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Keeping Your Insurance Policies Live During Closure or Reduced Business

April 2020

If you’ve already sent us your Insurance documentation for us to review, thank you, we are currently in the process of reviewing these documents and will be in touch in due course with our findings.

Should you have any urgent concerns please feel free to contact our Insurance helpline on 01925 906469 and we will happy to assist.

Photo of Insurance Document

Property Insurance Including Contents and Fixtures & Fittings

Although you may not be occupying your premises at present, be it an owned building or a lease, the importance of keeping your policies live are as important as ever, risks are still very much present in the form of fire, theft & malicious damage.

If your building is unoccupied for a sustained period of time, your cover may automatically reduce in accordance with your policy terms and conditions.

Unoccupancy periods can be between 14 – 90 days, at which point cover reduces to FLEA (Fire, Lightning, Earthquake (explosion), Aircraft.

If you are concerned about these exposures, we would be happy to review your position and policy.

Liability Insurance

If your business is currently closed or restricted, employer’s liability insurance remains a statutory requirement in law for anyone employing people full time, part time, subcontracted or voluntarily.

If your policy is due for renewal, your employer’s liability premium would normally be based on either your number of employees or your annual wage roll as well as the overall exposure.

We are happy to discuss options on this for you should you be currently working with a reduced work force.

Products liability covers the cost of compensation claims if someone is injured or their property is damaged by a product that you’ve sold, you don’t necessarily need to have manufactured the product for an incident to give rise to a claim on your policy so any retailer, wholesaler or supplier of products would require products liability. If production or distribution has stopped, your product may still be in circulation therefore continuing your insurance’s remains a necessity for businesses.

Products liability is generally priced based on your turnover, so if your policy renewal date is imminent, it’s worth speaking to ourselves so we can review your policy and premium based on your production over the next few months.

Professional Indemnity Insurance

Professional Indemnity covers costs and damages that may be awarded if you are alleged to have provided inadequate advice, services or designs that cause your client to lose money without suffering any physical loss or damage.

If you are a clerical professional and are still advising and/or working remotely it is a given that PI remains critical to your business.

But what of construction businesses or contractors providing design elements whose jobs or contracts are on hold at present?

The thing to understand with PI insurance is that the policies are on what we refer to as a “claims made” basis. These policies cover claims that are made during a live policy period. For example, an installation contractor provided designs for a project in 2019, they let their PI policy lapse in March 2020 and then a claim comes in for faulty design for the 2019 project, as there was no cover in place when the claim was made (submitted) the client is exposed with no Insurance protection.

If your PI policy due for renewal soon, we are happy to review the basis of your cover and look at smart ways to keep your exposures insured.

Contract Works (Contractors All Risks)

Should we be in the unfortunate position that construction projects are suspended then there is the possibility that this will cause problems with cover. Many policies have specific clauses written into them about “cessation of Works”.

We would like to offer our help and guidance in this area of cover and can discuss options with insurers on your behalf. This will ensure that cover is maintained for you and at the right levels.

Remember, please feel free to call our insurance helpline on 01925 906469.

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