Flaxmans Factsheets

FLAXMANS FOCUSES ON…

The truths about Insurance

An SME’s guide to how insurance really works in practice

SMEs are the bedrock of our industry’s commercial business and they are often in need of good advice and clear guidelines as to how insurance works in practice. They usually find out what they did not know when they have a claim and start to discover the inherent limitations of insurance; some of which are difficult to adequately communicate at the point of sale.

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If you would like to receive a printed copy of this issue of Flaxman Focuses... please email brokersupport@flaxmanpartners.co.uk

FLAXMANS FOCUSES ON…

The Insurance Act – Friend or Foe? 

Hot off the press is our latest Flaxmans Focuses on….  The Insurance Act 2015. It examines and brings into sharp focus the hidden implications for the modern broker of the greatest changes to insurance law and practice for more than a century. 

It will be followed, over the ensuing months by a series of factsheets on specific aspects of the Act looked at from a brokers point of view and showing both the opportunities and the threats that can arise from this new law.

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If you would like to receive a printed copy of this issue of Flaxman Focuses... please email brokersupport@flaxmanpartners.co.uk

Fair Presentation of Risk factsheet 

The first of these factsheets concerns the Fair Presentation of the Risk.  The new Act is intended to bring a proportionate balance of fairness to both parties to the contract but this will depend upon both the insured and the insurer  playing by the new rules. So what are they? How different from the old rules and what changes must a modern broker make to their way of life because of them?

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If you would like to receive a printed copy of this factsheet please email brokersupport@flaxmanpartners.co.uk

Making assumptions…a dangerous game

The perils of brokers not knowing their insurance before giving advice.

Back in October Flaxmans were delighted to announce the arrival of Andy Chesters ACII to our team – adding his considerable expertise to our service in respect of Motor Claims, including Expert Witness Support.

In this latest in our series of Flaxmans Focuses on… Andy’s case study concerns a broker that misunderstood how motor insurance works in practice after being in the business himself for over 30 years. It is based upon a real event and it serves to illustrate the perils of brokers not knowing their insurance before giving advice. 

Mr J owned a Range Rover. It was insured under a private car policy with a leading insurance company with the Insured and Spouse only, permitted to drive. His fifteen year old son plays in goal on Sunday mornings for the town’s semi-professional football team. One bright autumn Sunday morning father and son set off to the ground in the Range Rover. Also, passengers in the car are Mr J’s 15 year old daughter Cheryl and her best friend Sharon who are both keen footballers and supporters of the team. They arrive at the ground and park behind one of the goals, which is the custom at the club. Father and son go into the changing room whilst the girls wait near the vehicle for them to return…

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If you would like to receive a printed copy of this issue of Flaxman Fouses... please email pa@flaxmanpartners.co.uk 

FOS – The Ombudsman Elephant trap

Following the presentation by Flaxmans at the recent BIBA Conference this is our latest factsheet and centres around the recent decision of the Court of Appeal in Clark & Anr v In Focus which decided that if an FOS award of compensation is accepted it is no longer permissible to go to court for any further monies over and above what the Ombudsman has awarded.

The broker’s ordinary duty of care to a customer typically extends to matters of claims and so it is now important for brokers to recognise the elephant traps in the FOS process before recommending its clients to go that route.

If you would like to receive a copy of this and other factsheets please email pa@flaxmanpartners.co.uk

Quote Engine’s Default Broker held Liable

2012 saw a landmark ruling in Café de Lecq Ltd v R A Rossborough (insurance Brokers) Ltd – the court found the broker had negligently failed to advise its client of the consequences of not complying with a warranty. The policy was sold via a quote engine automated process supplied by insurers for use by Rossborough which, the judge said,  “If questions were not asked of the client, the information automatically generated by the system was capable of being completely wrong”.
 
The clear message from the court is that a broker must always put the interests of the client first; or pay the penalty of not doing so.

If you would like to receive a copy of this and other factsheets please email pa@flaxmanpartners.co.uk

A cyber-attack on any business could be "a catastrophe waiting to happen"?

Data privacy is likely to be the biggest emerging risk for businesses in the 21st century. Any company that does not put appropriate risk management and mitigation measures in place to deal with a potential data breach will suffer significant financial loss and irreversible damage to their brand reputation.

Yet it seems that Insurance is not yet seen as a critical priority unless retailers have already suffered a cyber-attack. However, it is anticipate that this situation may change as legislation across the EU is moving towards mandatory client notification, as has been the case in the majority of the states in the USA for several years.

If you would like to receive a copy of this and other factsheets please email pa@flaxmanpartners.co.uk

Best Practice Guide for Insurance Brokers

We have prepared a best practice guide for insurance brokers following the court case between Nicolas G Jones V Environcom Ltd & MS Plc. The judge found that insurance broker Miles Smith (MS Plc) did not do enough to make its client, waste recycler Environcom, aware of its duty to disclose all relevant information regarding its business processes and potential risks. As a result the broker was pursued for £6m to cover the loss of business following a devastating fire. Although the judge ruled that Environcom’s case was not valid because the business was found to be uninsurable, much was made of the broker’s duty to clearly inform and advise its client on insurance disclosure obligations.

If you would like to receive a copy of this and other factsheets please email pa@flaxmanpartners.co.uk

 

SME Guide to Commercial Insurance Buying

Written in response to the Mactavish/PwC report “Corporate Risk & Insurance: The Case for Placement Reform” which criticises the selling of commercial insurance. It examines in detail the current traps and pitfalls in the placing of modern insurances and the Flaxmans guide draws on first-hand experience of handling insurances that have failed to match up to needs and expectations.

The newly published guide offers chief executives, finance directors and managing partner’s practical, hands-on advice that can be utilised immediately. The report includes a handy 10-point commercial insurance health check for boards to consider whether they have thought of the pitfalls.  It also offers advice on when to hire external professional advisors and how to get the best out of policy negotiations at the time of renewal.

If you would like to receive a copy of this and other factsheets please email pa@flaxmanpartners.co.uk

 


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The Flaxmans' Managed Awareness for Professionals programme has made a real and lasting difference to our business and we thoroughly recommend it.

Price Bailey Chartered Accountants

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