issued by a company with a similar name and £20,000 was paid in connection by the agents.
- Detailers prepared structural drawings for the erection of steelwork. It was subsequently alleged that the drawings contained errors and £110,000 was claimed for the costs of alteration and the resulting delays in construction.
- An auctioneer sold property
at auction over a number of years. It was alleged that the property was stolen and a claim for £250,000 was brought for conversion. - It was alleged that consulting engineers were negligent in their design of waste heating boilers. A claim for £4m was brought for the cost of extra work and the resulting delays.
- An estate agent missed the opportunity to carry out a rent review because of a defective rent review notice. The claim was settled for £50,000.
Thursday, 9 June 2011
Solicitors to find it hard to get their professional indemnity insurance this year
It may seem a long way off but September/October deadline is not far away and this year may be very difficult for Solicitors buying their Professional Indemnity Insurance.
With serious losses over many years, major insurers are looking very closely at whether they wish to continue offering cover for solicitors. Some have already pulled out of the PI market altogether. This coupled with the fact that experts are warning that professional indemnity (PI) insurance is more important than ever due to clients being more likely to take legal action against a company of something goes wrong.
The number of claims made for professional negilgence traditionally increase when there is a downturn in the economy and even if the allegation is unfounded valuable time and resources will be taken up, the cost of these could undermine the companies finances unless proper cover is in place.
Any PI policy that is put into place should cover the cost of defending a claim and any potential payments and should be tailored to the needs of the individual client.
Quotations for Professional Indemnity Insurance can be obtained online from Professional Insurance Agents who also provide a full brokering service for those clients who are unable to obtain terms online or who require a fully tailored policy.
With serious losses over many years, major insurers are looking very closely at whether they wish to continue offering cover for solicitors. Some have already pulled out of the PI market altogether. This coupled with the fact that experts are warning that professional indemnity (PI) insurance is more important than ever due to clients being more likely to take legal action against a company of something goes wrong.
The number of claims made for professional negilgence traditionally increase when there is a downturn in the economy and even if the allegation is unfounded valuable time and resources will be taken up, the cost of these could undermine the companies finances unless proper cover is in place.
Any PI policy that is put into place should cover the cost of defending a claim and any potential payments and should be tailored to the needs of the individual client.
Quotations for Professional Indemnity Insurance can be obtained online from Professional Insurance Agents who also provide a full brokering service for those clients who are unable to obtain terms online or who require a fully tailored policy.
Thursday, 26 May 2011
What are the benefits of using an umbrella company?
You may be thinking of becoming a contractor or freelancer and have heard of umbrella companies, and be wondering what they are and what benefits they can provide you. There are a number of benefits and these are outlined below.
- When you sign up to an umbrella company it is normally a quick and easy process, and the same goes for if you want to leave. As long as you ensure you do not get signed up to any long term monthly contracts. Most reputable umbrella companies will only charge you a fee if you are working and submitting timesheets, if you are not working then you will not pay anything.
- For those just starting out as a contractor or freelancer, or those that do short term contracts between permanent job roles an umbrella company is an ideal solution. If at some later stage you decide to start your own limited company you can do.
- An added benefit along with having the freedom of being a contractor, is that if you join an umbrella company you enjoy your full statutory employment rights. This means that if you are off for any reason you can claim your full benefits, which include maternity, paternity, sick and holiday pay.
- The amount of paperwork and administration you need to do when working through an umbrella company is minimal. For most umbrella companies you only need to submit your timesheet online once you have done the work. Once this has been submitted the umbrella company will handle all the administration on your behalf, which includes the invoicing and collecting of the money from your client or agency and payment of tax and NI contributions to HMRC, all at no extra cost.
- The umbrella company will deal with all your tax affairs and so you can be safe in the knowledge that you will be legal and tax compliant. You will not need to worry about having to figure out your taxes or pay an accountant an additional fee to do it for you.
- As a contractor you may be required to hold Professional Indemnity Insurance, Public Liability Insurance and Employer Liability Insurance. A number of umbrella companies will include these covers at no additional cost.
- You are permitted by the HMRC to claim back certain expenses. An umbrella company will process these expenses for you and all that you need to do is keep all the relevant receipts and pass these on.
Tuesday, 24 May 2011
IFAs Professional Indemnity Insurance Premiums could rocket
With the Court of Appeals ruling revoking the right of trustees to undo poor tax decisions, a surge in claims from people seeking to sue their adviser could mean a rise in insurance premiums for IFAs.
One legal expert said that trustees could no longer use the Hastings Base rule, which gave them protection and allowed them to go to court and admit they made a mistake but did not realise the financial consequences.
The Court of Appeal has ruled that is wrong for HMRC to lose out on revenue due to poor decisions, provided that the trustees had sought professional advice.
This ruling means that now a trustee will be in the same position as an individual, and cannot reverse the decision as long as they have taken professional advice. This could lead them to suing their advisor.
The ruling he warned could lead to higher premiums for IFAs for their professional indemnity insurance, as the more claims there are then the higher the premiums will be as is the case for other insurances such as car insurance.
One legal expert said that trustees could no longer use the Hastings Base rule, which gave them protection and allowed them to go to court and admit they made a mistake but did not realise the financial consequences.
The Court of Appeal has ruled that is wrong for HMRC to lose out on revenue due to poor decisions, provided that the trustees had sought professional advice.
This ruling means that now a trustee will be in the same position as an individual, and cannot reverse the decision as long as they have taken professional advice. This could lead them to suing their advisor.
The ruling he warned could lead to higher premiums for IFAs for their professional indemnity insurance, as the more claims there are then the higher the premiums will be as is the case for other insurances such as car insurance.
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