Posts tagged "Resources"

Protecting yourself as a Director or Officer in 2023 and beyond

August 23rd, 2023 Posted by Uncategorised 0 comments on “Protecting yourself as a Director or Officer in 2023 and beyond”

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:

What is causing the rise in the cost of Liability claims?

August 4th, 2023 Posted by Updates 0 comments on “What is causing the rise in the cost of Liability claims?”

What are the main reasons for inflation in Liability claims?

Claims inflation continued to be a priority topic for insurers in the UK and worldwide. Increased litigation costs, increases in psychiatric injury claims, and expensive commercial care packages are creating challenges for insurers.

According to Lloyd’s of London, claims inflation refers to the change in the cost of claims of a like-for-like policy over a period1. Claims inflation is the sum of ordinary economic inflation and excess inflation.

Excess claims inflation

Excess claims inflation is the increase in the cost of a claim beyond that of ordinary economic inflation, which is driven by many different types of inflationary factors such as:

  • Advances in medical science and technology
  • Increases in certain awards of damages
  • New categories of claims
  • Professional services spend, such as experts and legal costs
  • The rising cost of energy
  • The increasing cost of care

Social inflation

In addition to the above economic excess claims inflation factors, social inflation is a subset of excess claims inflation. It is referred to as social inflation because the increased costs are largely attributed to social trends or movements. The ‘social trends’ that are increasing the volume and costs of claims include:

  • Third party litigation funding facilitating a larger group of potential claimants to bring proceedings
  • Public sentiment driving an increased willingness/appetite to make a claim
  • Increases in collective or group actions
  • A civil justice jury award system leading to nuclear verdicts
  • Shifts in the legal and regulatory environment
  • The COVID-19 pandemic
  • The cost-of-living crisis

The cost-of-living crisis, professional services spend, the cost of care, and new categories of claims are key inflationary factors driving up the volume and cost of personal injury claims. For example:

Psychiatric injury

The impact of COVID-19, greater use of social media, and the impacts of the cost-of-living crisis have been identified as some of the reasons for the increase. It is also speculated that awareness efforts have contributed to the rise in individuals seeking help for their mental health. In early 2023, the UK government announced £150 million of additional funding would be allocated to mental health services.

Employee mental health and wellbeing have also become a strategic business priority, which is now part of the ‘S’ of their ESG strategy. Simon White, ESG Director at MX Underwriting talks about what the ‘S’ means in ESG here.

Cost of care

Increasing care costs are a significant reason for claims inflation in England and Wales. This has impacted both claims for non-commercial care voluntarily provided by family and friends as well as commercial care required in more complex cases.

Commercial care costs for both directly employed and agency care have also been driven upwards by a shortage of carers and the rising cost of living. Brexit, the pandemic, and a lack of suitable candidates have helped drive these shortages at the very time when there is an increasing demand for care due to the aging population.

In addition, the care sector is suffering from high turnover rates and poor staff retention with other sectors offering better pay, more sociable hours, and better working conditions.

Advances in medical science and technology

Amputation claims have been subject to hyperinflation in recent years and there are several reasons for this trend. The costs of prosthetic devices continue to increase which can be partly attributed to continued technological developments designed to increase levels of function for amputees.

However, even without technological advancements in prosthetic devices, the market is typically seeing price increases of between 5% to 8% per annum for the same products caused by a combination of general economic pressures in the UK and limited competition in the industry.

New surgical techniques such as targeted muscle reinnervation (TMR) or osseointegration (where a titanium rod is implanted into the stump to which the prosthetic is attached rather than the conventional prosthetic socket) can also add an additional layer of costs.

The recent judgments of Swift v Carpenter [2020] and Riley v Salford Royal NHS Foundation Trust [2022]2 have assisted claimants in their efforts to push the legal boundaries and are often cited by leading claimant firms in relation to accommodation, life expectancy and loss of earnings.

Finally, the catastrophic nature of injuries suffered by amputees means that there are often claims for inter-dependent losses of accommodation and care which have also been subject to inflation in recent years.

The cost-of-living crisis

Fraudulent claims typically rise during economic downturns. This flux and uncertainty compared with previous economic downturns causes delays in claim processes and increases costs.

The economic downturn has also seen a significant rise in opportunistic property claims in both residential and commercial lines. In commercial lines, arson and escape of water claims remain prevalent as COVID-19 bounce-back loans and general government support have been withdrawn

How we can help

Specialist Risk Insurance Solutions (SRIS) Claims Director, Justin Welham, comments:

“Whilst not as obvious as the property sector, claims inflation is also starting to have a real impact on casualty claims.

Rising inflation means that the Judicial College guidelines, used to assess general damages claims for pain, suffering and loss of amenity, are quickly out of date and claimant solicitors are looking for higher damages.

We are already starting to see a relatively sharp increase in the average value of general damages paid, which in turn will drive up renewal premiums. As part of our risk management offering, we actively engage with clients to ensure that the appropriate loss control measures are in place to prevent accidents occurring in the first place.

When accidents do happen, our award-winning claims team are on hand to walk the client through the process every step of the way.”

For more information on claims inflation and how this may impact you get in touch with our expert team.

What about Motor claims?

Find out more about what’s driving Motor claims inflation.


What is causing claims inflation in Property?

August 4th, 2023 Posted by Updates 0 comments on “What is causing claims inflation in Property?”

What are the main reasons for Property claims inflation?

In 2021, the COVID-19 pandemic was dominating news headlines, now, the cost of living and inflation rates are today’s headlines – but how did we get here? This article drafted by our Group claims specialists provides an overview of some of the specifics that are driving inflation rates and as a result, claims inflation.


The impact of Brexit has disrupted supply chains because it has called for new negotiations for cross-border trade. This has resulted in added cost, complexity, and delays in shipping. Some suppliers have even downgraded the UK as a priority market because of Brexit.

Brexit also created a skill shortage, and regulatory changes have made working in the UK less attractive to EU nationals who are increasingly returning home.


UK unemployment is low, which has resulted in high vacancies and more competition for increased salaries, the lack of skilled labourers required for construction, alteration, and reparations of buildings.

Global supply chain

The world is seeing record highs in the cost of petrol and diesel, which has been driven by supply challenges. Freight shipping costs have more than doubled since 2020, and machinery and plant have longer lead times as a result, particularly with items that are manufactured outside of the UK1.

Climate change

We are also beginning to see major impacts of global warming, in the form of increased storm and flood frequency and severity. This coupled with inadequate investment in drainage infrastructure in the UK is adding to the damage.

For example, Flood Re estimates that flooding will have increased between 25% and 80% by 2050, depending on the rate in which weather temperatures increase2.

How we can help

Specialist Risk Insurance Solutions (SRIS) Claims Director, Justin Welham comments:

“In the property market we’ve seen post-pandemic supply chain bottlenecks, higher energy and transportation costs, and shortages of labour all contributing to higher inflation in 2022.

In 2023 we’ve seen that the war in Ukraine has further fuelled global inflationary and supply chain pressures, causing price shocks for a wide range of commodities, including energy, food and construction materials. This Supply chain disruption and rising prices are driving up replacement and rebuilding costs for property and construction claims.

This will inevitably leave companies exposed to under-insurance across their property portfolios. Our team continue to work closely with our clients in terms of costs mitigation and making sure that their property portfolio sums insured have been recently reviewed to avoid the pitfalls of under-insurance.”

For more information on claims inflation and how this may impact you get in touch with our expert team.

What about injury claims?

Find out more about why claims inflation in relation to liability.


What is driving Motor claims inflation?

August 4th, 2023 Posted by Updates 0 comments on “What is driving Motor claims inflation?”

Inflation has stretched across all industries, and Motor claims is no different. This article drafted by our Group claims specialists outlines the overarching reasons and consequences you’re likely to hear about and experience.

The COVID-19 pandemic

The pandemic impacted supply chain as the world was placed on ‘lockdown’. This resulted in a shortage of semiconductors, which are computer chips used in a wide variety of technological products. For example, a fuel car requires upwards of 40 of these technology chips, and represent about 35% of the vehicle cost; without them our vehicles simply cannot be made.

The shortage is so significant that some manufacturing plants have been forced to close. As a result, the backlog of new vehicles means that second-hand vehicles are more expensive.

War in Ukraine

Conflicts in the country have directly impacted availability and delivery times of a variety of vehicle components. For example, BMW, Audi and Volkswagen have manufacturing resource in Ukraine for harnesses that hold vehicle cabling together. While they’re inexpensive, they are bespoke to each model.

Car plants have closed across Europe, as production can’t begin without these bespoke harnesses.

Employees in the motor industry are in decline

The HSE has said that the number of employees in motor has been in decline in the last few years. Brexit has accelerated this decline as overseas employees leave the nation. Finally, the cost of transport has also increased which has had a knock-on effect on inflation.

The Institute of the Motor Industry (IMI) is predicting that 160,000 vacancies in the sector will need to be filled by 20311.

Technological improvements in the motor industry

The introduction of new and innovative technology in electric vehicles has resulted in an unprecedented increase in car part theft, specifically lithium batteries, which are more expensive to replace or repair due to a lack of specialists in the industry (Only 6.5% of the current motor workforce is qualified to service EVs2). It also costs a great deal more to dispose of lithium batteries, which inevitably increases premiums.

How will the inflation of motor claims affect you?

Specialist Risk Insurance Solutions (SRIS) Claims Director – Motor, Jamie George, comments:

“The SRIS Motor Claims Team works tirelessly to assist our customers throughout the entirety of the claim journey, from Day One with Own Damage or Third-Party Capture, to minimise and mitigate costs on all heads of claim. The teamwork with the customer to always protect their interests and have their best intentions in mind.”

  • Instruction of own repairer/preferred repairer = building on lasting relationships
  • SRIS Own Repairer Network availability
  • Management of own vehicle consequential losses including downtime and Vehicle Off road costs
  • Mitigation of ongoing losses for Fault and Non-Fault Incidents

Third Party

  • Report! Report! Report! Is something to remember, the faster you report the smoother the claims process will be
  • Ongoing Triage of all Incidents including Fault/Non-Fault
  • Market support with Third Party capture including offer of own services for repairs

How we can help

SRIS Client Relationship Director – Motor, Robert Wright, comments “Early reporting is a must, and it will allow us to help you. After any incident, policyholders and drivers must respond quickly to requests for information. Having the right reporting processes in place to provide us with meaningful information in a timely manner is vital as this will allow us to ensure liability is quickly established.”

For more information on claims inflation and how this may impact you get in touch with our expert team.

What about injury claims?

Find out more about why claims inflation in relation to liability.


Why are we experiencing claims inflation?

August 4th, 2023 Posted by Updates 0 comments on “Why are we experiencing claims inflation?”

What are the main reasons for claims inflation?

Over the last year, everyone has seen a rise in the ‘cost of living’ as the Consumer Price Index (CPI) continues to increase. There are several factors that have led to this consequence, with most industries affected.

What is claims inflation?

Put simply, claims inflation is the change in the average price of goods and materials, and services in relation to a portfolio of representative claims.

Our Group claims specialists put together three of the main areas we believe might affect our clients the most. Below, you will be able to read through the reasons for claims inflation in Motor Fleet, Liability, and Property insurance and gain an understanding of how the current economic climate could affect you and your business.

Motor Fleet inflation

With the average claim costing over £5,0001, it is no wonder people are asking ‘why?’. In this article, the team talks about the specific elements across supply chains, conflict between countries, and the impact of the global COVID-19 pandemic that has amounted to claims inflation for Motor policies.

Click here to read

Property Claims Inflation

From the global pandemic, and new regulations because of Brexit, to climate change, if you’re curious about some of the biggest reasons driving claims prices upwards in Property insurance read our latest article.

Click here to read

Liability Claims Inflation

When the cost of repairs, materials, and labour rise, so does the cost of third-party liability for property damage. Inflation also raises the cost of settlements and damages awarded in court cases.

Click here to read

How we can help

Specialist Risk Insurance Solutions (SRIS) Client Relationship Director – Motor, Robert Wright, comments “Early reporting is a must, and it will allow us to help you. After any incident, policyholders and drivers must respond quickly to requests for information. Having the right reporting processes in place to provide us with meaningful information in a timely manner is vital as this will allow us to ensure liability is quickly established.”

For more information on claims inflation and how this may impact you get in touch with our expert team.



A guide to Management Liability insurance

April 18th, 2023 Posted by Uncategorised 0 comments on “A guide to Management Liability insurance”

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:

Underinsurance ‘made worse’ by rising construction costs

March 20th, 2023 Posted by Uncategorised 0 comments on “Underinsurance ‘made worse’ by rising construction costs”

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

Infographic credit:

It is vital to insure your building correctly – ‘You get what you pay for’

March 20th, 2023 Posted by Uncategorised 0 comments on “It is vital to insure your building correctly – ‘You get what you pay for’”

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

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9 out of 10 UK properties are insured for the wrong amount

March 20th, 2023 Posted by Uncategorised 0 comments on “9 out of 10 UK properties are insured for the wrong amount”

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

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You Might Need a Green Card if You Are Driving Abroad From 1st January 2021

December 30th, 2020 Posted by Uncategorised 0 comments on “You Might Need a Green Card if You Are Driving Abroad From 1st January 2021”

The UK formally left the European Union on 31 January 2020. Whilst we now have a Free Trade Agreement, uncertainty remains on whether this will be extended to facilitate access to the EU’s single market for UK financial services.

From 1st January 2021, UK motorists including road hauliers driving in the European Economic Area, Andorra, Serbia and Switzerland will need physical proof of motor insurance when they travel; commonly referred to as a Green Card, until such time as the EU Commission agrees that the UK can remain part of the Green Card Free Circulation Zone. The Green Card requirement will also apply to motorists in Northern Ireland driving across the border with the Republic of Ireland.

All European Economic Area (EEA) countries (EU countries, and Iceland, Liechtenstein, Norway) are part of a Green Card free circulation area, meaning that motorists based there do not have to carry Green Cards when visiting other countries in the area. UK motorists will be required to carry Green Cards for driving in the Republic and other EU states, until such time as the European Commission agrees that the UK can remain in the Green Card Free Circulation Zone.

Motorists failing to carry a Green Card when one is needed, risk having their vehicle seized and facing prosecution.

What is a Green Card?

A Green Card is an international certificate of insurance that proves you are insured to drive in the EU. They’re issued and signed by your vehicle insurer, and include your vehicle and registration details. You’ll need to have one with you if you’re driving in Europe and you’ll need a second one if you’re towing a trailer or caravan.

You also need to take your vehicle registration document (V5) to prove you own the vehicle and have a GB sticker on your vehicle and any trailer. In some countries you’ll need an international driving permit (IDP) Check if you need an IDP.

How long do they last for?

A Green Card can last for up to 90 days (or until you’re due to renew your motor insurance, if your renewal date is less than 90 days away), but you should check your policy booklet for details on how long you’re covered to drive in a single trip abroad.

What happens if my insurance renews whilst I’m driving abroad?

When you renew your insurance you’ll need a new Green Card for your new policy, even if you keep your insurance with the same insurance company. If you decide to switch to a new insurer, you’ll need to ask them for a new Green Card.

If you plan to be driving your vehicle abroad, please make sure you apply for a Green Card at least 3-4 weeks in advance of your trip as some insurers require a minimum of 3 weeks’ notice in order to produce the document.

What will happen if I don’t have a Green Card when I travel abroad?

You could be breaking the law, be refused entry into the European country, receive a fine and/or have your vehicle seized. Motor insurance policies do not cover loss or damage caused by the legal confiscation of your vehicle by HM Revenue and Customs, the police, a local authority or any other government authority – check your policy booklet for full terms and conditions.

What happens if I’m driving with a trailer or caravan?

You’ll need to inform us when you ask for your Green Card as you need a second Green Card for your caravan or trailer.

If you plan to take a commercial trailer weighing over 750kg or a non-commercial trailer weighing over 3,500kg, you must also register it with the Government before you can travel to, or through, most EU and EEA countries.


Although talks remain ongoing for UK financial services firms to replace passporting rights to offer insurance coverage in the EU, an agreement is unlikely to be reached for several months, if at all. If you are planning on driving abroad in 2021, we strongly recommend planning in advance to ensure you have the correct documentation.

For more information, please contact your Hamilton Leigh Client Service Executive.

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