(JRP Bulletin 6th July 2020)
Cover for businesses and premises that continue to be unoccupied after 31st July 2020, due to lockdown, staff furloughing or working from home as a result of Covid-19.
The continued temporary closure of many businesses due to the Covid-19 lockdown has significantly increased the number of unoccupied businesses and buildings. These buildings have a higher risk of damage/loss from various causes, such as water damage, arson and theft, than when occupied.
Our standard commercial policy defines unoccupied when the premises are closed for business for a period in excess of 7 consecutive days or when the premises (or part thereof) are untenanted and/or not resided in excess of 21 consecutive days for our property owners policy.
In response to the current situation, we have supported all existing customers who had to close their businesses due to the Covid-19 lockdown, by extending the unoccupancy definition until the 31st July 2020
As lockdown restrictions begin to ease and economic and social activity increase, we are further updating our approach to the unoccupancy conditions.
Premises that are compulsorily closed
Firstly, we would like to assure all existing customers whose businesses remain compulsorily closed due to the lockdown (those who must remain closed under the Health Protection (Coronavirus Restrictions) Regulations as appropriate for England/Scotland/Wales/Northern Ireland), that we have extended the unoccupancy definition up to and including the 31st July 2020.
Businesses where the insured has chosen not to reopen the premises
For businesses where closure is not mandated, but the business remains closed beyond the 31st July 2020 then the risk MUST be referred to JRP.
For the avoidance of doubt, businesses and premises that are mainly occupied (50% or more of the building or site) or partially open (for example a restaurant providing a takeaway service, or premises that are occupied one or two days per week), will not be regarded as empty/unoccupied.
We will treat each case individually depending upon the future intentions for the business/premise however it is likely that our standard unoccupancy condition PO32 or CP32 as detailed below will apply.
Unoccupancy Restricted Perils
When any Building(s) (or part thereof) are Unoccupied:
Cover under this Certificate will be restricted to the Defined Perils of fire, lightning, aircraft and explosion.
You must comply with the requirements a) – i) below otherwise all Damage arising from or caused by the Defined Perils of fire and explosion will be excluded.
You must ensure that;
a) all gas, water and electricity mains supplies are kept disconnected (except those supplies required to maintain automatic sprinkler installations, lighting or alarm systems which are to remain in operation for security or fire protection purposes)
b) all water tanks, apparatus, pipes and heating (except those required to maintain fully functional automatic sprinkler systems) are drained down
c) The following minimum protections are in operation:
1) all doors and windows are securely locked and fastened
2) any letter boxes are sealed
3) all security and alarm protections are set in full operation and are in proper working order
d)
1) When the Premises first become Unoccupied You or Your nominee must carry out a detailed inspection of all doors, windows and other access points to ensure that they are secure against unauthorised entry and document both the inspection and any action required.
2) Thereafter, You or Your nominee must inspect the Premises every seven days, keeping a written record noting any damage or breaches in security. If measures taken to prevent further damage or breaches in security have proved inadequate, improvements must be made and documented.
3) If unauthorised entry or attempt thereat is detected more than three times in any one Period of Insurance, immediate notice must be given to Underwriters
e) all loose or moveable combustible items or materials other than fixtures and fittings are at all times removed from the Buildings and cleared from the Premises
f) all waste or refuse is removed from the Buildings and cleared at least once a week from the Premises
g) tanks containing fuel or other flammable liquids are drained and purged within 7 days of the Buildings becoming Unoccupied
h) the Buildings are inspected at least once every 7 days by You or Your nominee in order to inspect the Premises both internally and externally and to carry out any work necessary to maintain the above security arrangements. A record will be kept of such inspections
i) immediate notice is to be given by You to Underwriters when any untenanted or Unoccupied Buildings (or part thereof) is again occupied.
(The following applies where the insurer is JRP Underwriting Ltd.)
(at 12/05/20)
“JRP Bulletin 12th May 2020
We have promised to keep our approach to underwriting under constant review as social and economic situations continue to develop.
Our underwriting team have reached the decision that with immediate effect that if a business is closed as a result of the COVID-19 situation coverage afforded by the policy will continue to operate as if the business were continuing to trade from the premises.
This provision will not apply to new business risks quoted/incepted after the outbreak with specific coverage restrictions applied.
We are providing this amendment to cover up to and including the 30th June 2020 thereafter we reserve our rights to rely upon the original policy wording although we will notify you well in advance of our intentions beyond this period.
For unoccupied risks we are agreeing to suspend premises inspection conditions if the inspection(s) cannot be carried out due to government restrictions in the movement of people.
We do not expect you to endorse every policy (other than renewals) but you may wish to convey our position by email to your Broker/Insured.
Our underwriting team remain available to look at individual risks where you want us to consider specific cover or variations.
We would remind you that new 2020 wordings are now published on our website and were included in our previous bulletin.
The endorsements below should be attached to all renewals:
All Wordings:
It is noted and agreed that cover under this Certificate/Policy will remain unaltered up to and including the 30th June 2020 (provided this Certificate/Policy has not expired) if the Premises become Unoccupied as a result of the COVID-19 situation.
Thereafter if the Premises remain Unoccupied the original Certificate/Policy wording will apply unless specifically agreed in writing by Us.
If it is a condition of this Certificate/Policy that the Buildings must be regularly inspected We agree that the condition is suspended in the event that the inspection(s) cannot be carried out due to government restrictions in the movement of people.
Bespoke Wordings
Please ensure that the above endorsement is appropriate for your wording.”
“JRP Bulletin 1st April 2020
We have promised to keep our approach to underwriting under constant review as social and economic situations continue to develop.
Our underwriting team have reached the decision that with immediate effect that if a business is closed as a result of the COVID-19 situation coverage afforded by the policy will continue to operate as if the business were continuing to trade from the premises.
This provision will not apply to new business risks quoted/incepted after the outbreak with specific coverage restrictions applied.
We are providing this amendment to cover up to and including the 31st May 2020 thereafter we reserve our rights to rely upon the original policy wording although we will notify you well in advance of our intentions beyond this period.
For unoccupied risks we are agreeing to suspend premises inspection conditions if the inspection(s) cannot be carried out due to government restrictions in the movement of people.
We do not expect you to endorse every policy (other than renewals) but you may wish to convey our position by email to your Broker/Insured.
Our underwriting team remain available to look at individual risks where you want us to consider specific cover or variations.
We would remind you that new 2020 wordings are now published on our website and were included in our previous bulletin.
The endorsements below should be attached to all renewals:
All Wordings:
It is noted and agreed that cover under this Certificate/Policy will remain unaltered up to and including the 31st May 2020 (provided this Certificate/Policy has not expired) if the Premises become Unoccupied as a result of the COVID-19 situation.
Thereafter if the Premises remain Unoccupied the original Certificate/Policy wording will apply unless specifically agreed in writing by Us.
If it is a condition of this Certificate/Policy that the Buildings must be regularly inspected We agree that the condition is suspended in the event that the inspection(s) cannot be carried out due to government restrictions in the movement of people.
Bespoke Wordings
Please ensure that the above endorsement is appropriate for your wording.”
