Staying covered during COVID-19

15, April, 2020

The financial impact of Coronavirus is affecting individuals and businesses up and down the country – we understand how worrying this time may be for you. The Government is offering a range of support packages to help people through this difficult period and there is a range of support offered by non-governmental bodies.

We fully sympathise and understand that you may be considering cancelling your insurance policy due to needing to carefully manage your expenses. However, we have a duty to help you fully understand the implications of cancelling cover and the detriment this may cause.

Business insurance helps to protect against everyday risks, such as accidents in the workplace and associated public liability, stock or premises damage, legal costs and cyber-attacks. There are also some types of insurance that a business is legally obliged to have, such as employer’s liability and commercial motor insurance.

Even in a time when a business is unable to operate as usual due to the impacts of COVID-19, it’s important that businesses remain covered for standard risks, many of which may be more likely when the property is unoccupied, such as vandalism of the property, theft of stock or equipment, or even loss of information or damage to IT systems and networks.

Liability

It is important to remember that you can be liable as a company or personally liable as a director when you’re not trading, for example: if you own or rent premises then you could still be liable for damage or injury caused by the property.  You could also be liable for previous work carried out; some covers require continuous coverage to remain suitable where claims can occur some time after the job is finished.

COVID-19 also raises a number of additional liability concerns, particularly if employees are affected due to a business’ negligence. Kennedys Solicitors have provided a comprehensive document that gives excellent guidance for employers and some insight into potential exposures to businesses.

Our advice to you

Wherever possible, especially if you are likely to start trading again once the social restrictions are lifted, we strongly advise that you do not cancel cover.  Instead, speak to us about the options available.  If needed, we may be able to look at ways to reduce your premium without cancelling critical covers.

Every day insurers pay out £22 million to help firms cope with these unwelcome events. Leaving your business without adequate insurance cover whilst temporarily closed could prevent your ability to get back up and running on the other side of this situation.

It is also important to proactively manage any the potential risks. To help you we have pulled together an information hub which includes advice, checklists and FAQ’s for you to help navigate the impact on your business.

You’ve worked hard to build your business and reputation, and we’re here to help you maintain it.

Download our guide: COVID-19 Business Support