Unoccupancy Cover and COVID-19 government shutdowns on indoor venues
Guest post by Sharron Walker – Director of Policy Services LMI Group
We are fielding literally hundreds of enquiries from brokers as a result of various governments enforcing closure of indoor venues –including pubs, clubs, gyms, sporting and religious venues– in respect of what is the market position on cover, if the premises are unoccupied for a large period of time. Such closures may be extended if the spread of the virus is not brought under control.
Some brokers are worried their clients may not realise if they have any cover during this time, should they suffer a loss when the premises are unoccupied, or if the policy will provide any protection at all. Unoccupied premises pose a higher risk due to heightened exposure of break ins, fires, vandalism and water damage.
A quick Product Feature search in LMI PolicyComparison – under Business Packages/ISR – Material Damage or Burglary covers, quickly highlights the vast differences in the market. It really does depend on the individual policy in place.
Historically, Insurers provide full cover for 30 days of continued unoccupancy before they require being notified and to apply additional terms and conditions to manage the risk. However, these days, depending on the Insurer, wordings can automatically allow thirty, sixty, ninety or even a hundred days of full cover.
After this time, the policy may still provide cover but limited to restricted perils. While, others simply exclude cover if the Insurer has not been notified before the end of the covered period.
During these times of uncertainty, we strongly recommend notifying your clients of their position, to provide reassurance in these special circumstances. Jump on now to PolicyComparison, and know how your client stands.
From all the PolicyComparison team, we wish all our customers well at this stressful time, and we assure you that all our eServices remain online to support you. Most importantly, our greatest wish is that you stay safe and well.