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20 May 2020
This page contains advice and updates for clients relating to the impact of Covid-19 on insurance policies and risk management. It is regularly updated and the most recent advisories will appear at the top of the page.
Crombie Lockwood continues to provide comprehensive insurance advice and support to clients during this challenging time. If you have questions about how this affects you and your business please contact your broker. At alert level 2 our offices are closed to visitors, however all staff are available on email and phone.
As businesses look to control expenses, we look at some approaches for managing risk while reducing cost and maintaining essential insurance cover.
Level 2 and car insurance when used for business - 18 May 2020
Motor vehicle owners should be aware that at level 2 (as with level 3) under your private motor vehicle policies you are not covered for business use, such as the delivery of goods or food.
Early childhood business insurance
We update clients on what alert level 2 means for early childhood business insurance cover in our latest advisory:
Cybersecurity during Covid-19 alert levels
As we move down the scale of alert levels, people will begin to return to their places of work. However in order to comply with social distancing requirements many businesses will still need to operate with some staff working remotely.
We've seen that the increase in New Zealanders logging on from home can create additional vulnerabilities in otherwise secure internal computer systems. And the disruption caused by Covid-19 is continuing to present opportunities for cyberattacks and data breaches. Our recent client advisories provide guidance on managing risk at this time:
Advice on insurance cover and financial relief for schools where students take electronic devices home on loan during Covid-19 school closures.
Guidance and advice from our construction insurance specialists on risk mitigation and cover for construction projects during Covid-19 and alert level stages:
If a boat is used against Government advice when alert levels prevent or restrict use, insurers may not provide cover for damage to your boat (including if it is confiscated), or for liability to any third parties.
If you have questions about your boat and pleasurecraft insurance please contact your broker.
Our client advisory answers common questions about how home and contents insurance policy conditions under lockdown due to Covid-19.
This includes the role of home valuations, property settlements under high alert levels, equipment cover when working from home, contents in storage and more.
Read the full advisory: Covid-19 and your home and contents insurance.
Employment Practice Liability and Employment Disputes insurance
With the economic impact of Covid-19 rippling at pace through the business community and forcing many into unchartered waters, business owners are having to take swift measures to respond to the challenging circumstances. For many, this has meant restructuring workforces and with this comes a heightened risk of personal grievance claims from employees which may trigger an Employment Practice Liability (EPL) policy, also known as Employment Disputes (ED) insurance.
Trade credit insurance
As businesses move to manage cash flow and organise government aid, in response to Covid-19, there may be a number of potential implications for Trade Credit insurance policies.
It’s worth revisiting the conditions and obligations of these policies to help mitigate business risk, as businesses work through the challenging situation with buyers and suppliers. First and foremost, businesses must keep insurers informed of any material circumstances that may be deemed a ‘notifiable event’.
Business interruption and material damage insurance and Covid-19
Generally, this is not the type of event that business insurance policies can respond to. In addition, all insurers include a standard exclusion in their policy wordings regarding infectious diseases, specifically ‘Notifiable Infectious Diseases under the Health Act 1956’. According to the New Zealand Ministry of Health, coronavirus became publicly notifiable on 30 January 2020 so any loss arising as a result of coronavirus would not be covered.
Business continuity strategies are critical to ensuring that your organisation is positioned to remain operational amid disruption, and that you can do the best you can to continue to support your customers.
Many insurers have removed some or all cover for coronavirus-related issues for travel to regions affected by the outbreak. It is important to check policy wordings to understand how the restrictions affect your cover. Links to information from insurer partners summarising their position on cover for existing and new policy holders are listed below:
For Uni-Care support phone 09 362 4039.
If you have any questions not covered by the insurer's website please contact your broker.
Policy exclusions for events relating to infectious or contagious disease may apply to some policies not already mentioned on this page. This means that cover may not be available. Your broker can review and advise based on your individual situation.
We understand this is a difficult time for clients in managing the impact and certainty caused by the coronavirus pandemic.
Resources you may find helpful in managing your business through the evolving situation are listed below.
General Covid-19 information and advisories
If you have any further questions please contact your broker.