Allegiant IRS continues to monitor the latest developments of the evolving COVID-19 situation

We recommend that consideration is given to urgently reviewing your current insurance arrangements as it is essential that cover is updated in conjunction with changes in risk profile.

Immediate considerations:

• ISR policy wording review to determine if there is potential for making a Business Interruption claim.
• Review of policy coverage and/or sub-limits on the ISR policy. Removing cover and/or reducing sub-limits will potentially provide a return premium.
• Whether Vehicles and/or Plant & Equipment are currently not being utilised. Insurers may apply reduced rating for items considered as “Laid-Up”.
• Investigation of whether premium payments can be deferred or spread over additional instalments.
• In the alternate, increases in limits to be reviewed where sales and/or stock limits have increased which may require an additional premium outcome and where disclosure to the insurer is required due to a change in circumstances.

Renewal considerations:

• Review of Business Interruption Sums Insured and this should include a review of Gross Profit, Gross Rental Income and Payroll Sums Insured.
• Adjusting estimated Turnover according to the impact COVID-19 will have on forward estimates for the next 12 months as turnover is a primary rating factor for Public Liability, Professional Indemnity and Directors & Officers policies.
• Review of policy coverage and/or sub-limits on the ISR policy. Removing cover and/or reducing sub-limits which should have an impact on premium.
• Consider the need for travel insurance for the next 12 months given travel restrictions are likely to be in place until June 2020.
• Investigation of whether premium payments can be deferred or spread over additional instalments.

If you would like to further discuss your insurance arrangements, please contact a member of the Allegiant IRS team.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.