The Association of British Insurers (ABI) say that £639 million was paid out over the course of the first six months of 2009, a staggering £3.6 million each day for damage caused by fires.

The plague continues to grow and looks set to exceed the twelve month record set in 2008 when insurers recorded £1.3 billion losses to fire damage in the UK.

The ABI claim in their report ‘Tackling Fire: A Call For Action’ that arson accounts for over half of all commercial fires and tends to increase in times of recession. They say that socially deprived areas and schools are particularly vulnerable, with twenty schools a week currently suffering from some form of arson attack.

The report suggests that while the number of fires reported are falling the increase in large scale fires is increasingly putting lives at risk as well as the incredible financial burden on owners and insurance companies in these difficult times.

Small business owners are advised that there is a standard procedure to follow when considering redundancy and many owners are either are unaware of the guidelines or choose to ignore them.

The repercussions are serious for employers, who can be sued for ‘unfair dismissal’ if the former  employee believes that the rules were not correctly adhered to. Discrimination claims can be made on the basis of race, age  or gender if the redundancy process has been abused.

Gary Head of Hiscox says; “All businesses should seek professional advice when it comes to making redundancies or they might find that what started out as a cost-cutting exercise could cost them far more in the long run.”

APC research has shown that over 14,000 home based businesses are launched each week in the UK, representing 60% of all start ups. The underwriter is aware that historically it has been difficult to obtain cover for home businesses and has designed this latest product, underwritten by Lloyds, with the flexibility to cater for both residential and commercial risks.

APC say that the product covers in excess of 200 trades and should give brokers a better opportunity to cater for the fast growing home business market.

The company estimates that the improvements would cost the government around £720million and will push up the UK flood defence budget to £1.5billion for 2010/2011.

The insurer is also demanding a system of clear accountability over drainage problems that cause flooding, after revealing that 75% of last years flood claims resulted from drainage issues.

While the government has made all the right noises it seems that they have only committed £5million for the development of Surface Water Management Plans, but none of the money has been allocated to implement the actions that are called for.

Almost 30% of those companies surveyed admitted to not being sure exactly what was covered by their insurance policy, while 12% did not even know if they were insured or not.

New businesses appear to be the main culprits, a staggering 32% said they had no cover at all and a further 14% were unsure if they had insurance cover at all.

Companies were also unaware of their obligation to cover Employers Liability Insurance which is a legal requirement to cover sub contractors and temporary staff. The fine for not having the insurance is £2,500.

A third of business owners considered that insurance matters are complex and time consuming.

Aon has warned that without a plan of action Johnson could be responsible for hikes in flood insurance premiums. The broker has been joined by the City Property Association which represents the interests of owners and occupiers of property in the City.

Predictions of another summer of heavy rainfall have raised fears of the City transport system grinding to a halt.

Currently leading insurers have an agreement with the government to continue offering flood insurance in high risk areas, in return for the Governments prompt and well financed action on flood defences.

Part of Johnson’s brief is to ensure that sufficient funds are available from the government to ensure that the flood defences in the City remain intact.

Research showed that under half of the bosses surveyed had any knowledge of the Regulatory Reform Fire Safety Order (RRFSO) legislation.

Martin Hartley, property class specialist for NURS, said: “Protecting the lives of staff as well as business property is paramount. Our research, along with anecdotal evidence, suggests that businesses may not be fully aware of their responsibilities.”

Hartley says that adequate staff training is required with everyone knowing where fire extinguishers are placed and how to select the correct type. This is further complicated by the current standards that mean most fire extinguishers are red and have a small colour coded area to identify each one.

“For example, water filled extinguishers (red coded area) can be used on paper, wood, and textile fires; powder extinguishers (blue coded area) on wood, paper, textiles, electrical hazards; CO2 extinguishers (black coded area) on electrical hazards.”

Clearly having the equipment in itself is not enough and Hartley calls on bosses to ensure staff are well trained to determine which extinguisher to use and when, and more importantly how and when it is safe to do so.

Competition has also helped reduce premiums, with many new insurers looking to gain a foothold in the market.

However escalation in risk involved with the new legislation relating to the Corporate Manslaughter Act, record product recalls and 15% increase in employment tribunals, are all set to take their toll on future premiums.

The sub prime market has not impacted on this market as deeply as anticipated, but Mark Crawford broking director at Aon, warns that corporate premiums are usually the last to turn.

Crawford said “Without significant insurer financial failure or major losses in the meantime, we’re forecasting rates to be on the rise by 2010. Premiums will turn and there are likely to be big swings so companies cannot afford to be complacent. They must focus on making their business robust to risks ranging from data loss and property damage to employee injury and directors’ liability. This will prove to insurers that they have strong risk management which will help to mitigate the swings in premium.”

You have been warned.