Opinion
kbb Birmingham 2018 Show Special
How to… insure and protect your business
Ian Hayes, director of KBB Insure, considers the mishaps and disasters that can strike any business and why bespoke insurance tailored to suit your specific needs can help minimise the damage
T
alk to any business owner and they’ll tell you that there is always some problem or other that needs their attention – it’s all part of their day-to-
day routine. But if something serious happens, it’s the protection from their business insurance that can prove critical.
Most companies in the kitchen, bathroom and bedroom sector are totally unaware of the many common risks that they face and few have the knowledge of how to protect themselves. You needn’t be one of those companies. There is so much more business-owners need to be aware of and mitigate against, such as: Business interruption: You need cover for the extra costs incurred, such as loss of profit, following property damage. A fire or flood on your premises, or those of a supplier or main customer could easily affect a business for a few months, or even years. Third-party risks: The list is endless, such as
Protect the essentials Designers
Businesses or individuals who provide a bespoke design service for kitchens are exposed to particular risks. Financial loss suffered by customers as a consequence of negligent advice, design or product specification may well result in them choosing to litigate against the designer responsible. Professional indemnity cover can provide protection for this. The other main types of covers applicable to designers are employer’s liability, public liability and all risks protection for loss or damage to business equipment.
Installers
This will include a broad range of specialisms from joiners to electricians, plumbers to flooring fitters and tilers. Cover arranged to meet these specific risks is dependent upon the locations at which work is carried out – be it individual houses or high-rise residential flats. Injury to members of the public and damage to their property, while carrying out these activities, is
slips and trips in the showroom from visitors, fitters accidentally causing damage or injury at customer’s homes, etc.
Managing and understanding your fitting risks and communicating this to your customers is crucial. What about the types of property you’re working on – high-rise apartment buildings, high- end kitchens, or work as part of an overall building project. All of these will need special consideration. Employee risks: Employer’s liability insurance is your legal requirement to insure for compensation awards for employees and temporary staff who may allege they have been injured in the workplace. Then there is illness. Most businesses would
survive you or your staff being off sick with flu for two weeks, but what about being on your back for two months as a result of a slipped disc or something more serious? Transit: This should include damage to the cabinets, fittings and appliances, either in your or
your fitters’ vehicles, or while with hauliers. Exports or imports from abroad are especially vulnerable. Most hauliers restrict their liability to a certain amount per tonne and can easily attempt to deny liability for reasons such as inadequate packing or failure to notify damage within strict time scales. Having your own transit insurance with a UK insurer is not as expensive as you may think and affords you and your business greater peace of mind. Cyber-crime: This is probably one of the biggest risks that all businesses face and should, in today’s online marketplace, be considered very carefully. Key issues are protection from cyber- attacks and/or potential loss of data. The new General Data Protection Regulations (GDPR) coming into force this May can be a minefield to interpret and adhere to, with significant fines likely to be imposed for failure to comply. Visit the Information Commissioners Office website -
www.ico.org.uk - for more information.
the main aspect for which protection is required (public liability). The cover provided will also extend to include the activities undertaken by bona-fide subcontractors who you have engaged to assist in the installation. In addition, if you employ anyone then there is a legal requirement to arrange employer’s liability cover. This will protect you in the event that an employee suffers a work-related injury. Even if the person injured is a labour- only subcontractor or temporary worker, you still have a legal obligation to arrange liability cover.
Showrooms Protection should be provided for loss or damage – fire, flood, vandalism, etc – to the showroom and all other contents. Repairs and reinstatement can take a long time after a loss. During this period, business sales will undoubtedly be affected. Business interruption cover arranged in conjunction with the material damage cover will provide peace of mind.
110 kbbreview kbb Birmingham Special Edition March 2018
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