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Tag: losses

  • Insurance advice for your business

    Insurance advice for your business

    If you currently use an insurance broker, check that they are providing truly independent advice and that they are not tied to any insurers as this may mean you aren’t getting the best possible deals. Consider asking another broker to carry out a comparative review. If you do, ensure that both brokers are quoting on the same basis to ensure a direct comparison. Avoid going to a number of brokers as, paradoxically, this can work against you.

    Your broker will help identify what policies you will need to buy. If you have employees, you have to take out Employers’ Liability insurance. This is a cover that protects your business if an employee has an accident whilst carrying out his duties. As you employ more people, the ability to demonstrate a robust health and safety plan can have a positive effect on your liability premiums.

    You will need Public Liability cover to protect your business from claims made by third parties for any personal injury or damage caused to their property. With so many personal injury claims companies operating today, it is vital that you take out this cover to protect your business from the possibility of suffering severe financial losses.

    Should you be operating in the service sector – providing advice for a fee – Professional Indemnity insurance should also be a cover that you factor into discussions with your broker. This protects your business if you provide advice or a service that leads to a financial loss for a client.

    Another important consideration is Business Interruption cover, which protects you from the consequential loss of income following, for example, a fire or perhaps a flood. Most businesses fail after a serious incident, not because of the physical damage caused but because of inadequate business interruption cover.

    It is relatively easy to identify your assets and you will need to ensure the sums insured reflect realistic replacement or rebuilding costs. Sometimes, however, it is more difficult to identify your potential liabilities and here your broker will help you.

    It is essential to remember that your most important assets are your people. You may have a major reliance on a key individual, without whom your business would suffer significant financial losses. A simple and inexpensive personal accident policy will provide invaluable funds in the event of an accident to that individual.

    UK insurers experienced major losses due to floods in 2012. This allied to poor investment returns and a period of major global disasters meaning it is likely premiums will rise this year. As a result, it is important to ensure that you are choosing the right insurance covers for the lowest possible cost. In order to keep your premiums low, consider with your broker risk management measures and how they may affect premiums.

    For example, an upgrade in your alarm system may result in premium savings. Alternatively, if you run a vehicle fleet, you could consider driver training and a host of other risk management measures.

    A competitive insurance market has led in many cases to historically low premiums. There is a strong argument that we have reached rock bottom in that sense, and that premiums are certain to rise in the next 12 months.

    If a thorough review of your insurances results in premium savings, you might want to consider a Long Term Agreement or even a long term policy, if available, to tie your insurer in to the premium level for longer than the usual 12 months.

    Ultimately, talking to an independent broker should ensure you have the best possible cover for the most competitive price. Their advice on what insurance protection your business needs – and steps you can take to keep premiums low – will be invaluable, saving you precious time and needlessly wasted cash when you need it the most.

    Finally, don’t forget that as your business evolves, your insurance requirements will evolve. Keep your cover under review to ensure you’re adequately insured, avoiding any nasty surprises in the event of an unforeseen situation arising.

  • Keynesians’ Fatal Flaw: Their Misreading of Inflation and Growth

    Keynesians’ Fatal Flaw: Their Misreading of Inflation and Growth

    Inflation’s Chill Out and the Economy’s Steady Groove

    Daniel Lacalle tells us that the price‑level rise is no longer a wild roller coaster, and the economy is moving like a well‑balanced dance.

    What’s the real story behind the numbers?

    • Inflation’s pace has settled into a comfy jogging speed. It’s no longer the sprint that previously made folks worry about buying power.
    • GDP growth is still keeping a solid beat, meaning more jobs, more wages and that satisfying “we’re getting there” vibe.
    • Central bankers have tightened the screws a bit, but the dread of runaway prices is fading.

    Why this matters for you

    Imagine your paycheck playing a catchy song—your wallet stays on beat. Thanks to this cooling-inflation trend, your purchasing power takes a breath and everyday essentials—groceries, gas, and that pizza you can afford—won’t bite too hard.

    Key takeaways in a nutshell
    1. Inflation is not a runaway—it’s more like a friendly squirrel on a slow walk.
    2. Economy’s growth remains solid, so hope’s not just a distant echo.
    3. Stability gives consumers a breather: less fear, more spending.
    Bottom line: the market’s got a calm rhythm.

    We’re in a patch where the price tags are easing, and the economy is still marching forward. So, grab your favorite coffee, and enjoy the simple, steady buzz of life.

    The Tariff Tantrum: Why the World Got the Inflation Story Wrong

    1. The Big Mix‑Up

    Everyone thought tariffs would blow up prices. The intuition was simple: hit a country with a tariff, and American shoppers would feel the pinch. Wrong move. Tariffs is more of a bargaining chip than a price spike trigger.

    2. Supply Chains Are a Maze, Not a Straight Line

    Most analysts did a you‑box‑no‑box calculation, treating imports like a single buyer‑seller transaction. Real life? A labyrinth:

    • Transporters and storage facilities
    • Manufacturing plants juggling over‑capacity
    • Retailers scrambling to keep shelves stocked
    • Financiers worrying about rolling over working capital

    When a tariff hits, the shock gets absorbed and spread across these layers instead of hitting the consumer directly. Think of it as squeezing a soda bottle: the fizz spreads out instead of exploding in one spot.

    3. The Over‑Capacity Jitters of Exporters

    Export firms—especially in China—’re wrestling with excess inventory and cash crunches. If they can’t move goods fast enough, debts mount and warehouses shut down. This bottleneck dampens the tariff’s price lift, letting markets stay calm.

    4. The Price Numbers That Keep the Calm

    • Export Price Index (EPI) rose 0.1% in April and 2.0% YoY.
    • Import Price Index (IPI) only nudged 0.1% in April and 0.1% YoY.
    • Producer Price Index (PPI) dropped 0.5% in final demand for April.
    • Headline & core April PPI fell YoY.

    Retail sales gained 0.1% in April (up 5.2% vs. April 2024) after a 1.7% jump in March. Meanwhile, consumer inflation slumped to only 2.3% annualised in April—four years low. Core CPI climbed just 2.8%, showing little hint of runaway inflation.

    5. GDP: A Tiny Dip, a Big Upswing

    First‑quarter GDP data recorded a 0.3% decline overall, yet the private sector posted a 1.6% annual uptick. Government spend fell 5.1%. Financial institutions are already singing “No‑recession” tunes: J P Morgan has quit the recession call, and the Atlanta Fed Nowcast predicts a 2.4% GDP growth in Q2, matching Goldman Sachs and Capital Economics.

    6. Monetary Math: Why Tariffs Aren’t the Culprit

    Inflation’s real flame is uncontrolled fiscal fire—ramping up government spending inflates money supply and velocity. With deficit spend down 35% from February to April 2025 (vs. last year), money supply is only creeping up, and velocity is cooling. The private sector is tightening, the public sector is narrowing—so nothing to trigger a scary surge in prices.

    7. The Takeaway

    Tariffs aren’t inflation’s flame; they’re a negotiation tool that opens markets and levels the playing field. The U.S. eat‑market power is bigger than most think—exporters can’t simply shift their U.S. sales elsewhere, and even the EU market is comparatively thin.

    Looking ahead, we expect more trade agreements, and the market nervousness will likely fade. The “Tariff Tantrum” proves Keynesian inflation theories are off the mark—and that the best outcomes come from smart trade deals, not protectionist panic.