FSB Insurance Service’s No-Deal Brexit Advice

Last updated October 2020. FSB Insurance Service updates this blog regularly.

2020 has presented more than its fair share of challenges to businesses in the UK but it’s important to prepare for 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 are prepared for 2021, when the UK will commence a new relationship with the EU.

Green Cards

British drivers may 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 currently has not passed into law.

You should not require a green card when hiring a car, 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. You will need a physical document rather than an email or e-document.

You may also need an international driving permit (IDP) to drive in certain countries. Check whether you’ll need one here.

European Health Insurance Card

Whilst travelling after Brexit, 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 for medical care whilst abroad.

Impact on General Insurance

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.

Stockpiling for Brexit

If you increase your stock 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 about 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.

You can also visit the Brexit hub on the FSB website for more information. This hub will be updated as more information becomes available.

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.