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Which insurance policies do I need to keep live?

Date April 2nd 2020 by in Category Insurance

In times of uncertainty, it’s often difficult to look to the future and predict your company risk. We’ve asked one of our preferred insurance providers to examine those areas of insurance that should be prioritised, even if businesses are temporarily or partially closed.

1. 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, keeping your property covers live is as important as ever. Risks are still very much present in the form of fire, theft & malicious damage.

Something to consider if your building is unoccupied for a sustained period, your covers 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, please get in touch and our insurance partner will be happy to review your position and policy.

2. 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.

Our insurance experts are happy to discuss options on this for you should you be currently working with a reduced workforce.

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 to businesses.

Products liability generally is priced based on your turnover so, if your policy falls due for renewal imminently, it will be worth speaking to an expert to review your policy and premium based on your production over the next few months.

3. Professional Indemnity Insurance

Professional Indemnity (PI) 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 is critical to your business and a large exposure you need to insure.

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 is falling due for renewal, please get in touch and we will refer you to our preferred insurance provider and they will be happy to review the basis of your cover and look at smart ways to keep your exposures insured.

4. Contract Works (Contractors All Risks)

Should you 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 our recommended experts can discuss options with insurers on your behalf. This will ensure that cover is maintained for you and at the right levels.

For further guidance on your insurance needs in these unprecedented circumstances please contact us on 03330 433 233 or info@bcrassociates.co.uk to be put in touch with one of our carefully selected supply chain partners.


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