Ongoing Lockdown Restrictions: Unoccupied Commercial Property

As the current lockdown continues, and with no definite date for the easing of restrictions, we would like to highlight that most insurers’ minimum requirements for unoccupied commercial premises are in line with the following:

• The property is mandated to close according to the latest COVID lockdown rules
• The premises are inspected internally at least once every 7 days, by or on behalf of the Insured
• All trade refuse and waste materials are removed from the interior of the premises, with no accumulation of refuse or waste being allowed in the adjoining yards or spaces owned by the Insured
• The premises are secure at all times, by putting all fastenings and protections, including locking devices and any alarm protection, into full and effective operation
• The gas, water and electricity supplies, are turned off at the mains (except electricity needed to maintain any fire or intruder alarm systems, or water and heating systems for sprinklered premises)

This is potentially a greater issue than under previous lockdowns due to the move into the coldest part of the year when freezes and bad weather significantly increase the risk of damage to property.

In order to maintain full cover the above must be complied with, although some insurers may have more stringent requirements, and some cover may still be excluded (e.g. Malicious Damage). Any policyholder whose premises have been unoccupied (i.e. not being used in their normal way, with normal business hours occupancy) who has not already done so should highlight the situation to their broker to ensure cover is not jeopardised.