Message from Our Advertiser - ACE European Group
Insurance is rarely a subject that excites business, except when it comes to paying the annual premium or making a claim. However, insurance has a vital role to play in not only protecting your growing assets, but helping you to identify and manage risks better and realise your full growth potential in the future.
Growth brings with it a very different set of challenges and demands for management. Not least, the “package” insurance policy often purchased by SMEs is not always adequate to meet the evolving needs of an expanding business. As a company grows, it is essential that it considers protecting itself for additional risks, such as:
Directors & Officers – The first major change for a business is the move from being a privately-owned business to a limited company status. At this point the business faces its first new insurance need for Directors & Officers (D&O) insurance. D&O insurance protects directors against actions brought against them by regulatory bodies, competitors, shareholders, employees and many others.
Directors and key employee insurance – most companies see the need to insure the computers and desks they sit at, the buildings and premises they work in, but often tend to overlook their most valuable asset of all - their key employees. Employers’ liability (EL) cover is mandatory for any business with employees, but a director, owner or proprietor of a business may find themselves suing their own company in the event of an accident. Personal injury insurance for directors and key employees provides protection for the company and fills a potential gap in the employer’s liability coverage.
Cyber/network risk – Businesses increasingly rely on a secure IT network to manage data not only internally but wherever the business is operating, including abroad and with third parties. This can only be achieved by a specific and wide ranging computer insurance policy.
The floods in Gloucestershire last year left large areas without electricity and then without running water for weeks. Even if a business could operate by moving out of the area it would need access to its data. Is your data safe and secure?
Growing outside the UK – As businesses grow, many expand overseas. It is essential that companies are fully covered and compliant with local tax and other regulations. ACE is one of a few global insurers who have the network capability and expertise to handle the insurance needs of businesses expanding beyond their domestic markets for the first time.
Travel – When travelling abroad, business professionals face a whole new range of security and insurance issues, such as political instability, terrorism or other crime. It is important for corporate insurance buyers, risk managers, brokers and insurers to work together to help ensure that both the business AND the business traveller are adequately insured both at home and overseas, and that benefits are structured in the most effective way.
Businesses should consider buying:
Personal Accident Insurance
Preferably on a 24 hour basis and with a sufficient level of benefits to cover any lump sums that the business may be contractually bound to pass on to its employees and their dependants in the event of an employee being seriously injured or killed; and to cover the employer’s own costs of recruiting and training replacement personnel plus any short-term additional costs to cover their workload such as overtime, temporary personnel and outsourcing costs.
Where the business does not automatically provide benefits for employees and dependents, they should consider implementing a voluntary purchase or flexible benefits personnel accident scheme for employees, either of which can provide valuable low cost benefits to employees and their dependents at no cost to the employer.
Specialist business travel insurance
Many growing businesses continue to buy standard travel insurance on a trip by trip basis when booking business journeys. These policies can be expensive and may not provide the range of benefits required by the business traveller. They are often designed to cover leisure travel and therefore may not cover manual work overseas or include the full range of benefits generally found under specialist business travel policies such as replacement traveller costs and cover for business equipment.
Substantial costs savings can also be made by purchasing an annual business travel policy. Annual policies often include a wider range of benefits and services designed specifically for the business traveller such as:
• Tailored pre-travel security reports;
• Advice on local amenities and customs;
• Specialist benefits such as Search and
Rescue Expenses;
• Personal Specialist Expenses;
• Kidnap, Ransom and Extortion, and evacuation costs following a Political or Natural Disaster.
All of the above can be invaluable when travelling in an unfamiliar territory.
Whatever the size of business, ACE has a policy to suit from single trip business travel insurance (see http://www.acebusinesstravel.com) to annual personal accident and business travel cover for multinational companies.
ACE also specialises in employee benefit products: helping businesses develop additional revenue streams by cross selling and up selling relevant accident and health insurance products to their customer base, whilst maintaining full brand integrity for their business partner (see www.aceeurope.co.uk for further details).
Footnote: The ACE Group of Companies is a global leader in insurance and reinsurance, serving a diverse group of clients, from SMEs to the world’s largest multinationals. With offices in over 50 countries and the authority to transact business in over 140 countries, ACE is well placed to meet the insurance needs of business across the globe. For further information, go to www.aceeurope.co.uk or www.acelimited.com. To purchase any of the insurance products and services identified in this article, please consult your insurance broker and ask for ACE.