A BRIEF HISTORY OF INSURANCE

Lloyds-of-London

For most of us, insurance is a necessary facet of everyday life – as well as forming a large portion of the economic world we live in.

The UK insurance market is the largest in Europe and the third largest in the world, and according to the Association of British Insurers (ABI) it employs around 314,000 people.

But how did it become so important? Insurance hasn’t always been the regulated market it is today….

  • Circa 1750 BC

Ancient Babylon
In what is now Iraq, the Code of Hammurabi set out ancient Babylonian laws including on the topic of “bottomry” – a maritime insurance loan. A merchant would borrow money to fund his shipment, and could pay an extra sum to guarantee that the loan did not have to be repaid if the ship sank.

Ancient China
Around the same time, Chinese merchants had started mixing their goods between vessels, so if one sank on its treacherous river journey it would not wipe out a single merchant’s stock.

  • Circa 600BC

Greeks and Romans
Rather than moving goods around, it was the Romans who first structured insurance as a financial contract a few thousand years later. The ancient Greeks and Romans both introduced the origins of health and life insurance with the creation of guilds or “benevolent societies” to care for the families of deceased members.

  • 14th Century

Genoa
Insurance contracts as a separate entity, i.e. not bundled in with loans or other contracts, were invented in Genoa in the 14th century. The oldest known insurance contract dates from here in 1347.

  • Early 16th Century

Alpine Farmers
In the early 16th Century, farmers in the Alps organised mutual aid societies, agreeing to look after each other if livestock or family members fell ill. This system views risk as something to be shared, as opposed to something to be traded on.

  • 17th Century

London
In 1687, Edward Lloyd opened a coffee house on Tower Street, near the London docks. The shop became known as a hotspot for gossip, on topics including the plague, the Great Fire of London, and the ships sailing in and out, and what they carried.

Gamblers placed bets on whether they would arrive safely or not.

Edward Lloyd began to assemble a network of reporters and informers, and create a newsletter full of information about port comings and goings known as “Lloyds List”.

If someone wished to insure a ship, insurers in the coffee shop would draw up a contract and sign his name underneath – hence the term “underwriter”.

  • Key events 

Destroying more than 13,000 houses, the Great Fire of London in 1666 had catapulted property insurance into the limelight as a matter of urgency. Sir Christopher Wren included a site for “the Insurance Office” when rebuilding London after the disaster.

In the late 19th century, accident insurance was invented. Operating much like life insurance today, the Railway Passengers Assurance Company was formed in 1848 in England to insure against the rising number of fatalities on the railway system.

  • Today

80 years after Edward Lloyd established his coffee house, a group of underwriters who hung out there formed the Society of Lloyd’s. Today Lloyd’s of London is one of the most famous names in insurance.

Contact us on 01737377250 or visit http://www.insureeasy.co.uk for all of your insurance needs.Lloyds-of-London
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A BRIEF HISTORY OF INSURANCE

Is your garden safe this Summer?

Commercial Insurance Services Ltd home insurance
Is you garden safe?

 

Spring is creeping ever closer and it will soon be time for the clocks to move forward to summer time. For many, the increased daylight hours and rising temperatures will be the signal to dust off the lawnmower, dig out the patio furniture and fire up the barbeque. But are you sure that all your garden gear is safe from opportunists?

The criminal hit list

According to research by Lloyds Market Home Insurance, valuables such as patio furniture and garden tools rank high on the hit list of opportunistic thieves, but too many of us fail to secure such expensive items. As a result, last summer there was a 12% increase in the number of unforced burglary claims made to the insurer compared with the winter months. The average claim added up to around £900, which is not an insignificant sum.

Claims are also likely to get more expensive: according to Lloyds Bank Insurance’sBritain at Home Report, UK households spend around £366 every year on garden items, with those aged 25-34 spending over double this amount (£747). Such spending is on the rise, with 33% of homeowners questioned saying that they spend more money on their gardens now than five years ago.

However, despite our growing love of gardens and garden furniture, over a third of respondents admitted that they have no secure lock for their garden, while a quarter (24%) confessed that none of their outdoor items was insured. This could mean that many homeowners face the possibility of forking out a large sum of money to replace stolen items.

Commenting on the research, Tim Downes of Lloyds Bank Insurance said: “We know that the majority of thefts from gardens and sheds are opportunistic, so it is worrying to see so many people leaving themselves exposed by investing in gardens without adequate insurance.

“When it comes to protecting our properties, homeowners must remember that what’s on the outside also counts, so taking some small easy steps could help prevent having to stump up for lost garden goods should the worst happen.”

Keeping garden items safe

So how can you deter thieves from helping themselves to your expensive garden goodies? Here are our top tips for keeping all your outdoor items safe.

  • Lock it. Invest in a secure lock to bolt up your garden shed, garage, gates and outhouses. It’s also a good idea to check your fencing for gaps, and to see whether anyone could push past your garden bushes.
  • Make it heavy. Loading the base of your patio furniture can make it harder for thieves to carry it away – use stones or bricks to make them weighty enough.
  • Mark it. Take photos of all of your furniture and outdoor items, and then make sure you write your postcode on everything. This way, you will be able to identify what’s yours if it goes missing, or it could deter someone from carrying it off in the first place.
  • Form a fortress. If you can’t block access to your garden with a locked gate, then using spiky plants or building high walls can help to put opportunists off.
  • Use gravel. A gravel path in the front of your home can make a stealthy approach much more difficult.
  • Put it away. Leaving BBQ’s, lawnmowers and bikes out in full view is asking for trouble – lock them away out of sight. Remember that garden tools and ladders could be used to break into your property.
  • Insure it. Last but not least, insure valuable items. Replacing stolen goods can be an expensive business if your items aren’t protected, so save yourself the hassle by topping up your home insurance.

For a competitive quotation visit http://www.cisl.co or call us on 01737 373222 we can asses your risk and give you a quotation with in minutes!

Is your garden safe this Summer?

A Director’s Guide to Business Insurance

D-and-O

DIRECTORS AND OFFICERS INSURANCE: A BUSINESS ESSENTIAL

Imagine you have the opportunity to invest £100,000 for your company, with a 70% chance of providing a 20% return within five years. Do you decide to go for it? Now consider whether your decision would be different if you could be held personally liable for making the wrong decision; your home and other assets are on the line. Do you have the same approach to risk?

This simplified scenario demonstrates why Directors & Officers (D&O) insurance exists. Senior employees are exposed to civil and criminal liability in relation to a host of responsibilities including employee safety, tax and finance law. Company law can also give rise to personal liability, for example if directors know a company is about to become insolvent but continue trading anyway, resulting losses can potentially be recovered from their personal assets.

D&O insurance gives directors and officers the confidence to know there is support to pay compensation or defend claims or prosecutions when things go wrong. It’s not a ‘get out of jail free’ card to excuse negligent behaviour, but it does provide valuable protection in difficult situations.

Let’s consider seven key things you need to know about D&O insurance.

  1. Claims can be brought by a variety of company stakeholders
    It’s not just shareholders who may bring a claim against senior staff. Employees, bondholders, lenders, customers, consumer bodies, suppliers and competitors could all have legal standing to bring a claim. The likelihood is that at some point, every company will face the threat of a claim.

 

  1. D&O insurance is not compulsory
    The law does not require you to hold D&O insurance, but in practice companies can find it very difficult to recruit top talent without having a policy in place. Qualified candidates see insurance as an essential protection and usually ask to see the policy before entering an employment contract.

 

  1. Operating without D&O insurance can cause undue risk aversion
    Failing to put D&O insurance in place will not only harm recruitment; it also impedes the ability of senior executives to make decisions on behalf of the company. Put simply, they are likely to be more risk averse when their own assets are under threat.

 

  1. Professional indemnity insurance and D&O cover different types of risk
    There is often confusion about whether policies for professional indemnity and D&O are the same thing. They are separate: professional indemnity relates to situations where it is claimed that a service or advice has not been delivered to a competent standard. D&O insurance relates to the management of a company and concerns risk connected to governance and oversight.

 

  1. The first policies were developed in the Great Depression
    History time: D&O insurance was created in the 1930s after new laws were introduced in the US to hold directors to account for failings that led to the 1929 Wall Street crash.

 

  1. The law says some areas of liability must be excluded
    Providing cover for every corporate misdemeanour would arguably create a moral hazard in which executives would feel immune from the consequences of their actions. This is why English law says insurance cannot cover some types of penalty and fines. However, D&O insurance can pay for costs such as legal fees in defending a criminal charge.

 

  1. Cyberattacks are increasing risk for directors and officers
    Cybercrime is increasingly common for companies of all sizes; 74% of all small UK businesses have experienced a security breach in the last year. Executives can face claims from customers, shareholders and other interested parties following a breach, with losses being virtually unlimited. This is another incentive to put a quality D&O policy in place.

Do you have the insurance cover you need?

Visit http://www.insureeasy.co.uk or call 01737377250 For all of your insurance needs

A Director’s Guide to Business Insurance

Affordable & Reliable Tradesman Insurance

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Buying Liability Insurance online could not be easier. InsureEasy.co.uk not offers a full Quote-TO-Buy comparison engine for Public Liability Insurance. Compare your insurance needs with the top insurance companies at the click of a button. Commercial Insurance Services Ltd will still be offering a brokers experience, so if you ever need to call us during your policy term we will be at the other end of the phone to guide you with the advice you need. So what are you waiting for!? Click here https://lnkd.in/e73vXVw for an affordable & reliable insurance quote today!

Affordable & Reliable Tradesman Insurance

Counting the cost: a business interruption event could threaten your company’s survival. Do you need insurance?

closed-road

BUSINESS INTERRUPTION CAN HAPPEN AT ANY TIME – ARE YOU PREPARED?

Most of us take our workplaces for granted. We come and go, popping out for lunch or to a meeting, expecting that everything will be the same when we return. But what if something happened to disrupt this smooth flow?

As hundreds of workers found out in the City of London in July 2016, the work environment can become inaccessible in the blink of an eye. A gas leak around Blomfield Street led to the evacuation of many office buildings in the densely packed adjacent streets.

The gas leak took hours to put right. How much did that cost the surrounding businesses? All those missed deadlines, unwritten reports and lost opportunities; the wasted hours spent by some of the most highly paid people in the country.

Are you vulnerable to business interruption?
Business interruption can happen to any company. Adverse weather, civil unrest, fire, burglary, and vandalism: there is a huge range of events that could potentially stop your organisation from operating as normal. No company is totally immune.

While companies usually protect themselves with insurance to cover property, equipment and stock, it is less common to think about the loss of profit during business disruption. Yet in the event of business interruption, the usual costs such as salaries, rent and so on need to be paid, but no new income will be received.

Meanwhile, despite your best efforts, if your business is interrupted then relationships with customers are likely to suffer and they may look elsewhere. You may also miss out on new business opportunities that could have made up the gap.

How business interruption insurance helps
Business interruption insurance protects you when disaster strikes. This form of insurance provides compensation for loss of income as well as assistance with meeting the increased costs of working while the premises are restored, such as temporary offices, overtime, hired equipment or transport costs.

Insurance often also provides cover for marketing costs to tell your customers when you are back up to full speed. An advertising campaign is typically required to ensure this message reaches the right people.

How to manage a business interruption claim
There are some key steps you can take to ensure that if you need to claim on your business interruption insurance, the matter will progress smoothly. Firstly, before taking out insurance make sure that you read the policy carefully and understand exactly what is covered, what is excluded and what excesses are applicable. You should also be clear about time limits for submitting a claim.

When a business interruption event occurs, document the event and damage as far as you are able. This might include taking photographs, making notes, and keeping contact information of any emergency or remedial services you used. Be careful to keep receipts for payments in relation to the disruption.

The more information you can provide with a claim, the more likely it is to proceed quickly and successfully. Of course, ensuring you purchase insurance from a reputable and reliable provider is also essential.

Counting the cost: a business interruption event could threaten your company’s survival. Do you need insurance?

RISKY BUSINESS – IS YOUR HOME AT RISK OF FLOODING?

flooded-house

Home is where the heart is… not to mention all of your hard-earned furniture, technology, and reams of valuable personal possessions. Nothing could be more devastating than a bout of adverse weather flooding your house, causing devastating damage to both property and possessions. Yet a recent study by the Association of British Insurers (ABI) has revealed that fewer than one in three people researched the flood risk of the property before buying their current home.

The insurance industry hopes to raise buyers’ awareness of flood risks by introducing a set of traffic light-style green, amber and red symbols on property adverts, aiming to inform or warn buyers of the properties’ status before they buy. It has been predicted that one in six properties would be labelled amber or red.

Unsurprisingly, this idea is less than desirable to estate agents, who have voiced fears that potential buyers may be put off from viewing those properties deemed at risk, and possibly rendering a section of the market unprofitable.

However, the proposal may be a positive step towards raising awareness and motivating homeowners to protect their properties. In order to provide full and accurate cover, insurers need to assess the likelihood of incidence and severity. Although flood insurance usually forms part of buildings and contents insurance policies, areas at risk of flooding will likely have much higher premiums or need specialist cover.

Last year, extensive flooding across Northern England topped £5bn worth of damage, with up to £1.5bn insurance claims made as a result. Director of general insurance at the ABI, James Dalton, said: “As the floods of last winter reminded us, being flooded is horribly traumatic and can leave people out of their home or business for months. Anyone whose property is at flood risk needs to be aware of that, so they can take steps to protect themselves.”

Considering whether that seemingly perfect new property is on a flood plane is often not at the forefront of buyers’ minds. Purchasing a house is an exciting time, and with plenty to sort out it often gets forgotten, unless it gets flagged during searches.

So what can you do to make sure your home is safe? Whether or not you feel your home is at risk of flood damage, checking the flood terms of your home insurance is vital to feeling you would be covered should it happen. Remember that obvious bodies of water are not the only clue to look out for – in fact, the Environment Agency estimates that there are 5.2 million properties at risk of flooding in England from either rivers, the sea, surface water or various combinations.

Read your policy documents to ensure you know what you can and can’t claim for. You may be able to get damaged items replaced or be helped with the cost of builders and professional clean-up services. Before the loss adjustor visits your property, it may be a good idea to take photographs and video of the flood damage and list details of what’s been affected.

If you are currently buying a house, make sure you do as much research as possible into the property and area beforehand. The Environment Agency provides flood risk information broken down by postcode on its website. A broker, such as InsureEasy.co.uk, could offer a helping hand should you find that your insurance needs might be a little more complicated as a result.

 

Contact use today on 01737377250

RISKY BUSINESS – IS YOUR HOME AT RISK OF FLOODING?

InsureEasy is now OPEN!

 

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The premises formally known as “Studio 7” is now occupied by Commercial Insurance Services Trading as InsureEasy.co.uk

InsureEasy.co.uk is part of the CISL group. We are an independent insurance brokers that have been established for 19 years, the last 11 years of which we have been trading from our offices in Banstead.  We already take care of the Insurance needs for many Banstead businesses and residents.

You might be asking yourself, 11 years? Why have I never heard of CiSL?! Well the answer is simple, our original offices are directly above Cubitt & West Estate Agents and not having a ground floor presence means that, to some, we have gone unnoticed!

All has changed! – We now also occupy the building at the rear of Cubitt & West once known as “Studio 7.   This will be home to InsureEasy – our online hub and a place you can come and have a cup of tea whilst obtaining a very competitive Insurance quote – whether for your business or for you personally.

No matter what type of insurance you require, we have access to most of the insurance market and can find the right insurance at the right premium with wide cover and backed up by an excellent claims service.

So next time you are passing whether you need an insurance quote, advice or even just to log you renewal date with us – pop in for a friendly welcome.  Our doors are open 9am-5pm Monday – Friday. Alternatively you can call us on 01737 377250.

 

See you soon!

 

The CiSL Team

InsureEasy is now OPEN!