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Look carefully before you leap 13 Nov 2013

Here are two cases for thinking before acting.

Insurance

With the big increases in insurance premiums it’s tempting to get quotes.

Recently, a house owner got two quotes. A new insurance company was offering a premium for about two-thirds of the other.

He checked their Standard and Poors ratings. Very wise. He discovered the expensive company had an AA- rating and the cheap company had a BBB- rating.

Bearing in mind these ratings are not lineal but geometric, BBB- is enormously inferior to AA-. He stayed with the more expensive company and reduced the premium by accepting a higher excess.

The same person had built his house about five years ago. He had calculated its replacement cost using a programme on the internet. He said he thought it was pretty accurate.

Employment law

If you have an issue with one of your staff, be extremely careful.

The law has been rewritten in recent times to get a better balance of power between employer and employee.

Whatever you do, don’t jump to any conclusions. For example, if a member of staff tells you another employee has been stealing from the firm, don’t rush to the police even if you think it’s true. Seek advice from your solicitor.

Another warning: If someone blows the whistle and wants to be anonymous, you have to tell them they can’t be. The employee is entitled to know who is accusing them.

If ever there was a case of doing nothing until you have spoken to your solicitor, it is definitely in relation to employment law.

 

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