Commercial Combined


M & N prides itself on trying to understand the needs of its clients. We take you through our detailed fact find in order that we understand how your business operates so that we can try to establish your needs.

We arrange commercial insurance for most trades and occupations

• Wholesalers
• Manufacturers
• Retail Operations
• Importers and Exporters

For those involved in manufacturing or wholesaling process, we can  arrange Product Guarantee cover which means that if there is a problem with the product and there is a product recall, all associated costs are covered which could be very costly for any company.

We will offer practical advice if appropriate, to try and ascertain if there are any housekeeping or management problems present, to try and avoid those nasty claims that can disrupt a client’s livelihood. If appropriate we will carry out a risk assessment.

 


Every client has their own particular method of trade and if there is no package cover available on the market we will try to tailor make a policy to meet your requirements.

Legal Expenses

We can include Legal Expense cover with the combined policy or you can buy a stand alone contract. This area of insurance is often neglected by the insurance buying public and with the claims culture that has recently developed, this cover is a must for any company. Litigation can be very costly and most disputes are not quite so straightforward. We have a number of policies to meet your requirements.

The following are some of the areas that are covered:

• Employment problems, including restrictive covenant cases
• Data Protection Act
• Prosecution Defence for employers
• Prosecution defence for employees
• Contract cover (covers Disputes with Customers / Suppliers)
• Property protection including disputes with your landlord and licence protection
• VAT disputes
• In-depth tax investigations
• Inland Revenue Enquiries
• PAYE audit disputes
• Contributions Agency Investigations
• Directors Protection
• Attendance Expenses

Directors & Officers Insurance (D&O)

We have a range of D&O contracts to offer. Being members of British Insurance Brokers' Association (BIBA), we have access to their special scheme that has quick and easy access to affordable Directors' and Officers' Liability Insurance for UK registered companies with total asset values up to £250 million.

Directors' and Officers' Liability coverage helps protect the individual and the long-term stability of a company against the high cost of litigation. It protects the Directors and Officers of companies against loss (damages and defence costs) from a wide range of potential allegations and disputes such as breach of duty, negligence, defamation, trademark, copyright or patent infringement, to name but a few.  We can now also provide you with Company Employment Practices Liability (EPL) coverage as an extension to the policy.

With an increase in employment related claims in recent years and the dramatic increase of ‘no-win, no-fee' cases, Company EPL is designed to protect the Company, Employees and Directors against a loss arising from an employment claim including defence costs. Our quote system can provide you with a quotation and pre-completed proposal form in just a few simple steps. Provided you are happy with the terms, we can proceed to bind and issue the policy online in our office.

D&O Claims Examples

Two directors were held liable for payments made to another director. The payments took place shortly before the company creditors that they should take precedent over the director went into liquidation. It was successfully argued by the firm’s and an award of £800,000 was made.  Directors have a fiduciary duty to take the correct course of action.  It is also an established part of the UK legislative framework that directors should not profit from their position.
Non-executive directors can also be held liable. This was highlighted in a case where a full-time director defrauded the company and the non-executives were found to be negligent. The negligence was due to insufficient attention being paid to the operation of the firm. The claim was settled for an undisclosed sum and was paid out of the non-executives personal assets.  Non-executive directors on the UK are principally involved to ensure that there is a second pair of eyes on the company’s executive management.  Non-executives are often as exposed to liability as executives, which is not something that they always recognise.
On the takeover of a firm the new owners sued the outgoing Chairman and Managing Director for statements and representations made regarding the financial stability of the firm. The assets had been overstated and misleading profit-forecasts had been made which had induced the new company to purchase the firm at an inflated price. An award of £2,500,000 was made.  In the D&O policy indemnity is provided in respect of a Wrongful Act (which is always defined) and this usually includes negligent misstatements.

The director of a firm that had failed with losses of £1.5m was sued by the liquidators. The director had genuinely believed the firm to be profitable but the case was still found in the liquidators favour. This was due to the directors’ negligence in failing to ensure accurate financial records were kept.  This highlights again that the directors’ principal duties in the UK are owed to the company rather than the shareholders which is often the case in the USA.

EPL claim examples

A class action brought by a group of dinner ladies was successful on the grounds that they were being paid 40% less than male refuse collectors and ground workers. They were awarded £4,000,000 for sex discrimination.  Fair pay between the genders has been an issue in the UK for more than 30 years.  This case and others recently show that some employers have not yet reached the level playing field that the Equal Pay Act 1970 envisaged.
An employee was requested to move from Leeds to Birmingham by his employer. The employee requested to move in 3 months in spite of the mobility clause expressly stated in his contract of employment. He justified this on the grounds that his wife was ill at the time. The employer refused this request and the employee quit and claimed to have been constructively dismissed. The court upheld his claim saying the mobility clause had been inappropriately exercised.  Courts often seek to do “justice” to contractual terms by implying conditions where there might be none.  It does not seem unfair to impose a test of reasonableness on an employer when taking action under such a contractual term.  This is an obvious risk to employers.
A female road sweeper was paralysed following an operation that had gone wrong. This inevitably resulted in her being unable to carry out her duties. Her employer had made efforts to re-deploy the employee. She had been put through a computer course and was advised to apply for in house vacancies. The employee applied for 100 jobs and went through a competitive selection process. She failed to get any of the positions as there were more suitable candidates, so after some time she was made redundant. The court held this to be discrimination on the grounds of disability as the employer should have positively discriminated in her favour rather than making her go through this selection process.  This is a very recent case and marks a departure from the previous status quo.  It is important for employers to consider the needs of their staff in full when considering redeployment when that staff member’s situation changes.

A female employee brought a case against her employer following an incident at an office party. The employee had some offensive remarks made against her and a colleague fondled her hair. The employer was held liable as although not being in the office or during working hours the party was in held in relation to work.  The extent of the employer/employee relationship has been analysed in many cases over the last few years.  In this case “work” was considered to include the party as it was something that the female employee was expected to attend and therefore it was an element of office life.