Advice from the insurance industry
According Hewitsons LLP “The general rule of thumb is that business interruption insurance is not going to pay out as a result of a new and emerging disease like COVID-19. This is because no insurers are able to cover a risk that they cannot assess. New and emerging diseases come into this category and, whilst there may be cover in the future, there isn’t cover currently. This is not the case for every policy but is the case for the vast majority. Business interruption is, therefore, largely not covered for COVID-19 impacts.”
Generally Sheds don’t have Business Interruption Insurance anyway, but where your Shed is forced to become unoccupied for a period of time, there is an increased risk of break-in and theft – particularly as many Sheds are tucked away out of sight. So, the main risks to beware of are:
• Arson
• Theft and vandalism
• Escape of water
In each case, if you haven’t done it already, it is worth doing a risk assessment for each – noting what you believe the increased risks to be and what measures are in place to mitigate them. If the worst happens, you will then have a paper-trail to demonstrate to your insurer that you did everything reasonably possible to keep your Shed safe.
On your risk assessment for “Shed Close Down” you could include a note to say that the following checks have been completed:
• All fire alarms / smoke detectors were working correctly when checked prior to closure
• All electrical appliances were off and unplugged where possible
• Internal and external doors were closed - and locked
• All windows closed and locked / shutters closed
• Hand-tools put away / out of sight of windows
• All waste was properly disposed of
• Water was turned off at the stop-cock (if possible / necessary)
If possible – and without risk to yourself or others and without breaching any government guidelines or regulations you may be able to do a brief weekly inspection of the building – inside and out – and record in writing the inspection date and time. If you are leaving home each day for exercise, for example, you might be able to pass the Shed and at least do an external visual inspection. But don't take any risks and don't break the rules!
These are difficult times and there is no right or wrong answer to the problem of sheds becoming more vulnerable while empty, but the creation of a paper-trail demonstrating that all reasonable steps had been taken will help if there is a claim.
Finally the safety of your Shedders – physically and mentally – is far more important than a building or its contents. Sheds can be re-built and re-stocked. Please don’t take any risks with your people as they are actually your most valuable asset.
If I can help – whether I insure your Shed or not – call of email me. john@wessex-insurance.com. 01256 674198
Kind regards
John Mitchell
John@wessex-insurance.com
01256 674194 / 07768 865983
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