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Keeping SMEs covered is a priority for insurers…
With blanket media coverage of COVID-19
and government restrictions on activities that we once took for granted, it can
be easy to overlook that all the normal pre-pandemic risks to businesses
remain, and it’s just as important they are still covered.
Denials of business interruption and
travel claims due to the pandemic have sparked headlines and sometimes give the
impression insurers have taken a step backwards. But that’s not the case. The
industry has taken a range of actions to help SMEs maintain their cover.
It’s true that pandemic risks are not
covered in general, as they can affect locations everywhere all at once, and
the size of the risk is greater than the capital the global industry has in
reserve to meet claims.
Policy wordings were tightened after the
SARS virus outbreaks in Asia raised alarms in the early 2000s. Local regulatory
stress-testing was carried out, and insurers responded to ensure their
long-term resilience.
Amid the current pandemic, insurers
continue to cover the usual risks businesses face, such as fire, theft and
liability issues, and have been paying out claims to assist affected enterprises
in getting back on their feet.
Special measures have been introduced to
ensure SMEs remain covered despite changing circumstances affecting operations,
and assistance is available to ease financial strains in cases of hardship.
Common changes have included continuity
of cover where premises are unoccupied due to COVID-19, with no changes to premiums
terms or conditions.
Policyholders who have wanted to cancel
their cover have been able to receive refunds on the unused portion of their
premium with no administration or cancellation fees, while premium deferrals have
also been an option.
Pay by the month instalments have been
available in certain cases for no additional cost, while reduced or waived
excess amounts have also been offered.
In the meantime, governments have also
kept a number of measures in place to support individuals and businesses, while
adjusting strategies to buoy the struggling national economy as supressing the
virus remains a work in progress.
The Australian Competition and Consumer
Commission has provided clearances for several major insurers to extend measures
they had previously announced until the end of the year, while other firms
which devised their own customer support schemes have also extended measures.
Insurers have had to make further
adjustments as the pandemic has continued and have started to look at how they can
help firms recover and take advantage of opportunities as the economy revives.
These include one insurer introducing a
liability extension to assist businesses increasingly serving customers outdoors
as restrictions eased, while another offered grants to help eligible SMEs, with
money available for advertising, equipment, business consulting and promotional
printing.
So, how can these support measures help
your business? Talk with us to discuss what assistance is available and how we
can help you stay protected through this difficult period.