Latest news and updates on issues affecting business
Latest news and updates on issues affecting business. October 2017
In this issue • Stronger storms and floods stress need for continuity planning • Dehydrated driving same as drink-driving • Recent HSE news and prosecutions • Choosing employers' liability limits • Recent cybersecurity news and prosecutions
Stronger storms and floods stress need for continuity planning Hurricanes Harvey and Irma caused an estimated $150b to $200b in damages to Texas and Florida in the United States, according to Moody’s Analytics. The increased devastation by hurricanes in the States has a connection to the heightened risk of unprecedented rainfall in the United Kingdom. This winter, the Met Office predicts a 1 in 3 chance of a new monthly rainfall record in at least one region. Last year, flood and storm damage cost the UK economy an estimated £1.3b, and this year is expected to be worse. Floods and other natural catastrophes are increasing in number and intensity. Even though floods cannot be completely avoided, your organisation can begin preparing to reduce the potential damages. One of the best ways to do that is to develop a business continuity plan. While your plan will be unique to your organisation and its needs, it should at least involve the following practices: •
• • •
•
Analyse your organisation. Review each room, floor and utility in your organisation. As part of this inspection, be aware of how to shut off your mains supply and record what valuable items, stock and fittings are stored in each room. You should have clear, concise records of what you noted during your inspection. Assess the risks to your organisation. Conduct a thorough risk assessment and record any risks. Develop a strategy to address each risk. For each identified risk, devise and outline at least one solution. For some potential risks, such as gaps in your walls and floors, you should address them now before the rain starts. Develop your plans. In general, you should have a plan for what to do after a flood warning has been announced and what to do after a flood. This should involve continuity plans with suppliers and clients as well as clean-up procedures. Review your plans. Review your plan at least annually and make adjustments, if necessary. In addition, review and revise your plan after a flood to ensure that it is as up to date as possible.
Dehydrated driving same as drink-driving Driving while dehydrated has the potential to be as dangerous as drink-driving, according to a new study conducted by vehicle leasing company, Leasing Options. This research suggests that, similar to the effects of alcohol, dehydration can impair a person’s mental and physical well-being. In fact, in the study 47.1% of dehydrated drivers reported loss of focus, 59.3% reported loss of concentration and 42.7% reported slower reaction times. Yet, what can make dehydration dangerous is its pervasiveness, as 55% of drivers drink less than the recommended daily water amount (1.2 litres). Leasing Options’ research suggests that a significant portion of all vehicle crashes are caused by dehydration. For that reason, if your organisation employs any drivers or if employees have to travel regularly for work, it is important that they understand how to stay hydrated with the following tips: • • •
Bring an adequate amount of fluids to stay hydrated throughout the trip. For each hour spent in the car, drivers need to drink one glass of rehydrating fluids. In addition, drivers should avoid an excessive amount of caffeinated drinks, which can contribute to dehydration. Refrain from driving in a hot vehicle, which can accelerate dehydration. Take frequent driving breaks during long trips so drivers can rest and rehydrate.
Recent HSE news and prosecutions HSE reminds potato farmers to consider safety as it launches new inspection initiatives In response to the 30 deaths that have occurred on farms in Great Britain over the past 12 months, the HSE has launched a new inspection initiative. Over the next several months, HSE inspectors will visit farms that grow, pick and process potatoes to provide farmers with guidance on how to manage their risks. If you work in the agriculture industry, you can review the HSE’s guidance by clicking here. HSE makes cost recovery dispute process fully independent Beginning on 1 September, all disputed invoices raised under the fee for intervention (FFI) cost recovery scheme will be reviewed by an independent panel. The revision requires that all disputes are considered by a solicitor and two other individuals that have practical experience of health and safety management. The intention behind the change is to provide greater clarity about the information that the HSE will provide businesses with to allow them to make appropriate representations to the dispute panel. Car repair company and director fined after breaching enforcement action After failing to comply with three Improvement Notices that required the thorough examination of three twopost vehicle lifts, a car repair company and its director have been fined £4.5k and ordered to pay the full costs of £15,609.14.
Choosing employers' liability limits Employers’ liability (EL) insurance protects your business from claims of negligence made by employees who have suffered an injury or ill health due to their work. If your business employs workers based in England, Scotland, Wales or Northern Ireland (including offshore installations or associated structures), your business must carry EL cover to avoid substantial fines. Your business is required to carry at least £5m of EL cover. However, depending on the size and the nature of your business, the minimum level of cover may not offer adequate protection. To figure out what your EL limits may be, here are six considerations: 1. 2. 3. 4. 5. 6.
Multiple claimants: Your EL limit applies to each claim individually. While the minimum limit should be able to handle a single claim, keep in mind that multiple claims can emerge from a single incident. Nature of activities: Injuries that require continuous care tend to have larger EL claims than those involving death. Review what activities your staff participate in to better gauge the potential cost of an EL claim. Inner limits: Learn your policy limitations to better insulate your business from risks. Concentration of staff: If your staff are concentrated in one main area or several smaller ones, you may need a higher EL limit because an incident that affects one employee could easily affect them all. Hazardous locations: Some locations - such as production lines, railways and construction sites - are more susceptible to incidents. These incidents are likely to involve a greater number of people. Future circumstances: EL claims can be filed years after employees have ended their working relationship with your business. During this time, much could change to affect the final settlement values.
Recent cyber-security news and prosecutions Experts claim that 80% of cyber-attacks are preventable According to the former head of cyber-crime at the National Crime Agency, 80% of cyber-attacks are preventable. To help ensure that your organisation is able to prevent as many cyber-threats as possible, it is important that you regularly update your network security, install and update anti-virus and anti-malware software on all your organisation’s computers, and provide your employees with cyber-security training. Password expert regrets and revises past advice Even though you most likely don’t recognise his name, Bill Burr is the individual responsible for the widely held guidance on how to craft a strong password by including capital letters, numbers and symbols. However, Burr has recently stated that he regrets this advice, as the more often a person is asked to change his or her password, the weaker it becomes. In response, the National Cyber Security Centre has issued its own password creation guidance, which requires your organisation to change all its default passwords to a random collection of words that are stored in a password manager. Separate GDPR fact from fiction with the ICO’s blog series, ‘GDPRmyths’ In an attempt to demystify the forthcoming GDPR, the Information Commissioner’s Office (ICO) has launched a new blog, GDPRmyths. Each entry on the blog is intended to separate myths about the GDPR from facts. Some current posts cover data breach reporting, data protection and consent. You can read these posts by clicking here.
The content of this newsletter is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2017 Zywave, Inc. All rights reserved.
bluefingroup.co.uk Bluefin Insurance Services Limited. Registered Office: 1 Tower Place West, Tower Place, London, EC3R 5BU. Registered in England No: 931954. Authorised and regulated by the Financial Conduct Authority. 2310-1017
In this issue • Stronger storms and floods stress need for continuity planning • Dehydrated driving same as drink-driving • Recent HSE news and prosecutions • Choosing employers' liability limits • Recent cybersecurity news and prosecutions
Stronger storms and floods stress need for continuity planning Hurricanes Harvey and Irma caused an estimated $150b to $200b in damages to Texas and Florida in the United States, according to Moody’s Analytics. The increased devastation by hurricanes in the States has a connection to the heightened risk of unprecedented rainfall in the United Kingdom. This winter, the Met Office predicts a 1 in 3 chance of a new monthly rainfall record in at least one region. Last year, flood and storm damage cost the UK economy an estimated £1.3b, and this year is expected to be worse. Floods and other natural catastrophes are increasing in number and intensity. Even though floods cannot be completely avoided, your organisation can begin preparing to reduce the potential damages. One of the best ways to do that is to develop a business continuity plan. While your plan will be unique to your organisation and its needs, it should at least involve the following practices: •
• • •
•
Analyse your organisation. Review each room, floor and utility in your organisation. As part of this inspection, be aware of how to shut off your mains supply and record what valuable items, stock and fittings are stored in each room. You should have clear, concise records of what you noted during your inspection. Assess the risks to your organisation. Conduct a thorough risk assessment and record any risks. Develop a strategy to address each risk. For each identified risk, devise and outline at least one solution. For some potential risks, such as gaps in your walls and floors, you should address them now before the rain starts. Develop your plans. In general, you should have a plan for what to do after a flood warning has been announced and what to do after a flood. This should involve continuity plans with suppliers and clients as well as clean-up procedures. Review your plans. Review your plan at least annually and make adjustments, if necessary. In addition, review and revise your plan after a flood to ensure that it is as up to date as possible.
Dehydrated driving same as drink-driving Driving while dehydrated has the potential to be as dangerous as drink-driving, according to a new study conducted by vehicle leasing company, Leasing Options. This research suggests that, similar to the effects of alcohol, dehydration can impair a person’s mental and physical well-being. In fact, in the study 47.1% of dehydrated drivers reported loss of focus, 59.3% reported loss of concentration and 42.7% reported slower reaction times. Yet, what can make dehydration dangerous is its pervasiveness, as 55% of drivers drink less than the recommended daily water amount (1.2 litres). Leasing Options’ research suggests that a significant portion of all vehicle crashes are caused by dehydration. For that reason, if your organisation employs any drivers or if employees have to travel regularly for work, it is important that they understand how to stay hydrated with the following tips: • • •
Bring an adequate amount of fluids to stay hydrated throughout the trip. For each hour spent in the car, drivers need to drink one glass of rehydrating fluids. In addition, drivers should avoid an excessive amount of caffeinated drinks, which can contribute to dehydration. Refrain from driving in a hot vehicle, which can accelerate dehydration. Take frequent driving breaks during long trips so drivers can rest and rehydrate.
Recent HSE news and prosecutions HSE reminds potato farmers to consider safety as it launches new inspection initiatives In response to the 30 deaths that have occurred on farms in Great Britain over the past 12 months, the HSE has launched a new inspection initiative. Over the next several months, HSE inspectors will visit farms that grow, pick and process potatoes to provide farmers with guidance on how to manage their risks. If you work in the agriculture industry, you can review the HSE’s guidance by clicking here. HSE makes cost recovery dispute process fully independent Beginning on 1 September, all disputed invoices raised under the fee for intervention (FFI) cost recovery scheme will be reviewed by an independent panel. The revision requires that all disputes are considered by a solicitor and two other individuals that have practical experience of health and safety management. The intention behind the change is to provide greater clarity about the information that the HSE will provide businesses with to allow them to make appropriate representations to the dispute panel. Car repair company and director fined after breaching enforcement action After failing to comply with three Improvement Notices that required the thorough examination of three twopost vehicle lifts, a car repair company and its director have been fined £4.5k and ordered to pay the full costs of £15,609.14.
Choosing employers' liability limits Employers’ liability (EL) insurance protects your business from claims of negligence made by employees who have suffered an injury or ill health due to their work. If your business employs workers based in England, Scotland, Wales or Northern Ireland (including offshore installations or associated structures), your business must carry EL cover to avoid substantial fines. Your business is required to carry at least £5m of EL cover. However, depending on the size and the nature of your business, the minimum level of cover may not offer adequate protection. To figure out what your EL limits may be, here are six considerations: 1. 2. 3. 4. 5. 6.
Multiple claimants: Your EL limit applies to each claim individually. While the minimum limit should be able to handle a single claim, keep in mind that multiple claims can emerge from a single incident. Nature of activities: Injuries that require continuous care tend to have larger EL claims than those involving death. Review what activities your staff participate in to better gauge the potential cost of an EL claim. Inner limits: Learn your policy limitations to better insulate your business from risks. Concentration of staff: If your staff are concentrated in one main area or several smaller ones, you may need a higher EL limit because an incident that affects one employee could easily affect them all. Hazardous locations: Some locations - such as production lines, railways and construction sites - are more susceptible to incidents. These incidents are likely to involve a greater number of people. Future circumstances: EL claims can be filed years after employees have ended their working relationship with your business. During this time, much could change to affect the final settlement values.
Recent cyber-security news and prosecutions Experts claim that 80% of cyber-attacks are preventable According to the former head of cyber-crime at the National Crime Agency, 80% of cyber-attacks are preventable. To help ensure that your organisation is able to prevent as many cyber-threats as possible, it is important that you regularly update your network security, install and update anti-virus and anti-malware software on all your organisation’s computers, and provide your employees with cyber-security training. Password expert regrets and revises past advice Even though you most likely don’t recognise his name, Bill Burr is the individual responsible for the widely held guidance on how to craft a strong password by including capital letters, numbers and symbols. However, Burr has recently stated that he regrets this advice, as the more often a person is asked to change his or her password, the weaker it becomes. In response, the National Cyber Security Centre has issued its own password creation guidance, which requires your organisation to change all its default passwords to a random collection of words that are stored in a password manager. Separate GDPR fact from fiction with the ICO’s blog series, ‘GDPRmyths’ In an attempt to demystify the forthcoming GDPR, the Information Commissioner’s Office (ICO) has launched a new blog, GDPRmyths. Each entry on the blog is intended to separate myths about the GDPR from facts. Some current posts cover data breach reporting, data protection and consent. You can read these posts by clicking here.
The content of this newsletter is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2017 Zywave, Inc. All rights reserved.
bluefingroup.co.uk Bluefin Insurance Services Limited. Registered Office: 1 Tower Place West, Tower Place, London, EC3R 5BU. Registered in England No: 931954. Authorised and regulated by the Financial Conduct Authority. 2310-1017
