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8 April 2020
This page contains advice and updates for clients relating to the impact of Covid-19 on insurance policies and risk management.
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.
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’.
Early childhood business insurance
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.
Cybersecurity and lockdown
This unprecedented increase in remote access traffic due to New Zealanders logging on from home, can create additional vulnerabilities in otherwise secure internal computer systems. During this time in particular, it is important to have some best practice policies in place to minimise the chances of a cyber event or data breach.
Our advisory Maintaining cybersecurity during lockdown outlines steps your business can take to reduce your exposure:
Implications of Covid-19 and the Alert Level 4 lockdown period on landlords insurance policyholders should be aware of:
With the Covid-19 situation bringing school closures, we update clients on what this means for schools insurance.
Where students take portable electronic devices, such as laptops and Chromebooks, home for any closure period, there are implications under your contents cover. Items owned by the school, or for which the school is legally responsible, will be covered under your contents policy however there are a number of terms and conditions to be aware of.
Guidance for construction businesses and contractors on securing sites for lockdown and considerations for insurance due to Covid-19 Alert Level 4.
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.