The risk of loss or damage to unoccupied premises is far greater than to buildings that are occupied. It is because of this that most commercial insurance policies contain a condition that requires notification when a building becomes unoccupied.

Some policies will provide full cover up to a period of 30 days or perhaps longer for premises temporarily unoccupied but then, typically, insurers would look to restrict cover and apply specific risk management terms.

Given these unprecedented times and the fact that many premises are being left unoccupied due to forced closure, many insurers are extending the period of notification and full cover to 60 days and 90 days in some instances.

It is important to note however that there is no common market agreement so you need to contact your broker or insurer to advise them of your particular circumstances.

You may, of course, have had unoccupied premises prior to the effects of Covid-19. If this is the case and you are experiencing any problems in meeting unoccupancy conditions such as agreed inspections of the premises, it is important that you advise your broker or insurer to agree special terms.

If you have any concerns please contact one of our team, they will be delighted to offer independent and confidential advice.


Paul Gardner Dip CII, DipMgmt (Open), FFB

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