Caring for the Customer (Public Liability for Retailers)

Introduction

What is Public Liability?

If a customer or member of the public suffers injury whilst in your shop or is injured by your business activities or the carelessness of one of your employees, they may sue you for compensation. You may also be sued if you or one of your employees causes damage to other people’s property.

Public liability insurance (PL) provides protection against such claims, covering both the costs of defending such claims and paying any compensation that may be agreed or awarded by a court.

In some circumstances you could also face prosecution for breaches of health and safety legislation. Prosecution may lead to a fine. Whilst a fine is not covered by insurance a Public Liability policy will cover the cost of defending the prosecution.

Safeguarding Your Business Against Claims

Slips and trips are the most common cause of injury to members of the public in the retail sector. Slips and trips can result in serious injuries, which may result in claims for large amounts of compensation.

If your shop has a car park, it may be alleged that you are responsible for damage to customer’s cars.

It is important to take steps to minimise the risk of accidents. Some simple issues to consider are:

• Is the access to your premises well lit and in good condition?
• Is the exterior lighting in the car park area adequate?
• Are access routes affected by the weather? E.g. fallen leaves can make access routes to the premises slippery. Rain or snow can be trodden in through entrances making lobbies or shop floors slippery.
• Are interior floor surfaces non slip and in good condition?
• Are tripping hazards such as trailing cables routed away from public areas, walkways or covered in some way?
• Are their suitable procedures for dealing with a spillage or dropped container quickly, effectively and efficiently?
• Routine Cleaning activities should be carried out when the premises are closed

The assessment and control of the risks to customers can be most easliy undertaken by means of a risk assessment. The risks will differ from premises to premises and the precautions required depend on both the premises and the nature of the retailing activity. The exact precautions necessary will be evident from a risk assessment. For example:

• Are displays safe? Could they be toppled by children? If you display toys e.g. climbing frames could children climb on them and fall?
• Is the electrical installation in a safe condition?
• Lighting Displays: These are usually very hot – are they out of reach of children?

The actions of employees

You can be legally liable for injury or damage caused by your employees. This is called vicarious liability. As described above any action, or omission, that results in injury or damage, by an employee could mean that you face a claim. Make sure that employees are trained, that they can recognise risks and know what action to take.

For example, employees should be on the look out for fruit such as grapes that may have fallen from the display giving rise to the risks of a slip. Employees should know what action to take if a customer should drop a jar of jam or a drinks bottle causing a slippage.

Workaway

Some of your employees may carry out work away from the premises, for example delivering goods or undertaking installation work e.g. setting up a TV or HiFi system, installing a washing machine or laying a carpet.

In these circumstances it is much more likely that damage to other people’s property could occur. Your employees could cause damage to furniture, fixtures or fitting, spill substances on carpets or similar.

A PL policy will generally cover you for claims of this type but it is important that your broker discloses to your insurer the fact that you carry out such work.

It is also prudent that you ensure employees who carry out such work are properly trained and have the correct equipment to enable them to carry out the work properly and with low risk of damage.

Real Life Scenarios

• A rail traveller slipped on a flower petal in front of a flower stall on a station concourse. He successfully sued the holder of the franchise. The case was appealed but damages were confirmed at £1.5m
• A passer-by slipped on ice outside a butcher’s shop. They suffered a shoulder injury and successfully sued the shop owner, receiving £45,000 in compensation.
• A retailer supplied a washing machine and an employee delivered and plumbed in the machine. A poorly made connection resulted in an escape water that caused damage to the property. The purchaser sued the retailer for thousands of £s of damage.

When an accident occurs

If a customer suffers an accident it is prudent to take suitable steps to reduce the impact.
Express concern, apologise and provide whatever reassurance is appropriate. Call for assistance e.g. First Aider or the ambulance service as appropriate. Make sure that if the person wishes to return home that they can do so in safety – offer to call for family or friends or arrange for transport e.g. a taxi if necessary.

Take details such as name and address. You may wish to send a “token of regret” such as bunch of flowers or store vouchers – such an action is often appreciated. However, do not admit liability or make comments such as “It is all our fault” or “… this is the xth time this has happened”. If you do receive correspondence from the customer or a solicitor acting on their behalf forward it to your broker or insurance adviser immediately.

Use of Contractors

From time to time it will be necessary to carry out work on your property. This will present the risk of interruption to your business and increase the risk of injury to customers.

Any use of contractors must be carefully planned and the important first step is the selection of a competent contractor. It is essential that they have adequate PL insurance. The risk of injury to customers can be minimised by having the work carried out when the premises are closed. If this is not possible then ensure segregation between contractors and customers.

The Role of Insurance

There is no legal requirement to have PL insurance. However, without such cover, one large claim could put you out of business.

PL insurance is usually purchased via your insurance broker or intermediary. The broker’s role is to advise you on what insurance you need, both the type and the level of cover. They will also help you obtain insurance from a suitable and financially sound insurance company. It is very important that you discuss fully with your broker all the risks arising from your work activities so that a policy covering the main issues can be obtained.

It is still important to try to prevent PL claims even if you have insurance.
Accidents, claims and subsequent publicity can result in damage to your reputation and loss of customers, with long-term financial consequences for your business. Such losses are generally not covered by insurance. And it is possible that an accident to a customer could result in you being prosecuted and fined. Fines are not covered by insurance.

Key Action Steps

• Undertake risk assessments of your premises and activities
• Identify who could be harmed and how
• Identify the measures you need to take to minimise any risks
• Ensure that you minimise any risks arising from your activities
• Provide Training for employees so they are able to recognise risks and take appropriate action
• Ensure all accidents involving customers are recorded

For a free Public Liability Quote call 01254 391411 or email enquiries@sagarinsurances.co.uk

12 Issues That Affect Your Home Insurance Premium

Home insurance premiums can depend upon many variables. As we are all unique in different ways, premiums are calculated based on the risk associated with each individual situation. For example:

Replacement cost of the building and possessions. The higher the value of your home, the more expensive it will cost to insure it. Also, the higher the value of your possessions, the higher your insurance premiums will be.

Insurance companies pay special attention to the value of your possessions at market rate.

 Where you live.  This is probably one of the most important elements that is factored into your home insurance premium.                                                                                                    Each city location has its own story and background in terms of claims filed  in the area, the crime rate etc.

Past claims. If you have had past claims on previous homes you have lived in, it could have an impact on any future insurance premiums you take on.

What type of security system you have. Depending on the type of security system you have installed in your home, you might be entitled to certain discounts. Typically you would have to  show documentation that your internal security system is linked with the police, fire and paramedics for quick response in the event the unthinkable happens.

Age of your home. Typically the older the home, the more likelihood that its electrical, piping and source of heat is old and might require more maintenance. These systems could also be susceptible to more damage and the cost to replace them is higher than it would be for newer systems.

Are you a smoker? If you are a smoker, insurance companies consider this as a source and potential hazard for fires to take place in the house. So there’s more than one reason to quit smoking.

Mortgage. If you are mortgage free, your insurance premiums will be a lot lower.

Loyalty. Insurance companies will reward you for staying the course and not switching companies.

Type of heating. If your home is heated by an electrical or gas furnace as opposed to being heated by an oil tank, your insurance premiums will be a lot lower.

Type of pipes. The type of pipes that are installed in your home matter a great deal. You want to make sure that your home is installed with copper or plastic pipes as opposed to galvanized or lead piping in order to reduce risks of breakage and leakage.

Type of electricity. As household electrics are a common source of fire, the insurance company will want to know how your circuits were installed, does your home have a breaker/fuse box, etc.

For more information on home and contents insurance fill out the form below and we will be in touch.

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The Rise in Need for Cyber Insurance

Advances in technology and the rapidly increasing dominance of the Internet in our lives means that websites are becoming an ever more attractive avenue for companies to promote their products and their business value to the marketplace. However even with the great benefits and advantages offered in a progressively technologically advanced computer age, complex legal issues connected to both dissemination and protection of unique materials and concepts often follows.

When the potential risks to business or individuals in this “techno” climate are becoming ever more ambiguous. Purchases of cyber liability insurance will be important for countless organisations. Some policies will cover a great number of issues, together with the security of a network, copyright infringement defence procedures to reduce the likely loss caused if a business ISP goes down or loss in connection with a computer attack to compensate. Information security and data protection is vital for numerous companies, especially those storing sensitive information.

Spreading viruses, worms and Trojan Horses could also result in damage to 3rd party computer systems or files and creates situations that will result in a business experiencing a huge drain of resources. One of the better known cases in regards to these issues was the “ILOVEYOU” bug, which infected about forty-five million company files with costs totaling $ 2.6 sixty-one million (£1.3 three million). Businesses can protect themselves with cyber insurance from the cost of the system/computer repairs, reimburse any loss of income as a result of downtime and pay the legal costs if an affected 3rd party holds them responsible for spreading the virus.

Protection is available for damage to a corporate computer network or any data held concerning 3rd parties. A recent survey conducted by the Business Link website shows that companies are becoming increasingly more aware of the risks and damages they leave themselves open to with the lack of Internet security. According to the study group, almost half of SME managers understand that they are likely to experience security issues in the next year, issues such as electronic viruses, suggesting that proper cyber liability insurance would give businesses using online resources a greater peace of mind.

The British Insurance Broker’s Association Technical Services Officer said: “An authorised cyber-liability product is a valuable new addition, especially at a time when businesses are becoming more and more dependent on the use of e-mail and Internet connectivity and so are exposed to greater risk from malicious attacks on their system.

If you would like further information on Cyber Insurance please call 01254 391411 or email enquiries@sagarinsurances.co.uk. Alternatively fill out the form below and we will contact you.

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Article Source: http://EzineArticles.com/6391335

The difference between Contractors & Sub-Contractors…and what that means in the event of a claim

When you’re stepping out of the world of employee – employer relations into your own business for the first time it’s important to understand the relationships between certain parties.  Sometimes the term subbies and contractors are used to describe the same people however there are defined differences between the two.

 Contractors are completely independent.  They provide their services to clients subject to the terms of agreement set out in a ‘contract’ between the contractor and the client. The ‘contract’ will set out the obligations, conditions and terms of each party to the other; which will include maters such as liabilities and limitations between the parties;

 

For example, ‘Smith Enterprises Pty Ltd’ trading as ‘Smiths Carpentry’ hereinafter referred to as the contractor’ agrees to provide the services listed below to Mr John Harris hereinafter referred to as the ‘client’…

Sub-contractors will generally provide their products and services to the contractor however, they will not necessarily be involved in the contract between the contractor and the client. The sub-contractor will generally need to have their own sub-contractors liability insurance cover as in most cases they will not be included under the contractor’s insurance cover; nor for that matter under the client’s insurance cover.

In the event of a claim where there is both a contractor and a subcontractor involved both parties can generally be brought into the action against them.  The client’s legal advice will generally centre around trying to find the highest chance of a successful claim which may mean they will include both parties purely to increase their chances of a successful result.  Therefore, you will generally find the contractor and sub-contractor will share some of the “blame” each way.  This is known as contributory negligence.

For example, if the court found that the client is to be paid a total of £100,000 following their claim involving both the contractor and subcontractor, they would then have to decide what percentage of the blame each party has.  A common result is where they would determine that the contractor selected the sub-contractor which was their contribution to the loss which could account for up to 30% and the remainder falls with the sub-contractor.  Therefore, the contractor pays out £30,000 and the subbie £70,000.

What this means for the contractor and sub-contractor is the respective insurance companies will end up defending their clients independently as they try to reduce the court determined contributory negligence.  If one of the parties does not have insurance, they are still responsible for defending themselves.  Up against an insurance company’s crack legal team I don’t think I need to say how that generally ends…

So yes, there are differences between contractors and subbies however there is one thing they have in common, having the right liability cover may prove essential to ensure the survival of your business and the protection of your personal assets.

Contact Sagar Insurances today for free impartial advice or to request a quotation. 01254 770894 or email us at enquiries@sagarinsurances.co.uk

 

 

 

Business Insurance for your Shop, Bar Restaurant or Cafe

Running a business in the UK is hard work these days. In times of economic austerity and unpredictable retail sales, most businesses need to keep a close eye on sales, cash-flow and marketing. So it is hardly surprising, that business insurance may be the last thing on your mind.

But that’s not to say that it is not important. In some instances you legally need to have insurance. Employer’s liability Insurance is compulsory in England if you employ staff. Ireland and Scotland have their own laws which need to be followed. There are various definitions of who is an employee or member of staff.

If you are a shop owner there are certain covers which you should consider:-

Do you employ staff who handle cash or make deliveries? If you are worried about the loss of money or stock due to dishonest employees you should consider Fidelity guarantee.

Does your shop front have glass fronts with signs? If so, you should consider covering for replacements due to malicious or accidental damage.

If you have customers coming into your shop you should consider public liability insurance. This covers your liabilities against damage to the public for things like injury or death or to their property as a result of business activities. Legal expenses and costs are usually covered.

If your shop handles money, you may consider insuring against its loss.

Every business lives and dies by its cash-flow – it is the life-blood of every business. So you should protect your cash-flow from interruptions such as bad debt due to the insolvency or default of your suppliers.

Product Liability Insurance may not be the first thing you think of when opening a restaurant or a bar. But if you produce food on the premises  then this is considered a product. Illnesses in members of the public as a result of food or drink are possible and legal challenges can be covered.

If you operate a bar, it is not a stretch of the imagination to consider that your customers may become rowdy. Protecting your staff from assault and harm should be a priority. If the worst were to happen you can insure against medical costs or legal challenges.

OUR STANDARD COVER INCLUDES

• Contents, stock, public / products liability and employers’ liability
• 50% seasonal stock increase during November, December and 30 days prior to Easter
• All Risks Goods in Transit cover of £2,500 with the option to extend to £10,000
• £1,000 cover for damage to frozen and chilled food with the option to extend to £10,000 per unit
• Public / products liability £2m limit of indemnity as standard (cover can be reduced, increased or deselected as required)
• Money package defaults to £1000
• Loss of liquor licence – £100,000 as standard with potential to increase or deselect as required
• Business interruption – £500,000 Gross Revenue (cover can be reduced, increased or deselected as required)

WITH A RANGE OF FLEXIBLE OPTIONS

• Stock cover for tobacco, wines and spirits
• Option to include Buildings cover or Tenants Improvements
• Optional cover available for Personal Accident, Fidelity, Legal Expenses and Proprietors Personal Effects

AND MORE

• A competitive package of covers, with generous and flexible limits to suit the needs of most risks
• Cover for Leakage of alcoholic or soft drinks from storage containers or connected apparatus
• Business Interruption cover for Notifiable diseases, food or drink poisoning, defective sanitation, murder, suicide, vermin and pests – £250,000 limit as standard
• Automatic extension to cover up to £5,000 of outside furniture 
• Free 24-hour advice lines for catastrophe claim assistance, emergency repairs, health and safety, stress counselling and taxation advice.

It is important to remember that you do not need all these different types of insurance for your business or that you require separate policies to cover each risk.

Most businesses require some types of Insurance. Managing risk is part of this process. We can provide a range of insurance covers for small businesses and we will help you analyse and decide the cover that best suits your needs. 

For more information or to request a quote call 01254 770894 or email enquiries@sagarinsurances.co.uk