Due to the current situation many businesses have had to temporarily leave their premises unoccupied due to the Covid-19 outbreak. Some have even become permanently vacant as the occupier has gone with no intention of returning.
As a result of this we are frequently being asked: –
“What action should we be taking as the premises is temporarily closed?”
“What if the premises were previously unoccupied before the COVID-19 situation?”
“What if the unoccupancy of the premises is now permanent and not just a temporary measure?”
Most insurance companies have issued statements outlining their position and have said that they are committed to treating customers fairly and so we would expect that where businesses are making appropriate provisions to mitigate their unoccupied risk as a result of Coronavirus, the temporary closure of the building should not prejudice any claim made.
The specific details and requirements relating to unoccupancy conditions do vary between insurance companies, so the following is intended only as a general guide and if you want to know what applies to your policy and any particular insurer then please get in touch with your usual contact at Arlington.
“What action should we be taking as the premises is temporarily closed?”
Insurers have said that full cover will be maintained for a period. Some for 45 days, others for 60 and one without a specific period. All insurers do expect the Insured (or whoever is responsible) to take the appropriate actions and provisions (in compliance with existing government guidance and social distancing requirements) to mitigate the risk and have issued guidance as to what they expect.
In summary this consists of but is not limited to: –
Waste: Remove all external waste, pallets and empty skips ahead of closing.
Waste bins: Empty all waste bins and relocate to a secure area, ideally at least 10 metres from the building. If this is not possible and bins and skips are within 10m, these should have lockable lids.
Fire Systems: Ensure that any fire and/or sprinkler systems are fully operational
Fire Doors: Carry out a check to ensure that internal fire doors are closed
Building Utilities: Shutdown any non-essential electrical devices and building utilities
Inspections: Arrange for a weekly inspection of the building both internally and externally.
Physical Security: Carry out a check to ensure physical security measures are in place e.g. fences are in good repair, windows are locked, shutters are in place, gates are locked.
Intruder Alarm: Make sure your intruder alarm is set and that the remote signalling is in place. Ensure sufficient numbers of keyholders are available to respond to an alarm activation within 20 minutes.
Maintenance: essential maintenance should continue with any remedial measures completed. Premises that have Building Management Systems (BMS) with remote alerts should continue to be responded to.
Hot Works: No Hot Works should currently be permitted.
“What if the premises were previously unoccupied before the COVID-19 situation?”
Where a premises was previously unoccupied, then the specific requirements and cover, that was agreed with your insurer will continue to apply, although as with the above, they recognise the challenges and require that these are complied with as closely as is permitted during this time. In the event of specific concerns or difficulties regarding compliance, then please notify us so that the issues can be considered by Insurers.
Please also notify us as soon as practicable of any circumstances where existing security provisions (e.g. manned guarding) that were stipulated by insurers are downgraded or removed due to changes in government guidance and / or the ability of clients or their suppliers to maintain support.
“What if the unoccupancy of the premises is now permanent and not just a temporary measure?”
When a premise that was previously occupied has now become permanently unoccupied, whether due the Coronavirus or not, you need to let us know this. We will then notify your insurer and arrange cover and advise them of the risk management actions that you have or intend to put in place to protect the premises.