Hot topics

New Environmental Damage Regulations
Surviving the Downturn
Changes in EL Certificates
Why have Directors' and Officers' Liability Insurance?
Fleet and motor trade policyholders
Treating our customers fairly

New Environmental Damage Regulations

The Environmental Damage Regulations came into force in England on 1 March 2009.

The Regulations implement the European Directive on Environmental Liability. They are based on the ‘polluter pays principle’ so those responsible prevent and remedy environmental damage, rather than the taxpayer paying.

Specialist environmental insurance products are available specifically designed to respond to the extensive liabilities created by these new Regulations.

You may think this does not apply to you, but you may unknowingly be polluting the environment. Read The Guidance on the Environmental Damage Regulations this will provide readers with more detailed information on the operation and extent of the Regulations see
www.defra.gov.uk/environment/liability/index.htm

Surviving the Downturn

We are sure you have heard enough of the "R" word, and the "CC" words – well we are going to be optimistic and talk about how we can help you and your business to survive this small downturn that we find ourselves in.

We suspect the thing that occupies your mind most and keeps you awake at nights is how your customers are intending to survive. After all, you know what is happening in your business – you won't know what is happening in theirs!

Credit Cover may be a way of helping you to manage this downturn. With a specialist partner we can offer access to a range of products designed to protect your business during these challenging times, against bad debts and insolvencies, and providing you with intelligence to enhance your credit controls and avoid the risks associated with non payment, protracted defaults and cash flow.

We appreciate that managing costs is important, but this could be the wisest budgeting decision you ever make.

Talk to your normal account manager who will be happy to arrange to provide you with an indication of costs for your consideration.

Changes in Employers Liability Certificate Rules

From the 1st October 2008 the legal requirement to keep copies of out of date Employers Liability Certificates for 40 years no longer applies.

However you are strongly advised to keep a detailed record of liability insurance, this is because certain conditions and diseases can take many years to manifest themselves after exposure, and former employees may well decide to put forward a claim for the period of their employment with you that left them exposed to the cause of their disease or condition.

If you have not recorded historic details of your employers' liability insurance, you will be unable to put forward a claim for indemnity. Not being able to provide insurance details does not absolve you from liability as an employer, and you could therefore be placing your business at risk of having to meet such claims.

We would suggest that you make arrangements to keep such details in a safe place, perhaps with a solicitor or your accountant.

You are still required to provide details of your employers liability insurance where it can be seen by your staff, but from the 1st October 2008 this can now be keep in an electronic format, so long as your employees have reasonable access to it in that form.

Further information on the subject can be found on the HSE website: www.hse.gov.uk/business/elci.htm

Why have Directors' and Officers' Liability Insurance?

Owing to the increasing responsibility placed on Directors and Officers of Companies these days, and the potential for claims to be made against individuals, we bring to your attention a means by which you can protect yourselves in this growing culture of ‘blame placing’ and compensation seeking.

You may not thus far have realised the possible implications of your duties under the various Companies Acts and similar legislation.

This is a cover that we would strongly recommend that you consider in order to provide your Directors Officers and managers with appropriate protection.

Who is this policy for?
As a company Director, you have many responsibilities imposed on you. Your duties as a Director or Officer include compliance with common, statute, and tax law and the filing of company returns.

Directors’ and Officers’ Liability cover is an important safeguard in reducing the worry of possible personal financial ruin that could occur if an action is taken against you. In arranging liability cover or Directors’ and Officers’ Ault Insurance Brokers has taken your needs as a company director into consideration.

Who is liable?
Directors’ and Officers’ Liability Insurance relates specifically to breaches of duty by Directors and Officers in managing and directing a companies affairs.

How could claims arise?
Being in business today places more responsibilities on Directors than ever before. The introduction of new legislation and changes to corporate governance has increased your personal responsibilities as a director.

Under statute law there are an every increasing number of duties and responsibilities imposed – a breach of which could lead to you being prosecuted personally. For example:

The Companies Acts
The Trade Descriptions Act 1968
The Health & Safety at Work Act 1974
The Insolvency Act 1986
The Environmental Protection Act 1985

What does the policy cover?
The policy provides cover for financial loss arising from a claim in respect of a breach of duty, neglect, error, misstatement or wrongful acts committed by a Director or Officer, whilst acting in this capacity on behalf of the Company. It includes Court costs and civil damages, but not criminal fines or penalties.

Final thoughts
If you are successfully prosecuted you could be:
  1.  Made to pay damages or fined.
  2.  Sent to prison.
  3.  Disqualified from being a director for up to 15 years.


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Fleet and Motor Trade Policyholders & the MID

The Motor Insurance Database was implemented to try to tackle the massive problem of driving uninsured in this country. In the last 12 months the Police seized many uninsured vehicles.

Don’t fall foul of the Law. Remember how important it is to ensure that up to date details of your vehicle fleet are advised to the Motor Insurance Database including changes of registration numbers.

With the police now using the ANPRU system (automatic number plate recognition system) if your correct vehicle details are not on the MID your vehicle the police have legal powers granted to them allowing them to seize the vehicle if they suspect it could be uninsured.

Accuracy of the MID has never been more important to ensure that you avoid fines and disruption to your business.

Not sure if your details are correct? – check now online at www.askimid.com

Treating our customers fairly

As part of the statutory regulation of insurance brokers by the Financial Services Authority, one of the over-arching requirements is that we must Treat our Customers Fairly.

Having been in business since the 1900’s, with a loyal customer base, we feel we can say with confidence that we have treated our customers in a fair way. We take this fair treatment very seriously and sincerely believe that we always act in a fully ethical and professional manner towards our clients.

However we have undertaken to examine every part of our business to ensure that what we do is fair, from the way we communicate with you to the way we pay our staff. All this has to be documented and evidenced.

Whilst the directors and I, as the compliance manager are ultimately responsible for implementing our Treating Customers Fairly policy, we are ensuring that it is embedded in the very culture of the firm to the benefit of all our clients, so that our staff understand that Treating Customers Fairly is everyone's business.

We hope you agree – if not let me know!!!!

Jackie Boucher
Compliance Manager