At least five commercial insurers have removed cover from their policies in light of the ongoing pandemic, according to Mactavish.
The independent expert on commercial insurance placement also claimed that 42,000 UK retailers have reportedly seen “big increases” in premiums after recently renewing their insurance.
According to Mactavish, 41,800 VAT and/or PAYE registered retailers in the UK renewed their insurance at the end of March and beginning of April, but due to the pandemic, many will have seen cover removed from their policies and faced increased premiums.
The group warned that insurers are not only removing cover associated with infectious diseases going forward on a D&O and PI type policies, but also retrospectively.
It added that this time of year is the busiest for companies renewing their insurance, but its research still found that at least five commercial insurers have recently removed cover from their policies. It has also seen clients faced with significant premium increases for their renewals.
Bruce Hepburn, CEO of Mactavish said: “There has been talk of insurers potentially excluding cover linked to the fall-out of infectious diseases from commercial insurance policies, and we are beginning to see this unfold.
“Over the past few weeks, many retailers across the country would have received insurance offers and accepted them, but at the last minute, just days or even hours before renewal, elements of their cover were removed.”
He added: “With premiums also rising, remuneration for brokers is increasing at this very difficult time.
“We have customers getting less cover and paying more for this, whilst insurers and brokers are seeing their financial rewards increase. It doesn’t feel like insurers and brokers are sharing the pain of businesses across the UK.”