Has your insurance protection adapted to changes in your operations?
There is uncertainty surrounding what pay-out a business may be entitled to if their property is damaged or if they incur a loss as a result of the COVID-19 pandemic. In recent weeks it has been confirmed by many insurers that they will not respond to Business Interruption claims, which was reiterated in a recent Association of British Insurers statement which reads:
‘Irrespective of whether or not the Government orders closure of a business, the vast majority of firms won’t have purchased cover that will enable them to claim on their insurance to compensate for their business being closed by the Coronavirus.
Standard business Interruption cover – the type the majority of businesses purchase – does not include forced closure by authorities as it is intended to respond to physical damage at the property which results in the business being unable to continue to trade.
A small minority of typically larger firms might have purchased an extension to their cover for closure due to any infectious disease. In this instance an enforced closure could help them make the claim, but this will depend on the precise nature of the cover they have purchased so they should check with their insurer or broker to see if they are covered’
Whilst the position of insurers and ABI statement provides clarity on the position regarding claims enquiries as a direct result of COVID-19, enforced changes in business operations or changes in the way your workforce will go about their daily roles and responsibilities means other risks and insurance such as Property and Contents Insurance remains highly relevant as the situation evolves. Here are a few questions you should consider;
What happens if company property is damaged, lost or stolen away from our office?
In many instances, risk is now going beyond the office place with the transition to homeworking as employees begin to self-isolate to try and prevent the spread of COVID-19. This has created new considerations including company property such as laptops, tablets and mobile devices being utilised in remote locations including an employee’s home. You should consider the adequacy of existing sums insured and advise your brokers if any increase is required.
Is my business insurance taking into consideration higher value of products in stock because of a reduction in my customer sales?
Some companies are experiencing a reduction in sales, leading to the value of stock being held on some premises being much higher than usual. We will eventually come through this crisis and sales will return but in the meantime, have you considered whether your business insurance is now fit for purpose and sufficiently flexible to take into account these changes?
What is happening with statutory inspections of machinery and plant?
In some instances, insurers may not be able to continue with inspections during the COVID-19 outbreak. Statutory inspections of plant and machinery may not be able to be carried out, but this does not remove the need to have them inspected. Clients should consider if a piece of plant should continue to be used if the inspection has not taken place.
Would you like to discuss specific queries that are unique to your business?
If you would like to discuss any points raised above or have questions that are unique to your business in respect of how your insurance may or may not respond to the potential risks highlighted above, we are available and here to help. If you are an existing Griffiths & Armour client you can contact your usual insurance broker or relationship manager or simply get in touch with one of our insurance experts by sending an enquiry using the button below. A member of our team will be in contact with you shortly.