SUA stepping up to the mark on unoccupancy due to COVID-19
Earlier today, I reminded brokers and insureds to notify insurers in cases where the premises are going to be unoccupied for an extended period of time, where it is in excess of the period allowed under their insurance policy. In the post, I was hopeful that the general insurance industry would stand by their clients at this time, and not impose additional restrictions or financial penalties.
SUA (Specialist Underwriting Agencies) working with Lloyd’s, has certainly stepped up to the mark and I applaud their approach. Which I feel, is in the best interests of the public by showing great social conscience, and yet requires basic risk management on the part of the insured. The proposed wording that SUA have agreed in principle with Lloyd’s, reads:
Underwriters hereon note and agree that with effect from 1st April the vacancy exclusionary language that may be contained in the policy wording is waived where an act of government or government legislation dictates the closure of an insured property.
The insured undertakes to turn utilities off, save those to serve the existing security and fire protections of the property, or as required by regulation. Furthermore, the location will remain secured to the existing protections in place. Where allowed by the current government directives, be it local, state or federal the insured will check the location is secure on a weekly basis,
All other terms and conditions remain unaltered.
Well done Peter and the team from SUA and Lloyd’s.
Other insurers and underwriters may be taking a similar approach, and I would ask that you share your experience in the comments section below, for the good of the reader community.
Just one final point: the quickest way to check unoccupancy periods on your clients policies, is to go to the product feature area of PolicyComparison.com and select “Unoccupancy Cover” and “Unoccupancy Period”, and you will get a list showing the cover afforded by the vast majority of wordings in Australian market.
Which SUA are your referring to? Specialist Underwriting Agency, Solution Underwriting Agents, Sports Underwriting Australia or Steadfast Underwriting Agencies? #BloodyAcronyms
Specialist Underwriting Agencies Pty Ltd.
Thanks Allan, in this crazy and confusing time, we are all very grateful for your commentary and updates. Cheers
Could not agree more about it being a crazy time and something I never thought we would see and hope we never see again. Our grandparents went through much worse and I am sure we will come out okay if we follow good risk management. I am certainly taking my self isolation very seriously and am following it to the letter and took extra precautions while overseas.
I am glad the posts are helping as I and the team here know a lot of people are stressed and hurting.
Sorry Robert. I try never to use acronyms or abbreviations. I am angry with myself for breaking my own rules but a good reminder on the importance of clear messaging. I see that Peter has already explained it is Specialist Underwriting Agencies. I hope you Mandy and the family all stay safe. Regards
Al
Update: Email confirmations have been sent to a number of my clients (including various regional pubs that have closed down) this morning confirming coverage is in place should they be closed for periods longer than 30 days as a result of the COVID-19. We have had great support out of our London market on this initiative and hopefully local carriers will see the merit in this and provide similar endorsements to protect their policy holders during these uncertain times.