Storms such as Storm Bert bring severe disruption across the UK, leaving many properties damaged and communities affected by heavy rain and flooding. According to FloodFlash, businesses that have been affected by severe flooding lose an average of 50 working days, with 40 percent of those having to close for good¹.

Although you can’t completely floodproof your property, having a flood plan in place can make your business more resilient to flooding and can help you recover from the impacts more efficiently.

What is a flood plan?

A flood plan is a written document outlining how your business will respond to a flood. Store your business’s flood plan in an easily accessible location; everyone should know where it is.

What to include in your flood plan

Your business’s flood plan should include the following:

• A list of important contact information, including the Environment Agency’s Floodline (0345 988 1188) and any additional flood warning systems, building services, suppliers and evacuation contacts
• A map showing locations of supplies, protective materials, and shut-off points
• An outline of basic strategies for protecting property, ensuring health and safety, minimising business disruption and facilitating recovery
• Procedural checklists for staff to use during a flood

How often to review your flood plan

Review and update your plan annually. Flood risks and procedures can change, so make sure your business is always prepared.

If your business does suffer a flood, undertake a thorough review of your flood plan as soon as you can to determine what worked well and what could be done differently if you experienced flooding in future, to ensure your flood plan is as effective as possible.

Additional precautions you can take to protect your property from flooding

The Environment Agency estimates that with proper preparation, most businesses can save 20 to 90 percent of the cost of stock lost due to flooding². Consider the following precautions against flooding when building or carrying out a refurbishment:

• Purchase boards for your doors that you can install when flooding is imminent
• Seal floors to prevent water seeping up through the ground
• Fit non-return valves to drains and both inlet and outlet water pipes
• Install high shelving where you can store items when flooding is imminent
• Raise electrical sockets, fuse boxes and wiring at least 1.5 metres above the floor
• Keep a pump in the basement or lowest level to remove flood water

In tandem with your business’s physical flood prevention measures, adopt the organisational precautions listed below for a more comprehensive flood preparation:

• Compile a list of useful telephone numbers, including Floodline, your local authority and your insurer/broker – visit our claims page
• Familiarise yourself with how to shut off your gas, electricity, and water
• Develop a flood contingency plan with suppliers and clients
• Designate an emergency flood contact
• Train your employees in correct flood safety procedures, and establish a safe meeting place in case you need to evacuate
• Stockpile useful materials like plastic sheeting, plywood, sandbags, nails, hammers, and shovels

We’re here to help

Risk management and insurance go hand in hand in protecting your business against the risks and consequences of flooding. If you’ve been affected by the recent flooding and would like one our specialists to review your current insurance cover and see if we help improve this, please get in touch on 0208 236 5350 or email info@hamiltonleigh.com

Sources:

1. FloodFlash | Five statistics brokers should know about commercial flood risk in Britain | https://floodflash.co/five-flood-risk-statistics-brokers-should-know/
2. Environment Agency | Flood Hub – Would your business stay afloat | https://thefloodhub.co.uk/wp-content/uploads/2018/10/EA-Would-your-business-stay-afloat.pdf

If you are a director or officer for a business, protecting your and your leadership teams personal exposures is vital. Our sister company, Specialist Risk Insurance Solutions, has created a FREE guide that we are pleased to be able to share with our clients. Read the guide for more information about how to safeguard your leadership team against potentially lengthy and costly legal proceedings.

Difficult. Done Well.

Read our latest case study to see how Jason Cohen, Head of Business Development at Hamilton Leigh helped a CFO Centre client in placing a global insurance programme at a competitive rate in a highly efficient timeframe.

Background

Jason Cohen began engaging with CFO Centre client, Stuart Hood, who is an international leading advisor working within the energy, refining and chemical sectors. Jason provided advice and assistance around the placement of one of Stuart’s clients’ global insurance programmes.

Challenge

The UK Limited company, with international presence, were part of a global insurance programme stemming from the US but given potential forthcoming structural changes, Stuart was keen to explore an insurance programme that stemmed from the UK and could then cover the business on the same international basis of cover.

Stuart and Jason Cohen engaged extensively to discuss the covers the business currently had in place, the markets available and the practicalities around structure of programme. It transpired that this particular year was not the right time for the business to move their insurances but nonetheless, Stuart took great value from his interaction with Jason to understand that this could be done and how.

Solution

The following year, Jason and Stuart put their plan into action and at this point Jason engaged the international team at Specialist Risk Group (SRG). On this case, matters were led by Kevin White, Account Director. Kevin and his team are incredibly experienced and knowledgeable about their markets on a global level and in almost every case give a very understated account of what they do how they do it. The truth is their service level and expertise are invaluable in such complex placements.

SRG’s international team have a vast amount of experience working with global insurance markets, this was paramount to ensuring Stuart had the most comprehensive insurance coverage which captured all elements of risk across the regions they operated within.

Following a detailed review of the Group’s insurances, which involved an in-depth gap analysis of the existing policy wordings, SRG’s international team carried out an extensive marketing exercise which included London, US, and Asian markets.

Outcome

SRG’s international team utilised their Worldwide Broker Network membership relations to ensure that the current insurers were advised of Hamilton Leigh being the newly appointed broker, and to formalise this appointment and access local markets in the US for the Professional Indemnity and Cyber policies.

Working in partnership with their US markets, SRG’s international team were able to secure continuous Cyber cover, with broader worldwide coverage at a competitive rate. Similarly with the Professional Indemnity and Directors’ and Officers’ policies, SRG’s international team negotiated competitive premium rates with insurer’s in the name of the Top Company, which was based in the British Virgin Islands, ensuring global cover for the entire group.

Stuart was incredibly complimentary of the work carried out by Jason Cohen and SRG’s international team quoting “Jason has proven to be an invaluable partner for me and various clients, supporting us in not only obtaining a competitive price but more importantly reviewing the suitability and in some circumstances adequacy of cover. On this particular case, it was vitally important that our cover remained stable and at competitive premiums. Given the more complex nature of this business case mentioned, I am very grateful to Jason and his International counterparts for making it such a seamless process.”

In their positions, Directors and Officers have specific duties, responsibilities, and powers. One incorrect move or decision means they can be personally scrutinised by employers, shareholders, and regulators and therefore board engagement with Directors and Officers (D&O) also known as Management Liability insurance, is vital.

We previously held a webinar with expert panellists Gary Gallen, Founder and CEO of specialist law firm rradar, and Nick McGarey, Underwriter at Beazley, who mentioned that in both the legal and insurance sectors, they are seeing an increase in litigation and claims against businesses and senior management teams.

Our panellists provided the following top tips to protect yourself as a Director/Officer:

• Ensure regular check-ins with your remote employees as isolation and exclusion can trigger claims against you and/or your business
• Regularly review internal and external data protection policies and procedures
• Provide data protection and cyber training to employees as 90% of all data breaches occur because of human error
• Embrace and innovate the new way of working and offer flexibility for existing and prospective employees to avoid unfair treatment claims
• Set out health and safety measures and ensure processes are followed and clearly documented to avoid investigation by the HSE
• Have a robust business continuity plan in place
• Remember that smaller businesses are just as likely to be targeted as larger businesses
• Speak to your insurance broker about how you can mitigate these risks through careful risk management and Management Liability insurance

It is important to remember that Executive Directors, Non-Executive Directors, Shadow Directors, and Officers, including those who have retired, can be held culpable for Directors and Officers claims so now is the time to consider your personal protection.

We are here to help

If you would like to discuss your personal exposures further, or for more information about Management Liability insurance and what it covers, get in touch with Jason Cohen:

JasonCohen@hamiltonleigh.com

It can be difficult to comprehend the cyber risks your business is exposed to, particularly if you have never experienced a cyber-attack. Therefore, many choose to bear the consequences themselves without understanding how significant these can be. However, Cyber and Cyber-crime claims are now making up more than 50% of all claims in the insurance market, so managing this risk is no longer a task for the IT team, but a Board level consideration.

In this blog we explain some of the most common cyber-attacks, how they occur and how you can protect your business against them:

Funds Transfer Fraud / Social Engineering Fraud

Almost all companies invoice their clients for payment for their goods or services, as well as working with several suppliers who will in turn invoice for goods and services they provide to the company. When paying these invoices electronically it is all too easy to fall victim to cybercriminals who can intercept electronic payments and divert them to fraudulent accounts.

These attacks can be perpetrated in a number of ways including:

• Social Engineering – whereby a member of your accounts team might be tricked into paying funds into a fraudulent account, following an extremely convincing call from someone pretending to be the client/supplier and advising of a change of bank details.
• Invoice Fraud – whereby an invoice attached to an email can be intercepted along the way, with the details changed to that of a fraudulent account before being released, seemingly with no discernible changes.

These risks can be mitigated by training your employees to look out for the tell-tale signs that a fraudster may be involved, including the creation of high pressure/urgency, as well as implementing procedures such as call-backs to a known contact before accepting a change of bank details. 80% of Cyber claims involve employee error, so training your staff is a crucial element of your Cyber risk management.

Ransomware and Data Breaches

The most valuable asset that most companies hold is their data, rather than physical assets such as their property or plant/machinery. Whether a company relies on their systems to trade day to day or holds sensitive customer data, cyber criminals know all too well that the majority of companies cannot survive a ransomware attack for long.

Ransomware attacks can result from something as simple as an employee opening what appeared to be a ‘CV’ attached to an email that came from someone purporting to be on the hunt for a job. For a sophisticated cyber-criminal, this is enough for ransomware to be installed on your network, giving the hacker the ability to not only shut down your network but also to access and leak data you hold.

Cyber criminals have recently pivoted away from shutting down a network and demanding a few hundred pounds for the key to unlock; instead, they are sitting in the network for months on end, gathering data that can be sold on the dark web or leaked, and then using this knowledge to demand ransoms of up to tens or even hundreds of thousands of pounds.

How to mitigate your risk:

• Use reputable antivirus software and firewalls – this is your first line of defence, so maintaining a strong firewall and keeping your security software up to date is critical.
• Patching (updating) – Regular patching of vulnerable software is necessary to help prevent infection that takes advantage of out-of-date systems with known vulnerabilities.
• Strong passwords and multi-factor authentication – enforce a strong password policy and multi-factor authentication. This will also reduce your risk of Business Email Compromise (BEC), which is another prolific problem and can lead to downtime, reputational impact, and large financial loss.

The National Cyber Security Centre (NCSC) has provided further guidance with actions you can take to reduce the risk of falling victim to an attack whilst the threat level is heightened here.

We are here to help

To learn more about how to protect your business against cyber risks, contact our specialist, Jason Cohen:

JasonCohen@hamiltonleigh.com

Legal actions may be brought against companies for a variety of reasons ranging from allegations of financial mismanagement, to alleged liability for injury/illness or for loss of or damage to property. Therefore, board engagement with Management Liability insurance is critical to protect your business.

What is Management Liability Insurance?

Management Liability insurance is a suite of covers designed to offer legal protection for you, your fellow Directors and Officers and your company for wrongful acts you have, or are alleged to have, committed. There are three sections to this suite of covers:

Directors & Officers Liability (core) – Directors and Officers (D&O) Liability insurance provides protection for the Directors and Officers of a company for claims against them for wrongful acts committed solely by reason of their acting as a Director or Officer of a company.

Employment Practices Liability (optional) – Employment Practices Liability (EPL) insurance protects your company against financial loss from claims made by employees for a wide range of employment practice violations, including unfair dismissal or discrimination on grounds of sex, race, disability, religion, belief, or sexual orientation.

Corporate Legal Liability (optional) – Corporate Legal Liability (CLL) is similar to D&O but provides indemnity in respect of costs and awards for any allegations/claims made against the company (entity) as opposed to individuals.

Frequently Asked Questions

Why do we also need Corporate Legal Liability?

As claimants will want the best chance of success, they will deploy a scattergun approach against you (the individual) and the company you work for. Therefore, purchasing Corporate Legal Liability ensures an all-encompassing protection.

What is the need for Employment Practices Liability cover?

These immediate issues aside, Employment Practices Liability (EPL) is a vital cover as it defends your business against the allegations of wrongful dismissal, discrimination, and harassment to name a few.

What is a wrongful act?

Examples of wrongful acts include:

• Inland revenue investigation
• Flouting regulations
• Making a poor business decision that effects income &/or shareholders or brings the business in to disrepute
• Making an acquisition with no/scant due diligence that then puts your core business at risk
• Closing business locations and causing loss to the landlord
• Sanctioning a site clearance without an environmental survey putting protected wildlife at risk
• Taking over a business and its obligations but not fulfilling them

In short, anyone can make an allegation of a wrongful act for any number of reasons and Management Liability cover will defend you, as long as you have not acted fraudulently or committed a criminal offence.

Who is covered under a Management Liability insurance policy?

All past, present, and future:

• Executive Directors
• Non-Executive Directors – (The liabilities of non-executive directors are the same as those of executive directors)
• Shadow Directors – A Shadow Director is someone who is not a registered Director of a company but exercises control or influence over a business and on whose instructions the Directors of the company act. Professional Advisors are not regarded as Shadow Directors. A Shadow Director is treated in many ways as a real Director of the company concerned and so will be bound by the same duties and obligations
• Officers – Managerial and supervisory roles

What is the most common type of claim under the policy?

Whilst claims can be brought by anyone, the most common claims relate to allegations of Employment Law failings such as:

• Bullying
• Harassment
• Discrimination
• Failure to promote/recruit

Are there any exclusions under the policy?

Generally speaking, cover is broad and designed to pay defence costs and awards, irrespective of cause. However, certain types of risk are typically excluded, such as deliberate acts, criminal acts, wilful misconduct or damages for bodily injury and property damage.

A risk management checklist for Directors and Officers

Our specialist team have drafted the following guidance to protect yourself as a Director/Officer:

• Educate yourself on the risks that drive litigation and regulatory actions
• Invite subject experts to board meetings to discuss emerging risks
• Draw on the expertise of insurers and learn from D&O claims trends
• Reduce risk by developing robust governance and strong culture
• Encourage diversity of knowledge and experience at board level
• Carry out due diligence on business partners for corruption, ethics, and cyber risks
• Do not be afraid to question and challenge the conduct of others
• Take red flags seriously and act on them

Next steps

For more information on how you can protect yourself and your fellow Directors and Officers within your organisation, get in touch with Jason Cohen:

JasonCohen@hamiltonleigh.com

It is crucial to ensure your building is insured adequately and important to consider the rising costs in products and materials.

If you are concerned about the adequacy of your cover, please contact us to discuss at info@hamiltonleigh.com

Infographic credit: RebuildCostASSESSMENT.com

If you are concerned that your building may not be adequately insured, please get in touch with us to discuss at info@hamiltonleigh.com

Infographic credit: RebuildCostASSESSMENT.com 

We are continuously focused on discussing this subject with our clients to ensure they are covered correctly. 

Please feel free to contact us to discuss further at info@hamiltonleigh.com

Infographic credit: RebuildCostASSESSMENT.com

Hamilton Leigh is proud to work in partnership with KVF Advisory, health and safety consultants who specialise in the Motor Trade sector, offering our clients a bespoke and robust approach to risk management.

THE BENEFITS

KVF Advisory Services £125 plus VAT per site per month

• An annual visit from KVF plus full access to CANOPY Safety* (innovative Health & Safety Management & Compliance software):
  • Single or multi-site
  • Unlimited user access
  • Interactive dashboard, with actions, notifications, and reminders
  • Audits
  • Checklists
  • Risk assessment library
  • Online accident book
  • File management
  • MI reporting
  • Help function

• Fully scored audit completed with risk profile conducted and follow-up actions (fixes) provided
• Unlimited email and telephone support
• Additional visits subject to availability

CANOPY Safety £100 plus VAT per site per month (software only option)

• Full access to CANOPY Safety* (our innovative Health & Safety Management & Compliance software):
  • Single or multi-site
  • Unlimited user access
  • Interactive dashboard, with actions, notifications, and reminders
  • Audits
  • Checklists
  • Risk assessment library
  • Online accident book
  • File management
  • MI reporting
  • Help function

• Unlimited email and telephone support
• Additional visits subject to availability

* CANOPY Safety is a live and interactive online Health & Safety Management tool with online reporting, including accident book with templated policies and procedures for customer use.  This inhouse KVF owned and built system allows multiple users access to their Health & Safety documentation at any time from any web enabled device 24/7/365

Fire Risk Assessments £500 plus VAT per premises

• Fire Risk Assessments (FRAs) will be conducted by a NEBOSH qualified professional with fully detail report provided upon completion:
  • KVF standard rates are charged at
  • 20% discount available to existing KVF customers

Intuity

• Online e-Learning system
  • Our Intuity online training platform includes over 60 training courses covering multiple Health & Safety topics.  We’ve also added some HR modules such as Anti-Money Laundering; Data Protection / GDPR; and Information Security.  All priced at just £15 per module, per user, per year.
  • The Health & Safety Induction covers six key areas: Workplace Health & Safety; COSHH; Display Screen Equipment; Fire Awareness; Manual Handling; and PPE and is great value at just £15 with additional courses available to purchase on request.
  • Unlimited email and telephone support

First Aid & Fire Marshal Training

• KVF are also able to provide face to face classroom based First Aid and Fire Marshal Training at your own premises. Further details and prices available on request.

YOUR BUSINESS. OUR FOCUS.

For more information, or to arrange an introductory meeting with KVF, please contact Jason Cohen: jasoncohen@hamiltonleigh.com