Contributed by Sybron
21/04/2020 - Mactavish
Mactavish, the leading independent expert on commercial insurance placement and dispute resolution, says that this time of year is the busiest for companies renewing their insurance, but its research reveals at least five commercial insurers have just removed cover from their policies because of Coronavirus. It has also seen clients faced with premium increases.
Mactavish estimates* around one in five VAT and/or PAYE registered businesses in the East of England – some 54,400 in total – will have renewed their insurance at the end of March and beginning of April, but because of Coronavirus many will have seen cover removed from their policies and faced increased premiums.
It warns insurers are not only removing cover associated with infectious diseases going forward on a D&O and PI type policies, but also retrospectively.
Bruce Hepburn, CEO of Mactavish said: “There has been talk of insurers potentially excluding cover linked to the fall-out of infectious diseases from commercial insurance policies, and we are beginning to see this unfold. Over the past few weeks, many businesses in the East of England and elsewhere in the country would have received insurance offers and accepted them, but at the last minute, just days or even hours before renewal, elements of their cover were removed.”
“With premiums also rising, remuneration for brokers is increasing at this very difficult time. We have customers getting less cover and paying more for this, whilst insurers and brokers are seeing their financial rewards increase. It doesn’t feel like insurers and brokers are sharing the pain of businesses across the UK.”
For further information visit the Mactavish website.
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