More marine traders are opting to protect their businesses and personal assets by investing in Management Protection.  A Sector that has seen a relatively low uptake of this particular insurance now seems to be taking steps to protect itself against some of the potentially more dangerous exposures not covered under Public or Employers Liability Insurances.

There may be a number of reasons for this change in attitude by the Marine Trades Sector:

  1. A growing awareness that Limited company status does not mean company directors cannot be held legally liable for the decisions, errors and omissions they might make in their capacity of company directors. There are more and more publicised instances of company directors being prosecuted as individuals in addition to their company being prosecuted.
  2. Marine trades are a potentially target Sector for the Health & Safety Executive (HSE) and Local Authority Inspectors due to some of the processes commonly used in the Marine Trades Sector, such as work at height and use of wood/ metal cutting machinery.
  3. The cost of investing in D&O protection has fallen considerably in the last couple of years.

IRCM, as a specialist Marine Trades Insurance broker are able to offer marine traders a low-cost entry level D&O cover that can be enhanced with higher indemnity limits at very competitive rates.  The starting premium is only £147.50 including tax and fee for which the marine trader receives the following levels of protection:

  • Directors & Officers Liability: £250,000 limit of indemnity
  • Corporate Liability) the business entity £125,000 limit of indemnity
  • Employment Practices Liability: £25,000 limit of indemnity

Our recommended Management Protection product has been extended to include Crisis Management, Deprivation of Assets, Personal Tax Liability and Emergency Costs cover and can be extended to include Crime (by employees) cover– again, with its own limit.

The depth and breadth of our wording includes such features as 100%. Allocation of Defence Costs, straightforward Corporate Liability cover and Employment Practices Liability cover without a TUPE Exclusion.

Additional Benefits

Choosing IRCM’s recommended policy means that Marine Traders will also benefit from a number of additional services that are provide by the insurers free of charge. Their advice lines will put you in touch with highly-qualified experts who can offer information and assistance on a number of issues. Better still, you can use any of these advice lines completely free of charge, and there is no limit to the number of times you can call.

Legal Assistance:  A 24-hour service that gives you access to a team of legal experts offering confidential advice on business matters, such as defence of prosecutions, employment, customer and supplier disputes.

Health & Safety Help is available 24 hours a day on health and safety legislation, including its interpretation, and advice on civil and criminal liability for accidents at work.

Tax Advice via a confidential telephone advisory service offering assistance on all taxation issues such as PAYE, VAT and income tax. This service is available Monday to Friday, 9am to 5pm.

Stress Counselling:  Stress affects most people at some point in their working lives. Insurer’s stress counselling service will help you deal with stress at work by addressing minor problems before they become major crises. Confidentiality is of the utmost importance, and counsellors are qualified and experienced in assessing problems quickly so they can provide immediate therapy.

Dedicated claims experts

Clients have the support of a dedicated Claims Team with over 40 members of staff, 300 years of combined professional and financial risk experience, and 600 years of combined insurance experience. Over 80% of the team hold professional insurance qualifications.

Fair claims paid promptly

The insurer’s dedicated Claims Team has a reputation for fairness in their approach to claims handling and prompt settlement of claims.

Market leading fraud identification and management

The Insurer has a Counter Fraud Unit with over 200 dedicated staff investigating potential claims fraud. Their ability to keep claims costs down means they can do the same for premiums.

CLAIMS EXAMPLES

Our recommended policy coverage would respond in the following circumstances.

Directors and Officers Liability:

Pollution:   A manufacturer employed a waste disposal contractor to dispose of old oil. Contrary to the manufacturer’s expectations, the contractor dumped the oil in a field and then became untraceable. The Environment Agency brought criminal proceedings against the manufacturer’s directors and considerable defence costs were incurred to achieve their acquittal.

Civil Fines & Penalties: Under the Finance Act 2009, the Senior Accountant Officers (SAO) of large companies have a duty to take reasonable steps to ensure that the company establishes and maintains appropriate tax accounting arrangements. A duty is placed on the SAO to provide HMRC particular documents on an annual basis, which meet certain requirements. The SAO of an insured company was fined £5,000 for not complying with their duty, as he did not provide the annual certificate to the HMRC.

Corporate Liability:

Corporate Manslaughter (Defence costs): Four teenagers drowned after a disastrous canoe trip. Criminal proceedings for corporate manslaughter were brought against the manager of the company that organised the trip and a separate action was brought against the company.

Employment Practice Liability

A team of female employees brought an action against their employer over claims that they were being paid less than their equivalent male colleagues. Their action was successful and the court awarded them compensation of £10,000 each.

Crime

An employee working in an Insured’s finance department confessed to issuing unauthorised cheques from company accounts into his personal bank account over a period of 5 years. The Insured’s insurance policy responded to this and ultimately a claim was made and was successful.

NEXT STEPS:

If there’s anything else you need to know, we’re here to help. Contact Mark Elcocks on 01902 796 793 or email markelcocks@marineinsurance-ircm.co.uk who will be able to give you the answers you need.

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