BREXIT and your Insurance
The UKs exit from the EU and your Insurance
As the BREXIT transition period ends, there will be a point where the UK leaves the EU, likely to be the 1st January 2021 depending on what agreements, if any, are made.
Whilst we can deal with specific questions regarding individual insurance programmes for you we can say that generally, insurers have made provisions to cater for the post-Brexit landscape by the continuation of your existing cover or by delegation of some of, or all of, your cover to European subsidiary businesses. The details of this are as individual as the insurance arrangements that your business needs, but all of the various potential options are being considered and catered for by insurers generally.
There are however some specific things that you need to consider in terms of operating your business:
Driving In The EU
With effect from the 2021 New Year, you will need a Green Card if the UK leaves the EU with no deal.
The Green Card will have to be a physical document – electronic copies on phones or tablets will not be acceptable. If you cannot provide evidence of insurance within the EEA, you could breaking the law in those countries and the driver could be accused and charged with driving without insurance and subject to penalties including a fine.
There will be a lot of new solutions required to administer and provide these documents so we would urge you to plan ahead and request documentation as soon as you know you will be travelling in the EEA.
In order to assist you please take the time to look at the link from the UK Government to help prepare for Brexit: https://www.gov.uk/transition
If you are already adding to your stockholding as a measure to protect your business against a supply shortfall, please remember that this could mean you are potentially underinsured as a result. We would urge you to review your insurance cover and consider any additional stockholding you’ve taken on so that you can maintain protection accordingly.
It is also possible that you could face more challenges recovering from a loss, if vital equipment you need is not as readily available as it has been up until now. We would therefore also suggest you discuss any concerns with your supply chain in order to determine if there are any issues which may adversely impact on you and your business and then consider whether this may have insurance implications for you.
There are many other considerations for businesses too, such as the employment of EU nationals, representation of the business inside the EU and contractual terms with suppliers and customers as well as Tariff and customer changes to name a few. If you have any concerns speak to your insurance provider and further information can be found at https://www.gov.uk/transition
Getting the advice of a chartered independent insurance broker is critical to getting the right advice for your business insurance needs – find an expert broker you can work with to protect your business from risk.
Business insurance thinking from Yorkshire Powerhouse
Have you any questions?
Here at Yorkshire Powerhouse, we’re happy to help as much as possible – is there anything else we can do to help you, do you have any further questions or can we help introduce you to an expert – please let us know: