David Cameron on behalf of the Government has confirmed this morning in Parliament that the Riot (Damages) Act 1886, police compensation schemes will operate as normal and that the time frame for notifying claims under the Riot (Damages) Act 1886 has been relaxed from 14 days to 42 days from the date of damage or injury to property. This is a very welcome concession from the Government and will allow for a more comprehensive assessment of the quantum of the loss to be included on the form.

The Prime Minister commenting on the recent rioting and looting in London and other cities, announced:

• The 14-day time limit to make compensation claims to their local police force under the Riot (Damages) Act 1886 will be extended to 42 days
• The Bellwin Scheme will be in operation to support Local Authorities
• To meet any short term funding problems the Government will set up a £10m recovery fund for Local Authorities

Claims under the Riot (Damages) Act

The majority, if not all insurance claims, following the disturbances, will be dealt with under the peril of Riot. While customers who have this cover will have their claims dealt with in the normal manner, there is still a need for these claims to be notified to the insurer within 7 days.

In cases of Riot (as defined by Section 1 of the Public Order Act), certain compensation is available under the provisions of the Riot (Damages) Act, for loss of, or damage to, property. Any such claims are made against the local Police Authority and following todays announcement within 42 days of the damage.

Next steps for your customers who wish to pursue uninsured losses

For customers in areas affected by the riots we recommend the following actions be undertaken as a matter of urgency:

1. Where it’s safe to do, carry out an immediate investigation and establish any loss or damage – we understand that this may be difficult but it is better to present as much information as possible to the Police Authority.
2. Customers should inform their broker of the outcome of the loss and damage assessment and, if an uninsured loss claim is being made, decide who will make the submission, to ensure it is made in the prescribed format  (Riot Damages Act Claim form) and within the timescale.
3. If applicable, contact the Police Authority, advising them of the circumstances, nature and extent of the claim to be pursued under the Riot (Damages) Act 1886. The customer will need to provide the Police Authority with following information:

1. Once all details have been completed, all the details should be return to:

If you have any questions regarding this please do not hesitate to contact Richard Gibson or your usual account executive on 0116 2720770

Do you accurately check your Buildings sums each renewal, or do you renew your policy without much thought to it?

The only time you may discover that your buildings are under insured is when you need to make a claim?  How much would it really cost to reinstate your business investments?

Five pointers:

1. Make sure you know what is included in the insurance policy definitions as this may include a range of ancillary terms such as walls, gates, fences, garages and other outbuildings. These items are frequently forgotton about, but must be taken into consideration when calculating sums insured.
2. Include the cost of removing debris, as well as architects’ and surveyors’ fees when calculating the reinstatement figure.
3. You may also need to consider other reconstruction expenses such as site decontamination or demolition or a fire-damaged building.
4. Keep up-to-date with current building requirements and local planning criteria , as new demands can significantly increase rebuilding costs. For example, owners are increasingly properties with improved thermal efficiency or on-site power generation.
5. The best way to obtain an accurate sum insured is by commissioning a regulated surveyor  – to carry out a professional valuation every three to five years. That way, you will be less at risk of a claim shortfall.

For further details on this article please contact Richard Gibson on 0116 272 0770

High metal prices continue trend of insurance thefts.

In April,  the BBC reported that thousand of homes in Edinburgh  could have been left without power after thieves tried to steal metal from an electricity sub-station. Fencing was cut by thieves around Newbridge Electricity station but were disturbed before they could steel any metal. If successful thousands of homes in Edinburgh could have been left without power.   (Full article here )

This incident mirrors a  national trend of thefts of metal from business premises in the past several months.   If you are a foundry  that handles large quantities of metal,  you are at an increased risk due to metal prices.

We therefore recommend the following advice to foundries:

• Review your physical security arrangements –  This should include the site perimeter,  building exteriors and high value stores
• Is your Intruder alarm system adequate?
• Many alarms are restricted to office areas. Can these be extended?
• Consider CCTV as part of your overall security.
• Have you increased your sums insured to cover the raised values?
• What are your security arrangements for Stock in the open?
• Make sure your Business Continuity Plan includes arrangements to deal with raw material storage.

Andrew Bourne and Co. are specialist insurance consultants to  the Cast Metals  Industry. For further information on the above , or if you would like a FREE impartial review of your present  insurance programme,   please contact our foundry insurance expert Richard Gibson on 07510 695335 or email  richard.gibson@abourne.com