We recommend that consideration is given to urgently reviewing your current insurance arrangements as it is essential that cover is updated in conjunction with changes in risk profile.
Immediate considerations:
- ISR policy wording review to determine if there is potential for making a Business Interruption claim.
- Review of policy coverage and/or sub-limits on the ISR policy. Removing cover and/or reducing sub-limits will potentially provide a return premium.
- Whether Vehicles and/or Plant & Equipment are currently not being utilised. Insurers may apply reduced rating for items considered as "Laid-Up".
- Investigation of whether premium payments can be deferred or spread over additional instalments.
- In the alternate, increases in limits to be reviewed where sales and/or stock limits have increased which may require an additional premium outcome and where disclosure to the insurer is required due to a change in circumstances.
Renewal considerations:
- Review of Business Interruption Sums Insured and this should include a review of Gross Profit, Gross Rental Income and Payroll Sums Insured.
- Adjusting estimated Turnover according to the impact COVID-19 will have on forward estimates for the next 12 months as turnover is a primary rating factor for Public Liability, Professional Indemnity and Directors & Officers policies.
- Review of policy coverage and/or sub-limits on the ISR policy. Removing cover and/or reducing sub-limits which should have an impact on premium.
- Consider the need for travel insurance for the next 12 months given travel restrictions are likely to be in place until June 2020.
- Investigation of whether premium payments can be deferred or spread over additional instalments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.