COVID-19 and Business Insurance FAQs for Policyholders

No two insurance policies are the same, and without sight of your policy wording we can’t give any specific advice, however these FAQ’s provide an in-sight into current insurance trends. The best advice is to check directly with your own provider.

My employees are working from home due to recent government guidance, will they be covered by my insurance policy?
If you currently purchase employer’s liability cover for your business, then most insurers will extend to cover them while they are working from home during this period. This is usually restricted to clerical work only.

Am I covered for my contents that my employees take home in order to work there?
Generally, yes, subject to you having the additional “all-risk and transit” insurance within your current schedule of cover.

What happens if my premises are left unoccupied?
Most insurance policies are endorsed that you must advise us if your property is going to be left unoccupied for more than 30 consecutive days. Given the exceptional circumstances now, some insurers are extending this period to 90 days. We recommend shutting off the water supply to the premises and ensure that any measures to prevent thefts are taken, such as locking away equipment and setting intruder alarms.

We have decided to voluntarily shut our business to protect the welfare of our employees. Are we covered?
Generally, there is no cover under your policy in these circumstances because there has been no ‘material damage’ to property.

One or more of our employees is self-isolating or has gone to hospital as a result of an actual or suspected contraction of Coronavirus. We have decided to voluntarily shut our business. Are we covered?
Generally, there is no cover under your policy in these circumstances because there has been no ‘material damage’ to property.

We are keeping our business open, but we are experiencing a reduction in custom and a subsequent loss of income/profit as a result of the Government’s social distancing advice relating to Coronavirus. Are we covered for these financial losses?
Generally, there is no cover under your policy in these circumstances because there has been no ‘material damage’ to property and a reduction in income is not ‘interruption’.

A property in the vicinity of our insured premises has closed due to an outbreak of Coronavirus at those premises. This has impacted our business and reduced our income and/or profit. Can we recover our losses under the policy because this nearby business has closed?
Generally, there is no cover under your policy in these circumstances because there has been no ‘material damage’ to property.

My policy refers to action by Public Authorities or Non-Damage Denial of Access, does that mean I’m covered?
Very few policies provide cover where you are ordered not to use or to access your insured premises only following a small number of localised incidents. As a result, generally you are not covered for general shutdowns ordered by the government

A supplier or customer has closed their business as a result of Coronavirus related issues, and it has caused our business to suffer losses. Are we covered?
Generally, there is no cover under your policy in these circumstances because there has been no ‘material damage’ to property.

Supporting those who cannot work from home
Where customers may now need to drive to work as their unable to use their normal route such as public transport or car share. Some insurers are extending cover for any customers who only have Social Domestic Pleasure to Social Domestic Pleasure & Commuting.

Supporting key workers
If deemed to be a key worker (as listed by the government) and you need to use your own car to drive to different locations for work purposes because of the impact of Covid-19, some insurers are making the existing policy valid..

Supporting people who are helping their communities by transporting medicines or groceries
If you are undertaking unpaid voluntary work to help your local community in the collecting and delivering of medicine or groceries because of the impact of Covid-19, some insurers are automatically extending cover.

Finally; a Notice received from Aviva insurance this morning.

Supporting the NHS staff
In addition to supporting the Association of British Insurers 5 step insurance pledge, we know how important the NHS is to the wellbeing of our country. We are therefore going to be there to help any of your customers who work for the NHS should anything go wrong during the current COVID-19 pandemic. We are therefore offering all your customers with Aviva branded policies who work for the NHS the following additional cover for no extra charge until further notice:

• A standard courtesy car should they have an accident making their vehicle unroadworthy
• Priority repairs – any motor claim will be prioritised so they can get back on the road as quickly as possible
• Breakdown cover
• Personal belongings cover for home contents if their personal effects are lost, damaged or stolen whilst they are working or commuting.

Please do not take any of the advice above to be relevant to a specific policy without checking with the insurance provider directly in the first instance