Chancellor of the Exchequer George Osborne committed to accelerating motor injury reforms in the Autumn Statement, expected to remove more than £1bn from the cost of providing motor insurance. Osborne said “We’re going to bring forward reforms to the compensation culture around minor motor accident injuries. This will remove [more than] £1bn from the cost of providing motor insurance”.

According to the Autumn Statement, the government will introduce measures to end the right to cash compensation for minor whiplash injuries, with consultation on the details in the New Year. It stated:

“Whiplash claims cost the country £2bn a year, an average of £90 per motor insurance policy, which is out of all proportion to any genuine injury suffered.” Backhouse Insurance Brokers Managing Director, Peter Barnes, said we welcome anything that will reduce third party costs which will subsequently reduce our client costs. We look forward to more detail and implementation.

British Insurance Brokers Association CEO Steve White also praised the move, saying the measures would lead to fairer premiums. “The Chancellor’s confirmation that he is ending the right to cash compensation for whiplash injuries and increasing the upper limit for claims in the small claims court to £5,000 is exactly what we wanted”, White said.



An investigation found an explosion resulted from a screw connection to an autoclave locking ring which secured a door to a machine. The autoclave had been opened numerous times whilst under pressure and sometimes forced. The Company concerned knew of this but did not fix the fault fully.

A fine of £500,000 as the Company was found guilty of Corporate Manslaughter.

The Company is now in Administration!

The above raises the following questions:

  • Do you have your pressure vessels inspected?
  • Do you undertake regular maintenance and act on any faults found post inspection?
  • Do you have current and adequate insurance for Engineering/Inspection/Directors and Officers and Corporate Liability?

If the answer is NO then why not give us a call and let Backhouse help you.


All Employers have a duty to ensure that employees hold a valid driving licence. The photo card driving licence introduced in 1998 has a ten year validity period. You must ensure that all of your drivers are aware that they expire and need renewing along with updating if they have moved home.



When you check your employee’s paper licence and become aware of points what do you do?


Road deaths are treated by the police as ‘unlawful killing’ which gives them the power to seize your company records during their investigations. They ‘could’ bring prosecutions against the Directors who fail to provide clear policies and guidance for their employees driving at work. During their investigations they will look for answers to the above questions, therefore it is essential that you have an up to date Driving at Work Policy. If you require any assistance with guidance on your Driving at Work Policy or Licence checking please contact us at or telephone on 01282 677776.



Avoid the pitfalls of commercial property ownership with this easy guide

With the economy showing signs of recovery, owners of commercial, industrial or residential property should find it easier to attract tenants. To maximise profit, it’s essential to take a proactive approach to risk management, including ensuring the right insurance is in place.


Taking out the correct level of buildings cover is key. But, according to Martyn Barrett, Director at valuation specialists Barrett Corp & Harrington, underinsurance is endemic in the sector. “More than 80% of commercial properties are underinsured, with an average increase of 60% required,” he says. “The worst case I’ve seen involved an increase in the property’s cover by tenfold.” Underinsuring can have serious ramifications, potentially leaving property owners with a large bill should the building need reinstating. Chris Norman, Portfolio Manager for Travelers, says that confusion can arise around how much cover is required. “Property owners need to insure the cost of reinstating the building, including expenses such as clearing the site and removing debris, rather than the market value of the property,” he says. “A specialist valuation is needed to ensure the right level of cover.”


It is also important to consider how much cover might be needed for loss of rental income when a property cannot be occupied, perhaps due to a loss such as fire or flood. Although it’s a standard addition to a policy, cover limits are flexible and property owners need to think about how long it might take to reinstate the building and find new tenants. In the event of a fire, for example, this process could include clearing the site, gaining planning permission, rebuilding and then finding new tenants.


Filling empty property is a key goal for many commercial property owners, but failing to adequately check out a prospective tenant can leave owners seriously out of pocket. Risks can go far beyond a little tardiness with the rent. With money to be made from illegal drink and drugs, there’s a growing number of cases of tenants using properties for these purposes. Examples include a £14m operation in North Wales, where criminals were growing some 18,000 cannabis plants, and in Lincolnshire, where the explosion of an illegal vodka distillery left five dead. A sensible way to reduce this risk is to make sure you know who is renting the property before handing over the keys. “Have a thorough selection process in place and make enquiries about what they intend to do in the property,” says Norman. “It’s also prudent to undertake financial referencing and look at their trading history.” Another safety measure is to have rent paid through a bank account rather than in cash.


As well as reassurance about the tenants, commercial property owners must be clear about their responsibilities associated with the property. It’s prudent to ensure the lease reflects any policy conditions. For example, the insurance may specify that the alarm be switched on when the property is empty. You need to state clearly in the lease whether public areas are the responsibilities of the tenant or the property owner. This is particularly important in extreme weather, when failing to clear the snow from a customer car park or not salting a path could easily result in a public liability claim if someone slips. Protecting the property from the elements is essential, as the wreckage caused by the storms that battered the UK and Ireland in the first few months of 2014 demonstrates. A badly maintained property is not only difficult to let, but can also prove expensive from a liability perspective. Having a regular maintenance programme catches any problems early and helps to reduce the risk of possible third-party injury or damage if, for example, tiles have come loose on a roof.



Mesothelioma Act

A levy of 2.74% will be applied to all Employers Liability premiums from 28th July 2014.

A statutory action by the government to fund sufferers of the fatal asbestos related condition, where neither the Employer nor Insurer can be traced.

Scheme will pay 75% of the average court award made for those diagnosed from 25th July 2012 circa £115,000.

Note that those able to trace an employer or Insurer have redress through the courts for 100% of their claim, which varies between £100,000 to £200,000.

Unfortunately no cover or indemnity is provided under the scheme for any identified Employer who can't identify the Insurer for the period.

Noise Induced Hearing Loss

Currently there are 30,000 to 35,000 annually reported claims of which 70% are repudiated.

Legal costs associated with these types of claim are usually 75% of the overall cost which drives the number of claims received.

In order to succeed any claimant must clearly establish the cause of the deafness and assert a link with their previous employment



The following changes to the Reporting of Injuries, Diseases and Dangerous Ocurrences Regulations (RIDDOR) 1995 came into effect on 1st October this year.

According to the HSE, they are intended to simplify the mandatory reporting of workplace injuries for businesses.  The changes affect all employers - including the self employed.

The main changes are in the following areas:

- the classification of "major injuries" to workers replaced with a shorter list of "specified injuries"

- the existing schedule detailing 47 types of industrial disease replaced with eight categories of reportable work-related illness

- fewer types of "dangerous occurrence" require reporting 

There are no significant changes to the reporting requirements for:

- fatal accidents 

- accidents to non-workers (members of the public) 

- accidents resulting in a worker being unable to perform their normal range of duties for more than seven days 

How an incident at work is reported and the criteria that determine whether an incident should be investigated remain the same. 

To read more about the changes visit: 


Personal Injury Claim Incident and Cost Reductions?

Effective from 1st April 2013 and 31st July 2013, two important changes have been put in place which is an effort by the Ministry of Justice to reduce the frequency and cost of liability claims:

1st April 2013 – Legal Aid Sentencing & Punishment of Offenders Act (LASPO) Introduced

Implemented following a review undertaken by Lord Justice Jackson:

- Referral fees ban

- Plaintiff lawyer success fees and recovery of legal costs via insurance no longer recoverable

- Early settlement penalty upon the plaintiff where admission of fault and negotiated offer rejected, subsequent increased legal costs of the defendant at the plaintiffs expense.

Whilst the above are positive actions, the following should also be noted as being acted upon, on the same date:

- Increase of 10% in general damage awards

- Costs will not be payable by the unsuccessful claimant to the defendant where claim genuine.

31st July 2013 – Fast Track Electronic Portal

Where it is identified and agreed there is fault, the solicitors fees are capped, but there is a strict timescale for process and cost.

Note that formal claims must be acknowledged by the next working day on receipt of the solicitors letter.

We would seek your help in this regard:

Report any incidents as they occur and advise your thoughts on responsibility with the following information:

- Accident book entry

- Post-accident investigation report

- Photographs of the accident location

- RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995)

- Risk Assessments

- Training Records

- Witness’ Statements

- CCTV footage (or ensure that it is retained)

- Pre and post-accident earning details

On receipt of a solicitors letter forward immediately with comments on fault if incident hasn’t been previously reported. Note where the incident is to be defended it will fall outside this process and follow standard procedure.


- Acknowledgement within next working day

- Decision is made within 15 days on Motor, 30 days on Employers Liability and 40 days Public and Products

- Employers Liability on admission 20 days to confirm any loss of earnings

- On admission 35 days to negotiate and agree a payment

Overall our sincere hope is that this will reduce occurring claims and mitigate cost where fault is acknowledged.




Over one thousand accidents at work involving electric shock are reported to the Health & Safety Executive (HSE) each year. 

Faulty electrical installations and equipment are also a common cause of fires in commercial and industrial buildings, second only to arson.

It is essential that risks associated with electrical installations (often referred to as ‘fixed wiring’) and equipment are correctly assessed and controlled.

Legal requirements

Electrical safety in the workplace is governed by the Electricity at Work (EAW) Regulations 1989. They require that the electrical system shall at all times be constructed and maintained "so far as reasonably practical, to prevent danger."

The word "system" includes fixed electrical installations, i.e. the wiring and switchgear installed in the building and permanently fixed equipment, such as; motors, compressors, heaters, lighting, etc.

IET Wiring Regulations BS 7671:2008

The EAW Regulations do not specify how frequently electrical equipment should be maintained or what records should be kept. These are covered in the Institution of Engineering and Technology (IET) Wiring Regulations BS7671 and the supporting IET publication Guidance Note 3: Inspection and Testing.

BS 7671 is a code of practice which is widely recognised and accepted in the UK. Installations that comply with BS 7671 are likely to satisfy the relevant parts of statutory regulations such as the EAW Regulations. However, in circumstances such as in licensed premises where specific requirements may differ from those of BS 7671, these will take precedence

Periodic inspection and testing

The purpose of periodic inspection and testing is to provide an "engineering view" on whether the installation is in a satisfactory condition and can be used safely. This involves a detailed visual examination together with appropriate testing.

Based on IET recommendations, inspection intervals will normally range between 1 & 5 years, depending on the type of installation and occupancy. Typically:

Industrial – 3 years

Offices – 5 years

Retail – 5 years

Educational establishments – 5 years

Restaurants and hotels – 5 years

Petrol filling stations - 1 year

Intervals less than those outlined may be recommended when the installation has suffered from neglect, or where it has been adversely affected by usage or environmental conditions.

A full list of all occupancies and the corresponding recommended inspection frequencies is published by the IET in Guidance Note 3.

Following the periodic inspection and test, an Electrical Installation Condition Report (formerly known as a periodical inspection report) is required, in which the installation is assessed in terms of its suitability for continued use as either "satisfactory" or "unsatisfactory".

In the case of an "unsatisfactory" installation, the report will incorporate remedial measures categorised as:

C1 – Danger present. Risk of injury.

Immediate remedial action required. The IET recommends that such items should be made safe on discovery, either by effecting immediate repairs or by taking the offending item or circuit out of service.

C2 – Potentially dangerous. Urgent remedial attention required.

C3 – Improvement recommended

Other electrical and testing protocols

Inspection and testing is also recommended by the IET:

• To assess compliance with BS 7671

• On a change of occupancy or use of the premises

• After alterations or additions to the original installation

• Any significant change in the electrical loading of the installation

• Where there is reason to believe that damage has been caused to the installation.

Routine checks

As well as formal periodic inspection and testing, the IET advocates that documented routine checks of the installation are carried out between inspections (in the majority of cases at annual intervals). The IET advises that these routine checks need not be carried out by an electrically skilled person, but should be done by someone who is able to safely use the installation and recognise defects.

Thermographic testing

Thermographic testing (also referred to as thermal imaging) is widely used in commercial and industrial premises as part of preventative electrical maintenance. It is not intended to replace conventional periodic inspection and testing, but is promoted as an additional activity with the objective of identifying electrical faults at an early stage.

Choosing electrical contractors

Select from contractors that are members of the National Inspection Council for Electrical Installation Contracting (NICEIC), the Electrical Contractors Association (ECA), the ECA of Scotland (SELECT) or other appropriate UKAS accredited organisations. Electrical inspection and testing is also available from some leading insurers as part of their engineering inspection services.

Requirements of insurers

Some Insurers apply electrical inspection conditions within their commercial property and business interruption covers and therefore it is important that these are checked and complied with in full.

Further guidance

The HSE has a specific webpage dedicated to electrical safety which can be found at

Information on electrical inspection and testing is also available from the IET at




 Following three successful corporate manslaughter convictions, the Crown Prosecution Service (CPS) has announced that it is charging four further companies under the Corporate Manslaughter and Corporate Homicide Act 2007.

Mobile Sweepers (Reading) Ltd is being charged with the offence after an employee died of crush injuries at its premises near Basingstoke. The worker was carrying out repairs underneath a road-sweeping truck when he inadvertently removed a hydraulic hose causing the back of the truck to fall on him. The company’s sole director also faces a charge of gross negligence manslaughter. Additional charges of breaching the Health and Safety at Work, etc. Act 1974 and the Provision and Use of Work Equipment Regulations 1998 have been brought against both the director and the company.

Belmont Nursery, a garden centre in Kings Lynn run by PS and JE Ward Ltd, is being charged with corporate manslaughter after the death of an employee in July 2010. He died from an electric shock when the metal hydraulic-lift trailer that he was towing hit an overhead powerline. The company has also been charged with an offence under the Health and Safety at Work, etc. Act 1974.

MNS Mining Limited, which owns the Gleision Colliery in Wales, was summonsed for four counts of corporate manslaughter following the deaths of four miners in a flooding incident in September 2011. The manager of the mine is also being prosecuted for gross negligence manslaughter.

Prince’s Sporting Club of Middlesex has been ordered to stand trial for corporate manslaughter following the death of an 11-year old girl who fell from a banana-boat ride and was hit by the speedboat that was towing it. The club’s director is facing charges under the Health and Safety at Work, etc. Act 1974.

A Freedom of Information request has shown that the number of corporate manslaughter cases opened by the CPS increased to 63 in 2012, from 45 in 2011, 26 in 2010 and 7 in 2009. More than 50 of the opened cases are being investigated for prosecution. The majority of these appear to relate to small businesses.

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An investigation found an explosion resulted from a screw connection to an autoclave locking ring which secured a door to a machine.


New UK Legislation enabling the HSE to charge a Fee for Intervention (FFI)

What is FFI? 

Increased squatters risk in commercial properties
From 1st September squatting in residential buildings in England and Wales became a criminal offence


At present we are all seeing many articles and commentaries in the press and TV regarding the price of gold, silver and diamonds on a seemingly upward trend in cost.This is very true as you can see from the attached graph showing gold and silver over a two year period.


The cost of heating oil has increased significantly recently, resulting in more thefts of oil from both domestic and commercial properties.

The first indication that a theft has taken place is often when the heating stops working.


Rate reductions are still possible for clients for property and liability insurance.  Abundant capacity and competition between Insurers are preventing increases, other than where there has been poor claims experience on individual accounts or within specific sectors.


The first Corporate Manslaughter Prosecution has been successful in the United Kingdom.

It is more important than ever to ensure that your Managers, Directors, Officers as well as the Company have cover in place to protect them.


From 2011 if your vehicle is not registered on the MID and has not been declared as 'Off-Road' you will receive a letter warning you that you could face a fine, prosecution as well as your vehicle being clamped, seized or ultimately destroyed.


With effect from 1st April 2011 the Employers' liability Tracing Office (ELTO) will be introduced.

The purpose of the ELTO is to assist the insurance industry in meeting its obligations to help those who have suffered injury or disease in the workplace identify the relevant insurer quickly and efficiently.

We have since 2008 used Backhouse to place all our insurance risks, their unique approach to our tender process was one of the major factors behind placing our trust in Backhouse. They took the trouble to research our business carefully and brought to our attention areas of cover that had never been considered before.

We find Backhouse both conscientious, professional and great value for money delivering a first class claims service.

Paul Reyner, Fagan and Whalley