Coronavirus Crisis
Response

The unprecedented business disruption now being seen across the world is leading to potential claims across almost every class of insurance, all which are subject to coverage uncertainty. The most obvious concerns relate to policies for Business Interruption (BI) and Directors & Officers liability (D&O) – but other risks affected include construction and property owner’s policies, public and employer’s liability, travel & event insurance, credit insurance and many more.

BI insurance is a particularly complex area and a good example of coverage uncertainty. The truth is that most businesses did not buy extensions that cover pandemics (these are typically defined as infectious disease extensions). For those that do have these extensions in place there are multiple barriers to a successful claim – from requirements for physical damage, geographical proximity and the specific types of diseases included by the policy or ‘wide area loss’ principles affecting cover for large-scale events like the current crisis.

If you do have such an extension in your policy or a claim relating to another area of your business, we can help appraise and manage your claim so that it is presented in the best possible light.

Even before Coronavirus became a pandemic, the insurance market was hardening. This goes beyond premium increases and means that insurers take a harder line on claims payments. We now expect to see more disputes and lower settlement offers as insurers reserves have been put under pressure by the ongoing economic crisis.

If you have a claim (whether it is related to coronavirus or not) our Dispute Resolution team, chaired by former Law Commissioner David Hertzell, can help you achieve a better outcome and speed up the process.

Since November of last year we have seen considerable double-digit increases in premiums across many lines. As we discuss here, we expect the pandemic to exacerbate this trend as insurers bolster their financial position by withdrawing capacity.

Mactavish has a unique service aimed at helping policyholders manage their insurance costs. We can create a truly competitive environment for your risks by running brokers and insurers against each other. On projects we have worked on over the last six months we’ve been able to achieve premium savings of between 20% and 40% against initial broker estimates.

The emergence of coronavirus and the government’s response to the outbreak has pushed businesses of all types into crisis mode. The decisions made by boards and executives during this period will come under intense scrutiny from shareholders, employees and third parties. Each of these decisions may create a new legal liability that may or may not be covered by insurance policies such as Directors and Officers Insurance, Employers’ Liability and Professional Indemnity.

Our team has deep expertise in risk analysis and policy analysis, meaning we can help you determine what your liabilities are and how your insurance will respond in the event of a claim.

Different classes of insurance and specific policy wordings can make it challenging to understand how and when you should notify your insurer of changes in your business or potential sources of future claims. As we discussed in this recent article on Directors and Officers and Business Interruption insurance  this is a particularly complex area. Failure to notify may invalidate a policy or stop you from making a successful future claim.

Mactavish was a driving force behind the two key pieces of insurance legislation this century, the Insurance Act 2015 and Enterprise Act 2016, meaning we are perfectly positioned to help you understand your obligations and duties to insurers.