Landsec Insurance Cover and COVID-19

FAQs

An update on insurance cover & COVID-19 Date: Edition:

16/02/2021 v1.2

London & Retail

FAQs

An update on insurance cover & COVID-19 Should you have any further queries, please do not hesitate to contact us.

You may have heard in the press about the recent legal challenge to insurers by the Financial Conduct Authority (the FCA). As customers of Landsec and occupiers of our properties, we wanted to provide you with a brief summary of the outcome of that challenge and what it may mean for you, together with some “next steps”.

We cannot advise you on your insurance policy, but we do recommend that you approach your insurer or your broker to find out whether your business now has a valid claim.

Neil Timberlake Group Insurance Director, Landsec – January 2021

What was the legal challenge?

What about my rent?

The FCA said some insurers should not be denying claims from their customers under some insurance policies in respect of lost business when they had to close due to Covid. In general, this referred to insurance policies that did not include an exclusion of infectious diseases. They estimated around 370,000 policyholders may be affected.

You may still be legally liable to pay rent, even if you have reached an agreement with your landlord to suspend rental payments temporarily. If this applies to you, and your insurance claim is valid, include your full rental liability in your claim when claiming from insurers.

How might insurance cover work for you?

If your insurance policy includes cover for periods during which you could not trade (even if you have not suffered physical damage to your property), you might be insured – even if your insurance company has so far turned down a claim.

Some insurers have chosen to deny claims due to technicalities in their policy wordings and it is these technicalities that the court case has resolved.

What “Technicalities?”

There are several but the main one’s are: — Insurers cannot make you prove that a specific case of Covid caused you to close your business. A case in the vicinity of your business may be enough.

— You don’t have to show that your business was closed because of a legal requirement. A Government announcement might be enough, such as the first lockdown announcement on 20th March 2020.

— You don’t have to show that your business was closed fully. So, if you run a restaurant that provided takeaways during lockdown but you still made less money than in a normal year, you might still be able to claim.

— When calculating how much business you lost, insurers cannot say that your business would have lost income anyway because of the general Covid situation.

They must take a reasonable view of what you would expect to make in a “normal” year.

What must insurers do next?

Insurers are obliged to write to their policyholders explaining the outcome of the FCA case and promising to review policy cover.

What should you do next?

Every insurance policy will be different, and we cannot guarantee that you will be covered, because some exclusions of disease may still apply. But you have nothing to lose. We strongly recommend that you seek advice from your insurance broker or provider or a legal adviser and that you revisit your insurance even if you have already been denied a claim. It could be the difference between receiving payment from insurers and not.

Government & Industry Guidance: — Department for Business, Energy & Industrial Strategy

Social distancing in the workplace during Covid-19: sector guidance Working safely during coronavirus (COVID-19), Offices and contact centres Working safely during coronavirus (COVID-19), Shops and branches

— World Health Organisation Getting your workplace ready for Covid-19

— Public Health England Guidance for employers and businesses on coronavirus (COVID-19)

— Health and Safety Executive Help and information to keep people safe and healthy at work

— CIBSE Emerging from lockdown

— British Retail Consortium Guidance on Social Distancing in Stores and Warehouses

— MIND Mental Health & Wellbeing support

Land Securities Group PLC 100 Victoria Street, London SW1E 5JL +44 (0)20 7413 9000

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