with Peter PeterAdkins Adkins with Solicitor, Emms GilmoreLiberson LibersonSolicitors Solicitors icitors Solicitor, Emms Gilmore icitors
smarttalk-ciphe.org.uk
Are you lose properly Don’t yourinsured? cool with the consumer! You may mayahave have seen lastyou yearonly about There’s saying that find out if your insurance is any good when you come to make a claim. You seen last year about the extension to Consumer ‘cooling
the extension to consumer Luckily, most businesses will not‘cooling off’periods periods fromseven 7totoneed 14todays. have the misfortune to off’ from 14make days. substantial claims on their policies, but What may not have been obvious What may not have been obvious to to nowadays, when matters go wrong they those in the trade is how important those in the trade is how important this can have repercussions costing many this piece of legislation is Ignore to you.it at piece of legislation is to you. thousands of pounds. They cansoeven Ignore it –at your peril – do and your peril do so and itifcould cost youit bring down a business proper cover could cost you money (and money (and reputation)! isn’t in place. reputation)! In a nutshell, if you do not comply In aoften nutshell, if the youdiffi doculties not comply Too see our with the we requirements of the new with the requirements of the new clients suff er because they have act you risk not getting paid failed for the toAct take outrisk appropriate, adequate, orthe you not getting paid for work you do and also prosecution indeed any, do insurance. work you and alsoStandards. prosecution by your local Trading by your local Trading Standards. ItMany is verythink easy these dayscooling to go on-line that the off Many that the cooling and buythink insurance. Theto decision made period only applies goods.off It also period only applies to goods. It also. then is too often on the basis of which applies to ‘the provision of services’ applies to ‘the provision of services’ isThis the includes cheapest. plumbing, Businesses don’t look at. building This includes plumbing, building the print. Many businesses don’t andsmall electrical works. even properworks. advice on the risks andtake electrical Consumers have 14 daysWhat frommay the they need to insure against. Consumers have an 14 order days from date by the seem athey goodplaced deal very often results date they placedby anmail order by or at internet, order inphone, inadequate cover when you come phone, internet, by mail order to make a claim. You maywith evenyou. be or at their home, to cancel their home, to cancel with you. paying for cover you don’t need. It is If they cancel within this period, always worth dealing with a period, properly If they cancel within they have a right to athis refund of qualifi ed broker specialising in your they have a right to a refund of monies paid. area of business, monies paid. one who can give knowledgeable advice and guidance As the business supplying the As the supplying based onbusiness experience. service, you are required tothe provide service you are required the customer with detailstoofprovide your the customer with details your Good business sense business including address,ofphone business including address, phone Insurance for any business is designed numbers, their cancellation rights tonumbers, deal with life’s expected (and rights cancellation and how totheir cancel. unexpected) and how toproblems cancel. and to keep your If you dorunning. not, then theinsurances cooling off business Some you If you do not, thenbyto the cooling off are required to have law, others are period is extended 14 days from period extended togood 14isdays from taken outisthe for reasons of business the day information supplied. the day the information is supplied. prudency. Apart from the obvious need Well worded terms of business and toWell insure your tools andofvehicles andand worded business orderpremises, forms areifterms an absolute must here. your you employ anyone order forms are an absolute you need to have Employersrepair Liability What about emergency must here. cover in You place.are Public Liabilityby is another work? contacted a What about emergency obvious area where cover is repair needed, homeowner by telephone to carry work? Youcontractors are contacted by a many main require out urgent work to stop flooding, homeowner by telephone to carry sub-contractors to have minimum sort out faulty heating or clear a levels of cover.work Legaltocosts cover is also a out urgent stop flooding, drain. The work is carried out sensible option. Aheating good broker will ahelp sort out faulty or clear within the 14 day period. The repair you look at other insurances covering drain.having The work is completed, carried out the work been such items as14 business interruptionrepair and within the day period. consumer may then try to The cancel professional indemnity. work having been the contract. Whatcompleted, do you do? the consumer may then to cancel theinwork isn’ttry urgent but the IfMaybe you work a partnership or with the contract. What do you do? co-directors you may also want to consumer wants it started within Maybe the isn’tcalled urgent but the consider whatwork is often ‘Key-Man’ the 14 days? consumerThis wants it started within insurance. provides insurance 14 days? tothe provide funds where a business
partner can no longer work due to death or illness, and would enable you to purchase their share of the business as well as providing a cash buffer whilst finding new help. Health cover is often seen as a luxury but can you afford to be out of the business waiting for an operation on the NHS? Underinsured? It is not just the scope of the insurance cover, the detailed terms and level of cover also need careful consideration. You need to have cover for an appropriate amount. What is your stock actually worth? What about your premises?
They may may want want you you to to fit fit in in with with They other tradesmen, or have the work other tradesmen, or have the work finished before a deadline they finished before a deadline they have? Or Or perhaps perhaps another another job job have? cancels and you arrange with the cancels and you arrange with the customer to start work earlier than customer to start work earlier than you expected? you expected? What do do you you do? do? Ideally Ideally you you wait wait What until the 14 days period has expired until the 14 days period has expired but that that isis often often impractical. impractical. but
In all all of of these these cases cases you you should should In ensure that before you start work, ensure that before you start work, the consumer has been given all the the the consumer has been given all relevant information about your relevant information about your business, and and notice notice of of their their rights rights business, to cancel and signed authority to to cancel and signed authority to carry out the work within the 14 carry out the work within the days period. 14 days period. How? Start by reviewing reviewing your your order order How? Start by forms urgently. forms urgently.
If you underinsure, you may still be able to make a claim, but too often we have seen clients only receiving a small proportion of the sums they expected (and paid premiums for). Very often these sums fall far short of what they need to resolve the problem. This can have a catastrophic effect on your business – and does nothing for your stress levels. Lastly, don’t hide anything from your insurers, if you fail to disclose relevant information to an insurer, they may void your insurance policy leaving you with no cover at all.
The consumer consumer should should sign sign an an order order The form confirming the work to be form confirming the work to be carried out out and and the the price. price. The The form form carried should also contain your terms and should also contain your terms and conditions and give the details of conditions and give the details of cancellation rights. rights. cancellation they need need the the work work carrying carrying out out IfIf they urgently, then signing the form will urgently, then signing the form will confirm they have been given the confirm they have been given the notice, and, and, despite despite that, that, they they want want notice, you to start work. you to start work.
This will will make make itit far far easier easier to to deal deal This with attempted cancellation and with attempted cancellation and you should normally recover the full full you should normally recover the amount agreed for emergency amount agreed for emergency works, or or otherwise otherwise aa sum sum works, dependent upon how much of of the the dependent upon how much works were carried out before works were carried out before cancellation. cancellation.
Peter Adkins Adkins isis aa Solicitor Solicitor with with Emms Emms Gilmore Gilmore Liberson Liberson Solicitors Solicitors based based in in Peter Birmingham. Peter has been involved with the CIPHE for many years and Birmingham. Peter has been involved with the CIPHE for many years and regularly advises advises CIPHE CIPHE members members of of all all types types of of legal legal issues. issues. He He can can be be regularly contacted at padkins@egl-law.com 0121 314 0000 contacted at padkins@egl-law.com 0121 314 0000
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November/December March/April 2017 2016
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