Underinsurance can lead to reduced claims settlements and can make it significantly harder for you to recover following a loss.
Despite the gravity of its consequences, underinsurance remains a major problem for the insurance industry across many different market sectors and varying lines of business, and when a claim arises the impact can be disastrous.
Valuations and risk assessments have become less of a priority to property owners in the face of an ever shifting economy. As owners attempt to cut costs, the market has seen an increase in the number of underinsured properties, not just in the UK, but around the world.
Emerging global risks, such as extreme weather events causing increased flooding and property damage, highlight the need for stronger coverage.
Click here for a guide which contains a series of simple, practical tips, that can help you in eliminating underinsurance.
HCC, one of our insurer partners for Professional Indemnity Insurance, have written about miscellaneous PI insurance. In the article they explain which professionals should consider buying PI insurance and what it covers.
Read HCC’s article
May 2018 sees the introduction of the European Union General Data Protection Regulation (GDPR). In the UK this will be enforced by the Information Commissioner’s Office, who is acting as the regulator and is talking to the government at the moment about compliance issues.
The new regulation will give consumers better data protection and also enable them to access their information more easily. Businesses will need to be transparent about how they store and use customer information and will need to declare any cyber hacks or data breaches.
If they do suffer a breach they will be obliged to inform the regulator within 72 hours. Failure to do so could result in a fine of up to £17m or 4% of global turnover, whichever is greater. Breaches can include anything from emailing client information without their consent to ransomware attacks and data theft by hackers.
Under GDPR customers have a new “right to be forgotten”. Customers can request information on how their data is being used and, in certain circumstances, request that data about them is erased.
Make sure you have cyber insurance in place
While the concept of cyber insurance is no longer that new, take up by businesses has been slow. But with GDPR looming on the horizon and the potential threat of large fines in the event of a data breach, the value of cyber insurance is more evident than ever before.
The team at Arlington are well placed to assess the insurance needs of your business, including cyber risks, and will find the most appropriate cover to protect your systems and your customers’ data.
With Arlington you get the reassurance that if you do suffer a data breach you have someone to turn to. The team at Arlington would be there to support you by helping to manage, investigate and resolve a breach and the issues this causes, with their insurer partners.
Andy Wright has joined Arlington Insurance Service Ltd from Arista where he was Regional Director for the South East. Nikki Coglan is welcomed to the Board as a Director of the business.
Paul Stoner, Managing Director of Arlington said “Andy brings a wealth of experience to our business as we build our status and presence in the Real Estate sector. Nikki is one of our most valuable assets and the Board is further strengthened by her appointment.”
Read more about Andy, Nikki and the rest of the Arlington team.
Figures from Datamonitor’s SME insurance survey, conducted in 2014, suggest that only 23.3% of small and medium-sized businesses have any Directors and Officers cover. This is in stark contrast to large corporate businesses where take up has increased significantly over the past 20 years. Now at almost 100% among FTSE 250 companies, this has been driven by directors themselves, who have refused to take up a directorship without cover in place.
The fact is though that directors of small businesses face exactly the same risks as those in large companies. Without cover in place, these directors are vulnerable in the event of legal action against their business. Even worse, they are unlikely to have the in-house legal resources that their larger counterparts would have, if they were in the same situation.
Read the attached insight report from our insurer partner, Allianz, for more information. If you would like to discuss the insurance needs of your own business, please talk to the specialist D&O team at Arlington, who will help you to put adequate insurance cover in place.