You may also qualify for an additional £1,000 towards OMS courses and health and safety training if you take out a policy with Cornerstone Insurance in the next twelve months.

OMS is a highly respected organisation providing health and safety training, fire risk assessments, training courses and PAT testing.

Visit OMS website

Too many company directors trust the face of the advisor without considering the implications of getting their insurance wrong. Price, friendly service and a chat about their golf handicap comes before questions on gaps in cover and practical risk management, according to Tim Lee, managing director of Cornerstone Business Insurance.

“British Industry and commerce is too trusting and fails to probe into the consequences of a contractual misunderstanding.

“The insurance policy is a classic contract that only operates at the time of a loss. This is the point where the policy warranties and conditions come jumping out to startle clients and create difficulty in claims settlement,” continues Lee.

He adds that the claim is the moment of truth. “At this point comes the stark realisation that the cover is inadequate or insurers were too slow to respond. This is not the time to discover there are gaps in the policy or learn about recovery planning.”

And he goes on to say that while fires and floods occur, simple measures in risk management can have a massive effect on the survival of the company.

“Your customers do not hang around whilst the lost adjuster is writing his report, so it’s vital you understand the claims process and put a plan into place to help you recover as quickly as possible.

“There’s a tendency for business managers to shy away from reviewing policies and even reviewing whether there’s enough cover in place; the first action entails a lot of small print and time, and the second could cost more if it’s found that cover is inadequate.”

Lee recommends an annual ‘health check’ for insurance policies and not just before renewal.

“Sixty per cent of the risks a business face are not insurable and therefore it is vital that you understand how to manage these risks. This should be led by your advisor.

“Don’t rely on a friendly chat and cup of tea when agreeing to renew your policy. Let your advisor play devil’s advocate and challenge your perception of the cover and the effects of a major loss.

“The insurers will not rebuild your business after a serious loss, so you need to understand the policy limitations and be prepared.”

2. To learn more about Cornerstone visit www.cornerstoneinsurance.co.uk or contact them at

It’s unlikely that a tidal wave, earthquake or meteor will crash into our island but there are far more obvious perils that are being ignored on the basis that it hasn’t happened yet so it’s unlikely to occur in the future. Our memories are too short…

On the 11th December 2005 around 6.00am the Hertfordshire Oil Storage Terminal located near the MI at Hemel Hempstead exploded with such force that it registered 2.4 on the Richter scale. The explosion at Bunsfield was the biggest peacetime explosion in the UK since Flixborough.

30 buildings suffered major damage, the ground water was contaminated and the area was cut off for weeks as insurers and engineers assessed the impact of the explosion. Miraculously only 244 people needed medical attention with no fatalities.

Bunsfield was not a catastrophe comparable to that experienced by Japan or New Zealand, but to the operators of the terminal and the businesses surrounding the site it presented similar problems.

“It’s your business and you will drive its recovery. No matter how much effort and support you receive from the insurers and loss adjusters it will be you that has to rebuild the company”

Now imagine the scene following the destruction of your business. You cannot get access to the site due to the instability of the building and the services have been cut to the surrounding area.

Years of building your company and its reputation can be wiped away in the blink of an eye. The first few hours are crucial to maintain customer and employee confidence, however too few companies have a disaster recovery or business continuity plan in place to help them handle the situation.

It is amazing to interview leading company managing directors and principals who don’t understand the mechanics behind their insurance policy. With only a few simple improvements massive leaps can be made towards containing a major loss and planning is essential in this process.

Insurance isn’t magic, its logic. We know that Japan will rebuild and they will learn from the devastation caused by the tsunami. British business must also realise that we live in an unpredictable world and need to wake up to the possibility that fire, floods, terrorist acts all create potentially devastating effects.

Planning considerations must not be restricted to just physical events but should also look at interruption to power supplies, customer failures, loss of key personnel and changes in legislation. These events won’t cause physical damage but they can cause massive disruption.

If you haven’t done so we recommend that your company, whatever your size, reviews the consequences of a major loss and puts plans in place for recovery. Act now and engage with your insurer to protect your future.

Tim Lee

Director – Cornerstone Business Insurance Ltd