Unoccupancy and other work away factors
The decision to close hospitality venues last week has raised some new insurance issues and as a specialist hospitality broker, we are currently reviewing existing policies and providing guidance:
Changes to your business
Examples would be delivery/takeaway. Public and Employers Liability needs to cover any material changes to your business activities.
Check the motor insurance covers delivery of food, do not assume the current cover is adequate even if it includes Business Use.
Employees working from home
Overall Insurers are comfortable with this if you currently purchase Employers Liability cover.
Consider any contents at an employee home including laptops, mobile phones and tablets.
Most insurance policies will have and Unoccupancy Clause within them meaning that after a specified amount of time, often 30 days, of being unoccupied cover will be reduced. There are different definitions of unoccupancy in Insurance policies, for example a member of staff living on site could be viewed as occupied.
Insurers are currently reviewing their approach, some which we deal with have committed to extending this to 60 or 90 days on existing cover, reviewing this on an ongoing basis.
After this period, cover for certain incidents, eg flood, theft, burst pipes is often removed and you may be required to fulfil certain conditions such as regular inspections and setting alarms. Check that you comply with the minimum-security requirements on your policy such as external locks
There is also some best practice:
- Emptying gaming machines
- Maintaining a Regular Inspection Log
- Locking away contents
- Turning off services
- Use of a safety letterbox
- Remove combustible materials from around the site
- Ensure external lighting and CCTV are working
- Alarm system installed and maintained by an NSI (National Security Inspectorate) or SSAIB (Security Systems and Alarm Inspections Board) to gain police response
If you would like to discuss your current insurance covers or need guidance on this or any other Covid19 insurance matter, please contact one of our team at Sector Associates on 01845 527428 or [email protected]