Commercial Insurance Profile April 2016

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The April Commercial Insurance contains beneficial information on the potential ‘Brexit’, what your company needs to do to comply with the new gender pay reporting regulations and the three most common business interruption claim mistakes.

Did you know?

Under the Modern Slavery Act 2015, which came into force in October 2015, companies with a turnover of at least £36 million are required to disclose what they have done to ensure that their supply chains are free of slave labour. However, out of the 75 statements collected, only 22 companies complied with the requirement to have the statements signed by company directors and made available on the companies’ home pages.

In this Article:

  • ‘Brexit’: Good or Bad for Business? 
If Britain leaves the EU, experts predict four ways it may be good for business—and four ways it may not.
  • Gender Pay Reporting Finalised. 
Beginning in April 2018, companies with at least 250 employees will have to disclose the salary and bonus amounts for all male and female staff.
  • 3 Most Common Business Interruption Claim Mistakes. 
In the unfortunate event your company has to file a business interruption claim, avoid these three common mistakes.

‘Brexit’: Good or Bad for Business?

On 23rd June, the public will vote on whether the United Kingdom should remain in the EU. The consequences of a ‘Brexit’ would vary depending upon the terms of the nation’s departure as well as the economic climate. Businesses remain divided on whether the Brexit will help or hurt them—39 per cent of British SMEs would vote to leave the EU, while 49 per cent would vote to stay, according to a March survey. While the outcome of the referendum is uncertain, experts have begun estimating how it could affect businesses. Here are some of their main predictions for how the Brexit could be good or bad for UK businesses:

  • Bad: Companies may have to pay new taxes and customs costs as well as deal with slower administration processes for conducting business with suppliers in mainland Europe.
  • Bad: Companies may have difficulty hiring qualified employees from outside of the United Kingdom to address the skills shortage, and employees who are non-British nationals may be required to obtain a visa or work permit in order to keep working in the United Kingdom.
  • Bad: Other countries may be hesitant to invest in the United Kingdom until it is clear that the UK economy can be successful while independent of the EU, which could weaken the pound.
  • Bad: Britain’s trade relationship with the EU could be weakened if the Brexit negotiations go poorly. This situation could be further exacerbated if the United Kingdom is unable to secure beneficial trade deals with other countries.
  • Good: Companies will have fewer regulations governing how they can conduct business, which could spur serious growth.
  • Good: Unburdened by EU trade rules, the United Kingdom could negotiate better trade agreements with non-EU countries.
  • Good: A pound slightly weakened by the Brexit could actually help manufacturers export their goods, since a strong pound is one of the main deterrents to overseas customers buying British goods.
  • Good: The government will no longer contribute to the EU budget.

Gender Pay Reporting Finalised

New gender pay gap reporting regulations will come into force in October 2016. Under the new regulations, if your company employs at least 250 staff members, you will be required to disclose the salary and bonus amounts for each of your male and female employees.

These amounts will then be made publicly available on your company’s website. However, you will not have to publish the findings until 30th April 2018.

But, that does not mean your company should wait until 2018 to do anything—on 30th April 2017, your company will be required to supply a data snapshot. This snapshot will be identical to the report that your company is required to submit beginning in 2018, however, the snapshot will not be made publicly available.

  • To comply with the new regulations, act now to ensure you can capture the following five pieces of information that you need to include in your report:
  • The difference in mean pay between male and female employees
  • The difference in median pay between male and female employees
  • The difference in mean bonus pay over the previous 12 months between all male and all female employees receiving a bonus
  • The proportion of male and female employees who received bonus pay over the previous 12 months
  • The number of male and female employees in quartile pay bands A, B, C and D

As this information will be made available to the public, it will surely affect employment and retention rates. Act now to assess and rectify any pay disparities in your organisation.

3 Most Common Business Interruption Claim Mistakes

An interruption to your company’s normal operations—even one that is brief—can be costly. Thankfully, setbacks can be easily mitigated with comprehensive business interruption insurance. However, even if your company has a robust policy, it is only effective if you properly submit your claim. To help ensure your claim is successful, avoid these three common mistakes that other companies have made when submitting their claims:

Not reading your policy: It is important that you read your policy to understand what types of damage caused by an interruption are covered as well as the size of your excess. Also, read your policy so that you know how many days you have to submit your claim.
Not properly documenting the damage: Before you even begin to clean up, you should take photographs of the damage from multiple angles to give as clear of a report as possible. In addition, it is important to keep any damaged items as evidence until your claim has been processed.

Not providing enough information: Be as thorough as possible in your claim, and, if you are able, provide a detailed outline of how the incident occurred.
The most important piece of guidance when submitting a claim is to contact your Glowsure Insurance Brokers broker to discuss your policy and effective business interruption strategies

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Rebecca Haynes
Rebecca Haynes
Rebecca is the Operations Manager at Glowsure and a self confessed insurance nerd. She helps businesses and landlords to retain income and continue trading in the event of a claim.
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