Last updated September 2019. FSB Insurance Service will update this blog when we have more information regarding Brexit.
The current situation doesn’t appear to give the UK a clearer view of what a post-Brexit Britain will look like, and it’s time to start planning for what happens if there is a no-deal Brexit. We have compiled four key points relating to your insurance, that business owners should be looking at in order to make sure they aren’t caught out on 31st October.
In the event of a no-deal Brexit, British drivers will be required to carry an EU ‘Green Card’. Although an agreement between the UK and EU authorities was formed to waive the need for a Green Card post-Brexit, this was never passed into law.
You should not require a green card when hiring a car or using EU-based insurance, but your UK insurance policy will not cover you for your driving within the EU and you will need to contact your insurer around a month before travelling in order to drive your vehicle abroad. The cards themselves will be free, but you may incur admin charges to acquire one.
If the UK faces a no-deal Brexit, and you will be travelling in the EU, your EHIC will no longer be valid or cover you for healthcare in the EU and EEA, so it is advisable that you take out a travel insurance policy to cover you if you need medical care whilst abroad.
At present, the UK government is legislating that the 16 million insurance policies held by UK households and businesses with EU insurers will continue to be serviced by those insurers post-Brexit, so even if your policy is held with an EU insurer you should still be alright, though this legislation hasn’t yet been fully agreed.
For UK Insurers, there is concern as Insurers without EU registered offices will no longer be able to cover policies within the EU unless the individual Member State has transition arrangements.
If you are stockpiling as part of your Brexit preparations, it’s vital that you declare the updated value of your goods to your insurer. Your existing cover will only apply to the sum insured that you agreed at the start of your cover and if this has changed then you might find yourself with uninsured stock. This is of extra importance when you consider that holding more stock may make you more vulnerable to theft. You should make sure your premises are secure and comply with your policy’s terms.
If you’re unsure what your requirements are, speak with your insurance broker and check that your policy will not need any amendments in order to remain valid after Brexit. If you’re still feeling a bit stuck- get in touch with us on 020 3883 7976. It can be difficult to provide accurate guidance about Brexit since a deal has yet to be agreed, but we can help you prepare for no-deal Brexit and will keep you updated as we get nearer to the deadline.
As the odds of a no-deal Brexit rise, now is the time to go through the whole of your business operations, and create a plan of action. To help you prepare, FSB has published a free online Small Business Brexit Pack to work through the big decisions that you could face. This should take your business up to the point of needing bespoke professional advice. In the mean-time, FSB is focusing its lobbying efforts to prevent a no-deal Brexit, which small businesses will be least able to cope with.
If you need any advice on your insurance needs give us a call on 020 3883 7976 from Monday-Friday between 9am and 5:30pm.
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