The team at A-One Insurance Group provide some valuable advice on ensuring you are covered through these unprecedented times.
Most people are already aware from the media that the majority of insurers are not looking to provide any cover for business losses from Covid-19 as this was not a known disease and therefore could not have been insured, unless you have bought specific Pandemic cover.
The reality of this situation is that no-one can say with any certainty that after we are all through this what will happen to the insurers in respect of their refusal to pay claims. With uncertainty comes challenges and no doubt the decisions to reject claims made by insurers will be tested by the lawyers in court at the very least, therefore (without wanting to raise any hope) if you feel you have a valid claim, then register your interest.
Only the insurer can confirm if cover will not apply – no-one else..
For those clients with motor fleets, whilst insurers are not obliged to provide ‘laid up’ cover, they are trying compromise where possible. So, if you have a number of vehicles not being used and stored off the public highway SORNed at DVLA, then you are able to request cover to be reduced and expect a return of premium.
Be mindful to let all your employees not to use those vehicles….
Directors and Officers
Some clients have expressed an interest in removing their Directors and Officers cover to reduce their costs. We strongly recommend against this, as this could arguably prove to be their most important cover later down the line if conditions mean they have to consider closing the business. This cover will help protect them should they start receiving grievances from laid off staff and unhappy stakeholders.
Loss of profits / Revenues
We are hearing stories from insurers that clients and brokers are requesting a reduction in ‘Loss in Profits and or Loss of Revenue’ sections of cover seeking a refund to help. Please urge your clients not to do this, if major loss was to occur during this lock down period then the insurance company would only be obliged to pay the reduced sum over 2,3 or 4 years depending on your cover. Any small saving by reducing cover is counter productive to the overall loss potentially and is just poor advice.
- If you are sending staff home to work, please make sure you have cover away from the premises for any business equipment
- Also, please notify your broker / insurer if your premises are going to be unoccupied beyond the policy cover and conditions applicable unless the insurer has automatically amended their terms
- If you are adapting to the situation and amending your business proposition i.e. now offering takeaway or a delivery service, please let us know immediately to ensure you have the appropriate cover in place
- If you are paying your premiums on either insurer direct debit facilities or with a third party finance provider and are experiencing any difficulties in making your usual payment, please contact the provider directly asking for the latest assistance available – DO NOT just cancel the direct debit, it will effect your credit score if you default on a payment and the finance provider will be less likely to be willing to assist.
- Please be mindful, during this period as cyber criminals will be working overtime to steal your money or data, be extremely cautious of unusual emails and any payment instructions should be validated by phone before paying.