COVID-19 small business insurance relief package

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 six 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
• Theft
• Superannuation Trustees Liability
• Association Liability

What is the time frame for these measures?

The package 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. Bentleys Insure 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.

Need some help or got questions? Contact your local Bentleys advisor now.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.