Posts Tagged ‘insurance’

Increased Cost Of Working Insurance

Additional Expenses InsuranceIncreased Cost of Working Insurance – What is it?

The purpose of the policy is to provide funds following a loss resulting from an insured peril.  When you declare a sum insured and limit of indemnity, you are selecting cover for loss of insurable gross profit.  Under normal policy wording this is referred to as loss of gross profit as a result of a reduction in turnover. The increased costs incurred after a property damage loss, to limit any reduction in turnover or revenue and to maintain normal business operations.  These expenses could include such items as hiring alternate premises, temporary staff, additional freight or storage etc. Most policies limit the amount they will pay for these costs to the amount that is being saved in turnover or revenue.

Additional Increased Cost of Working Insurance

The increased costs incurred after a property damage loss, above those payable under the standard cover for Increased Cost of Working. These will generally include any reasonable costs irrespective of whether they limit any reduction in turnover or revenue. These additional increased costs are often expended to keep or regain market share, and to maintain normal business operations You must make sure that a full business interruption (loss of gross profit) policy is not more suitable. Your broker should be able to advise or if you wish to discuss with us please call or email.

To discuss your business interruption requirements with us contact us on 01707 883377 or email us on

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How To Calculate Your Business Interruption Insurance

Business InterruptionIt is reported that 8 in 10 large commercial insurance claims are underinsured in respect of their business interruption insurance.  We have compiled the following to  help you calculate your cover and what it all means: In order to make sure that you are properly covered it is necessary to know how to calculate the amount of Gross Profit that you need to insure.  If you require a two year indemnity period then, in effect, you have to review the expected level of Gross Profit to be earned in what would be years 2 and 3 after the first year of insurance.   For example if, at the end of 2012, you were calculating the Gross Profit to be insured for a 2 year indemnity period commencing 1 January 2013 and ending 31 December 2014 then you need to calculate the Gross Profit for the period 1 January 2014 to 31 December 2015.  The reason for this is that your Business Interruption Policy pays for a two year period from the date of a loss.  If the loss is at the end of your current intended policy period ceasing 31 December 2013 then your claim will run for year 2 (2014) and year 3 (2015) and it is this period that needs to be insured.

Example (if calculating for a 2013 policy):

You must identify Gross Profit and Turnover for the years 2010 to 2015.  Estimated figures should only be used when actual figures are not available.  The anticipated Gross Profit for the two year period 2014 (£3,200,000) and 2015 (£4,000,000) gives an amount of £7,200,000 for the 2 year indemnity period to commence 1 January 2013.  This exercise needs to be reviewed for each policy renewal and the Gross Profit insured amended accordingly.  This form of cover is called a “Sum Insured” basis. If the Gross Profit is underestimated then you run the risk of having “Average” applied to your claim on a “Sum Insured” policy.  This is where, if for example, you insured for £6,480,000 instead of the correct figure of £7,200,000 and had a claim of £1,000,000 then insurers would only pay 90% (£6,480,000 / £7,200,000 = 90%) and proportionately reduce the claim to £900,000. To avoid average being applied you should be insured on an “Estimated Gross Profit” basis which would remove the problem of average.  Although the figures that you are using may be estimated you must specifically request an “Estimated Gross Profit” policy from your insurers otherwise they will issue a “Sum Insured” basis with an average clause included. We recommend the use of an “Estimated Gross Profit” policy – please speak to us about arranging this cover for you. Business interruption can appear a real minefield.  If you wish to discuss your requirements or have any queries, please do not hesitate to contact us.

Call Bromwall on 01707 883377 or email us on 

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Personal Possessions Insurance

Personal Possessions InsuranceDo you travel abroad and buy jewellery or items to bring back to the UK? If purchased outside the European Community and not declared to Customs and Excise and duty paid, insurers can repudiate a claim. We refer to the case law: Geismar v Sun Alliance and London Insurance (Solicitor) where Judge J Talbot ruled that following loss by theft, there is no indemnity in respect of articles illegally imported as a result the claim was repudiated.

What Does This Mean To You?

It is vital you declare any purchases brought in from outside the EC.  It is becoming more and more common for gifts and holiday reminders to be brought back to the UK but if you are spending large sums of money, do not leave yourself open upon return to effectively having no insurance.  

To discuss your personal possessions insurance requirements or if you have any queries call us on 01707 883377 or email us on  Check out our prestige home insurance page here


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Insuring Your Fork Lift Truck




Many businesses operate a fork lift truck but for some reason we find it is almost always insured incorrectly.  In the event of a claim this may cost a business a considerable amount of money.

Yellow fork lift truck with raised fork, front view

So what should you do?

1)  Firstly ascertain if your fork lift truck is owned, hired or leased.  If owned see step 2.  If leased you need to insure to the requirements of your leasing company.  If hired, what conditions are you hiring under? The normal conditions are CPA (Contractors Plant Association).  Your insurers will grant an indemnity policy based on the total annual hiring charges.  Be aware some hirers have been known to put the figure of replacement value in the contract of hire but insurers will only settle on current value (indemnity).  Do not agree to this type of contract.  It is also important to include in the policy, loss of hiring charges as you will still be charges until the claim is fully settled.

2)  Make sure you cover the fork lift truck under your commercial insurance policy.  The sum insured should represent the REPLACEMENT cost and not the 2nd hand value.  If you do wish to cover the fork lift truck for the 2nd hand value, make sure your insurers are aware!  Failure to do this will render you underinsured.

3)  Do you operate the fork lift truck in or around the vicinity of a car park or road?  You must have road risks cover.  Business public liability will, in 99% of policies, exclude motorised plant.  If you drive into a vehicle or hit a person, you will not be covered.  Road risk policies are very cheap and essential, failing that do you have fleet insurance?  You should have no problems placing the fork lift truck on your fleet policy.  If your broker has not mentioned this before ask them why?

4)  Under current legislation all lifting plant has to be inspected annually and a certificate issued (some plant is more frequent).  This may be carried out by the company who service your fork lift truck, however if this is not the case or you do not receive a certificate, you insurers can carry out the inspection for you.

5)  Breakdown cover – if your fork lift truck suffers a mechanical breakdown, insurance cover is available to pick up the cost.

6)  Lifted goods cover – If goods are being lifted and are dropped, for example, due to a pallet splitting and damage occurs to the goods, cover can be in place to take care of this type of situation.

7)  Own surrounding property – If damage occurs due to use of the fork lift truck to your own property, again cover can be in place.




We are happy to discuss any queries or questions you may have relating to the points raised.  Call us now on 01707 883377 or email or go to  our commercial insurance page here


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Long Term Agreements

Long Term Agreements Save you money!  Or do they?….

A long term agreement or LTA as it is often known, is an agreement you can enter into with your insurers which allows a discount in return for you agreeing to stay with the same insurer for a set period of time, usually 3 years. So whats wrong with this?  If you have a bad year (a number of claims), insurers can often “get out” of the agreement.  If you obtain a more competitive quotation elsewhere, you cannot get out of the agreement!  The discount you usually receive for being in an LTA is around 5 to 10%.  It is considered in the current market, not a good idea to enter into a contract as many insurers are fighting for business and if you sign up for an LTA you will be locking yourself in.  When the agreement ends, if the market is “hardening” (rates are increasing) you will be at the mercy of the market!  If you do want to get out of the agreement before it is ended, depending on the insurer, you will have to pay the discount back for each year, thus increasing your insurance expenditure. Many insurers are offering LTA’s.  Before you agree, ask yourself: – Do I really want to be locked into a 3 or 5 year policy? – If I have problems with the insurer and want to terminate the agreement, do I really want to pay a premium to do this? Remember, insurance is only as good as the last claim….. To discuss any of the points raised or if you have any queries call David Walton at Bromwall on 01707 894402 or email us on or check our commercial combined insurance page here  

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Overcapacity In The Insurance Market

Overcapacity in the insurance market     Due to the overcapacity in market competition getting more intense, insurance advisers and even insurers are striving for business but this is not good for the insured.  This can lead to a degree of misrepresentation.  In order to compete on premium corners are being cut without a thought to the effectiveness of the policy.  A small saving at the inception of a policy can restrict the cover resulting with a loss of many thousands of pounds after a major loss or in the worst case, millions of pounds. We have found that not enough attention is given to business interruption insurance and almost 80% of businesses suffering a major loss are underinsured or have their claims declined on the basis of non-disclosure. Following the bomb in Manchester a few years ago 40% of all organisations effected went out of business, never to return. When taking out a policy or renewing a policy make sure that all relevant details of your company and directors have been passed to the insurers. Finally make your adviser confirm that the cover is satisfactory and that they have assessed the business for all potential risks. Larger organisations should get an independent assessor to review the company’s policy cover  in case the adviser has missed an essential part of the insurance. If a claim is declined then the insured would then look towards their broker.  If negligence can be proved, brokers professional indemnity would have to settle the claim but this could lead to a lengthy battle, possibly through the courts.  It is always important to obtain details of the brokers professional indemnity level of cover and make sure it could cover any potential claim. For help and advice on your own policy, contact Roy or David on 01707 883377 or email us on

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Bromwall attend Chubb Insurance Presentation

Chubb Insurance Bromwall were pleased to have attended the Chubb Life Sciences presentation at the Globe Theatre in London on Thursday 14th April 2011.  We had the opportunity of meeting several underwriters and to learn about the advantages of using the Chubb Life Sciences policy.   Chubb state that they have a total insurance solution for the risks faced by life science companies, with a tailored portfolio of property and third-party liability products to help protect a company’s bottom line from the financial devestation of a loss or lawsuit. Roy and David found the afternoon session very valuable and we were pleased to meet with some of the underwriters we have been in contact with. Contact Bromwall on 01707 883377 if you think we can help your business or email us on and we will call you.

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Investors In People Accreditation

Investors in People Bromwall announces that we have successfully achieved the Investors in People standard for the third time.

We applied in 2004 and sucessfully achieved the standard.

We believe it is important to have a high standard of training and management within the organisation and we have a hard working and loyal staff which is the result of successful training.

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