Exclusive Commercial Combined Facility

Direct Insurance London Market’s specialist underwriting team has launched ‘Direct Insurance London Market Commercial Combined’, a comprehensive combined package designed to meet the requirements of businesses where traditional composite markets have limited appetite.

This exclusive facility delivers market leading cover for over 300 different trades, including but not limited to: manufacturing, breweries, metalworkers & retail.

Key Covers…

  • Material Damage (all risks)
  • Business Interruption (all risks inc Theft & Subsidence)
  • Specified Risks (away from the premises)
  • Money & Personal Injury
  • Goods in Transit
  • Computer Breakdown
  • Employers Liability
  • Public Liability & Product Liability
  • Loss of Licence
  • Personal Accident
  • Legal  Expenses
  • Theft by Employee
  • Equipment Breakdown

In addition to…

  • Flexible underwriting approach
  • A-rated capacity
  • Dedicated Account Executives
  • Award Winning Service
  • Quick quote turnaround
  • Over 300 trades considered

Minimum Premiums:

£2,500 +IPT

What can you expect from us?

  • Generous Commissions
  • First Come, First Served Quoting System

To request further information on this facility, please contact our regional Business Development Team on 0203 818 8060 or visit our website: www.dilm.co.uk

Managing Risks for Directors and Officers

Every decision that directors and officers (D&O) of a company make has the potential to be scrutinised by clients, employees, shareholders and peers. These stakeholders may pursue legal action if they believe a decision adversely affects their best interests. And the stakes are high—directors and officers risk losing their personal assets if they are ever involved in legal action for a decision made in the course of performing their regular duties.

As a business owner, it is vital to have the proper risk management in place so you can attract talented directors and officers to your company. Consider tweaking the following three aspects of your business to boost your D&O risk management strategies
Corporate Structure

Prior to hiring a new director or officer, review your corporate structure to make sure your practices are sound and secure. Focus your review on the following:

• Employee orientation, training and education – Examine the type of training and education you are providing employees and gauge whether it is enough or whether more is needed. Review any incidents that have occurred in the past due to lack of training and talk to employees to get their feedback on the amount or type of training they receive. Also, make sure your managers are completely aware of any compulsory legislation and regulations your company must follow.

• Internal policies – Do your policies clearly state your ethical standards and what is expected of employees? Legal procedures should be outlined within each policy so employees are aware of the guidelines.

• Liabilities – Review potential liabilities in all areas of the company and the amount of risk each liability poses. This includes reviewing the amount of decision-making power each employee wields. In some cases, your directors and officers may have to rely on information from these employees if they do not have the time to extensively research the details themselves before making a decision. The employees that are tasked with gathering this important information for your managers need to be reliable.

Indemnification Provisions
While reviewing your business’ corporate structure, it is also a good time to take a look at the indemnification clauses in your by-laws or articles of association. Offered by many companies, indemnification clauses allow an organisation to compensate a director or officer for losses incurred while defending against a D&O lawsuit. It is important to review your clauses if you have not done so in years because the language may no longer be clear and you may need to revise or add to the language.

The expenses your executives may incur in a D&O lawsuit can be compensated on either a discretionary or mandatory basis. With discretionary indemnification, companies have no obligation to reimburse expenses, although they can do so if they wish. Reimbursement is decided on a case-by-case basis. With mandatory indemnification, businesses are obligated to reimburse all directors and officers for expenses incurred as long as the legal action against them is defended successfully. Determining which is better for your business (mandatory or discretionary) means you must consider your company’s appetite for risk as well as the type of director or officer you want to attract.

Keep in mind that there are exceptions to the indemnification provisions. If legal action is brought against a director or officer by a shareholder, he or she cannot be reimbursed for any expenses because essentially the company would be paying itself. Also, if the company were to become insolvent, it no longer has the obligation to uphold the indemnification provisions.

D&O Insurance
Public liability and products liability policies do not cover the cost of D&O legal actions. Settling these legal actions—even if the director or officer is found innocent—can be costly and bankrupt a company or individual. Many companies choose to purchase D&O insurance to protect their executives from legal expenses and personal liability exposures not covered by indemnification.

Assess the D&O policy you have in place and review the policy terms to make sure your limits are high enough to cover legal action against your directors and officers. Also, pay attention to exclusions in your policy, as lawsuits stemming from employment practice are usually not covered. You can count on the insurance professionals at Direct Insurance London Market for the resources and expertise you need to purchase a new D&O policy or update your existing policy today.

To learn more about what we do simply visit www.dilm.co.uk or get in touch with our team today (0) 20 3818 8060.

Business Interruption Insurance, do you have enough cover?

If a fire causes your facility to be temporarily unusable, what would you do next? Would your business be able to pay utilities, wages or any other standing charges without any income? It could take months before the damaged property is rebuilt and the stock, machinery and equipment are repaired or replaced. Ideally, you would move to a temporary location while your permanent place of business is being repaired. Yet, traditional Property Insurance does not cover this move or a loss of income when a business must temporarily close. With Business Interruption Insurance, this setback can be minimised by simply adding this cover to your Property Insurance policy.

What can be included in a Business Interruption Policy?

  • Compensation for lost income if has to vacate its premises as a result of disaster-related damage covered under a Property Insurance policy.
  • Compensation for the gross profits that would have been earned based on previous financial records, had the major loss/peril not occurred.
  • Covers operating expenses, such as utilities, that must be paid even though business temporarily ceased.
  • Covers the increased cost of working, including expenses of operating in a temporary location while repairs to the permanent location are completed.

Considerations for Business Interruption Insurance

  • Business interruption insurance cannot be purchased on its own—it must be added to an existing insurance policy, such as property or office insurance.
  • Purchasers must also determine that the policy’s maximum indemnity period is sufficient to cover the amount of time it will take for the business to recover following a major loss. This includes considering the worst damage or disaster that the business could incur, estimating how long it will take to repair or replace buildings, machinery and stock, and determining the length of time it will take to recover customers and market share. Typical maximum indemnity periods range from 12 months to 36 months, in 6 month increments.
  • Price of cover depends on the risk of disaster to the premises. This may depend on the business location, nature of the business and how easily the business could function at an alternate location on a temporary basis.

Insurance experts estimate that Business Interruption Insurance is one of the most, if not the most, valuable cover available. Yet, it is often overlooked by business owners. Since Property Insurance only covers the cost of physical loss or damage and contents of a business in the event of a disaster, Business Interruption cover is invaluable in covering the loss of income while the permanent business location is being repaired. Contact Direct Insurance London market at (0) 20 3818 8060 today to learn about our business continuity resources and to make sure that your business can survive an interruption.