iosh consultancy group presentationconsultants these risks look fairly small –or are they? chalk...

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© 2017 ARTHUR J. GALLAGHER & CO. | AJGINTERNATIONAL.COM

Nick Lunson ACII Chartered Insurance Practitioner

8 February 2018

IOSH Consultancy

Group Presentation

17GGB______© 2017 ARTHUR J. GALLAGHER & CO. | AJGINTERNATIONAL.COM

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• Working for Gallagher and predecessors for 40 years

• Specialising in Risk Management and Insurance for professionals and business

• Looks after the programme of covers for IOSH

• Has created and is in charge of a facility for covers for Health and Safety and

Risk Management Consultants for over 20 years

Presenter

Nick Lunson ACII Chartered Insurance Practitioner


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• Risk Management principles

• Claims

• How losses arise

• Public Liability Cover

• Professional Indemnity Cover

• Purchasing Insurance in the UK

We will not be reviewing every form of cover available today.

Everyone’s needs are different!

Agenda

8 February 2018


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Risk Management Principles

The basics

of

managing

risks

Don’t do

anything?

Avoid any

liability?

Reduce risk

/ liability

Pass on to

others

Insure or

underwrite

from assets

or balance

sheet?


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Avoiding / Reducing / Liability

Terms of business when carrying out work are essential to be able to

control your risks

Set out the scope of work to be done

Set out what won’t be done

Limit liability to multiple of fee (other than personal injury claims) or limit to reworking

Exclude any claims for economic or financial loss

Get the employer to indemnify you for work you carry out for them?

Set jurisdiction UK or Europe

Include a Force Majeure Clause


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Claims

The State of the Nation

Personal

Injury Claims

The largest in recent times is £23m, a structured settlement for one

individual (RTA)

Gallagher UKAre aware of at least 4 individual claims for workplace injury where

insurers reserves are over £10m

Ogden TablesAre being altered with Personal Injury claims increasing. We have

evidenced one claim rising from £7m to £14 reserve overnight

HSEAre imposing more and larger fines against companies and

individuals and are putting more people in prison for breaches

Near missesEven near misses are being looked at. Again, we are aware of the

HSE investigating a serious near miss incident and issued a fine of

£400,000!

Large finesDaily we see large fines being made for HSE breaches. The

defence costs for these can run into hundreds of thousands of

pounds


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Claims Examples

Construction worker crushed to death in

basement dig out collapse

HSE & Police arrived on scene and

closed off the works

Both the employer and the safety

advisor taken to task by HSE

Significant defects to method statements

which simply didn’t address the risks.

The method statements were generic

Company owner jailed for 3 years 3

months

H&S advisor jailed for 9 months for

exposing another to danger


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Claims Examples

Legionella

Outbreak at DIY store from display hot

tub2 men contracted and caused death

18 other affectedCivil claim against the company – settled

£200,000

HSE investigate


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How losses arise?

Your physical

activities or

products you

sell causing

injury or

damage to

others for

which you are

legally liable

including direct

financial or

economic loss

You breaching

your civil duty

of care from

the advice you

give to others

causing injury /

damage / loss

/ damage to

reputation /

infringement of

IP

Contractual

losses –

liquidated

damages

Statutory

Liability


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A Public Liability policy provides cover for injury and/or damage to third parties for which you are legally liable arising out of your activities

Public Liability Cover

H&S / RM

Consultants

These risks look fairly small – or

are they?

Chalk and Talk Low risk

Visiting Site A little higher

Fire Extinguishing

TrainingHands on – more risk

Carrying out

Legionella samplingVery high

Carrying out

Asbestos samplingEven higher risk


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Public Liability cover

Accidents occurring

basis

There has to be a policy in place when the accident

occurs

Defence costs In addition to settlement to claimants

Criminal

Prosecution

Includes Criminal Prosecution defence costs – with

insurers agreement

LimitsLimits often quoted £1m, £2m, £5m – are these

enough bearing in mind recent settlement figures?

Court Attendance Costs included


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Public Liability Cover

Exclusions

Cover provided by

other insurances,

such as

Employers

Liability, Products

Liability

War, Terrorism,

nuclear risks

Providing

professional

advice

Claims brought

outside of EU Activities abroad?


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Purpose of the cover is to pay for the consequences of

improper advice to third parties

Professional Indemnity Cover

The cover can

be on ‘civil

liability’ basis

or more

restrictive

‘breach of

professional

duty’ or even

more

restrictive

‘negligent

errors or

omissions’

Cover is on a

‘claims made’

basis. This

means that

there has to be

a policy in

place when the

claim is made

The policy

needs to cover

all work carried

out. There

should be no

retroactive

date


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Conditions of cover

The limit of

indemnity may

be on an ‘any

one claim’

basis or an

‘aggregate’

basis

The defence

costs may be

in addition or

within the limit

of indemnity

There is often

an excess.

This may apply

to the costs of

defence


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Exclusions may include

AsbestosBodily injury of property

damageContractual Liability

Claims brought in USA /

Canada

Losses that fall under

other policies such as

Employers / Public

Products Liability /

Directors & Officers /

Fines / Penalties

Nuclear & war risks Pollution

Claims for work carried

out before the

retroactive date

Virus or computer

transmission losses


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Extensions

Loss of documents Mitigation costs Libel and slander


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Purchasing Insurance - UK

You can obtain

insurance through

various mediums

including

Direct

Online

Through a broker

The Financial

Conduct Authority

Protection Scheme

Provides compensation to purchasing individual

including small business with less than 1m Euros

Applies to all insurers registered with the UK FCA

This is supplemented by the FOS


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Purchasing Insurance

Insurance Act

2016 brings in

better

protection to

individuals

particularly to

help stop

insurers

avoiding

paying claims

On –line the

offering is

often not as

wide as that

through other

channels

Do you know

what you are

buying? How

does this

compare?

How do you

know you have

disclosed all

that you need

to?


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Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered

Office: Spectrum Building, 7th Floor, 55, Blythswood Street, Glasgow,

G2 7AT. Registered in Scotland. Company Number: SC108909.

Nick LunsonDivisional DirectorArthur J. Gallagher 5 Western BoulevardLeicesterLE2 7EX

Tel: 0116 204 3006 Mobile: 07748 657673

Thank you!

Please now ask some questions

iosh consultancy group presentationconsultants these risks look fairly small –or are they? chalk...

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