What is Insurance and Risk Management?
Risk Management is the means by which an organisation assesses the risks facing the business and the likelihood of the risk happening and how it could hinder or damage the business. The organisation can then manage the risk by putting measures in place to reduce the impact of that risk or take away the risk. One of those measures is insurance. Insurance is the system and business of providing financial protection against specific risks identified by the business.
There is a wide range of insurances available, these include:
1. Employer’s Liability Insurance
This is the statutory cover you require when you employ anyone. It covers your legal liability for bodily injury or disease sustained by employees, arising out of activities in connection with your business.
2. Public/Product Liability Insurance
Public Liability covers your legal liability for bodily injury or damage caused to third parties or their property, arising out of any activities connected with your business
Product Liability covers your legal liability for accidental bodily injury or damage caused to the third party or their property arising out of goods sold or supplied in connection with your business.
3. Material Damage
This covers physical loss or damage to your assets e.g. your buildings and contents by an insured peril. Cover can be on an All Risks basis including Terrorism, Theft and Subsidence.
4. Business Interruption
This cover is for your loss of profit/revenue and increased costs incurred should there be a claim under the Material Damage section to your buildings and contents.
5. Directors and Officers Liability
Covers the legal liability of the directors and officers of the business in their professional capacity as directors and officers.
6. Professional Indemnity
Covers your legal liability if you make an error or omission when providing advice, design and other professional activities.
Certain insurances eg Employers Liability and Motor are statutory. Other insurances, whilst not compulsory are advisable eg Assets, Business Interruption and Directors and Officers.
How can the BWF help?
Insurance is a complex subject, and few who have not worked in the insurance industry understand the full complexities of insuring commercial businesses. Without this expertise, it can be difficult to make detailed comparisons of the premiums and policies on offer, or to realise when many of the standard policies available do not cover some of the risks that are an inescapable part of a woodworking and joinery manufacturing business.
The BWF has entered into a partnership with Towergate Risk Solutions, part of the Towergate Partnership, the largest independently owned insurance intermediary in Europe. Towergate Risk Solutions has developed a range of cover which includes employers liability, public and product liability, professional indemnity, asset insurance and directors and officers liability insurance. These covers are available at competitive premiums and can be tailored to the individual company’s needs. Furthermore, there is a further range of additional insurance options which can be taken up if required.
Purchasing insurance through a collective affinity group as part of a trade association means that BWF member companies could obtain a better deal than they might if they approached an insurance broker on their own. The BWF group has a stronger collective buying power, and is represented by insurance specialists who understand the insurance market and have taken time to get to know the woodworking industry’s insurance needs.
British Woodworking Federation is an Introducer Appointed Representative of Towergate Underwriting Group Ltd, which is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Website www.fsa.gov.uk/register, Towergate Underwriting Group Limited’s Firm Reference Number is 313250.