COVID-19 - Automatic cover beyond renewal date

07 April 2020

Automatic cover beyond renewal date during COVID-19.

Where the renewal (or a specific extension) of the Policy is unable to be confirmed by the Renewal Date due to Incapacity it is agreed that:

1) Where Renewal terms are subsequently (after Renewal date) not accepted cover by this Policy shall be automatically extended based on expiry terms to:

a) The date Renewal is formally declined

b) 30 days after renewal date

whichever is the sooner at which point all policy cover shall cease

Provided that:

i) There are no material changes in risk that the Insured should have advised to the Insurer prior to any Incapacity (unless otherwise already catered for by specific Covid 19 Temporary Cover changes)

ii) an additional pro rata premium is paid by the Insured (unless below £50 where such premiums will be waived by the Insurer) based upon the annual premium applicable immediately prior to the renewal date

iii) the Insurer shall not be liable to pay any claims occurring during the period of the extension of cover until the additional premium due has been paid.

iv) there shall be no increase in or reinstatement of any applicable

a. sums insured

b. aggregate sums insured

c. any other limits or limits of liability

during the extended period of insurance

v) no automatic extensions of policy cover will apply to policies that the Insurer has specifically excluded from this arrangement by prior notice to the broker (or Insured for direct business)

vi) Where Terrorism insurance is included in this policy such cover for Terrorism (in accordance with Pool Re rules):

a. shall be treated as a new short period of insurance

b. shall be subject to rates premiums and terms applicable to the new short period of insurance (not the expiring insurance rates premiums and terms)

vii) the Insurer the broker/insurance advisor and the Insured shall use reasonable endeavours to conclude renewals or extensions prior to renewal date so as to avoid as far as possible the need for any automatic extension 

Or

2) Where Renewal terms are subsequently accepted (after Renewal date) as a result of Incapacity the Insured agrees that once accepted such renewal terms are effective from the Renewal Date.

Incapacity means the relevant representatives of 

  • the Insured or 
  • their insurance broker/advisor or 
  • the insurer 

have been unable to conclude the renewal or extension of the Policy solely due to the COVID-19 pandemic  including but not limited to the above-noted representatives being

  • infected or
  • suspected to be infected or
  • in self–isolation or quarantine or
  • subject to working practices or restrictions (including travel restrictions) recommended by
  • their employer
  • the UK government/government body or other regulatory body 

which limits their ability to operate function and/or communicate.