SATIB tackles industry questions

SATIB has taken a closer look at a couple of your most burning questions.

What insurance-related business continuity measures should I consider during this crisis?

Many are facing a situation where they need to consider cost-reduction measures in order to ensure their business’s survival.

Although insurance is often the first to go, we caution you against cancelling all your insurance covers. If you temporarily suspend your operations, you will still have insurance risks that would need to remain covered. SATIB is engaging with product providers to determine what relief measures we can offer our clients during this time.

We suggest you discuss the restructuring of your insurance portfolio and your insurance needs with your insurance advisor. Initiatives that SATIB are exploring with both our clients and insurers, include (but are not limited to):

• Identifying the risks and covers that will not be applicable or appropriate during shutdown or slowing of trade, such as guest property, extended passenger liability etc. One could them reduce or remove these from the cover.
• Revising motor cover. Vehicles parked and not in use may be able to have cover altered to Third Party, Fire and Theft as opposed to Comprehensive.
• Potentially removing or changing to declaration basis certain items, such as stock, which will give immediate relief without exposing the business in the long run.
• Reviewing rates where justified and possible.
• Reviewing forecasts of Turnover and Fee income, as well as bed nights, as these affect the premium calculation of covers such as Public Liability, Guest Evacuation, Passenger Liability and Professional Indemnity.

Please note that the above are examples and we cannot guarantee that all these options will be possible.

How could the lockdown impact my insurance risks?

The national lockdown could have implications for your insurance risks.  Please contact your advisor if the following are applicable:

• Insured property left unoccupied
  If your property is left unoccupied because of the lockdown, you should contact your advisor to discuss any insurance implications and what steps you should put in place during the lockdown period.

• Material changes to your risks
  If you have any material changes to your risks, you need to notify your insurance advisor so they can liaise with your insurer.  Examples of material changes:
  • Increase in stock limits due to increased demand (this may be experienced by businesses who are providing essential goods)
  • Premises unoccupied 
  • Change in security measures
  • Change in use and parking of vehicles

• Duty of care
  All insurance policies have a general requirement for the insured to exercise due care of the property insured.  In short, you should act as if you are not insured.  If the lockdown is impacting your ability to comply with this general requirement, please get in touch with your advisor to discuss your concerns.

• Motor vehicles
  The lockdown may result in a change to the way you use and store your vehicles.  As an example, we have seen clients with motor fleets parking their vehicles on an open plot or in a shed whilst not in use.  Any change to parking, security or use of vehicles could impact your insurance.