Types of Cover
Arranging heritage insurance cover for your business or organisation can be a daunting task. Knowing what cover you need and what it protects you against can be confusing. Here at Alan & Thomas, we aim to make the heritage insurance process as easy as possible for you. Our expert heritage insurance advisers will guide you through the process every step of the way.
A number of different types of heritage insurance cover are listed below for your information.
If you have any questions or queries, we would be delighted to help you. Please call to speak to one of our heritage insurance advisers on 01202 754900.
If through the activities of your business or organisation you come into contact with third parties, you should consider having public liability insurance in place. This cover will protect your business against any claims which could be made against you for compensation for accidental injury to third parties or accidental damage to property, where you may be deemed negligent.
If a claim is successful, you could be liable to pay any compensation awarded. Having public liability insurance would mean that your insurer would pay the compensation award and associated legal costs. Without cover in place, the legal fees alone could cost thousands of pounds.
For example, if you are holding an event at your premises and a member of the public trips, they could accuse you of poor building maintenance and subsequently bring a successful claim against you.
If you employ people in any capacity (paid or unpaid), you are responsible for their health and safety while they are at work. As an employer, you are required by law to have employers’ liability insurance in place. Having this in place will enable you to meet the cost of compensation for an employees’ injuries or illness should you be held legally liable.
For example, if an employee slipped and fell whilst on your premises and injured themselves and went on to prosecute you for a breach of health and safety legislation, you could be found guilty of negligence. If this were the case, the policy would pay any compensation awarded to the employee.
If you own property as part of your business or organisation, this insurance covers your buildings, general contents (including any stock), computer equipment, tenant improvements and glass (for which you are responsible) against accidental damage (including theft) whilst on your business premises.
For example, if your building was flooded and you needed to replace items of furniture and equipment, this insurance would cover you for the cost.
Agreed Value Cover
Insurance can be arranged on an agreed value basis which means that an amount needs to be agreed between the insured and the insurer at the start of an insurance period, rather than at the time the item is lost or destroyed. This coverguarantees that you will get all of your money back in the event of total loss. It is vital that the agreed values are correct to begin with, and continue to stay in line as the art market fluctuates for example. If you find yourself underinsured, even unwittingly, the value paid out in the event of a claim will be affected.
For example, if your premises suffered a fire and precious artwork was destroyed. If you are covered on an agreed value basis, you will be reimbursed for the agreed amount rather than the market value at the time.
Exhibits & Artefacts Cover
In addition to stock cover, you may want to take out additional cover if you have specialist fine art, collections or antiques. This optional cover allows you to insure these special items on a market value or agreed value basis and will cover the items at your business premises, or whilst removed on a temporary basis for up to 90 days. You can choose from United Kingdom, Europe or world-wide cover.
For example, if you had a precious collection of jewellery on display at your premises and they were damaged whilst being moved from cabinet to cabinet, this insurance cover would reimburse you for the cost of repair.
This insurance is designed to protect your business or organisation from the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by an employee or volunteer. Additional costs you may incur such as employing an auditor to investigate the fraud or theft would be covered.
For example, during an annual audit the discovery that an employee has been taking funds for their own use is made. The business is unable to recover the money from the individual so this insurance would cover them for bringing a legal prosecution against them.
Trustees & Directors Indemnity Insurance
If your business or organisation has trustees or directors, you should give serious consideration to protecting them and their personal wealth as a result of any claims being brought against them due to an unintentional error in their role which leads to the financial loss of a third party. This insurance also covers the legal costs and expenses of defending any such claims.
For example, you may employ a contractor to carry out some remedial work at your premises on the agreement that a third party will fund the work. If that third party fails to issue funds and you are unable to pay for the work, the contractor may sue your directors for breach of contract.
If you attend exhibitions as an exhibitor, insurance can be organised to cover for event cancellation, liabilities for employees, volunteers and the public, as well as equipment away from your premises and while in transit.
For example, you may be exhibiting at a national event to promote your business and one of the electric cables on your display stand comes loose and a passing member of the public trips over it. They could then sue you for personal injury arising from your failure to secure the cable securely. This cover would pay your legal costs and expenses, as well as any compensation awarded to the claimant.
Specified All Risks
You can also choose a specified all risks cover, which will provide insurance cover for items whilst away from your business premises, for example, laptop computers, mobile phones, promotional brochures or other business equipment. Cover can be arranged to cover items in Europe or Worldwide.
For example, if a laptop computer was dropped and damaged whilst being used at another location, your insurer would reimburse you for the cost of replacing it.
This insurance would cover your business if any of the following were to break or fail to operate - central heating or air conditioning systems, boilers, lifting equipment, security and sound systems, computers, photocopiers, point of sale and other office equipment.
For example, your air conditioning unit fails to work correctly during the hottest week of the year, which could result in loss of custom. With this cover, you would be able to claim money from your insurer to replace the equipment.
Business Interruption Cover
Business Interruption insurance is taken out to cover your business if you are unable to partially or fully carry out your day-to-day activities and subsequently suffer a loss of revenue caused by damage to your premises or those surrounding you, failure of public utilities, discovery of vermin or pests, specified diseases, food poisoning, murder or suicide.
For example, your premises may be damaged by flood. Planning permission to rebuild may well take more than six months to be granted and during this time, you may have to rent a temporary retail outlet, purchase new equipment or cancel any special events due to be held at your premises. With full business interruption cover in place, you would receive compensation for each of these areas.
Goods in Transit
If your business is involved in transporting goods or stock, this policy will ensure they are covered against loss or damage while in your vehicles or when sent by carrier.
For example, if you are delivering goods to a customer and during their transit, the vehicle in which they are being transported catches fire and the goods are destroyed, this insurance cover will reimburse you for your loss.
Money & Personal Accident Assault
Any business money that is lost or stolen from your business premises, your home, an employee’s home or whilst in transit, will be covered by this policy. This includes cash, cheques, postage stamps and certain other negotiable documents. Compensation will also be provided should an employee sustain an injury during a theft or attempted theft of money.
For example, if an employee was assaulted whilst transporting the day’s takings to the bank, this policy would pay compensation to the organisation or the employee.
If you rely on a computer system to run your business, you should consider computer cover. This cover is more comprehensive and would cover you if you suffered a serious incident that stopped your day-to-day activities. This insurance has fewer warranties and exclusions, and will help you to get your business up and running again as quickly as possible.
For example, you may employ a temporary working in your organisation during a busy period who is unfamiliar with your standard working procedures and who subsequently fails to back up important files leading to a complete loss of all your data or your firewall could fail and your stored data becomes corrupted.
With such wide ranging legislation in place these days related to employment, any breach can lead to an employee - current, former or potential - bringing a case against your organisation. Having Legal Expenses insurance covers your business for legal fees, compensation awards or appeal costs you may incur during an employment dispute.
For example, if you dismiss an employee and are later found not to have followed the correct disciplinary procedure, the former employee could bring a claim against you for wrongful dismissal. The costs of defending the claim would be covered by this insurance.
If an employee covered by the Personal Accident policy was to suffer a bodily injury from an accident or assault whilst at work resulting in temporary or permanent disablement or death, this cover will provide a financial payment to your business. This can be used to help aid their recovery or cover their absence.
For example, if an employee suffers an accident whilst at work and this resulted in them being unable to attend and carry out their duties for six months, Personal Accident insurance would make regular payments during the time that they are unable to work. A lump sum payment can be made should the individual suffer a serious injury or permanent disability.
This insurance protects your business against the loss of money, goods or property, which you may suffer as a result of a dishonest or fraudulent act by an employee or volunteer.
For example, an audit of your accounts uncovers an anomaly which is then traced back to an employee of the business who had been taking funds for their own use. This policy would pay out if you are unable to recover the funds.
If your business provides advice and guidance to others, you should consider including professional indemnity insurance cover in your programme of insurance. This would cover the cost of defending your business against allegations of professional negligence, such as giving poor or incorrect advice to a user of your services.
For example, if a client accuses you of giving poor advice and as a result they suffer financial loss as a result of the incorrect advice you gave, they could pursue a claim against you for compensation. Having this insurance in place will cover any payout awarded to them if the claim is successful. The policy can also include associated legal costs.
If your employees travel throughout the UK and abroad on business, cover can be organised to include cancellation and delays, medical emergencies, equipment and possessions.
For example, one of your employees may be taking a trip to meet with a new supplier. They arrive at the train station to find their train has been cancelled until the following day due to bad weather. This cover would pay for any overnight hotel stay and the cost of a new ticket if required.
This cover provides businesses with protection against financial loss resulting from the loss of personal and/or business data. This could be the loss of a single laptop or file to the hacking of your company’s website or network. If your business handles data – whether relating to employees, suppliers, customers, clients or other partners – you are obliged to take effective measures to ensure that data is safe and secure. Theft of such data from your company’s electronic system could result in regulatory investigations and claims as a result of breaches of data protection and privacy laws.
For example, if one of your employees had their car broken into and their laptop was stolen which contained your client database, this cover would compensate you for replacing the laptop and managing any issues that subsequently arise from the breach of data protection.
Why Choose Alan & Thomas?
- Top 100 UK independent broker* with Chartered Insurance Broker status
- Free no obligation review and quotation
- Talk to a heritage insurance expert to guide you through the process
- Bespoke levels of cover tailored to your individual requirements
- Competitive premiums underwritten by the UK's leading heritage insurers
- Dedicated in-house claims team who will deal with any claim on your behalf
- Payment of premium by monthly instalment available (subject to status)
- Free access to online risk management services
* Top 100 Independent Brokers 2014 published by Insurance Age in association with Cornell Consulting