As the Coronavirus (COVID-19) situation continues to evolve rapidly, there are a number of considerations to be made
Business Interruption cover – COVID-19?
The UK Government’s announcement on Tuesday evening (17 March) concerning insurers’ position with regards to Business Interruption cover. This has caused some confusion and as a result, we’ve received a number of queries from clients.
To clarify, COVID-19 is not covered under the majority of standard Business Interruption policies and, as the chancellor said, you cannot retrospectively change insurance contracts at this time without threatening the future of the insurance industry.
Generally, Business Interruption cover is based on a specified list of diseases and has been since the SARS outbreak in 2003. These policies exclude Business Interruption due to new and emerging diseases, like COVID-19.
Policy wordings will clearly identify the diseases that cover is provided for and, in addition, highlight that new and emerging diseases like COVID-19 are not covered.
What action should I take in the event our insured premises becomes temporarily unoccupied?
For most insurers, cover will continue to apply for those who have followed Government advice to close their premises temporarily for a period of up to 30 consecutive days.
You should immediately notify if your premises has closed temporarily due to the COVID-19 outbreak and is going to be out of use for longer than 30 consecutive days.
Following school closures, if I decide to take my children to work (they’ll be in their place of work but have no access to the main shop floor / main work environment), will their Public Liability cover cater for this?
You will be covered on their Public Liability insurance, subject to the undertaking and documenting of a risk assessment that clearly shows suitability of the workplace. This should consider things like:
- Has a specific risk assessment of their business been carried out i.e. is it suitable for your children to access?
- Have the relevant checks been made for any staff members (if applicable) i.e. the suitability of those undertaking the supervision of your children?
- Have you followed current Government guidance i.e. around any staff / visitor exposure to the virus, self-isolation and third-party visitors to your premises?
- Has a risk assessment been undertaken on the suitability of the area where your children will be?
Does our Office policy extend to cover items moved to cater for home or remote working?
Office Equipment and Computers will be covered at the office address, however, some policies will provide cover extensions automatically to provide cover away from the premises within certain geographical limits. It is important for you to check with your providers in this regard.
Where employees are working from home, employers should carry out appropriate risk assessments and remember their duty of care to provide a safe working environment.