Chubb updates

Chubb update 25 January 2021

Chubb have issued the following Covid-19 update. It is important that you read its contents and speak to your usual contact at Bridge if you are unable to comply with any of the requirements, need to notify of a change in circumstance or if you have any questions.

Guidelines for insureds and brokers: Premises operating on a limited basis, temporarily closed or experiencing a change of use as a result of COVID-19

We will continue to provide continuity of cover from the date of closure for any insured premises that is temporarily closed or operating on a limited basis due to COVID-19 restrictions as a result of the Government guidance. Policyholders should:

• Continue to take appropriate steps to mitigate the risk of damage whilst the premises are impacted.
• Comply with any policy conditions to the best of their ability and to the extent this is reasonably practicable.
• Notify their Chubb Underwriter (via their contact Bridge) if there is a change of use, if any insured location is requisitioned or the insured volunteers the premises for alternative use during the COVID-19 situation.
• Notify their Chubb Underwriter (via their contact Bridge) if they do not intend to re-open and premises are to be unoccupied on a permanent or extended period.
• Follow our Risk Management Guidelines to the best of their ability:

• Coming out of Shutdown – Recommissioning and Start Up Fundamentals
• Checklist for Shutdowns
• Reduced Occupancy and Premises Shutdown

• Reduced Occupancy and Shutdown: Impairment Management
• Reduced Occupancy and Shutdown: Projects and Hazardous Activity

Should any of the above guidelines prove impracticable, please referred to your Chubb Underwriter (via your contact at Bridge).

Chubb updates prior to 25 January 2021

We have been involved in in-depth discussions with a number of insurers over the arrangements of our clients’ policy in relation to the restrictions imposed by the UK Government in order to contain the COVID 19 pandemic. Chubb have issued formal guidance following the outbreak of COVID19 and this can be accessed by CLICKING HERE. We have reviewed the guidance and have summarised the important points below. It is important that you read both our summary and Chubb’s guidance in full.

Policy Coverage

Chubb’s wordings on business interruption cover in general follow the rest of the UK market in that we don’t believe the UK wide lockdown of premises such as your own isn’t a sufficient trigger for policy coverage. We appreciate that this will come as a disappointment, but it is largely the same position for the overwhelming majority of commercial insurance policies in the UK – not just for Chubb policies. However, we do urge you to check with your usual Bridge contact to clarify the position under your policy.

Further information on the coverage that applies across a wide range of types of insurance contracts across the UK is available from the website of the Association of British Insurers:

https://www.abi.org.uk/products-and-issues/topics-and-issues/coronavirus-hub/

https://www.abi.org.uk/products-and-issues/topics-and-issues/coronavirus-hub/business-insurance/

Unoccupied Premises

Chubb will provide continuity of cover for up to 30 consecutive days from the date of closure for any insured premises that is temporarily closed or operating on a limited basis due to COVID-19 restrictions as a result of the Government guidance. There is no need for immediate notification to Chubb in these circumstances for continuity of cover. However, Chubb have requested that you should:

1. Follow their Risk Engineering guidelines. Download them below.

Click to download the checklist for shutdowns

Click to download the reduced Occupancy and Premises Shutdown

2. Continue to take appropriate steps to mitigate the risk of damage whilst the premises are impacted. Should this prove impracticable please speak to your usual contact at Bridge.

3. You must continue to comply with any policy conditions to the best of your ability and to the extent this is practicable.

Vacancy beyond 30 days still requires notification to Chubb and the ongoing approach will be assessed by their underwriters on a case by case basis.

Please note that If your premises were already unoccupied before the Covid-19 outbreak, and you are now unable to meet the terms of the unoccupied conditions in your policy due to the current restrictions, please get in touch with your usual Bridge contact so we can discuss the matter with Covea and ensure that your current level of cover is maintained and any subsequent claim is not repudiated due to breach of these conditions.

Change in Risk

We asked Chubb to relax their requirement for notification of any changes in risk whereby for example you have adopted a change in your business description (for example to accommodate a takeaway/delivery service). Chubb have not agreed to this and have advised that if any insured location is requisitioned or you volunteer the premises for alternative use during the COVID-19 situation, then a change of use should be notified to your Chubb Underwriter. We therefore ask you to please review your current business activities and operational arrangements and to speak to your usual Bridge contact if there are any changes that need to be agreed with Chubb.

Capital Additions

Chubb have not advised whether they are prepared to offer automatic increases in sums insured for business and IT equipment to cover the potential capital purchases you may have made to restructure your business operations. Please review your sums insured and speak to your usual Bridge contact to advise us of any changes.

Policy Conditions and Warranties

Other than what we have already discussed above, Chubb have not issued any further guidance on this so we must advise you to contact us if you are now unable to comply with any of the policy conditions or warranties as a result of the restrictions in place. 

Renewals

We made a request that for those of you whose policy is due for renewal during the period whilst restrictions from the UK Government remain in place that Chubb offer an automatic extension to your policy for a limited period of time. Chubb have not responded to this request so when we contact you to conduct the renewal review we can discuss any requirement for an extension with you for consideration by Chubb.

Payment Holidays:

Chubb have not issued any guidance yet in respect of payment holidays or alterations to payment schedules if you are struggling to pay your monthly premium instalment to them. If you are struggling then please contact them in the first instance or email us at [email protected]  

If you pay your instalments through either Close Brothers or Premium Credit then both firms have advised us that they can show flexibility in your schedule of payments by offering limited payment holidays and extending the number of instalments. Both firms will consider each request on a case by case. In the first instance any such request must be made direct to them using the following contacts:

Premium Credit Limited:

Email:    [email protected] or [email protected]

Tel:        0344 736 9836 or 0330 123 9717

Close Brothers Limited:

Email:    [email protected]

Tel:        0333 321 8566 (Personal Lines)

               0333 321 8567 (Commercial)

If you pay for your premium up front then you may want to consider paying it by instalment via one of our Premium Finance partners to help manage your cash flow. If you think you are going to miss a payment deadline then it is important that you contact us as soon as possible so we can assist you.

Useful information

In these challenging and uncertain times we would like to reiterate that Bridge Insurance is deeply to committed to all our clients and we will continue to act in your best interests in these challenging times. We hope that the continued updates from the UK Government regarding financial assistance for business interruption due to the COVID19 pandemic, will prove of use to you.  You can find out more details about this by clicking this link.

Our accountants have produced a very helpful analysis and summary of the financial assistance available from the UK Government and this available to you by clicking this link.

Please do not hesitate to contact us if we can be of further assistance.

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