Don't believe the hype: insurers are still there to support you

Published: 15/10/2020

Don't believe the hype: insurers are still there to support you

In the midst of a global pandemic, it's easy to become swept up in managing ever-changing government restrictions and adjusting to a new way of life. While, undeniably, much has changed in past months, normal pre-pandemic risks to organisations remain - and are still just as important to cover.

Denials of business interruption and travel claims due to the pandemic have sparked headlines, with some causing individuals to believe insurers have taken a step back; however, this is not the case. Rather, in recent times, insurers have actively sought out ways to help SMEs maintain their cover.

This has impacted the types of cover insurers provide today, with pandemic risks now not being covered in general. This is largely because the effect isn't targeted, in that it can impact locations everywhere simultaneously. In addition, the global industry only has so much capital in reserve to meet claims, and in instances like the current pandemic, the size of the risk exceeds this.

However, that being said, insurers are continuing to provide cover for usual business risks during the pandemic, such as fire, theft and liability issues and; thus, have been paying out claims of this nature.

Those in the insurance sector have also recognised the changing circumstances SMEs are faced with, many of which have impacted their operations. With this in mind, insurers have introduced special measures, providing much-needed assistance and financial support in cases of hardship.

For instance, in cases where policyholders have wanted to cancel their cover, many insurers have offered refunds on the unused portion of their premium, alleviating typical administration or cancellation fees. Another option that's become available to businesses is premium deferrals, allowing for greater flexibility depending on their needs.

Due to the pandemic, many organisations are now conducting operations remotely, leaving their premises unoccupied. In response to this, insurers have widely introduced continuity of cover, meaning that there are no changes to a business' premiums terms or conditions.

For the most part, enterprises are also under amplified financial pressures and; thus, many insurers are offering pay by the month instalments in certain cases, which are at no additional cost to the policyholder. Beyond this, reduced or waived excess amounts have also become available.

In the meantime, governments have also kept a number of measures in place to support individuals and businesses as the pandemic progresses.

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.

As the pandemic continues, insurers are reviewing and adjusting their operations and policies, continually looking for new opportunities to help enterprises recuperate as the economy slowly recovers.

In one instance, an insurer introduced a liability extension, which assisted their policyholders in serving customers outdoors when restrictions allowed. Another offered grants to eligible SMEs, with funding available for advertising, equipment, business consulting and promotional printing.

How Coverforce can help

Contact our expert team of brokers today to find out which support measures are available to your business and how we can help you stay protected in these trying times.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.

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