0845 603 8523 www.bollington.com Insurance for the Care and Charity Sectors Autumn 2008 Bollington’s foster agency IN THIS EDITION insurance product goes Latent Defect Insurance Risks from Legislation from strength to strength Protecting Personal Data Finances in the Industry accolade seals position as market leader Healthcare Sector Bollington Care’s specialist insurance This “all in one” cover was also arranged to product now protects almost a quarter of provide protection not only for the agency The policy provides cover for claims the independent foster agencies in the UK. but in some cases, for the carer and child as against the agency for: Launched less than 2 years ago, this cover well. has revolutionised the way such insurance • Negligence or breach of duty of care is arranged – with the essential covers As market leaders in this field, agencies • Dishonesty of partners, directors, arranged on one, easy to handle policy. can have confidence that when they use employees or self employed freelancers Bollington Care they are gaining access not • Medical malpractice This achievement has now been recognised only to cutting edge cover but also expert • Sexual abuse and molestation by Bollington reaching the final of the advice. British Insurance Awards, at The Royal And provides the following extra Albert Hall. The foster agency product was If you’re a foster agency and not yet covers: short listed under the Broking Initiative of enjoying the benefits of this award winning the Year category. cover, then speak to Bollington. You won’t • Wilful damage or injury by the child be disappointed. in care to the carer’s property or person Pictured is Bob Gratton, Executive Manager including theft (right), receiving the award on behalf of For further details call 0845 603 8523 or visit • Covers the foster carer as well as the Bollington. http://www.bollington.com/fosteragency agency, against claims brought by third parties for accidental damage or injury As further evidence of its expertise in this to property or persons in care for bodily field, Bollington has also been asked to act injury as insurance consultant in the negotiations • Covers the foster carer and child as for a new National Fostering Contract well as the agency, against claims between local authorities and brought by third parties for accidental agencies. damage to third parties caused by the child in care. So why has this product attracted such positive attention? “Bollington are market leaders in the Exclusively for Bollington clients, this field of foster agency insurance. product was devised following During our recent comprehensive feedback that agencies insurance review process Bollington took were facing difficulties the time to understand our insurance needs arranging cover for and created a tailored, cost effective solution their main insurance which also delivered considerable savings to needs in a simple our premiums. They continue to provide us with convenient fashion. ongoing expert support and advice and are easily accessible when we need them. I would not Rather than having hesitate in recommending their services to other several separate fostering agencies” policies, Bollington’s response was to Michael Hill arrange the main Finance Director, national fostering liability covers on National Fostering agency one policy, easing Agency administration. If you want to talk about any of the issues raised in this newsletter, please contact us on 0845 603 8523 BOLL032 08/08 Bollington Care insurance for Care Homes and Charities Protect you and your company against increasing risks from legislation At Bollington it’s our job to look at ways to minimise any potential loss to your company. Ask Bollington The directors of the company also face prosecution under Health & Safety Insurance does exist to help so why not get legislation. a quotation? - Her Majesty’s Revenue and Customs You can’t reduce the amount of regulation alleges incorrect payment of tax or the DTI you face or stop the growth of the alleges you have continued to trade whilst compensation culture but you do have technically insolvent. access to the expertise of Bollington to help you defend your business should the worst There is also a potential risk from your own happen. employees. Could you afford the costs of: For a no obligation review of your current - Defending against an employee who arrangements visit: alleges sexual harassment and paying any compensation awarded to them. www.bollington.com Government, local authorities and regulators now have more power than - Defending against and paying or give us a call on: ever before in areas such as employment compensation to an employee who claims practices, trading standards, and health and safety. In addition to this the UK has a fast growing compensation culture. constructive dismissal on returning from maternity leave. 0845 603 8523 In fact the risks can come from anywhere Unravelling the red tape – – for example a candidate you interview did you know: Damaging Costs and Awards alleges age discrimination after not being selected for employment. New legislation such as The Corporate • There are over 60 national regulators in Manslaughter Act, increasingly holds You need to be sure that you can the UK with a budget of close to £3bn* directors, officers, employees and concentrate on running your business, companies liable for their actions. Consider safe in the knowledge that you and your • Regulators employ 41,000 staff the following examples and ask yourself company have adequate cover if such events including 12,000 inspectors and whether you or your company could afford happen. Even if you have got some cover at enforcement officers* the cost of defence if: the moment, legislation is changing so fast that this may no longer be adequate. Also, • 238,546 employees took their employer - The Crown Prosecution Service bring existing cover may not be for enough – a to tribunal last year** an action against your firm, under the limit of £1,000,000 could well be inadequate Corporate Manslaughter and Homicide and we are often recommending a figure Act, following the death of a vulnerable of £5,000,000, largely to take into account * Source Hampton Report 2006 service user who was left unsupervised and the potentially high legal costs which can be ** Source Employment Tribunal Annual Report 2007 drowned in a bath. involved. Bollington Care insurance for Care Homes and Charities Protecting Follow the company’s rules on IT security • Keep passwords secure and never share Personal them • Never share system log ins • Follow the rules on virus controls Data • Never respond to spam emails or provide your personal data in response to one. Losses of personal data have been a regular feature of recent news reports. Whether it’s a building society employee having Dispose of unwanted data carefully his company laptop stolen or the tax authorities losing CDs containing personal • Don’t dispose of it with the general banking details of millions of people, these rubbish. Shred paper records. incidents seem on the increase and attract the worst publicity. What’s more it can also Data security risks need to be identified lead to prosecution and lost business. So with rules and procedures then set up what can be done to reduce the risks? to make sure information is properly protected. Modern technology makes it easy to store the most detailed personal data in high The Information Commissioner’s Office volumes. But with this capacity comes an (ICO – www.ico.gov.uk) provides a series onerous responsibility. The care and not of informative guides on data protection for profit sector is not immune from this including a Good Practice Note for small – patient details and lists of donors are just to medium sized organisations. It’s worth two examples of the types of data held. having a look at this. Data protection clauses in contracts Recent incidents show how susceptible should outline the authorised use of data Insurance does exist to protect against every organisation is to data theft. Data civil actions and to cover defence costs • Make sure that where personal data is going missing is not just embarrassing, it if a prosecution is made under the Data shared with suppliers or business partners, can also result in civil action being taken Protection Act. However, nothing can both parties are clear about how the data by the aggrieved party and even lead to protect against fines or the reputational can or cannot be used prosecution. If a company persistently damage caused by adverse publicity. breaches the Data Protection Act, a criminal action in the Crown Court can result in an The best protection, as ever, is to minimise unlimited fine and the reputational damage Fair processing the risks in the first place. Most of the could be irreparable. recent security breaches which have • Ensure that customers or other received such extensive media coverage individuals are told about any non- could have been prevented with some It’s small wonder that protecting such obvious uses of their data and are simple precautions. A little time spent sensitive information is now one of the key provided with an opportunity to opt out on this area now could prevent a lot of concerns of the information age. if appropriate problems later on. Her are just some of the practical measures • Email marketing can only be done when you can take to reduce the risks: the individual has positively opted in to receive marketing emails. Review data for sensitivity • By being aware of the classification of Remember that data protection applies to data you can more easily adopt the right paper records too level of protection • Operate a clear desk policy to make sure • For example, customer data that could that sensitive or company information be used for financial fraud should be cannot be viewed by anybody who should given the highest level of protection not see it. • Anonymised data does not require such high levels of protection. Be careful when out on business • Security breaches often happen when Keep data secure when in transit travelling, such as laptops being stolen • Where emails contain sensitive data from pubs and restaurants and manual encrypt them and where files are sent by files being left on trains. email, electronic connection or by disc ensure that the file is encrypted. Home workers need to consider data protection too Control the use of USBs • Ensure that your home working • They are small and can be easily lost environment is geared towards protecting – ensure any sensitive data held on a USB work data. For example, use lockable is encrypted and wipe the data when no desk pedestals or filing cabinets where longer required. appropriate. Bollington Care insurance for Care Homes and Charities Beware the Latent defects insurance can take these worries away. It provides for protection against damage due to a defect in the Latent defects cover could save your business. Just one real life example of what can happen where there is no such cover, Hidden Dangers structure of a new build property during the first 10 years of its life. In the event of illustrates the point. in New Builds a claim you go directly to your own insurer, saving you the worry of: A lift shaft in a care home developed cracks and it was determined that this was as a result of poor workmanship on the lift shaft If you’re developing or purchasing new basement. It took seven years for the court build care homes consider taking out • Wondering whether the architect or case to be won by the care home owner. latent defect insurance to protect you if builder is still in business The next day the contractor went into the completed structure becomes damaged • Whether you can prove negligence liquidation. because of a defect in the design or against them if they’re still around construction. New latent defects insurance policies • Whether you can fund the litigation exist, designed specifically for care homes. You might think that traditional buildings • Whether the architect or builder has For further information please contact insurance will protect you but such damage renewed the relevant warranty cover Bollington Care and ask for Carl Shaw on is a standard exclusion from cover. • Lengthy proceedings What usually happens is that the construction contract contains what are • Losing income if the home has to be closed – latent defects insurance can 0845 603 8523 called collateral warranties. These are protect income in such circumstances. provided by the parties who have been involved in the design and/or the build. In turn these warranties are backed by insurers to the designer/builder. Where collateral warranties exist and damage occurs, the route for the buildings owner is to prove the designer or builder is negligent. This is expensive with no guarantee of success – and it all assumes that the negligent party remains in business. The losses incurred from a buildings defect can be substantial. For example, the home may have to be closed and residents accommodated elsewhere. This will not be covered by your own care home insurance. In the meantime you are involved in lengthy and expensive litigation. Changes in The Home Care Sector has seen an increase in consolidation over the past few years, as companies seek to take advantage of strategic aims are and, importantly, how we can assist your growth aspirations. Healthcare Sector economies of scale, and enhance their market share. Increasingly, operators need This calls for a real appreciation of the way home care agencies operate from bankers with a real specialism in healthcare finance. Funding to understand the strategy of their Local Authority as many are now carrying out ‘tendering’ exercises. This often dramatically RBS can offer such expertise. Our dedicated Healthcare Teams are experienced and Richard Hall, Head of Healthcare reduces the number of ‘preferred’ providers committed. Whether you merely need Commercial Banking from The Royal Bank in an area, with the winners receiving straightforward banking products, funding of Scotland looks at some of the issues that a block contract. Due to this and other to cover the period between paying staff are currently affecting home care providers. influences we expect to see a decline in and payment from Local Authorities, operator numbers over time from further or if your business is looking to expand Shifting demographics, changing lifestyles, consolidation of smaller and regional organically through the acquisition of new regulations and costs of labour are operators. another agency, we can talk through your just some of the external factors that are financial needs and discuss and add value to playing a part in reshaping the healthcare Restructuring your business or your plan. sector. The UK population is set to age contemplating business acquisitions can substantially over the next 65 years and this mean operators that have previously only For further information about products that will be a fundamental driver of demand for required traditional banking services now RBS can offer, please call: all aspects of social care, including Home Care. Generally people are living longer and data from the Government Actuary need more specialised funding options. When we consider a request for borrowing, 0800 138 5514 or email email@example.com Department show that by 2026 there will be management strength is key. How well is the business positioned within the market? Please mention you read about them in the almost 2.1 million people aged over 85 in Do they have a track record of winning Bollington Newsletter. the UK. In addition changing lifestyles mean that care provided from relatives is likely to and renewing contracts? Are inspection reduce and the requirements for long-term reports positive? What are staff turnover care will invariably increase, particularly the rates like and has the business historically need for dementia care. traded profitably? We pride ourselves in getting ‘inside’ the business with you, and really understanding how it works, what the If you want to talk about any of the issues raised in this newsletter, please contact us on 0845 603 8523 Bollington Care is a trading name of Bollington Insurance Brokers Limited Registration Number 02918954. Registered Office: Adlington House, Adlington Road, Bollington, Macclesfield, Cheshire SK10 5HQ. Bollington Insurance Brokers Limited is authorised and regulated by the Financial Services Authority. Part of The Bollington Group (Holdings) Limited. We are recognised as an Investor in People.