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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
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