IF8 Chapter 3 - Other types of commercial packaged policy

ӿ Hotels and guest houses – designed for smaller hotels and guest houses
ӿ Hotel Proprietors’ Act 1956 – innkeeper has strict liability for the safety of their guests’ effects
ӿ Liability of the hotelier is limited to £50 for any one article, or £100 for the property of any one guest
ӿ The limits do not apply if the property; is lost due to negligence of the hotelier or staff, was deposited with the hotelier for safe keeping or was offered for safekeeping but refused
ӿ Under the act a guest is a person who has booked sleeping accommodation
ӿ The London Local Authorities Act 2004 increased the limits payable by hotels within Greater London to £750 any one article and £1500 for the property of any one guest
ӿ Does not apply to vehicles and their contents or animals
ӿ Optional Cover; Loss of license (sum insured of £100k-£200k), Outside catering – covers for injury to the public and damage to their property (limit of £2m, £2k for damage to insureds equipment)
ӿ Also standard optional extensions buildings, freezer contents, fidelity insurance, portable equipment, terrorism, computer breakdown, hotel legal expenses, personal accident

* Designed to meet the needs of a wide range of surgery risks - doctors, dentists, vets and therapists

* Largely the same as cover for offices

* Some differences from office policies are:

 - cover extended to include loss by deterioration or contamination to drugs or vaccines, sum insured up to £15,000
 - products liability is restricted to the supply of food and drink intended for consumption on the premises and sale or supply of proprietary goods in manufacturers' unopened containers (i.e. toothbrush)
 - liability excludes bodily inury or damage to property as a result of professional neglect, E+O's in treatement, medication, advice and certification
 - some insurers do not extend cover to include full theft

* Cover for barbers, hairdressers, beauticians and solaria

* Cover similar to shops package

* Differences from shop policies:
 - specific cover for accidental breakage to basins, pedestals and sinks
 - liability cover is available for professional errors arising from a range of treatment risks
 - liability usually excludes treatments performed by employees without the right qualifications and reactions to treatments where the correct procedure hasn't been followed (i.e. skin test)
 - liability usually excludes damage to or costs incurred in repairing/removing/replacing/re-applying/rectifying products supplied or professional treatment
 - usually a requirement that all items used to pierce the skin are thoroughly sterilised before use

* Residential Homes, Retirement Homes, Care Homes, Rest Homes and Nursing homes for the elderly
Are regulated by the Care Quality Comission (CQC) - you must be registered to them to run a care home
*Health and Social Care Act 2008 - provide framework for a single registration system that applies to all health care and adult social services in England
To be registered the provider must show that they meet fundamental standards of quality and safety

*Market for care home insurance tends to be more specialised

* Person-centred care - Care or treatment must be tailored to the individuals needs
* Dignity and respect - individuals must be treated with this at all times
* Safety - individuals must not be given unsafe care or treatment or to put at risk
* Safeguarding from abuse - individuals must not suffer from any abuse while receiving care
* Food and Drink - must have enough food and drink to keep them in good health while in care
* Premises and equipment - the premises where care is provided myst be clean, suitable and looked after
* Complaints - individuals must be able to complain while in care
* Good governance -  providers must have care plans that meet these standards
* Staffing - employees must be suitably qualified, competent and experienced to meet standards
* Duty of Candour - providers must be open and transparent with individuals about their care
* Display of ratings - providers must display their CQC ratings in a prominent place and on their website

* From an insurance perspective it's important for care homes to be able to comply with the CQC because failure to do so could bring a claim against them
* The CQC states that Care Homes must have insurance and suitable indemnity arrangements in place to cover potential liabilities arising from death, inury loss or damage to property and other financial risks
* The cover provided in a Care Homes package is designed to meet these requirements

* In addition to core cover the following additional cover is available;
- Buildings
- Loss of accounts receivable (book debts)
- Legal expenses
- Frozen foods
- Increased PL liability
- Staff and Residents' property

* Other extensions;
- Malpractice cover - limit £5m
- Abuse
- Goods in Transit
- Loss of regsitration - sum insured up to £50,000
- Trustee liability - indemnifies trustees where they have acted wrongfully or breach of trust
- Terrorism
- Personal Accident
- Engineering insurance/inspection - many care homes have lifts which are subject to statutory inspection

Due to increase in high profile abuse scandals some insurers have withdrawn from the market due to too high of a risk
Many insurers have increased premiums as a result, some insurers have revised policy wordings to a claims made basis due to the historical nature of abuse claims and also applied inner limits of £2m to abuse covers

* Designed for - businesses who employ max between 5-8 employees and have less than £500k turnover, or businesses that are based at home or out of a third party site but do not own, lease or rent any business premises
* These are usually sole traders and include consultants, contractors, plumbers, electricians and builders
* Cover is primarily for the legal liabilities of the business
* Cover automatically includes; Public and Products usually at £1m-£2m but can be increased, and money and assault with limits of £1k in transit and safe
Optional extensions;
- EL, Treatment risks, Property damage for business equipment/contractors tools
- Contract works, Stock, Business Interruption, Legal expenses, Personal accident and business travel
For contractors' risks insurers restrict the cover by;
- excluding hazardous work (work at power stations and chemical works)
- requiring additional precautions when hot work is being undertaken away from premises

* To stay competitive insurers have introduced the following additional customer benefits;
- Helplines - for legal advice, tax advice and emergency assistance
- Counselling service - help with services such as bereavement, stress, divorce or bullying at work
- Claims line - 24 hours a day
- Authorised repairers and suppliers - e.g. 24 hour glass replacement service
- Risk control advice