Latest news and updates on issues affecting business.

May 2017

In this issue

• 30 billion reasons to prioritise cyber security at your company

• Now is the time to export your goods online

• Recent HSE news and prosecutions

• How your worker's employment status impacts your insurance

• Work-related violence spikes

30 billion reasons to prioritise cyber security at your company

Two-thirds of UK organisations have not provided their employees with cyber security training, according to a recent survey from professional IT solutions firm, Ultima. What’s more, half admitted they are unprepared for an attack and, if an attack occurs, they have no recovery plan in place. This extensive negligence for cyber security is particularly troubling, as each UK organisation was subjected to 230,000 cyber attacks in 2016, according to research from internet service provider, Beaming. While not every attack was successful, the ones that were cost the UK economy approximately £30 billion in total losses.

The five most common and dangerous cyber threats to your organisation include the following:

1. Ransomware: A piece of malicious software that encrypts all of the data on an organisation’s network and can only be decrypted after paying cyber criminals a ransom.

2. Hacking: A cyber criminal will exploit an unpatched vulnerability within an organisation’s security software to access its data.

3. Denial-of-service attack: An organisation’s website is maliciously overwhelmed by a high volume of data pushed to its servers, which temporarily or indefinitely interrupts services.

4. Human error: Information lost or distributed to the wrong person.5. CEO fraud: A cyber criminal poses as a senior person within an organisation, either by

hacking or ‘spoofing’ an email account, and convinces someone with financial authority to transfer money.

Fortunately, according to Government research, 80 percent of all cyber attacks can be stopped by implementing basic cyber security. These practices include the following:• Install and regularly update firewalls and antivirus software.• Require all employees to choose a strong password.• Encrypt all of your hard drives.• Provide your employees with robust cyber security training. • Purchase a comprehensive cyber insurance policy.

Recent HSE news and prosecutionsSupermarket deli refused to leave plastic wrapping on sausage, stating that it was a ‘choking hazard’A supermarket deli refused to leave the plastic wrapping on liver sausage, stating that it was a ‘choking hazard’. However, the HSE Myth Busters Challenge Panel found no health and safety reason for refusing to leave the original plastic wrapping on, saying it ‘made no sense’ and is yet another example of relying on health and safety myths to justify dubious workplace practices.

£600,000 fine for council contractor after major burns to employeeAmey LG Limited was fined £600,000 and ordered to pay costs of £15,498 after an employee received severe burns to most of his body. The employee was trying to replace a traffic light pole when he came into contact with a live underground cable. In its investigation, the HSE found that Amey did not provide the worker with adequate information nor did it perform a thorough risk assessment.

Norfolk farming company fined after death of workerMaurice Mason Ltd of Hall Farm was fined £50,000 and ordered to pay prosecution costs of £22,000 after a worker drowned in a grain bin. The fatal accident occurred while the employee was trying to clean out the bin. Even though he was attached to a fall-arrest lanyard to stop him from sinking, it unravelled and extended, causing him to sink into the grain. In its investigation, the HSE found that the farm failed to adequately identify and manage the risks associated with the task.

Now is the time to export your goods onlineDespite a growing demand for British-made goods, only 56 percent of Britain’s online SMEs sell to customers abroad, according to a recent survey conducted by market researching firm, Ipsos MORI. The two most common reasons why online British merchants are not taking full advantage of potential international customers are the high international shipping costs and concerns about foreign customs and duties. However, for online SMEs that do conduct international business, the financial benefits have been promising. In fact, 52 percent of SMEs that export predict that they will grow over the next year, according to independent research consultancy, BDRC Continental. Yet, as Brexit negotiations begin, there is a great deal of uncertainty surrounding international trade deals. Treat this uncertainty as motivation to expand overseas in order to keep your prospects open regardless of whether the United Kingdom gets an unfavourable Brexit deal. This expansion helps spread your risk and lessens any potential negative impact of Brexit trade deals.

To take advantage of the booming market for British goods, consider making these five simple changes:

1. Offer customers the option of paying with multiple types of currency.2. Provide customers with the ability to change the language on your website.3. Keep your shipping costs low.4. Build and maintain an online presence on several different social media platforms, such as Instagram, Twitter

and Facebook.5. Invest in search engine optimisation to ensure international customers can find your online store quickly and easily.

Remember, the best protection for your business when exporting is robust cover, such as trade credit insurance or the Government’s export insurance policy.

The UK gig economy makes up an estimated 15 percent of the nation’s workforce, according to the Office for National Statistics. Your organisation may even employ some members of this group if you have volunteers, seasonal employees, contractors and other kinds of non-traditional staff members. Just as you do for your full-time employees, you have a legal obligation to provide these individuals with a safe working environment and employment rights.

However, even though some gig economy members may be independent workers, your organisation should not label them as self-employed. If you do, that could void their employment rights. To ensure all UK employees are protected, the Government requires most businesses, with few exceptions, to have a thorough employers’ liability (EL) insurance policy.

A comprehensive and effective EL policy should provide cover for the following types of employees:• all permanent employees• contract, casual and seasonal employees• abroad employees that spend at least 14 days continuously in Great Britain or more than seven continuous days

on an offshore installation• labour-only subcontractors• temporary staff—including students and people on work placements• volunteers, advisors, referees and marshals.

The HSE enforces this rule and can fine your organisation up to £2,500 every day if you do not have the appropriate level of insurance. In general, organisations are required to have at least £5 million of EL cover, yet depending on your organisation’s particular risks and liabilities, you may choose to increase the amount of cover. If your organisation does not comply, you could receive fines, penalties and your cover may even be invalidated.

How your workers’ employment status impacts your insurance

The content of this newsletter is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2017 Zywave, Inc. All rights reserved.

bluefingroup.co.ukRegistered Office: 1 Tower Place West, Tower Place, London, EC3R 5BU. Registered in England No: 931954. Authorised and regulated by the Financial Conduct Authority.

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Work-related violence spikesIn 2015-16 there were an estimated 698,000 incidents of violence at work, according to the Crime Survey for England and Wales (CSEW). This figure is nearly 100,000 more than in 2014-15 due to the CSEW including work-related online threats for the first time.

Left unchecked, workplace violence can quickly erode employee productivity and morale. In fact, hazardous work environments could make it more difficult to retain and recruit employees. What’s more, by not finding ways to prevent incidents, your organisation could experience increased costs as a result of having to pay health and safety fines, hire temporary workers to fill in for injured employees and repair your tarnished reputation.

To ensure that your organisation is able to prevent workplace violence, follow these three tips:1. Provide training for all employees on what constitutes unacceptable behaviour and how to properly report

incidents.2. Develop comprehensive procedures to prevent workplace violence. These procedures could include conflict

resolution training and establishing a system for reporting stressors or conflicts as well as adopting a formal workplace violence prevention policy.

3. Treat verbal abuse and threatening language both in-person and online as workplace violence, as it may develop into a physical incident.