Re Covid-19 : NBS Update  For Hospitality Insurance

27/03/2020
Dear Broker.

We are in unprecedented and challenging times and as a part of our social responsibility we are continually in discussions with insurers regarding terms and conditions and where they stand now.

The following is an update from NBS/Accelerant with regards to their stance presently. This is to be reviewed again on the 14th of April:

Unoccupied Properties

SME/Leisure products Insured through Accelerant/HDI Global

With immediate effect insurers are amending the definition of unoccupied properties on the above products so that full cover is in place for 60 days rather than the current 30 day limit provided that the Insured or an authorised representative will:

1. Carry out a thorough inspection of the Premises on at least a weekly basis and carry out immediately any work necessary to maintain the security of the Premises
2. Ensure all services are disconnected at the mains except electricity where needed to maintain any fire or intruder alarm systems in operation and all water pipes/tanks and heating systems are drained down.
3. Remove all refuse and waste materials from the Premises following such inspection
4. Ensure the Premises are secured against unlawful entry
5. Maintain a written record of such inspections

Please note: 
•  There will be no additional premiums for these enhancements.
•  These enhancements will automatically apply until 31st May 2020.
•  Insurers will review the position again prior to 1st May 2020 and will extend for a further period if deemed appropriate
•  These enhancements will be applied via this Email of Intent and will apply as if endorsed onto each policy.

Premium Refunds

“Can premium refunds can be given for this three-week period of no trading?”  I’m afraid this isn’t possible as the practicalities for this are very difficult.  There are a number of issues raised by this, most importantly the fact that all policy sections should still be maintained even though the risk may have reduced slightly.  Staff may well be maintained to clean and prepare the business for reopening, Public Liability cover should be maintained as this risk isn’t totally removed and the shutdown could very possibly be extended which would in itself bring about further complications.

But, we want to do as much as we can to assist you and your clients during this extremely stressful time and what we can pledge is that we will set aside a credit against each policy affected on the renewal premium offered by NBS.  The amount of the credit will be assessed once normal trading resumes.  It is hoped this will go some way to assist your clients with getting back on their feet as soon as is feasibly possible.

Policy Coverage

We at RL have received a lot of questions around the business interruption section of the policy and asking if the policy covers Covid 19. The policy states the following.

The liability of the Insurer includes loss as insured by this Section resulting from interruption or interference with the Business in consequence of:

Premises Closure or Restrictions 

a) closure or restrictions placed on the Premises on the advice of or with the approval of the Medical Officer of Health for the Public Authority as a result of a Notifiable Human Disease occurring at the Premises

b) closure of the whole or part of the Premises by order of the Public Authority consequent upon injury or illness sustained by any person caused by or traceable to foreign or injurious matter in food or drink sold from the Premises by the Insured

c) closure of the whole or part of the Premises by order of the Public Authority consequent upon vermin and pests at the Premises

d) closure of the whole or part of the Premises by order of the Public Authority consequent upon closure of the whole or part of the Premises by order of the Public Authority consequent upon de-fects in the drains and other sanitation at the Premises

e) closure of the whole or part of the Premises by order of the Public Authority consequent upon murder or suicide occurring at the Premises

Subject to an aggregate maximum of £50,000 in any one Period of Insurance.

The Insurer shall not be liable under this extension for costs incurred in cleaning ,repair, replacement ,recall or checking of property.

Covid 19 has been now classed as a Notifiable Disease and therefore your policy will respond in the event of closure by a Public Authority but only for a maximum sum insured of €50,000 and subject to Covid 19 occurring at your premises and as always subject to the full terms and conditions of the policy.

We hope this clears up some of the most common questions raised by your clients, I am sure there are many more and we will do all we can to answer these as and when they arise. Please rest assured that Robertson Low/NBS  will do all they can to assist you during these unprecedented times. Insurers business continuity plans are now in full force with remote working for staff and insurers will ensure usual service levels are not affected.  All new business quotes, renewals and MTA’s will be processed in the usual way.

Insurers are committed to working with clients through this difficult period and are willing to offer discounts on new business and renewals going forward. If you have any further queries on the above, or on any other matter, please contact me on:

 
                                             +353 (0)1 461 1569( direct)

Regards,

JOHN BARRY
Broker Development Executive
Robertson Low Insurances Ltd
 

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