Risk Assesments - People do the Strangest things!!!!

Presentation to Altrincham & Sale Chamber of Commerce – Business Academy

For Commercial Insurance

‘Take the risk but protect yourself’

Ged Murray

Insure Risk Limited

13th May 2014

Insurance

What is the definition of Insurance?

‘‘it is the equitable transfer a risk it is the equitable transfer a risk of a loss from one entity to of a loss from one entity to another in exchange of payment’another in exchange of payment’

Business Risk Exposures

Focussing on commercial business Insurance covering property Focussing on commercial business Insurance covering property assets and liabilities.assets and liabilities.

– Property, Buildings, Contents, Stock, Plant Contract Works, Property, Buildings, Contents, Stock, Plant Contract Works, Computers Computers

– Business InterruptionBusiness Interruption

– Liability -Employers, Public, Product & Professional Liability -Employers, Public, Product & Professional IndemnityIndemnity

– Motor Fleet/Engineering Motor Fleet/Engineering

Not included For TodayNot included For Today– Life Insurance, Pensions, Health Insurance & Credit InsuranceLife Insurance, Pensions, Health Insurance & Credit Insurance

Key Steps For Business Risk Exposure

Identify potential risks to your Identify potential risks to your businessbusiness

Where possible remove/reduce Where possible remove/reduce riskrisk

Apply management procedures Apply management procedures to control riskto control risk

Where appropriate transfer risk Where appropriate transfer risk by arranging correct insuranceby arranging correct insurance

Potential Risk Exposures

External & Internal business Risks

External Business Risks – Limited Control

Internal Business Risks

Internal Managed Business Risk Exposures

Own StaffOwn Staff

Customers /SuppliersCustomers /Suppliers

PropertyProperty

ProductsProducts

LegislationLegislation

ContractualContractual

Business Risk

UK Claims StatisticsUK Claims Statistics– Cost of Average Fire Claim £7,900 Cost of Average Fire Claim £7,900

– Cost of Average theft Claim £1,400Cost of Average theft Claim £1,400

– In 2012In 2012

• £12.5M per day Property £12.5M per day Property ClaimsClaims

• £7M per day Liability Claims £7M per day Liability Claims

Risk Transfer - Insurance

Statutory Insurance RequiredStatutory Insurance Required

– Employers LiabilityEmployers Liability

– MotorMotor

– Engineering InspectionsEngineering Inspections

– Professional / Trade License Requirements in order to operateProfessional / Trade License Requirements in order to operate

– Misc - Legally SpecifiedMisc - Legally Specified

Tailored options for Risk TransferTailored options for Risk Transfer

– Property (Buildings, Contents, Stock, Money)Property (Buildings, Contents, Stock, Money)

– Loss of Profit/income Loss of Profit/income

– Third Party Liability (Public/Products Liability & Professional Risks)Third Party Liability (Public/Products Liability & Professional Risks)

– Misc- Management Liability/CyberMisc- Management Liability/Cyber

Commercial Insurance – Key Consideration Points

Use services of Chartered Insurance adviser who is authorised Use services of Chartered Insurance adviser who is authorised by Financial Conduct Authorityby Financial Conduct Authority

Make certain adviser understands fully your business activities Make certain adviser understands fully your business activities and risk exposures and is aware of future plansand risk exposures and is aware of future plans

Declare all ‘Material facts’ which may affect the viewpoint of Declare all ‘Material facts’ which may affect the viewpoint of insurer considering the riskinsurer considering the risk

Ask questions about the insurance recommended, understand Ask questions about the insurance recommended, understand the cover arranged, be particularly aware of policy terms and the cover arranged, be particularly aware of policy terms and warrantieswarranties

Regularly review with adviser cover arranged is suitable for Regularly review with adviser cover arranged is suitable for your business activitiesyour business activities

Commercial Insurance – Key Learning Points

Not Every Risk can be insured - External FactorsNot Every Risk can be insured - External Factors

Better to Remove/Reduce Risk through management controlsBetter to Remove/Reduce Risk through management controls

With adviser identify risks to be insuredWith adviser identify risks to be insured

Not all insurance policies are the same, ask questions Not all insurance policies are the same, ask questions don’t don’t assumeassume, understand the insurers policy conditions and , understand the insurers policy conditions and warranties warranties

Full disclosure of all material facts ie previous claimsFull disclosure of all material facts ie previous claims

If losses and claims occur there will be increased premiums to If losses and claims occur there will be increased premiums to pay pay

Take theTake the RISKRISK Out of Out of YOURYOUR RISKRISK

withwith