UK traders warned they could lose insurance on closed premises
Published : Friday, 3 April, 2020 at 4:21 PM Count : 147
Millions of small businesses and other companies have been forced to close their premises, warning that could be left uninsured unless they take certain measures, such as sealing up letterboxes.
Most commercial building insurance policies stop providing cover for a full 30 days after the building is blocked.
Insurers say they will be "flexible" about the 30-day rule, and some have extended the definition.
However, disadvantaged companies, charities and other entities must meet a long list of requirements, such as visiting the property once a week and even draining the water tanks, if the shutdown continues.
Sara Del Tufo, a confident at the Reading Community Learning Center, which supports migrant women, said the charity had informed her landlord that her renters would be at risk if the building did not meet the stringent requirements of the insurer.
He said that insuring their buildings, including classrooms and offices, OXA policy states that letterboxes must be sealed, gases removed and splinters removed and disconnected from splinter systems if inactive.
"We were told in no uncertain terms that our rental was at risk if we did not follow a long list of requirements, including visiting the property once a week, keeping a record of it, and removing all refuse. I don't think that many small businesses and other companies like us are aware that they risk being insured.
Our policy states that OXA will not make any further claims unless we comply with these requirements. So far it has not upgraded its policies to reflect what is going on,” he said.
Alex Rosenfield, a senior associate at Fenchurch Law, which specializes in commercial insurance, says policyholders need to be aware of any requirements described in the policy wording.-Internet