Policies previously having cover for unspecified infectious disease relating to professional liability and employment practise liability are having that cover removed at renewal. Members might check their own clients’ policies closely and start the renewal process earlier to mitigate this.
In the main, the professional liability section of these policies will operate on a ‘claims made’ basis (any claims or circumstances that may give rise to a claim must be notified during the current policy period, and not a previous one). Therefore, if compensation claims arise from a firm’s actions during the crisis they may find they have no recourse to insurers, the cover having been withdrawn at renewal.
Care homes and the voluntary care sector are particularly exposed as they have continued to operate as essential services and key workers in the Coronavirus crisis. Whilst providers have been under extreme pressure to cope it seems likely clients and carers will have been exposed to risk by their employers.