What insurance protection should my organisation be considering in 2022?
What Insurance Protection Should Organisations Be Considering in 2022?
Our friends at Smarta asked What insurance protection should organisations be considering in 2022? and this is what we told them: Read more.
When organisations launch, they tend to arrange the basic insurances required by law or regulation:
Employers Liability (for any organisation that has employees or at least two Directors)
Motor Insurance
Professional Indemnity (required for some types of businesses, e.g., Insurance Brokers and Solicitors)
Public Liability (required for certain businesses, e.g., Horse Riding schools)
They also often put in place insurances that meet contractual requirements, such as Public Liability, Professional Indemnity, Contract Works, or Buildings insurance.
As organisations become more established, attention turns to insurances that support broader risk management objectives. These covers aren’t luxuries—they are vital for achieving organisational goals and creating resilience.
Key Insurance Covers to Consider
Business Interruption Insurance
Business interruption insurance replaces lost income or profits after an incident (traditionally damage to premises) or covers costs for alternative working arrangements. The impact of Covid-19 highlighted its importance. Organisations with pandemic-related cover could replace lost income, remain solvent, and continue trading as restrictions lifted. This cover forms an integral part of business continuity and disaster recovery plans.
Cyber Liability Insurance
Cyber liability insurance provides financial cover for data loss, breaches, fraud, and attacks. Ransomware and data breaches have become common, affecting organisations of all sizes. This insurance is essential for data-rich or service-based organisations, supporting business continuity and disaster recovery strategies.
Crime Insurance
Crime insurance covers losses due to fraud. Pre-Covid, employee fraud and phishing caused the majority of uninsured losses among our clients, averaging £20,000 per incident. Organisations should combine insurance with control methods such as security filters, employee awareness training, and dual authorisation for large fund transfers. Insurance acts as a crucial third line of defence.
Trade Credit Insurance
Trade credit insurance covers losses from non-payment of invoices and proved invaluable during the Covid pandemic. It often works alongside credit referencing tools to assess the risk of working with customers, making it a core component of a risk management strategy.
Buildings & Contents Insurance
Severe weather events, such as Storm Arwen in 2021, can impact buildings and contents. Rising costs for raw materials and IT equipment mean that replacement can be expensive. Reviewing your building and contents insurance ensures your organisation can recover from significant property damage.
Other Considerations
Looking ahead, insurers expect further Covid-related claims, including:
Employers Liability claims related to catching Covid or occupational health concerns with home working
Management Liability and Employment Practices Liability claims regarding staff treatment, engagement, or management during lockdowns, furloughs, and return-to-office periods
It’s important to review existing cover regularly. Conducting an in-depth insurance review with an expert broker helps integrate a robust risk finance strategy alongside control and mitigation measures, contributing to your overall risk management approach.
Talbot Jones Ltd is a chartered insurance brokerage specialist in supporting Third Sector organisations and SMEs to understand and manage risks. Contact us for insurance advice, quotations, or reviews.
