Suncorp, Allianz and QBE to provide co-ordinated relief measures to business insurance policyholders. The proposal includes 6 month deferral of premium payment for eligible customers.
This morning the Australian Competition and Consumer Commission (ACCC) announced that it has authorised a COVID-19 relief package for insurance policyholders. This follows an application made by Suncorp, Allianz and QBE to provide a number of measures aimed at assisting small business through this difficult time.
What are insurers offering Small Business?
The package proposed to the ACCC includes the following relief measures:
- deferral of premium for up to 6 months
- provide refunds for cancelled policies with no administration or cancellation fees
- provide continuous cover for policyholders who need to close their premises with no changes to premium
What businesses are eligible?
The measures detailed above are for eligible small business policyholders. The proposal defines a small business as:
- employs fewer than 20 employees (or 100 if a manufacturing business); and
- has an aggregated annual turnover of less than $10 million.
What types of Insurance are eligible?
The measures extend to the following types of insurance:
- Building or Property Damage Insurance
- Business Interruption cover
- Directors and Officers Liability Insurance
- Professional Indemnity Insurance
- Public and Products Liability Insurance
- Motor Insurance
- Equipment Breakdown Cover
- Industrial Special Risks Insurance
- Superannuation Trustees Liability
- Association Liability
What is the time frame for these measures?
The package announced this morning will apply to existing eligible business customers suffering hardship as a result of COVID-19. The relief measures will apply to insurance premiums that fall due up to 30 June 2020. Insurers have already flagged they expect the initiatives will continue up to 31 December 2020.
How do I register to participate?
The ACCC has advised that insurance brokers must opt in to participate in the offer in order to make these relief measures available to our clients. Crucial Insurance and Risk Advisors are pleased to confirm that we will be participating to ensure the full extent of these benefits are passed on to our valued clients.
What if my insurer is not Suncorp, QBE or Allianz?
In addition to the above, CGU have announced similar measures however have declined to participate in the joint application made by Suncorp, Allianz and QBE. The terms of their offer are very similar to the above measures however their definition of small business is different. CGU are making the relief measures available to businesses with an annual turnover of less then $50 million or a sum insured asset value of up to $10 million.
We expect other insurers will roll out further relief measures in the coming weeks. We will keep you posted as these are communicated.
If you would like to find out more about the small business relief, contact the Crucial Insurance team on 1300 400 707 or email email@example.com.
This article was written by Tony Venning,
Managing Director at Crucial Insurance and Risk Advisors.
For further information or comment please email firstname.lastname@example.org.
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