Bollingtons foster agency insurance product goes from strength to

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					                                                                                                            0845 603 8523

                                                                             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.                                              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
                                                                                                                    “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
liability covers on                                                                                       National Fostering                   agency
one policy, easing                                                                                                   Agency

 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
At Bollington it’s our
job to look at ways
to minimise
any potential
loss to your
                                                                                                    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.         
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

                                                                                                   • 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
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 – 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
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.

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