When you hear the term ‘crisis’, what comes to mind?

For a number of people, it will be a natural disaster like a tsunami or earthquake that causes widespread devastation and destruction. However, crises can stem from various events and circumstances, including existential crises, man-made disasters, and business crises. The latter encompass a range of situations that can inflict significant damage on a company, regardless of its industry, size, or resources. The manufacturing industry is no different and therefore it is crucial to be prepared for any eventuality to prevent a potential corporate downfall.

Howden have extensive experience in helping their clients to navigate their way through a crisis.  As a Make UK member, you are entitled to a free risk review to give you the peace of mind that you would be properly covered should such events occur.

A particular type of crisis that business owners need to be aware of are riots, particularly given the events of the end of July and early August 2024.

What constitutes a Riot claim?

The Public Order Act of 1986 requires a minimum of 12 people for the offence of Riot – not all of those involved have to cause damage but they must be present at the time of the damage, otherwise the offence might be deemed as malicious damage, with any resulting claim downgraded accordingly.  

It is important to log any related claim straight away with insurers as the Riot compensation act specifies that any claim must be submitted to them within 42 days of the riots ending. However, policy wordings tend to have much stricter timescales, often as little as 7 days.

When does the Riot Compensation Act 2016 (RCA) apply and what does it cover?

RCA claims can be made by an individual person claiming for their personal or business property, a representative on their behalf or an insurance company claiming for reimbursement after meeting a claim. Please be aware though that any loss or damage must be suffered as a result of a Riot.

When it comes to claiming, please be aware that:
-    A claim must go via the insurer first - a direct claim can only be made where the claim isn’t covered, i.e. it’s under the excess or any element of the claim is declined.

-    The RCA does not cover personal items outside of a building, consequential loss, such as Business Interruption or loss of rent, or any personal injury.

What do we (Howden) offer?

-    A comprehensive insurance programme review to ensure right covers are in place.

-    Risk Management - we provide risk management solutions to help you identify, manage, and reduce your risks including Health & Safety. This ensures that your business continues to run smoothly, in a balanced and cost-effective way. We also provide regular reviews to keep you updated on any relevant legislative changes.

-    Asset Protection - during a hard market, insurers are less flexible and more selective on the risks they are willing to accept. At Howden, we’ll help you articulate and showcase a risk’s best features and focus on areas that concern underwriters the most. Our services provide cost-effective solutions that help visualise risks to insurers, as well as provide all the information an underwriter needs to put forward the best terms possible.

-    Business Continuity and Resilience - After experiencing a disruptive event, your main priority is getting back on track. Whether it’s a natural disaster, cyber-attack, a pandemic, Riot, or equipment failure, you need to get quickly on your feet and fully equipped to resume business as usual. Howden offer business continuity consultancy to prepare you for any potential business interruption.   
                                                                                                       
-    Claims Defensibility – Your own dedicated Howden claims team will be at hand to advice you on the importance of investigating accidents/incidents. Examples of good/bad investigations and their impact, cost of claims and impact on premiums.