Included in this sector are Accountants, Solicitors, Architects and Management Consultants and the key issue here is to ensure that the Directors responsibilities are fully understood and the appropriate insurance cover is obtained. In addition comprehensive coverage for any potential legal costs which may ensue from any action by clients or associated parties is essential.

Office Insurance

There are available "off the shelf" Insurance contracts providing the most common covers for an office based or service company. A typical policy includes cover for Buildings, Contents, Employers Liability, Public Liability, Products Liability, Business Interruption, Book Debts, Money, Glass and Business Equipment away from the office. For larger companies it is often more appropriate for these sections to be separately covered by a specialised policy.

Employers Liability

Since 1969 the Employers Liability (Compulsory Insurance) Act has required every employer carrying on a business, trade or profession to take out and maintain insurance against liability for bodily injury or disease sustained by their employees, arising out of, and in the course of their employment. The minimum requirement by law is £2 million. In practice, however, insurers do not issue policies in the UK for less than £10 million.

Public/Products Liability

The purpose of Public/Products Liability is to indemnify the policyholder under their legal liability, should they or their products cause death, bodily injury and/or loss of or damage to material property to a Third Party or Parties. Cover can be arranged for goods and services sold in the UK and/or on a Worldwide basis. This cover can be the most important section for any business as often the "buck stops here" and not having the right cover could cause financial ruin with the sheer numbers of potential claimants or the extreme awards now being made by the Courts.

Business Interruption

Fire, flood or other such disasters can cause financial ruin for any business. Whilst Insurers will pay for the repairs to the premises or replacement equipment, full insurance coverage for consequential losses following any such disaster can be vital to ensure the continuance of the business. Serious consideration should be given to protecting the Gross Profit or to buying cover for Increased Cost of Working, or indeed a combination of both.

Professional Indemnity Insurance

Should the clients, or associated parties, of any business suffer a financial loss due to acts of negligence, errors or omissions, by any member of its staff then a Professional Indemnity policy can provide protection and security for the whole business. In addition this type of policy can be developed to include Dishonesty of Employees, Unintentional Breach of Copyright, Libel and Slander. Owners and Directors of companies are under increasing scrutiny to ensure that their businesses behave with Integrity and meet higher and higher standards of Service. Add to this the readiness to which legal proceedings are now being instigated in all kinds of circumstances and it is easy to see why Professional Indemnity cover is becoming ever more relevant to all businesses.

Directors & Officers Insurance

The Companies Act 1985 alone sets out more than 200 offences for which a director can be personally liable. Add to this the numerous other offences under Health & Safety, Environmental and Financial Services Acts and it can be seen how important it is to consider this type of insurance cover. The Insurance cover protects the personal assets of company directors and officials.

Internet/Cyber Liability Insurance

New style Insurance contracts now exist for this business area and are they becoming increasingly important. There are three levels of cover available; firstly, when a website is being used solely as an advertising medium, secondly, when a website is an interactive one and this can include trading on line (such as purchase of tickets) and finally for companies who have an involvement in the formation, design and management of websites. Protection from Fraud, Hacking, Viruses, Infringement of Data Protection and Privacy Laws, Copyright, Libel and Slander, are the core covers. There are additional covers also available depending upon the specific nature and involvement of the website


It is important that not only new businesses give full consideration to this area of insurance but also well established, old economy companies, who have website activity and who may not be fully aware of the potential for catastrophic failures.

Computer Insurance

With most businesses now there is a heavy reliance on computers. Specialist policies are available to cover the equipment whether within the premises or elsewhere in the world. In the event of a serious incident a standard Material Damage policy can cover the value of the equipment, plus the labour and the computer time incurred in reinstating the data. In these circumstances no provision is made for any costs incurred in Research and Reformulation of the Data which has been destroyed. If cover for Research and Reformulation is required a full Reinstatement Of Data policy would be needed. Cover can also be obtained for Breakdown, Accidental and Malicious erasure of software and data.

Legal Expenses

Commercial Legal Expenses Protection is becoming increasingly important to small and medium size businesses. This policy provides access to expert advice and assistance in resolving a number of different areas and if necessary will pay for the cost of legal fees and/or accountancy fees to conclude the dispute. Typical areas of cover, which often can be bought as a package include, Contract, Employment, Data Protection, Criminal Prosecution Defence, Property Protection and VAT Disputes. For larger companies wide cover is available for each specific area.


Cover can also be obtained for "After the Event" Litigation. A range of solutions is available for those who wish to pursue their legal rights through litigation.

Crime/Fidelity Insurance

It is possible to provide cover against the dishonesty of your employees for the misappropriation of company monies or other commercial valuables. Extensions in cover can include ex-employees and employees of out-sourced companies. Traditionally cover under this type of insurance has not been available for Theft by non employees. However, now with the increased dependency on computers and in particular access to businesses via the Internet wider cover is available.

Engineering

Plant and Machinery such as Lifts and Air Receivers or other similar equipment have a statutory requirement for the plant to be inspected. Insurance cover for the equipment, the damage that is caused on failure and the statutory inspection is available under a single policy.

Motor Insurance

Motor insurance is a legal requirement under the Road Traffic Act and as such all companies that own or operate vehicles require cover. Polices are available on single, multi-vehicle or Fleet Basis.

Employee Benefits

Every company should give careful consideration to their employees' Conditions of Service. Click here for details of the various types of Employee Benefits available.