L A P L AYA L I M I T E D

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Insurance with IntelligenceSpecialist insurance advice and cover for• Private Clients• Farms & Estates• Media & Arts• Technology

summer 2006

News from the Beach

La PlayaThe Stables, Manor Farm, Milton Road, Impington, Cambridge CB4 9NFTel: 01223 200650Web-site: www.laplaya.co.uk

Disclaimer: While every effort is made to ensure the accuracy of information contained within this newsletter, La Playa accepts no responsibility forany errors or omissions.

L A P L A Y A L I M I T E D

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Tuscany is famous for its soups - here’s an early summer version from Lucca. Don’t get hung up onfinding every ingredient; try to keep roughly the same proportion of roots, leaf vegetables and herbs,but the soup will be much better if you buy whatever’s fresh at a farmers’ market rather than slavishlyadhering to the recipe.

Cover cannellini beans with water and soak overnight.Bring to boil and simmer until soft. Puree in foodprocessor and return to the same water. Chop onion,garlic, carrot and celery. Cover bottom of a capacioussoup pot with oil and place on medium heat. Addonion and stew for 2–3 minutes, stirring a little.Meanwhile start chopping the rest of the vegetables.Add the garlic, stir, stew for 2–3 minutes. Continuechopping and adding vegetables every 2–3 minutes.Once the roots, leaves and herbs are well stewed butnot browned, add the skinned and chopped tomatoes

(or use Italian tinned tomatoes) and the pureed cannellini beans and their broth. Season a little -but you can adjust the seasoning at the end. Cook very slowly, partially covered, for about 2 hours.If it seems to be reducing too much, add a little water. Serve in large bowls ladled over toastedslices of good crusty Italian bread and drizzled with extra virgin olive oil. The soup improves overthe next few days but may need thinning with more water when reheated.

Comedy Corner: Ponderisms...

Beach Life

Recipe Zuppa di Verdura

www.laplaya.co.uk Authorised & regulated by the Financial Services Authority

• I used to eat a lot of natural foods until Ilearned that most people die of natural causes.

• The easiest way to find something lost aroundthe house is to buy a replacement.

• Never take life seriously. Nobody gets out aliveanyway.

• There are two kinds of pedestrians: the quickand the dead.

• Life is sexually transmitted.• Health is merely the slowest possible rate at

which one can die.• The only difference between a rut and a grave is

the depth.• Health nuts are going to feel stupid someday,

lying in hospitals dying of nothing. • Whenever I feel blue, I start breathing again.• All of us could take a lesson from the weather.

It pays no attention to criticism. • In the 60's, people took acid to make the world

weird. Now the world is weird and people takeProzac to make it normal.

• Politics is supposed to be the second oldestprofession. I have come to realise that it bears avery close resemblance to the first.

• How is it one careless match can start a forestfire, but it takes a whole box to start acampfire?

• Why is there a light in the fridge and not in thefreezer?

• If quizzes are quizzical, what are tests?• If electricity comes from electrons, does morality

come from morons?• Did you ever notice that when you blow in a

dog's face, he gets mad at you, but when youtake him on a car ride, he sticks his head outthe window?

Tuscany Holiday Offer for Foodies Make your own olive oil and explore theculinary secrets of Lucca and theGarfagnana, 12-18 or 19-25 November2006. Special offer for friends of La Playa:bring a friend for 25% off advertisedprice. www.sapori-e-saperi.com.

Ingredients150g dry cannellini beans1 onion1 clove of garlic1 carrot1 stick of celery50g shelled peas50g green beans

1 courgette2 medium potatoesA small bunch of Swiss chardA handful of spinachA handful of cavolo nero1/4 Savoy cabbageSmall bunch of parsleyA few basil leaves

100g fresh mixed herbs (eg: oregano, marjoram,fennel, nettles, chives)300g of ripe tomatoesExtra virgin olive oilSalt and pepper

from Heather Jarman at Sapori e Saperi Gastronomic Adventures www.sapori-e-saperi.com

LaPlaya Newsletter 05-06 22/5/06 14:32 Page 1

This newsletter and most policyinformation is available in largeprint - please let us know how we can make the information

more accessible to you.

Welcome to our summer newsletter! This issue’sdelights range from investing in art to insuring clinicaltrials – not to mention a Tuscan summer vegetablesoup on the back page!

The La Playa office has been buzzing with new staffarriving (a warm welcome to Amanda Dewey and ChrisOwens) and with bird flu keeping our eventcancellation insurance advisors busy.

You may be aware that over the last year, theinsurance industry has been raked over the coals byour new regulator, the FSA. The bad news is the extrapaperwork we have to send to clients – but the goodnews is that although compliance has increased ourcosts greatly, we will not, unlike many brokers, bepassing on any of these costs to clients.

You’ll shortly see a fresh new look at our website,thanks to Mono Industries (www.monoindustries.com)– it should now be both easier to read and easier tofind with search engines.

I hope you find some useful titbits in these pages -thank you for your continued support and we wishyou a relaxing and enjoyable summer. If you’re infarming, here’s to a bumper crop!

Alan Gale - Chairman

News

Welcome

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Chris Owens FInance & Administration Manager

We welcome our first PhD to the team, with

Chris joining us from Ernst and Young’s audit

team in London. Chris brings to La Playa a

Cambridge degree in Computer Science,

accountancy experience, and a splendid

collection of red socks. He will be overseeing

La Playa’s finances, IT, facilities management

and HR.

“My role is working behind the scenes to enable

the brokers to do their jobs. I’ve worked in

consulting and audit previously, so I’m looking

forward to a more hands-on role. It’s good to be

working at a vibrant, fast-growing company like

La Playa. And of course a five-minute journey

from the other side of the village beats one and

a half hours to the City”

Amanda Dewey, Corporate Account Handler

Amanda joined us from Great Lakes

Reinsurance in the City. She has worked for six

years in corporate insurance following a degree

in Combined Business Studies. Amanda enjoys

ski-ing and mountain-biking, and has a

passion for cooking and good wine.

“Having worked for a large insurance

company dealing with huge multi-national

organisations, I am looking forward to

working with smaller and dynamic

organisations specifically in the media fields (I

knew my marketing training would come in

handy at some point!). I am enjoying the

quality of life working in Cambridgeshire,

having survived life in the big smoke for the

last 6 years”

Matthew Mullee, Private Client Director

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Private Clients DivisionDivision Head: Matthew Mullee, Private Client Director

A personal and responsive service for private clients. We specialise in advice and cover for period,listed and modern homes, antiques, jewellery, works of art and fine art on a worldwide basis.

Many owners of period property don’t realise theimplications of under-insurance – not only forthemselves but for the properties around them.Repair and restoration costs for older andunusual properties will be higher than average.Lorna Harrington, at loss adjustor CunninghamLindsey, has seen some alarming cases.

“My road to Damascas was a typical Englishvillage street, with its typical selection ofvernacular homes. Dominating the street was asemi-burnt out timber framed cottage, oncethatched, Grade II listed and built circa 1651. Afire, attributed to a spark from a wood burningstove landing on the thatched roof, had causeddevastation.

The fire brigade were unable to remove thethatch because of wire netting, and the roof andfirst floor were destroyed - with significantdamage to the ground floor. It was a 40-50%loss: the cost of repair was equal to the cost oftotal demolition and rebuilding in similarmaterials.

The house was insured for £200,000, based onits purchase price. Repair estimates came in at£500,000. To rebuild using like materials, thepolicyholder would have to personally fund thedifference. Under the Planning (Listed Buildingsand Conservation Areas) Act 1990 theConservation Officer could have insisted on this.

In the event, the Conservation Officer gavepermission to rase it to the ground, and thepolicyholder will build a new house. Because ofunrealistic sums insured on a non-specialistpolicy...

1. The homeowner had to witness their homebeing demolished and will have to rebuild ina more modest, modern way

2. The entire village streetscape will change.Neighbours who once looked out onto alisted thatched cottage will now look at amodern home.

3. The new-build could affect market values ofthe surrounding properties

4. The market value of the new house willprobably be less than a restored listedbuilding

Once lost, a listed building cannot be replaced;they represent a finite resource and anirreplaceable asset to this country - and shouldbe suitably protected for future generations”.

If your home is old, listed or unique, it’simportant to insure for reinstatement value. Askus about our specialist policies to help protectit.

All too often, clients come to us from

insurance providers who have been less than

active in maintaining their policies properly.

Cover levels have been inadequate and ratings

are often higher than they should be. Our

individual approach frequently saves clients

money as well as ensuring they have the right

cover. Why settle for a call centre when

personal service is alive and well?

Premium Productsthat Save Money

An increasing number of school and universityleavers are taking gap years. If your offspring’stravel plans are causing you sleepless nights,you’ll appreciate the Red24 personal securityservice – and if you’re insured with Hiscox youprobably already have it. Red24 helps withtrip preparation, risk assessment, advice onpersonal safety, disease, health & hygiene andpolitical stability - with sensible travellers’ tipsand contingency planning. In the event of acrisis, they’ll even go in and bring your lovedone to safety. Gap year travel can be the tripof a lifetime - but safety is a vital ingredientfor a memorable trip.

For further information on red24, visitwww.red24.info.

Red24 for GapYear students

Reinstatement Value v. Market Value

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LaPlaya Newsletter 05-06 22/5/06 14:33 Page 3

Private Clients Division continued Farms & Estates DivisionDivisional Head: Douglas Brown

Specialist insurance services for large farms, contract farmers and estate owners.

We’ve been delighted with feedback from clients that our innovative approach to farm insurance is not onlysaving money but also improving their business structure.

Following our full Health & Safety audit and an extensive broking exercise, one client recently saw their non-motor insurance cut by 46%. The company, who farm 3600 acres and have a large property-owning interest, wereaware that they needed to improve H&S procedures, and we secured the £15,000 premium reduction in returnfor a commitment to modernising their approach.

‘The culture of the business has opened up and enabled me to tackle a number of long-standing managementissues with employees who were reticent about implementing work place changes. Channels of communicationhave improved, allowing us to formalise the way we approach problems and find jointly agreed solutions’

Douglas Brown, Divisional Head

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Summertime is the peak season for crime, and hand luggagesnatches at airports are increasing – even X-Ray machines arebecoming targets for snatchers and pickpockets:

• Keep luggage in full view and locked at all times• Place valuables in hand luggage rather than suitcases• Don’t carry large amounts of cash or all your credit cards.

Take the minimum you need for the day plus the 24-hournumber for cancelling cards

• Don’t leave your home address visible on bags orluggage

• Report losses to police within 24 hours – you’ll needproof of notification for claims

• If your passport is lost/stolen, contact the local police andappropriate embassy or consulate immediately

• Consider using Homesitters www.homesitters.co.uk, who’lllook after security, possessions, pets and routinehome/garden maintenance

Owning a collection of paintings is nolonger exclusively the province of the verywealthy, and increasing numbers of peoplein the UK are buying art.

Buying a house, you take advice fromsurveyors, lawyers, builders – a team ofexperts. But buying art, many peoplecheerfully throw away hundreds, oftenthousands of pounds on works which, nosooner paid for, lose at least 30% of theirvalue. Contemporary work may be worthlittle more than the price of the materials –just try selling it back to the dealer youbought it from!

Buying art on an “I know what I like” basisis fine – but there’s a better way, especiallyif your pension depends on it. Gettingindependent help can save money andensure the quality of your investment.Going it alone, you’ll need:

• A solid grounding in art history• Specialist knowledge of your artist,

including the period he established aunique style: mature works are theones which hold value

• To establish the work’s authenticity –incidentally, a reputable dealer will

refund payment on pieces of incorrectprovenance

• To check the condition: yourmasterpiece may be a patchwork ofrepairs

• To check recent selling prices ofcomparable works – is yours a fairprice?

With luck you will have bought somethingof enduring interest to you and others. Withmore luck, it may hold or increase its value.If you haven’t got time to do all of theabove, try contacting Spencer Ewen at Seymour Management, independent artadvisors: www.seymourmanagement.co.uk.

Once your art is safely hung, make sure it’sinsured in line with its value. Recent Hiscoxresearch shows that 80% of collectors haveinadequate cover and nearly one-third havenever even sought a valuation. To helpprevent underinsurance of fine art, insurerslike Hiscox and Zurich have developed artindexes which automatically update yourcover in line with the general movement ofmarket values – as well as providing anunique insight into the changing value ofyour belongings.

Remember that your duty to harvest workers on the farm is justas onerous as it is to your full time staff.

We advise clients to make sure that they undertake a fullinduction procedure to find out more about the people they areemploying. The need for this type of investigation permeatesmany parts of the business - not just insurance:

• Make sure you know the driving history of the people who willdrive your machines. Any medical conditions that could affecttheir ability to drive (epilepsy, diabetes) should be disclosed toinsurers • Establish other medical conditions arising from a previousinjury so they can be ruled out of any potential legal action for compensation

• Give clear instructions on your attitude to working on the farm and risk. Be specific about what you will and willnot tolerate, and write it down so that the workers are in no doubt as to their responsibilities.

• Take time to train them on the machines they will use and ensure they sign an induction sheet to confirm thatthey have been so instructed

These sensible steps can help reduce the risk of picking up claims for incidents that were not your responsibility orsimply never happened. For an induction form template please contact Douglas Brown on 01223 200656. Good luckfor harvest – let’s hope the area aid cheque has arrived by then!

Landlords Beware NewElectrical Safety LawsOn the face of it, owning and lettingproperty is a fairly straightforwardprocess, but red tape can make itless attractive. Following thetightening of gas heating inspectionrequirements, recent changes to thelaw have increased responsibility forthe electrical safety of rentalproperties. Dangerous electricalarrangements cause 10 deaths, 750serious injuries and over 12,500 firesevery year.

• Before a new tenant moves in,check the sockets and plugsand follow NICEIC's guidelines(www.niceic.org.uk) to spotdangers

• Get electrical systems inspectedand tested at least every 10years or on change ofoccupancy

• For electrical work in residentialproperties, you must either usea government authorisedelectrician or, if you do the workyourself, notify the localbuilding control office who willinspect the work. Apart fromvery minor work, a BuildingRegulations ComplianceCertificate must be issued forany electrical work carried outsince 1 January 2005

Art Buying - an alternative way Risk Management

Harvest Workers

Safety Pays Off in More Than Just PremiumCar-Jacking ScamDrivers beware: thieves havebeen attaching paper onto rearwindscreens, which driversonly notice once they’re in thecar. When they get out toremove it, leaving keys in theignition, the car-jackers appearfrom no-where, jump into thecar and take off – probablywith a purse and home addresson board. Once in your car,don’t get out - just drive awayand remove the paper later!

Hands-On Tips to Keep Hands Off “So often brokers, like banks, offer a facility rather than a service. We feel that we matter to La Playa

and appreciate their commitment and advice”

LaPlaya Newsletter 05-06 22/5/06 14:33 Page 5

Embracing artists to advertising agencies, photographers to festivals, publishers to promoters and theatre totouring, the backbone of this specialist corporate division is CREATIVITY.

Welcome tonew clientsWe’re delighted to welcome

new clients including the

Arts Marketing Association,

Chitraleka Dance Company,

Frome Festival, IMG Artists,

Impact Image, Larmer Tree

Festival, Ludlow Festival,

Mavin Khoo Dance, and

Wychwood Music Festival.

Mark Boon, Managing Director

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Media & Arts DivisionDivision Head: Mark Boon, Managing Director

Production company Impact Imagehas been awarded Best SpecialEffects (US Film Festival, forEurofighter) and Best TrainingVideo (World Media Festival).Specialising in air to air filming formilitary fast jets and civil airliners,Impact Image provides film, videoand multi-media services to businesses, governmentdepartments and broadcasters,with clients including BBC TV, BAESystems, Eurofighter GmbH,Foreign & Commonwealth Office,Institute of Education, the MODand Virgin Atlantic Airways. www.impactimage.co.uk

Client Spotlight:

Impact Image Flying High

Technology DivisionDivision Head: Mark Boon, Managing Director

The risks associated with clinical trials have madesignificant headlines this year, and lack of insuranceprotection has the potential to stop a trial in its tracks.Biotech companies may now approach trials with sometrepidation, but with guidance on identifying andmanaging the risks, you can confidently navigate yourway through a 21st century clinical trial.

Identifying the Risks• Research protocol: the bedrock of any clinical trial is

a comprehensive and well-designed protocol. Theinformation must be easily understood, ethical andsupport the research goals. The protocol informs theconsent document, where lack of clarity on potentialadverse events can expose you to risks

• Reaching the subjects: there's a temptation forsponsors and CROs to brush over the less attractivedetail of a trial in order to recruit more volunteers.Make sure participants don't feel pressurised toparticipate in your study. Avoid exaggerated promisesand tight time-frames, and make sure subjects areaware of the risk and the experimental nature oftrials

• Informed consent: it is the clinical investigator'sresponsibility to ensure that subjects fullyunderstand the informed consent form. This must beeasy to read and understand, ideally written at orbelow 14-year old reading level

• Conflict of interest: do your investigators have afinancial stake in the product? With liability lawsuitsin mind, go the extra mile to inform subjects of anypossible conflict

• Increased litigation: clinical trials are not the low riskenvironment they used to be - Northwick Parkreminded us of that - and just defending a claimwould tie up valuable resources and time

• Legal obligations: the 2001 EU Clinical Trials Directiveimplemented in 2004 ensures Good Clinical Practice(GCP) and is now mandatory for trials in the UK andother EU states. The directive includes a new systemfor establishing ethics committees, reclassifiesstudies on healthy volunteers as clinical trials,increases safety reporting requirements, and restrictsauthorisation validity to that stated on the originalapplication

Insurance Issues:It's important to talk through these issues in advancewith your broker:

• Differing local requirements: insurance must be inplace before trial commencement - but the form thatthis insurance takes will vary according to country.

• Availability of insurance: in today's difficult insurancemarket, some insurers have less capacity tounderwrite particular risk exposures. The type of trial(eg: gene therapy = a possible high risk), trialmanagement, demographics of the subject base andtime period will all affect the risk.

• Where to hold the trial: some EU states only insiston "adequate" insurance, while others set aminimum amount. The fewer trials carried out inhighly regulated states, the more flexible theinsurance provisions will be

• Legal liability: virtually all liability policies cover legalliability only - not moral or other responsibility. Aclinical trials policy should cover a wider range ofpayments through alternative dispute resolutionformats

Make sure you get cover with specific clinical trialswording from an insurer with financial strength, whounderstands the biotech industry and can advise onindustry-specific risk management. With the EU Directivenow implemented as law, insurance should form a keypart of any trial.

Conveniently located at the hub of Cambridge’s flourishing technology scene, our specialist team provides specialist advice and coverfor both ICT and life science businesses across the UK.

Cambridge-based BioLauncher wasfounded in 2001 by Rowan Gardnerand Dirk Gewert to help lifescience businesses capitalise ontheir innovation and grow.

BioLauncher has worked withleading biotechnology and medicaldevice companies across Europe tohelp them bring novel technologiescloser to market. Their servicesinclude developing market entrystrategies for the USA and Europe,research management and findingstrategic partners for their clients.

Last year, BioLauncher helpedestablish Inion's EuropeanTechnical Centre on the CambridgeScience Park, a substantial inwardinvestment for the Eastern Region.The company has also recentlyhelped a Cambridge basedcompany secure a prestigious DTI-backed technology award.www.biolauncher.com

Client Spotlight:

BioLauncherInsuring Clinical Trials

Protecting your board against allegations ofmismanagement or breach of dutyCompany directors, officers or managers areautomatically exposed in law to unlimitedpersonal liability – a position shared withtrustees of charities and arts organisations:

• Company & trust law: sees trusteesliable to their charity for any breach oftrust or fiduciary obligations.

• Civil law: sees trustees as liable to thirdparties either for breaches of contract orfor infringement of another’s rights.

• Criminal law: trustees are seen to beresponsible for any breaches.

Trustees are seen under law as liable for theirown actions and, in some cases, for actionsthey have omitted to take. Employees,volunteers or others sanctioned by the trust toact on its behalf also represent a liability totrustees in respect of their actions andomissions.

This exposure, in addition to the continuingtrend in the UK of increased litigiousness, seescreditors, customers, suppliers, employees,shareholders and regulators joining the rushto sue directors, officers and trustees.

What is Trustee Liability Insurance?Trustee Liability cover provides protection forindividuals against this exposure to personal financial ruin, through reimbursement of legalcosts, expenses and damages.

Who is covered?Trustees of the board, directors, officers, thecompany secretary and employees definedwithin the memorandum and articles ashaving control of operations.

What is covered?• Breach of trust• Breach of fiduciary duty• Negligence or maladministration• Negligent misrepresentation or

misstatement • Infringement of intellectual property

rights• Breach of confidence or misuse of

confidential information• Defamation• Dishonesty of any past or present

employee

Examples• An employee brings an action against

the company for wrongful employmentpractices such as discrimination,harassment, or unfair dismissal.

• The organisation is taken to court for abreach of the Health and Safety Act.

• The organisation is investigated undersuspicion of mismanagement ofaccounting records under the CompaniesAct 1985.

Many trustees lend their experience andreputations to charities in a spirit of altruism –it’s important to look after their interests too!

Listen Up! Festival ofOrchestras: 1-31 October 2006BBC Radio 3 with the Associationof British Orchestras and MakingMusic presents a month-longcelebration of live music throughconcerts, workshops, openrehearsals and local communityevents for you to participate in andenjoy. For details of events visit:www.bbc.co.uk/radio3/listenup or call 08700 100

Trustee Liability

Festival Insurance Scheme

La Playa’s Festival Insurance

Scheme goes from strength

to strength, and we’ve saved

festivals over £35,000 in

premiums – money which can

now be spent on artistic

programmes. Insured risks

have ranged from a 60ft

inflatable octopus to hot coal

walking for the public and a

£250,000 chandelier!

“It is a real pleasure to dealwith… a firm thatunderstands our business sowell and respondsaccordingly”Frome Festival Contact Mark Boon for more information. T: 01223 200651

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