For many companies up and down the UK, the past couple of months have been anything but business as usual. The outbreak has put a strain on staff, morale and in some cases, finances and in a time where businesses are seeking any help they can get, they are often opting to cancel their insurance policies as a solution. If your business insurance policy is up for renewal or you’re considering cancelling it for the duration of the UK’s lockdown, we’ve compiled a guide as to why it’s important to keep your insurance going.
Claims Made vs. Claims Occurring
When you take out an insurance policy for your business, you’ll have two options in terms of cover – Claims Made and Claims Occurring. A policy that offers ‘Claims Made’ cover will provide cover against any claims made against your business throughout the period of the policy, providing the incident took place either during the policy period or after a set retroactive date. These policies can provide you with cover against any incidents that have happened prior to your business closing during the COVID-19 lockdown.
‘Claims Occurring’ policies provide cover for any incidents that occurred after the date the policy started and throughout the period. The policy will provide you with cover for life, meaning that any claims made after the date your policy ends are still covered, providing the incident itself happened during the covered period. Most business insurance policies are ‘Claims Occurring’, but it’s best to check your policy to be certain.
Public Liability Insurance
While Public Liability Insurance isn’t a legal requirement in order to keep operating, it is an important part of any business insurance policy. Public Liability Insurance provides financial cover against any claims made against you by the public as a result of bodily harm, injury or damage caused to third-party property. Having an active insurance policy at this time is vital to protecting your business against claims for events that have happened during your policy, or prior to it according to the details of the policy. In most cases, the money saved by cancelling your policy during periods of activity isn’t worth what may be lost if a claim was made.
Employer’s Liability Insurance
Employer’s Liability Insurance is a legal requirement for any business that hires employees. In order to continue operating during the period of lockdown, even on a furlough, home-delivery or temporary closure basis, you will need to maintain your insurance policy to protect your business against claims made by employees as a result of business activity. This can include any incidents that have occurred during the lockdown and any that occurred prior to lockdown but that are still coerced by your policy.
Ensuring your business is protected during such a unique and unprecedented time is important. By making sure that you and your employees are safe financially during this time period, you can protect your company against any unforeseen financial loss as a result of claims made by the public or employees. By cancelling or failing to renew your policy, you could be subject to not only the financial strain of a claim but also higher premiums. Instead, it’s best to maintain your policy or discuss potential adjustments if needed with your provider.
For more information or to discuss the best next steps for your business, feel free to get in touch with the team here at Ashburnham Insurance.