AIG update 12 January 2021
As we have previously advised to you, the concessions allowed by AIG have now ceased and you need to advise your usual Bridge contact if any aspect of your risk or business has changed in anyway in response to the lockdown(s) imposed in response to the Covid-19 virus by the UK Government.
Further information on the type of information we need to be made aware was detailed in our letter of 11 November 2020 – a copy of which can be found by clicking here.
AIG update prior to 12 January 2021
We have been involved in in-depth discussions with a number of insurers over the arrangements of our clients’ policy in relation to the restrictions imposed by the UK Government in order to contain the COVID-19 pandemic. At this point AIG have not issued a formal guidance on Covid-19 or responded to all our questions. The following guidance is given based on the response given so far and our experience of what other insurers are offering.
AIG’s policy wordings in general follow the rest of the UK market in that the UK wide lockdown of premises, such as your own, isn’t a sufficient trigger for policy coverage. COVID-19 has to manifest itself at, or occurred specifically on your premises leading to its closure. We appreciate that the above clarification will come as a disappointment, however this is largely the same position for the overwhelming majority of commercial insurance policies in the UK – not just for AIG policies. However, we do urge you to check with your usual Bridge contact to clarify the position under your policy.
Further information on the coverage that applies across a wide range of types of insurance contracts across the UK is available from the website of the Association of British Insurers:
Your policy will normally have a number of set conditions that will apply (and you must adhere to) if any of your insured locations are unoccupied for a period of more than 30 consecutive days. Whilst other insurers have extended this period to 60 days in respect of businesses that have closed down locations as a result of COVID-19 restrictions, we have not yet had any such instructions from AIG. We must therefore advise you to speak with your usual Bridge contact as you approach 30 consecutive days of unoccupancy so we can refer the matter to AIG and ensure you can continue cover on the standard policy terms and conditions.
Please note that If your premises were already unoccupied before the Covid-19 outbreak, and you are now unable to meet the terms of the unoccupied conditions in your policy due to the current restrictions, please get in touch with your usual Bridge contact as soon as possible so we can discuss the matter with AIG and ensure that your current level of cover is maintained and any subsequent claim is not repudiated due to breach of these conditions.
Change in Risk
We are aware that the majority of our clients will now have personnel working from home, changed operational, maintenance and housekeeping procedures or even adopted a change in their business description (for example to accommodate a takeaway/delivery service when ordinarily they trade as a restaurant or to manufacture equipment for the NHS). Whilst most insurers have allowed these changes to happen on a temporary basis in response to the Covid-19 situation, AIG have not issued us with any guidance at this point and so we ask you to please review your current business activities, maintenance, housekeeping and operational arrangements and speak to your usual Bridge contact about any changes that have happened so we can speak to AIG and ensure you are correctly covered.
We are fully aware that a substantial number of our clients will have purchased significant amounts of additional IT and business equipment as you restructure your business operations. Please review your sums insured and speak to your usual Bridge contact to advise us of any changes that may be required.
Policy Conditions and Warranties
AIG have issued no guidance on this so we must advise you to contact us immediately if you are now unable to comply with any of the policy conditions or warranties as a result of the restrictions in place. We want to avoid the risk that AIG could repudiate a future claim due to a failure to comply with the policy terms and conditions.
We made a request that for those of you whose policy is due for renewal during the period whilst restrictions from the UK Government remain in place that AIG offer an automatic extension to your policy for a limited period of time. Whilst AIG have not agreed to this they do appreciate that there may be disruption and they may be able to offer an extension on a case by case basis.
If your policy is due for renewal we will be in contact with you to conduct the renewal review and we can discuss any requirement for an extension.
AIG have not issued any guidance yet in respect of payment holidays or alterations to payment schedules if you are struggling to pay your monthly premium instalment to them. If you are struggling then please email us at firstname.lastname@example.org
If you pay your instalments through either Close Brothers or Premium Credit then both firms have advised us that they can show flexibility in your schedule of payments by offering limited payment holidays and extending the number of instalments. Both firms will consider each request on a case by case. In the first instance any such request must be made direct to them using the following contacts:
Premium Credit Limited:
Tel: 0344 736 9836 or 0330 123 9717
Close Brothers Limited:
Tel: 0333 321 8566 (Personal Lines)
0333 321 8567 (Commercial)
If you pay for your premium up front then you may want to consider paying it by instalment via one of our Premium Finance partners to help manage your cash flow.
If you think you miss a payment deadline then it is important that you contact us as soon as possible so we can assist you.
Motor Fleet Policies
As AIG have issued us with no guidance then you will need to advise us if you intend to change the use the vehicles are normally used for, such as:
- Voluntary work on behalf of the NHS Volunteer Responders or the Local Authority Community Help Hub arrangements.
- Offering deliveries or takeaway services.
If your vehicles are laid up, SORN and kept off the public highway, please let us know and will approach AIG to see if they can offer Laid UP cover and provide a discount off your premium.
In these challenging and uncertain times we would like to reiterate that Bridge Insurance is deeply to committed to all our clients and we will continue to act in your best interests in these challenging times. We hope that the continued updates from the UK Government regarding financial assistance for business interruption due to the COVID19 pandemic, will prove of use to you. You can find out more details about this by clicking this link.
Our accountants have produced a very helpful analysis and summary of the financial assistance available from the UK Government and this available to you by clicking this link (https://www.baldwinsaccountants.co.uk/news-and-insights/covid-19)
Please do not hesitate to contact us if we can be of further assistance.
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