Coronavirus: Insurance advice

Blogs 7 Apr 2020

What impact will Coronavirus (COVID-19) have on your business insurance? FSB Insurance Service give us their six most asked questions.


What impact will Coronavirus (COVID-19) have on your business insurance? To help with any insurance related concerns, we have put together an FAQ with FSB Insurance Service:

Where do I start with a business continuity plan (BCP) and is there some help available to produce a basic template?

Start by identifying all of the constituent parts which make your business work. This will include, key people, kit, supply chain, cashflow, premises, transport etc.

Next give each of those essential components of your business a score out of ten in respect of both the likelihood of and severity to the business of each one being wiped out by a potential threat (such as flood, fire, supply chain disruption, epidemic, terrorism). Then multiply the two numbers to create a priority score – with the highest being top of your list of issues to plan for.

The next stage is creating the plan, which should include establishing how various management threads and business strategies will kick in when the BCP is deployed and will need to consider each stage of a particular emergency or threat, such as emergency response, crisis management, recovery process.

Once you’ve registered with FSB Insurance Service, you can get access to more detailed advice and download free BCP templates.

More of our staff will be homeworking during the pandemic. What kind of security measures should my organisation have in place for homeworking during this period?

You should look out for any phishing emails, validate any requests for sensitive information and in particular money. Consider strengthening your passwords, introducing multi-factor authentication, and only activate your webcam when you need to for teleconferences. Remember your GDPR responsibilities and have an incident response plan in place in case it is needed.

Is there insurance to cover this sort of thing?

Cyber Insurance is available and the cost varies depending on the extent of cover provided. Some basic Cyber cover is actually included in the cost of FSB membership and includes home working (subject to anti-virus software being installed and updated and, a monthly back-up being done) so, if you take a look on the FSB website you can get more information about that and decide whether you need more.

Should we be concerned about employees working from home and the implications for their own insurance?

The Association of British Insurers (ABI) have said that clerical workers do not need to notify Insurers. However, to be safe, if you are doing more than office work or have taken a lot of expensive equipment home with you, it’s best to check.

We’ve changed our business model. Whereas people used to come to us, we’re now going out to them. What are the insurance implications?

The ABI have said that if you are using your own car for voluntary purposes such as taking medicine or groceries to help others who are impacted by COVID-19, then your cover will not be affected, so you would not need to contact your insurer to update your documents or extend your cover.

However, it is definitely worth letting your Insurer know if you are now using a vehicle commercially, especially if you’re delivering goods. Also, your business policy will probably limit Liability covers to incidents on your premises so, will need to extend to include work away. Lots of insurers are being very supportive of changing business models.

I’m intending to keep the business going but, have sent the staff home and am temporarily shutting up shop. What are the insurance implications?

You must keep your essential insurances in place such as employers’ liability insurance, which is a legal requirement if you employ anyone, even if they are furloughed due to the coronavirus crisis or are working in a different way, and professional indemnity insurance, which requires continuity of cover. You also need to make sure that you’re complying with the insurance policy conditions to keep your property protected.

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