Does your policy cover you to work Airside or inside Terminal Buildings at airports?

If you undertake work at airports whether it is airside or just in and around terminal buildings and car parks then you need to be sure you are covered to do this.

There will almost certainly be an exclusion in respect of work ‘Airside’ on your policy as this is a specialist Insurance and requires an increased Public Liability cover, however, you may also find that your policy does not cover you for ‘non airside’ work such as work inside Terminal Buildings, in the shopping areas or public car parks. Do read on…….

Airside

If you require cover to work Airside this is going to be expensive!!

You will need to speak to a specialist Broker as this type of insurance is more complex and does not involve just you. It will also involve the contractor who is asking you to do the work. You will also need to provide full chapter and verse of exactly where the work is being carried out, what type of work you are doing, type of heat used, your proximity to fuel tankers, runways, hangers etc so it is important to deal with an experienced broker. If you get this cover wrong…….. let’s not even go there!!!

Work undertaken inside Terminal Buildings and Public Car Parks

Now you can understand the reluctance of Insurers to cover you for wrapping a brand new Airbus or applying graphics to a Boeing 747 as these are extremely expensive items but why does your policy not provide cover for fitting a sign inside a terminal building onto a shop front?

Well, Insurers still have a great deal of exposure inside Terminal Buildings too. If a claim occurs here there are a significant amount of people who potentially could be affected. Although Airports are very tightly controlled in respect of health and safety issues, risk assessments, an employee to watch over the contractor carrying out the work etc, there is still a high volume of individuals in one area at one given time and in the event an incident occurs all of these people could be at risk.

Now generally to put a sign up on a shop front you will be looking at using a drill and maybe a few other portable hand tools which should not cause too much cause for alarm I hear you say, however perhaps the area has not been cordoned off properly and a customer walks into the shop and trips on the flex from the drill causing them injury and you to fall from the ladder……Worse still, you need to use an angle grinder to remove a stubborn piece of metal from an old sign before installing your new one and a spark ignites the T shirt stand next door and a fire ensues. Imagine the chaos this might cause if the building needs to be evacuated and the fire spreads……. Popular you would not be!!!

So, we have now established the potential threat to the public or the building at airports and why Insurers are reluctant to cover you automatically on a Commercial Combined Insurance policy, so what do you do if you need cover? Well the first thing to do is speak to your Broker or a Specialist Broker and explain the type of work you will be carrying out. You may find that a specialist insurance for the Industry already covers you or it is just a matter of letting the insurer know. If there is no cover then the broker will need to ask a number of pertinent questions such as the frequency of the work at the airport, where exactly in the airport will the work be carried out, the type of work involved, the number of employees, and the length of the job and value of the contract.

It is also extremely important to advise the broker if you will be using heat guns or cutting or grinding equipment whilst you are there as if your Insurer agrees cover without knowing about the use of heat then potentially any claim involving heat work could be turned down…….not a good idea considering the cost involved if you burn the airport to the ground! Declare everything!

Not only do you need to advise your Broker about work undertaken at airports but you may also need to increase your Public Liability cover whilst you are carrying out work here.

The airport contractor or the airport themselves will ask you to provide details about your insurance and discuss with you the Public Liability cover required to work there. It all depends on the type of work you are doing and the airport you are working at as to the limit of liability cover required. This does vary from airport to airport, with some satisfied with £5,000,000 and others insisting on £10,000,000.

Again, once the limit has been established, this will need to be discussed with your Broker. If you already use a specialist broker/insurer for the sign industry it may be a simple case of increasing the limit just for the job you are doing and paying an additional premium. Alternatively if there are a number of jobs throughout the year, your Insurer may offer you the choice of a permanently increased Public Liability Limit.

However, if this is not possible, then your Broker can normally offer an Excess Layer/Liability cover which is a ‘top up’ policy for the additional liability cover required.

So, all this established, your cover is now in place and you are ready to commence work……………Now is there anything else? Has everything been declared to your insurer?   Just bear in mind the following point when working at or close to airports.

When carrying out work around airport perimeters, in airport storage buildings, warehouses, disused hangers or in any other perimeter buildings there may still be an exposure to Airside liability so do be careful.  Be sure to establish this before commencing work and do so by speaking to both your insurer and also the contractor/client involved. You may think you are far away from the airport terminal and the runways but in fact you could still be exposed to being airside.

A good example is the following:

If you enter a storage building from the airport perimeter road insurers will often accept that the work you carry out inside this building is not airside although in effect you are still on the perimetre road.  However, in the case we are discussing your client has asked you to put a sign up at the rear of one of the perimetre buildings. You arrive and follow him through the building to the other side and exit the building at the back. You then establish where the sign is going to be put wondering at the time why he would be putting a sign at the rear and not the front? Still not for you to question why really…it’s a good job. Or should you question this?

Now here’s  the important bit. Even though you are still working at a building on the perimetre road of the airport , you are now the otherside of the building from the road and although there are no planes in the vicinity or signs of airport activities at that particular moment, you may just have strayed Airside!! Now an airport vehicle appears and drives up to the back of the building  and proceeds to collect supplies from your client’s premises. The loading area is at the rear of the building right where you are standing and alarm bells start to sound in your head.  You now find out from the client there is direct access from the rear of your clients building  to the runways without going onto the perimeter road. Ooops…..you are now most definately considered to be airside!!

So in respect of this case, even though a genuine mistunderstanding has happened it would not have helped in the event a claim had occurred and insurers considered you to be airside.

In respect of jobs similar to this  it is not to say that Insurers will not agree to temporarily extend the cover as the job is a one off and  3 miles away from the runway but they may also decline, so make sure you provide as much information as possible.

If you have any questions please do not hesitate to visit our website www.signelite.co.uk or call 0845 034 1365

Until next time.

The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority

As we are all well aware, this last year has been unpredictable for many companies, and certainly a number of Sign Companies have been affected along the way. Whilst several continue to see a steady growth, others are just breaking even and some are struggling to keep their heads above water.

Unfortunately, it has not always been down to poor sales either, sometimes it can be due to clients not paying bills on time which in turn causes cash flow problems to the business providing the goods.

Well, the reason for my intro is that although many companies are trying to reduce costs and overheads wherever possible, one area which should not be curtailed is your insurance.

It is of the utmost importance to understand that reducing cover on your policy to try and save money is not the best move if the sums insured are still actually higher than you have declared. Although it will reduce the premium this will not help you in the event of a claim when you insurers discover you are underinsured and only pay out a reduced settlement amount.

So where can you look to make savings whilst still making sure you are adequately covered?

Well, your Broker can help you here with advice and provide the best options for you.

The best time to take a good look at your policy is when it is falling due for renewal as your Broker will normally contact you to discuss your requirements for the coming year before providing renewal terms to you. They will also to assess if there are any changes to be made to the policy.

At this time, they would normally discuss with you a number of items including the turnover for the coming year and the wages relating to clerical, production and installation work. This ascertains if the business has reduced or increased in size and the insurance will be altered accordingly. The greatest part of your premium rating is based on turnover and wages as this determines the level of risk your insurer face in respect of Public and Employers Liability cover, so it is important to get these right.

The balance of your work can also change from year to year. Perhaps last year you completed most of the installations yourself, however, the coming year you intend to use Bona Fide Sub Contractors to install on your behalf and you will concentrate more on production, this can make a big difference to the premium, so give as much information to your broker as you can.

If you have also purchased new machinery or plant over the last year, again this information should be provided to your Broker.

By making sure the policy is revised regularly, firstly you maintain adequate cover and secondly it will make sure you are not paying for cover no longer required. By the same token if your business grows it will obviously increase the premium due to the higher turnover & wages, however, in the event of a claim you will not be caught out.

Also, do not forget to ask if there are any additional discounts available to you?

Tell your Broker if you are a member of a trade association, as some specialist brokers give discounts for this.

There are always way to save money without cutting cover and still remain fully protected. The important thing is raise any questions or points you are unsure of with your Broker or Insurer. They are there to help you and give you best advice. Asking never hurt anyone and it could always help your budget too!

Remember, the cheapest premium is not always the best if you lose cover as a result.

If you are obtaining alternative quotations to see if you can save a little extra by changing Insurer, then make sure you read these through carefully.

Some Commercial Combined policies may look the same on the outside but a take a closer look and you may find a number of unexpected exclusions which are not good for your business.

An exclusion which often appears is for the use of heat away from the business premises. As we all know, Sign Makers use heat guns, and are also likely to use angle grinders from time to time.

If this exclusion appears on you policy, that’s not good news, as any claims relating to heat used away from the premises will not be covered.

Watch out for a height limit too!

Also be clear with the broker that you do carry out installations. A number of policies I have come across recently cover the sign maker for manufacture but installation is excluded! By the same token, make sure the policy covers you to manufacture too as some policies exclude manufacture…… it is a bit of a minefield but if you are unsure, speak to a specialist Broker.

So I will leave you with those thoughts.

Until the next time…………

The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority

Now, this is not to be confused with the Legal Defence Costs which are already covered under the Employers Liability and Public Liability sections of your Commercial Combined policy as these are there to defend you in the event of a Health and Safety claim brought against you.

Legal expenses cover, which we are looking at today, provides a wider cover and depending on the type of policy and cover extensions, will provide cover for the Legal Costs involved in pursuing or defending a claim against you or on your behalf in respect of those covers, including appointing a solicitor or barrister to fight your case if needed. The Legal Expenses policy may include cover for Employment Disputes, Tax Investigations, Legal Defense, Statutory Licence Protection, Debt Recovery, Contract Disputes and Tenants disputes and more.

Cover can be purchased as an individual policy for your Business, you may find it is already included as an extension to your existing Commercial Combined policy.

There are varying levels of cover available for Legal Expenses with some policies just offering basic cover with a limit of £100,000 and limited extensions and other policies providing full extensions including Contract Disputes and Tenants Disputes cover as well with a limit of £500,000. Your Broker can advise if cover is available or not under your Commercial Combined policy and what that cover is if you already have it.

 So, just what are the advantages of having this cover in place?

 Well, firstly in view of the current climate and the higher volume of people making claims against each other, it is almost guaranteed you will need the services of a solicitor somewhere down the line in connection with some aspect of your business, even if it is just to ask for advice. The cost to consult a solicitor, as we are all very aware, is extremely high and costs do start to mount up.

By taking Legal Expenses cover you will have access to a dedicated team of professionals who will assist with immediate advice and if required appoint a solicitor to act on your behalf or in your defence. This could potentially save you hundreds of pounds.

I have detailed below an explanation of some of the covers available to you and what they include.

Employment Disputes

These are extremely common and the larger your business grows the increased exposure you have. Imagine there is a dispute with an employee or ex employee who is claiming they have been dismissed unfairly or who is alleging their statutory or contractual rights have been breached under employment legislation. The first thing you need to do is take advice on what and what not to say to said employee in order not to exacerbate the situation and secondly to know whether the employee has grounds or not to pursue their claim against you. Your legal expenses cover will provide you with this, giving advice what to do, what you should put in writing and appoint a solicitor if it is required.

Tax Protection

This is another equally important cover to include under your Legal Expenses policy as where HM Revenue and Customs are concerned, we would all prefer to stay on the right side of them. We endeavor to comply with all of the correct procedures, returns and legislations however one mistake and you could find you are the subject of a Full Tax Enquiry or Aspect Enquiry, which could have serious implications. Legal advice will most definitely be required in this case and possibly also representation in any subsequent appeal proceedings.The Legal expenses team are there to help and to negotiate on your behalf. This also applies in respect of issues concerning your compliance with Pay As You Earn or Social Security Regulations following a review by HM Revenue and Customs and VAT disputes.

 Debt Recovery

This would include negotiating for your legal rights to recover money and interest due to you for the sale and provision of goods or services. Providing the dispute is over a certain amount of money which is laid out in your policy, the dispute will be taken up by the legal team.

Contract Disputes

If a contractual dispute arises from an agreement or alleged agreement entered into by you or on your behalf for the purchase, hire or sale or provision of goods and providing the amount exceeds the minimum set by the policy provider, then your claim will be taken up by the legal team. Some restrictions may apply in respect of tenancy of land or buildings agreements therefore check the policy wording to find out whether there is cover for this or not.

Legal Defence

We have already mentioned that this is covered to a degree under the Public and Employers Liability section of your Commercial Combined policy in respect of Health and Safety Claims however this cover is limited to this and in order for you to enjoy the full benefits of a Legal Defence cover you will need to be include this option under your Legal Expenses policy. 

The extended cover is then likely to include the following:

Non-motor criminal proceedings arising from your business activities.

Defending civil actions taken against you or your employees for compensation under section 13 of the Data Protection act.

Defending a civil action against you for wrongful arrest in respect of an accusation of theft

Defending your employees legal rights if civil action is taken against them under the legislation for unlawful discrimination on the grounds of sex, sexual orientation, race , disability, age , religious belief or political opinion.

The list goes on, and encompasses many situations which cannot all be listed here, however, you should read through your policy thoroughly to familiarize yourself with the possible scenarios.

Tenacy Disputes

This would cover negotiating for your legal rights in respect of a dispute between you and your landlord relating to the business premises leased. This does not usually cover disputes relating to rent, service charges or the renewal of the tenancy agreement however.

So to recap, check your current policy to see if Legal Expenses cover is already included. If it is not, then ask your broker for information. A specialist policy for the sign and graphics industry is likely to include cover already but do not assume, make sure it is covered. Also look at the options and the differences in cost between basic policies and a policy with full extensions. If you can afford the higher cover then this may be a better option to go for.

Some insurers also include access to member sections on their website where you can find out about Business Law and current legislations.  This access is normally free once you have a policy with them which provides invaluable information at a touch of a button.

I hope this has been helpful and please feel free to visit our website or call 0845 034 1365 for further information.The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority

Space heaters

Keeping warm in a drafty vehicle bay is always a bit of a bug bear this time of year and keeping the temperature at an even level for applying graphics is somewhat paramount.

If you have purchased a Space heater or a similar type of heater for this purpose then do make sure you declare this to your Insurers as odds on this type of heater will be excluded on your policy.

If you don’t declare it and there’s a claim, then you could end up footing the bill yourself.

Make sure you explain to your Broker why you need to use this heater, that it is not just to keep you warm and the type of work you are undertaking in the vehicle bay. If the Broker / Insurer are not a specialist Insurer to the Sign Industry they may not realize why the temperature must be controlled for graphics application or vehicle wrapping. Also it is important to explain what safety precautions you have thought to put in place for when the heater is used. If Insurers are happy with the safety precautions you have taken they are more likely to grant cover under the policy for its use.

The following are recommended when using a space heater :

The heater must be kept at a safe distance from the item you are working on and any other items in the vehicle bay.

The heater must have a clear area around it, normally 1 metre and it must not be placed on a combustible surface or where it is liable to overturn or suffer mechanical damage.

It must not be left unattended, if the area is unoccupied, then it must be switched off.

They must not be placed where flammable atmospheres exist.

Manufacturer’s safety precautions must be adhered to when operating the heater.

The conditions on a policy may vary and may not exclude just Space heaters. The condition may also apply to any portable heaters with a naked flame. If in doubt declare the type of heater to your Broker to be absolutely sure!

Stock storage

Your policy will probably have a condition on it which requires you to store your Stock a certain height above the ground. Obviously in the winter we are more prone to pipes bursting and as a result a flood could occur inside the premises. If the stock is stored correctly and you meet the conditions of the policy then any damage will be covered however if the stock is left on the floor or too low then you risk a claim being repudiated.

Check your policy for the conditions of storage.

Waste Storage and Removal

Again, there will be a condition on the policy in respect of waste removal and the frequency with which it must be removed from the premises. Usually the waste should be removed nightly and then the bins emptied at least weekly however this may vary from Insurer to insurer. There will also be a condition that all combustible waste must be swept up at the end of each day, such as wood shavings, and sawdust. Remember, before you shut down for the holidays make sure this is done and the waste removed and placed in the bins for collection. I know this is an obvious condition but leave a few bags on the premises when you are closed for a couple of weeks and sawdust on the floor and if this is found to be what fueled a fire,  there could be an issue with a claim.

Well that is just a few pointers to be going on with and for you all to watch out for.

If you require more information contact the Sign Elite Team on 0834 241 8561.
The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority

I thought I would bring up the subject this month of Personal Accident Insurance and the types of cover and policies available.

Personal Accident Insurance can be invaluable should an unforeseen accident occur which renders you unable to work for a short period of time or even worse, completely.

Personal accident cover would help to alleviate some of the money worries which would arise should this situation occur.

Some of you may already be covered for Personal Accident Insurance either under your own Individual policy, a Group policy or as an extension to a Commercial Combined policy but it does not hurt to double check the conditions of your cover as some policies are restricted to Accidents occurring in the workplace only and others give you cover 24 hours.

Also, if you have a Commercial Combined policy and have not specifically requested an extension to cover Personal Accident cover, but you still see ‘Personal Accident’ mentioned in the policy schedule, please be careful as this may only cover you if you are held up or robbed with violence whilst transporting money to the bank. This may not cover you at any other time so ask your Broker to clarify the cover to you and whether you have full Personal Accident cover or not. Do not assume anything.

So, assuming you have no cover at all, what options should you look at taking and why?

The most economical option is to limit cover to Accidents occurring whilst in the workplace only, however, it is a good idea for the small additional cost involved to extend the policy to cover you 24 hours and not just whilst you are at work. By choosing 24 hour cover, regardless of whether you are at work, at home, shopping or taking the kids to the park, you will be covered.

The likelihood of a claim occurring during 24 hours is substantially more than a claim occurring in the work place alone.

As discussed the cost to extend the cover to a 24 hour policy may only be very small and therefore would be the best route to take however your Broker can provide you with quotation options so you can decide which will be the best for you.

Exclusions and Restrictions

There will be restrictions on your Personal Accident policy, for example if you ride a motorbike, take part in motoring competitions, hazardous sports, flying or other aerial activities, then you must declare these facts to insurers and they will either exclude cover for these events or include cover for an additional premium.

You may also have an excess on your policy. This is normally a set number of days before compensation is paid in the event of Temporary / Partial Disability claim.

Now let us look at how the cover is broken down under a Personal Accident Policy.

Firstly an Accident means a sudden violent external unforeseen and identifiable event. Bodily injury caused by Accidental and/or violent means.

Death & other Capital Benefits

Capital Benefits include Loss of Hearing, Loss of Limb, Loss of Sight, Loss of Speech and Permanent Total Disablement

Permanent Partial Disablement

This relates to the loss of senses, limbs, organs, digits, extremities and these are rated on a scale of which are more or less severe to lose or do without.

This ranges from a total loss of hearing in both ears to the loss of a toe other than a big toe.

Percentages from the scale are applied and this percentage of the total sum insured is paid out.

Any disabilities not mentioned in the scale provided shall be compensated in accordance with those mentioned, the occupation of the Insured not being taken into account.

Temporary Total Disablement

Disablement which entirely prevents the insured from carrying out their usual occupation.

Temporary Partial Disablement

Disablement which prevents the Insured from attending to a substantial part of their usual occupation.

It is important to read through the cover under your policy carefully, understand the benefits you will be entitled to each week / month as a result of a temporary disability claim and your overall benefits. It is also important to understand how long these benefits will be paid for in the event of a temporary or partial disability claim.

As always, contact your Broker for clarification or quotations or call or visit our website www.signelite.co.uk

Until next time………….

For more information contact the SignElite Team on 0834 241 8561

The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority.

You may be forgiven that as a Company Director you can hide behind the Limited status of the Company. However this is not always the case as the Company has limited liabilities, you don’t. If you are found to be personally responsible for an action or bad decision, the liability may fall directly on your shoulders which basically means you could stand to lose your home, your car, the dog – you get the picture!

So what should you do to avoid this?

Taking out a policy covering Directors and Officers against a potential action brought against them is straight forward and inexpensive. However, there are also a couple of important policy extensions which should be included to plug any potential gaps in cover.

Entity cover will provide protection to the Company (the entity), in addition to the Directors & Officers, in the event an action is brought against you both.

Employment Practice Liability will protect the Directors and also the Company against any employment related issues such as wrongful dismissal, discrimination against race, age or disabilities or even sexual harassment cases.

It is important to remember that claims do not arise just from employment related issues; there are many other areas such as Health and Safety, other Shareholders, Governments and regulatory bodies, which must not be ignored.

Don’t forget fellow directors, make the wrong move and you could find that other directors within the business could hold you responsible for a wrongful act.

For more information contact the SignElite Team on 0834 241 8561

The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority.

Firstly to Duty of Disclosure, what exactly do we mean by this?

Basically, it is a requirement of the prospective client or Insured person to declare to the Insurer any material fact which could influence an Insurer in respect of the Premium or acceptance of cover.

Facts such as previous bankruptcies, insolvencies, non motoring convictions, criminal offences, prosecutions, or special terms imposed on previous insurances are all classed as material facts. In addition if any previous policies you may have had, have been cancelled or declined by Insurers, or renewals refused this must also be disclosed.

Material facts are not just serious facts as mentioned above, they are facts which could affect the risk such as security measures at the premises, the type of construction of the building, if the premises are next door to a petrol station, situated in an isolated area or in an area which it is subject to flooding. This information will all determine whether an Insurer loads your premium, applies special terms, increases the excess or simply accepts the risk as it is based on your information.

At present the English Law states ‘that all information or every circumstance is material if it would ‘influence the judgement or a prudent insurer in fixing the premium or determining whether to take the risk’

Information may be deemed to influence the judgement of a prudent Insurer and be material even if it would not necessarily have led him to decline the risk or set an increased premium.’

What matters is that he would have reasonably taken the information into account. If there is any doubt whether information is material it ought to be disclosed.

So what happens if you do not disclose a material fact? Well, Insurers have the right to void the policy from inception. In effect this means they would be entitled to act as if the policy had never existed and to seek the recovery of all claims already paid under the policy, although they would be obliged to repay the premium in most cases.

Obviously, depending on the circumstances of each individual case, the Insurer would act accordingly but do not take the chance, declare those material facts.

Remember, even if the policy is in force and the risk changes, for example you are moving premises or decide to remove the alarm system, change the windows or the doors on the property, all of these are material facts. Declare them to Insurers and they will endorse the policy to note acceptance of these changes. Any questions, ask your Broker or Insurer.

 Moving on to Conditions of Average or Underinsurance.

 Now we have discussed in previous articles the amount you should be looking to Insure your belongings for however this is now explained in further detail.

There are four options for the basis of settlement and those are Indemnity, Reinstatement, Agreed Value and First Loss. I have given a brief description of each as follows to highlight the differences however you should discuss this with your Insurer or Broker if you are unclear as to the basis your policy is Insured under.

Indemnity means that an Insurer will indemnify you ‘put you back in the same financial position’ as you were before the event occurred.

i.e. A fork lift truck you have is insured for cover inside your business premises is stolen during a break in and it is Insured on an indemnity basis.

Insurers will give you the existing value of the truck back and no more. They will indemnify you for the actual value of the fork lift, basically giving you back what you had prior to the loss.

Reinstatement,

The current practice is to Insure material goods on a reinstatement basis or new for old basis. This means Insurers will settle your claim by replacing the same item as new or with an equal item but without bettering it.

This means even though the printer you own is 5 years old and only worth half of the new value, you will still need to Insure it for its ‘new value’ if the policy is based on a ‘reinstatement basis’ as Insurers will pay out on this basis.

 Agreed value, and this is not as common, is when you agree a value with the Insurer due to the market value of the asset being difficult to establish.

 First loss.

Where a total loss is thought unlikely, the sum insured may be set at a lower amount than the full value. This is recommended only where there are high values or a large spread of risk.

 Buildings and other assets are normally insured under a reinstatement basis but we need to allow for inflation as well therefore often you will find that your Broker has requested that your Insurer ‘Index Link’ the sums insured. The Insurer will then automatically provide their renewal quotation based on the previous year’s sums insured plus index linking which will increase those sums insured in line with the cost of inflation. This protects you further when making a claim as the cost to replace an item ‘as new’ has often increased due to inflation and your sums insured will then adequately cover the cost ‘as new’.

 Now to explain what happens if the sums insured are incorrect.

Many policies have the condition of ‘Average’ clause which means if you are underinsured then Insurers will work out the loss against the amount you are underinsured and the full value of the item. You will then need to bear a proportion of the loss yourself.

In addition to this the policy excess will be taken off the settlement after the average clause has been applied and thus leaving you with a further reduced settlement as Insurers will not apply the excess to the total before they proportion out who bears what loss.

For further in formation in respect of how the average calculations are applied please ask your broker or refer to your policy wording as there should be a calculation table or example supplied but remember you can avoid this clause if your sums insured are correct.

Also remember when taking out a new policy the information about the average clause, how to work your sums insured out and the settlement basis from the Insurer should also be presented to you together with the Broker or Insurer terms of business. If you do not receive this, then ask for them as the Broker is required to do this.

 So, to recap, declare any material facts which could affect your policy. If in doubt mention them and your Broker can advise whether they are relevant or not and secondly it is important to get the sums insured as near as possible to their correct value. Err on the side of caution if necessary and go slightly higher rather than slightly lower and you will avoid this potential pitfall.

The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority.

The most obvious thing of course is that you are working with vehicles and unfortunately some insurers still think Sign Writers and manufacturers still use paint. This might seem pretty obvious to you but a number of things have to be taken in to account when dealing with insurance and working on vehicles… The first one is “do your insurers actually know”? 

That’s the obvious one, now lets look at the not so obvious in terms of cover.So you’ve checked your Commercial Combined or Liability Insurance policy, and yes it includes Public Liability cover. That’s all you need to know as far as you are concerned, you have the cover and it well… covers you for sort of anything. This might be where you could come a little unstuck, let’s have a look at a scenario.

 Your customer has asked you to wrap his Porsche for a major Exhibition which he is attending the following week, this is no different to any other job you may have done before.Being prudent you will already have checked if there are any exclusions relating to the type of job you are carrying out, right? This might include, use of heat, whether your insurers know that you are working on vehicles, whether you will be driving the vehicles, what is the value of the vehicle, in this case the insurer might just wince a little with £80k’s worth of Porsche. Where you will be doing the wrap or applying the graphics is important, and if it is away from your own premises then you possibly need to ensure that your policy doesn’t have a “heat work away exclusion” applied, or if it does you need to get it removed..

 So let’s dissect this a little further and see if we run into any problems, it is insurance so undoubtedly we will.

Your customer wants his Porsche wrapped for the exhibition and the first thing is getting the vehicle to your premises. The customer wants you to pick up his vehicle, something of course you are happy to do as you have been driving other cars on your own car insurance policy so that should be fine… erm not that simple – the driving of other cars on your policy (that is assuming you have such an extension) is really intended for emergency use only. Its third party only cover and it’s not for every day use for you to drive customer’s vehicles for business, particularly with such a high value car. Not to dwell on this subject BUT, if you do have the extension and you did drive the customers vehicle its not going to cover you for business use, and if you have a van policy its very unlikely that you have this cover.

And finally – assuming you do take the chance, bend your customer’s vehicle on the way back to your business premises, we are sure there will be a number of proverbs that come to mind. SignElite offer the correct cover for this type of vehicle movement and it’s not expensive.

 So, you have managed to get the vehicle back to your business premises without hitting anything, great. Immediately to work then as your customer wants the vehicle back as soon as possible. Unfortunately the job you had in the day before is still in your workshop as the customer has not yet collected the vehicle. That’s ok though, quick reverse out of your premises onto the forecourt to change the vehicles over. Problem! Moving the vehicle around inside your premises is not such a problem (although it could be if your insurers are unaware you are working on vehicles and have them inside your business premises) but more importantly is that you are about to drive the vehicle out of the premises onto your forecourt…..Generally, if the general public has access to this forecourt, which includes the other units in the vicinity, there is great cause for concern.

Imagine an employee from the business next door is walking past your unit when you exit…you don’t see him and oh dear, two broken legs, concussion, and a few scrapes and scratches… where would this be covered? Well certainly not on any policy you have! Might it be covered under your customer’s policy? This is doubtful however, let’s say by some luck it is, your customer could potentially lose his No Claims or Fleet discount. Now, wouldn’t you be popular! Ultimately, what you have just done is driven a vehicle on the public highway (yes that includes the forecourt of your premises. Road Traffic Act is complex and is not one for this discussion) without cover. So, the cost of an Ambulance, the Police, & Courts are now involved. No Insurance, a conviction and a hefty fine!

Now, let’s just touch back briefly on the ‘use of heat’ and damage to the vehicle you are working on.

In this case the vehicle is inside your premises so you are covered for the heat as long as Insurers are aware that you do vehicle graphics/wraps, however, you may be surprised to learn that ‘use of heat ‘outside of the business premises may be totally excluded on your policy. This does not just apply to use of heat when working on vehicles, it’s across the board so it’s VERY IMPORTANT your adviser or insurer is aware that heat is used and heat does include hot air blowers – like the ones you use every day.

 Check this for future work. If you cannot use a heat gun outside of the premises it would make life somewhat tricky when applying vinyl, removing graphics or wrapping a vehicle wouldn’t it. 

Lastly, check you do not have an exclusion on your policy in respect of ‘Damage to property being worked upon’ this is a standard exclusion on most policies so its worth checking with your adviser, in our scenario here your insurers might not be overly exited about covering any damage you do to this type of vehicle.

Vehicle value, make sure your insurers are aware of the values of any vehicle you may be working on, they could apply an upper limit on value. If you damage the Porsche whilst you are wrapping it, and no cover is in place, you could be liable for an extremely large bill to pay as a result.

Speak to your Broker about any concerns or seek the advice of a specialist Broker who is aware of the requirements of the Sign Industry as there are very specific requirements and these may not be included on a standard policy.

The SignElite policies are designed specifically to cover the Sign industry and in most cases would automatically cover much of the work you would be carrying out..

The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority.

Professional Indemnity Insurance provides protection for claims brought against you and for which you are proved negligent in respect of the following; Breach of professional duty or negligence arising from your business activities, Unintentional Breach of copyright and Unintential breach of clients confidentiality.

Whilst Public Liability cover protects you against damage caused to a third party/third party property, it does not protect you against professional negligence on your part.

Imagine siting a sign, which as far as you are concerned is in the perfect place to attract the maximum exposure for the client. However, it is found the sign is actually obstructing the view of a set of traffic lights and as a result the highways agency orders the client to remove it. This will incur costs for the removal of the sign and potentially a replacement sign. Not good for your reputation and not something the client will be willing to pay for!

Professional Indemnity cover would protect you and in addition also cover the defence costs incurred by insurers defending a claim.

For more information contact the SignElite Team on 0834 241 8561

The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only. SignElite is a trading style of Real Insurance Brokers who are regulated by the Financial Services Authority.

The competition is now closed and the winner has been drawn……….

The winner of the competition is Herts Signs & Graphics who have won the Infrared Thermometer and Dewalt Heat Gun. So congratulations to them and don’t forget to keep your eyes peeled for our next competition.

The SignElite Team