Claim for employee theft

Issue

A long-serving finance manager employed by our policyholder was responsible for the approval and processing of BACS transactions recommended by the credit control team. Over a ten-year period, bogus payments of £3,000 to £5,000 were added to the daily BACS run, with payments being made into accounts controlled by the manager. The loss was discovered while the employee was away from work through unforeseen circumstances and a review of systems and processes was undertaken.

Solution

Markel liaised closely with the insured and the police. The employee received a three-year jail sentence and Markel recovered up to £128,000 through enforcing the sale of the fraudster's assets. Handling this claim cost Markel up to £12,200 on adjusters and solicitors fees to investigate, verify loss, and pursue recovery. Across all aspects, the claim payments amounted to a total of £480,000.

 

Homeless hostel/shelter provider runs out of options

Issue

The policyholder provides homeless hostels or shelters for a wide variety of homeless persons, including:

  • young people aged 16-25
  • adults who are undergoing treatment for drug/substance misuse
  • single homeless women aged 16+ requiring accommodation, but not a women's refuge
  • people who have difficulty sustaining a normal tenancy agreement due to alcohol and/or drug issues
  • single homeless women 16+ who have adult support needs
  • women aged 16+ and over who choose to continue to drink
In addition to accommodation, the policyholder offers practical support services for this varied set of users, ranging from assisting with shopping and cooking, to budgeting and improving life skills, to expanding their social networks.
 

Solution

Markel was approached to underwrite this risk when the existing insurer was withdrawing from the market.
The broker had very little in the way of options and only Markel stepped up to underwrite the risk. There were some challenges to overcome in assessing and maintaining an appropriate risk management programme. Markel worked to shape an insurance and risk management proposition that fully met all the client's needs and those of their service users.

Unique challenges for a voluntary sector service provider

Issue

This charity's aim is to make positive changes to the lives of those people who are affected by drug and alcohol misuse. It faced difficulties in finding an insurer that could embrace all their work, including residential detox clinics, residential rehabilitation programmes, drop-in centres for homeless young people, provision of furnished accommodation, with a local housing association, for people who were deemed to be abstinent, transitional advice and support, via outreach facilities, for people leaving prison, training for individuals and organisations on all aspects of drug and alcohol awareness, and visits to local schools (including primary schools).

Solution

Working in partnership with our broker, whose in-depth knowledge of the risk was invaluable, we were able to put together a bespoke programme catering for the specific and unique requirements of our policyholder via our Social Welfare comprehensive contract.
The Markel all-embracing product replaced a number of policies with different insurers and thereby addressed many potentially grey areas, including abuse, breach of professional duty and medical malpractice, thus minimising the chance of claims falling between (rather than within) insuring clauses.

 

Specialist fostering agency has an inherited problem

Issue

Our policyholder had built up a reputation for providing extensive training and support to foster carers.
There had been an alleged case of abuse from a carer prior to our policyholder's limited company being set up. Whilst this did not come to anything, the carer was subsequently removed from our policyholder’s panel. This highlighted the need for abuse cover on a 'claims occurring' basis and also the need for retro cover, neither of which they had on their current insurance arrangements.
When this client was first presented to Markel, it was sub-broked through a wholesaler. From 2005 to 2008 there was no abuse cover, so the broker was also looking for retro cover. At that time public liability was on claims occurring basis.

Solution

Markel were also able to provide Personal Liability for the Foster Carers, which the policyholder did not have before. Markel were able to work through solutions with the broker and provide a competitive premium.

 

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