As New Zealand has now moved into a level four alert and government-imposed shut-down, we have some important updates to share about cover for customers during this time.
 

Project sites will be covered
Project sites, regardless of whether they are at another site, or in the customer’s own home, will fall silent during this shut-down period. We would like to reassure you that Vero is committed to ensuring customer’s projects are covered during this uncertain period.

The current ProjectPlan/SiteCover wording contains a clause which relates to cessation of works:
The Company will not indemnify the Insured against:
4. loss or damage to property directly caused by cessation of work whether total or partial;

However, these are extraordinary circumstances and we want to provide certainty for customers. This means we will not be applying this exclusion for losses directly caused by construction work being required to stop at project sites solely due to the government ordered lockdown due to COVID19 threat level four. Customers are still required to take all reasonable care to protect their works and should take all reasonable precautions to protect and lock up their sites, removing valuable items or equipment where they can.

If your contract work policy needs extending, just let us know and we will extend it as usual while taking the current circumstances into account.
 

Business (including Rural) Insurance approach
As work from home and social distancing measures become widespread, Vero wants to provide tangible support for you and our mutual customers.  We hope this will reduce pressures on our respective businesses. We also want to recognise the financial impact of these extraordinary events on our customers.

In reviewing the current landscape, we may shortly be faced with a significant rise in illness rates that could reduce capability and increase response times to customers. Below is what Vero will do in order to assist you and our customers:

We will automatically renew all expiring Business Insurance and Rural Insurance business, on expiring terms subject to the following qualification criteria:

1. To qualify for automatic renewal, all of the following criteria must apply to the risk:

   1. Only risks with a renewal date between midnight on 26 March 2020 and midnight on 30 June 2020 which have not already been confirmed as covered;

   2. Risks with an existing 12-month policy period.  They will renew with a 12-month policy period;

   3. The Gross Written Premium (inc ND premium where applicable) must be $50,000 or less per annum;

   4. There will be no change to expiring sums insured, deductibles/retentions and terms and conditions from the prior policy year. If changes are required to any of these, you must renew through the usual process;

   5. The current policy loss ratio must be 55% or less, measured over the lifecycle of the policy with Vero, up to a maximum of three years. Our BDM’s will be in touch highlighting accounts with a loss ratio higher than 55%, these will renew through the usual process;

   6. Where you have previously been notified that there will be an underwriting or account review by Vero at renewal. You should speak with your Vero BDM to arrange for renewal;

2. Renewals that do not meet all of the qualifying criteria in 1 above, must be referred to Vero and will require written approval in accordance with our usual renewal process.

3. Current and standard agreed terms of credit for automatic renewals will be maintained.

The offer to automatically renew risks during the agreed period will not include the following:

1. Personal Lines policies. 

2. Vero Liability (VL) and Vero Marine (VM) risks.

3. Fleet motor policies/ risks as these individually rated based on annual claims experience.

4. Any policy that includes any facultative reinsurance. Your Vero BDM will provide detail to you prior to renewal.  You must ensure that these risks are renewed in the usual way.

5. Any policy that does meet all of the criteria in paragraph 1 above.

In some cases, you may receive a system generated document from us (such as a pre-expiry notice) for a risk which meets all of the criteria in paragraph 1 above for automatic renewal, but which includes an increase in premium. This is a result of our automatic system generation, which is difficult to stop for this period. You should therefore be assured that risks which meet all of the criteria above for automatic renewal will be subject to their expiring premium, and no premium increase will apply. Please contact your Vero BDM if you need assistance or clarification, we are here to help.
 

Get in touch
As insurance is considered an essential service, Vero will continue to operate throughout the government-imposed restriction period. We are well equipped to continue to be here for yourself and customers throughout this time. Please don’t hesitate to get in touch with your BDM on their mobile if you have any questions.

Kind regards,

Andrea Copley
Executive Manager, National Broker Distribution