Agents facing insurance policy premium hikes – warning

Estate agents could face increased business insurance premiums due to the coronavirus pandemic, a commercial protection consultancy claims.

Mactavish, which advises on commercial policies, claims around 20,000 property companies – including agents – typically renew professional indemnity or directors and officers liability insurance around now.

It has warned that insurers are not only removing cover associated with infectious diseases going forward, but also retrospectively.

Bruce Hepburn, chief executive of Mactavish, also warned that clients are facing significant premium increases for their renewals.

He 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 firms in the property sector 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.

“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.”

 

Let EYE know if your insurance policy premiums have increased.  marc@propertyindustryeye.com

Sprift 3 end of article
x

Email the story to a friend

One Comment

  1. scruffy

    Do check with your broker or insurance company direct to see whether your Business Interruption Cover will actually apply. Don’t raise your hopes as the industry is renowned for avoiding liability. Our cover with Axa specifically excludes cover for new diseases or those not listed, whereas MG, which clearly applies to “any infectious disease” is also trying to wriggle out. According to our broker, Hiscox are facing massive liabilities and may be at the point of collapse.
    As each week of lockdown passes, the scale of claims will grow,so one can only guess at the total impact, particularly covering such a traditionally busy spring market. Scary stuff. 

    Report
X

You must be logged in to report this comment!

Comments are closed.

More top news stories

Reactions to HBSG pledge to introduce transparency in the home buying process

Continue Reading ...

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.