Following our recent publication (which can be found here), we would like to provide some further information to you regarding Folgate’s response to Covid-19 and how we may be able to help our policyholders. We have also included some further clarification of information following enquiries we received from our valued broker partners over recent days.
Business Interruption Cover
Business interruption caused by and/or arising from the recent Covid-19 outbreak is not covered under the business interruption section of our standard commercial insurance policies. Our standard commercial policies contain an extension under the business interruption sections for claims arising from a Notifiable disease as defined by the policy.
Notifiable disease is defined in our standard commercial policies as a specific list of human infectious and contagious diseases, the definition further explains that an outbreak of one of the specified diseases must have been stipulated notifiable by the competent local authority. As Covid-19 is not a specified and listed disease within our policy definition, our standard policies do not provide any business interruption cover caused as a result of the outbreak of Covid-19.
For the avoidance of doubt, Covid-19 being declared a notifiable disease in the UK did not change the policy cover provided in any way.
Does Folgate’s extended 90 day Unoccupied definition apply to new business?
We can advise that this temporary policy definition update applies only to existing commercial and landlords’ policies incepted up to and including 25/03/2020 and does not apply to any new business quoted or incepted on or after 26/03/2020. It applies only to policyholders where unoccupancy has happened because of Covid-19 and not to any policies already disclosed as unoccupied.
It is important that any unoccupied new business cases are correctly disclosed as unoccupied to our underwriters where consideration will be given on a case by case basis to see if we can help.
Please see further important information below in this regard under ‘New business quotations for premises that have become unoccupied due to COVID-19’.
Existing Policies – Compliance with Unoccupied Risk Management Requirements
The risk management requirements detailed in our publication below apply to any premises insured under our commercial property and landlords’ policies incepted or renewed up to and including 25/03/2020 during the first 90 days of unoccupancy.
Specifically in relation to the requirement to inspect insured premises in accordance with requirement 2), we do understand that in some cases it will not be possible for a policyholder to undertake an inspection.
We can confirm that any claims and/or policies involving unoccupied premises as a result of Covid-19 will be considered on a case by case basis depending on individual circumstances and where we can be satisfied that the policyholder(s) were not reasonably able to comply with our requirements.
We will consider a number of factors including but not limited to the extent of the non-compliance with our risk management requirements, government rules and advice in place during the relevant period, the location of the policyholder and the location of the risk address.
New business quotations for premises that have become unoccupied due to COVID-19
We understand that in some cases it will not be possible for a policyholder to fully comply with our policy conditions applying to unoccupied premises, therefore all quotes will be considered on a case by case basis depending on individual circumstances.
A number of factors will be taken into account including but not limited to government rules and advice in place during the relevant period, the location of the policyholder and the location of the risk address.
Feel free to talk to one of our underwriters who will be happy to try to help your clients cover any business that is currently unoccupied.
Change in Risks and Working from Home
We understand the impact recent events have and will continue to have on insured businesses and are doing what we can to help our policyholders through these difficult times.
We can therefore confirm that where our policyholders have made the decision to continue to run their business from home, they do not need to tell us. Policyholders and their employees undertaking clerical work from home will not invalidate the policy.
In the event policyholders and/or their staff are undertaking any manual work from home or where quantities of stock and/or contents are being moved from insured premises, please ensure that you discuss the activities being undertaken from home with our underwriters where consideration in cover will be given on a case by case basis.
Thank you again for your continued support, and we wish you and your families safety and good health during these difficult times.