Protect your business in an age of uncertainty

WITH THE ambiguity of Brexit looming over all UK businesses, coupled with the rapidly approaching introduction of the GDPR (general data protection regulation), it is increasingly difficult to protect your business from pitfalls at a competitive premium.

The GDPR comes into force on May 25, 2018 and will affect all business that hold data on individuals and businesses alike.

Even with our eventual departure from the European Union, UK businesses will not escape the reach of the GDPR, with the Data Protection Bill (DPB) set to mirror its effects if our Brexit strategy interferes with existing EU legislation.

With heavy fines expected to hit any firm in breach of these new regulations, the best defence will be effective risk management and education of all staff, from the apprentices up to the board-level executives.

However, even the most diligent businesses may still be at risk of breaching the new regulations and many firms are turning to their insurance brokers for a solution.

Your professional indemnity insurance (PII) could provide a safety net, on the basis that you have a strong policy wording covering losses due to data breeches.

However, these wordings may not always be available directly from the insurers or through a general insurance broker. Speaking with a specialist PII broker is the best way to ensure your business is protected and can provide you with alternative options, tailored to your business needs.

Most insurance companies are closely monitoring the Brexit negotiations to discern the impact it will have on their ability to trade through Europe. It is currently expected that new offices will need to be established inside and outside the single market, to ensure continuous performance of their services to all clients in Europe.

On top of this, existing governance procedures and guidelines need to be completely reworked, to adapt to the impending changes.

Experts agree these substantial additional costs will result in higher premiums for their clients, with London firms set to be hit the hardest by premium rises. Now could be the last chance to review your portfolio.

We spoke to Elissa Groves of EDG Wealth Management in October, whose premium had risen by more than 20 per cent in a year without claims.

“I was very concerned; our premium had been increasing incrementally year on year and we had weathered this, as the rise in insurance premium tax was affecting everyone,” she says. “But on seeing this year’s figure, we knew it was time to source an alternative.”

Groves contacted Switch Insurance and saved more than £15,000 on the proposed renewal. Switch recommended the savings be used for GDPR preparation, as you can never be too well prepared.

Alexander Timms is business development manager at Switch Insurance Services, 01242 371300