The following information is correct as of March 2023.
The insurance and long-term savings industry worked hard to support customers and the wider community across the UK throughout the pandemic.
Following the first national lockdown in March 2020, the industry pro-actively agreed a series of pledges to support and assist customers across a range of insurance lines including home, motor, travel, pet insurance, health and protection. Insurers also offered policy extensions and were flexible with customers wherever possible during this unprecedented period.
This hub was produced to share advice, guidance and common questions relating to insurance and long-term savings products and the impact of Covid-19. We continue to keep the content under review to share information where relevant, such as for travel insurance. For reference, an archive section holds FAQs that related primarily to the impact of lockdowns.
Find out more about your insurance policy:
If you are an office-based worker and will continue to work from home, it will remain the case that you don’t need to contact your insurer unless any of the following applies:
- You have visitors to your home on business matters, for example, if you have a face to face client meeting.
- Your business makes or sells goods from your home or you store any of these items at your home, particularly if valuable or includes hazardous or flammable material (such as gas cylinders or fireworks)
- You’re offering any other services from your home. For example, this would apply to jobs such as providing beauty treatments, hairdressing, child minding, dog grooming or being an exercise instructor.
- You’ve adapted your property (i.e. using an outbuilding as your home office or undertaking any major renovation works) or acquired new business equipment that belongs to you.Cover for any business equipment (i.e. laptop) will usually be the employer’s responsibility but check with your employer if unsure.
Anyone who has established, or is planning to establish, a business from home during the pandemic, or has moved the running of their business to their home premises, should discuss the cover required with their insurer or broker.
It is important to make sure that your policy documentation is accurate, and your policy cover remains right for you. If you are not sure, you should contact your insurer or broker to check.
Insurers’ priority is the safety of their customers and the wider community. Insurers will continue to provide cover for customers as promised in the policy - including funding the cost of alternative accommodation - whilst acting in accordance with the UK Government’s advice at that time.
It is vitally important that you contact your insurer to discuss your claim further, as each one will be managed on a case-by-case basis to ensure that customer interests are best protected.
Changes to government advice means you should be able to travel to your second or unoccupied home to undertake necessary checks. Restrictions will differ between England, Scotland, Wales and Northern Ireland and you should check you are adhering to the law and guidance of the relevant administration.
If you are unable to visit your unoccupied home, due to government advice, insurers have waived the requirement for individuals to check on a property regularly, as long as the property is suitably secure.
Most standard home insurance policies do not provide cover for the costs of cleaning a property.
ABI members supported the UK’s 27 million motor insurance customers during lockdown with temporary pledges to help commuters and volunteers. As restrictions have changed, the following guidance now applies as of 30 April 2021:
Volunteering
The pledge to support those using their own car for voluntary purposes has become part of the industry’s volunteer driving commitments. If you’re using your own vehicle for voluntary purposes, such as to transport medicines or groceries to support others who are impacted by Covid-19, this will continue to be covered at no extra cost by the vast majority of ABI members. However, some insurers may wish to be informed of this use so volunteer drivers should check their individual policy.
For more information, please click here
Driving to work
To support drivers who needed to travel to their workplace during lockdown but who previously wouldn’t have used their own vehicle to do so, insurers waived the need for anyone with ‘Social, Domestic and Pleasure’ cover to update or amend their motor insurance policy. Key workers needing to travel between different workplaces also did not need to contact their insurer.
As restrictions change, and travel to workplaces becomes more routine, it will be necessary for drivers to check their insurance cover is appropriate for their needs. You will need to speak with your insurer or broker if there are ongoing changes to your working and driving activities since taking out the policy.
This includes using your own vehicle to commute to work or driving to different locations for work purposes, and will also apply to key workers.
Insurers appreciate this may continue to be a difficult time for some customers and will be ready to discuss insurance cover, including options for those who may be experiencing financial hardship.
You should contact your insurer and have them added them to your policy as a named driver.
If the person who is helping you has car insurance that includes a “Driving Other Cars” section and they use your car with your permission, they can drive your car. However, they will only get third-party cover and “Driving Other Cars” is intended for short-term emergency use.
If you have comprehensive insurance and want to ensure that damage to your own car is covered when someone else uses your car, you should contact your insurer to add the other driver as a named driver to your own policy.
If your motor insurance policy does not include cover for commuting, and you’re using your own vehicle to travel to work, you will need to contact your insurer.
It is a legal requirement to have valid car insurance unless you register your vehicle off the road and apply for a SORN. Different insurers have different processes for these situations. If you want to keep your car but won’t drive it for a while, contact your insurance provider to see how they can support you.
Insurers’ main priority is to make sure their customers can continue to have their claims paid in this challenging environment. Given the disruptions to international transport and manufacturing because of Covid-19, it may take longer to get the necessary parts to repair your car.
Most ABI members have signed up to the industry’s volunteer driving commitments. This means using your own vehicle for volunteering purposes should be covered at no extra cost. However, some insurers wish to be informed of this use so you should check your individual policy.
For more information, please click here.
If you cannot take your car for its MOT, ask someone else to do this for you. If they are not already named drivers, contact your insurer to add them to your policy.
If this is not possible due to the impact of Covid-19, insurers will be pragmatic and not penalise you for something that is out of your control. Safety is paramount and it is illegal to drive a car in a dangerous condition, so make sure to check your brakes, tyres and lights before driving. Please remember to get your MOT done when you can.
Insurers understand this has been a very worrying time for pet owners, who will have been concerned about the health of their pets and access to veterinary surgeries and treatment if needed. During the lockdowns, ABI member pet insurance companies offered enhanced help and support to customers through a range of pledges. These included being flexible on policy conditions where vets were closed and if vaccinations or health checks couldn’t be carried out.
As veterinary services are operating as normal, the pledges to support pet insurance customers are no longer required and will finish on 30th April 2021.
If any pet vaccinations, health or dental checks are due, or any treatment required, owners should proceed with arranging these.
No. Insurers have agreed that being unable to access veterinary surgeries in person due to Covid-19 restrictions will not invalidate your policy. Insurers are offering increased flexibility on these policy conditions and are continuing to cover conditions that pets are usually vaccinated against. We recommend contacting your vet todiscuss access to surgeries and routine vaccinations.
Yes. If your treatment has been postponed, your current policy should still cover the costs of this treatment. Many insurers are extending the time limit to allow for the treatment to be completed at a later date. We recommend contacting your vet to discuss any changes to treatment and your insurer to discuss policy coverage.
Following Government advice on social distancing, some veterinary practices have reduced the treatments they offer and are only carrying out essential treatment. Insurers are committed to working with their customers to ensure pets receive the treatment and care they need. Many insurers are providing flexibility on claims that arise during the current crisis. If you have started a claim that has a time limit but are unable to visit a vet, many insurers are extending the time limit to allow for the treatment to be completed at a later date. Contact your vet to discuss in more detail how your pet can access the treatment it needs.
It is important to note that ongoing treatment costs are dependent on the policy remaining in force and premiums must be received at the time the treatment costs are incurred.
Insurers are offering a range of additional benefits to customers during the current crisis, including access to dedicated 24/7 helplines, allowing flexibility on claim submissions and organising online/phone consultations with vets. The additional benefits will vary between insurers so contact your insurer for more details on what is currently being offered by them.
If you have a young pet, such as a puppy or kitten, and their routine vaccinations have been delayed, keep them inside your home until they have had a full vaccination course. It is important to follow the Government advice for those with pets and animals: Access to some veterinary surgeries and the services available has now improved so we recommend contacting your vet to discuss access to surgeries and routine vaccinations.
Wedding insurance is a specialist type of insurance and policies vary, so it is best to check with your insurer if you have concerns. Wedding insurance covers events outside the couple’s control but does not provide cover for people who decide they no longer want to get married or enter into a civil partnership.
If you have already purchased a wedding insurance policy prior to COVID-19 and you need to make a claim, you should speak to your insurer. Given the evolving nature of COVID-19 and regular changes to public health guidance, insurers are constantly reviewing the situation on what they are able to provide affordable cover for. If people are looking to buy wedding insurance, they will need to shop around and possibly speak to a broker to ensure they purchase the cover that suits their needs.
If the venue cancels the wedding, the marrying couple may be covered as this decision is outside of their control.
If there is a supplier failure - either as a result of that supplier going bankrupt or failing to provide a service on time (such as a wedding dress or flowers not arriving) - you will most likely be covered either under your insurance policy. You may also be covered by your credit card if you used it to buy the item.
Most insurance policies will cover this as long as the death, illness or accident wasn’t as a result of a pre-existing condition or due to reckless behaviour. Who this covers in the wedding party will be dependent on the policy you have purchased, so it is worth checking the terms and conditions. If you are unsure, you can always speak to your insurer.
Wedding guests would - in normal circumstances - need to book their own travel insurance policy to cover them.
Travel insurance may cover non-refundable cancellation costs, in specific circumstances. These may include medical advice against you or a member of your group from travelling or government advice against travelling. Check your travel insurance policy for the scope of cover as policies taken out or renewed, or trips booked, after the pandemic was declared are likely to exclude cancellation due to Coronavirus as it was a known risk when the policy was taken out.
Some of the information set out below for schools is also relevant to private nurseries. As these nurseries operate as businesses, nursery owners may also find our section on Business Insurance helpful, which covers ‘business interruption’ and other issues businesses may face at this time.
The Foreign, Commonwealth & Development Office currently advises British nationals against all but essential international travel. Travel to some countries and territories is currently exempted. This advice is being kept under constant review and travel disruption is still possible and national control measures may be brought in with little notice, so we would encourage you to check the Government's travel guidance.
Schools should always first seek a refund from the venue or tour provider, and then if needed, speak to their insurer to begin an insurance claim.
Schools should always first seek a refund from the venue or tour provider. For any cost that cannot be recovered schools should check the type and scope of their insurance cover. Claims will be paid where policy terms are met, however there may be Covid-19 exclusions in place for trips booked after the pandemic was declared. This is because insurance is primarily designed to cover against unforeseen risks that you did not know about at the time of booking.
If the venue hosting a school trip can no longer do so because of official government guidance, the closure of the venue, or their reluctance to accept school trips due to their stated concerns about the spread of Covid-19, the school should seek a refund from the venue in the first instance before contacting your insurer.
In June 2020, the Government announced the establishment of a temporary government backed £10bn trade credit reinsurance scheme. This helped ensure that businesses were able to continue to access trade credit insurance during the pandemic. The scheme was only intended to be a temporary measure, and it ended as planned on 30 June. Government updates can be found here.
Trade credit insurance provides cover for businesses if customers who owe money for products or services do not pay their debts, or pay them later than the payment terms dictate. This could result from businesses not being able to pay for goods and services delivered as the result of Coronavirus. For further information, read our guide here.
Trade credit insurers do not provide cover for loss of production volume or the insolvency of a supplier, only the failure of a customer to pay for purchased goods. It is primarily insurance to cover the potential failure of a customer to pay for goods and services rendered in the event of insolvency or in the event of late payment.
Trade credit insurance provides coverage for delayed payments, ensuring that late payments do not put your company under financial strain.
Insurers will assess trade on a case by case basis for those countries/regions that are experiencing the most severe impact of the virus. Insurers may set specific conditions or credit levels for such trade.
Because of the unprecedented financial pressures being faced across most business sectors, during the pandemic, which threatened the continued availability of trade credit insurance, the government acted on our proposal to ensure that businesses can obtain trade credit insurance as they recover from the impacts of Covid-19. The UK Trade Credit Support Scheme has provided vital assistance in stabilising the market and enabling insurers to continue offering cover where they would otherwise not have been able to. The Government has confirmed that the temporary scheme will end on 30 June.
Under the temporary scheme, the Government shared the risk of losses arising from business insolvency with insurers. Insurers take 10% of the premium and claims that result from business failure while government will take 90% of the premium and claims. This helped trade credit insurers to continue to provide insurance for a wide range of businesses across the country.
The scheme was always a temporary measure, and ended on 30 June. It has allowed the industry to adjust to the changed economic circumstances of the time, while maintaining the levels of market cover in place that existed before the Covid-19 pandemic. As the pandemic risk recedes, the scheme is now no longer needed to provide stability and access to insurance.
The UK Trade Credit Support Scheme has provided vital assistance in stabilising the market and enabling insurers to continue offering cover where they would otherwise not have been able to. During the operation of the Scheme, insurers have gained greater insights into the effects of the pandemic on business and are much better equipped to make informed decisions on buyers. Most businesses will continue to be able to access Trade Credit Insurance as normal. Some businesses may experience changes to the level of cover available. This is most likely to affect companies which have been badly affected by the pandemic, or faced significant operating challenges prior to the pandemic.
Trade Credit insurers are committed to supporting UK businesses, with ABI Trade Credit members by:
- Continuing to work closely with policyholders and their clients to source up to date information on their risk profile, including any benefits offered by Government support packages where available.
- Actively keeping credit limits and products under review, giving careful consideration to business plans for recovery and the potential for future growth.
- Engaging constructively with policyholders and brokers on their cover and credit limits, giving due consideration to the risk presented and the financial health and resilience of the business and its supply chain.
Information and data are essential for insurers, giving them confidence in assessing risk and setting credit limits for businesses of all sectors of the economy. Never has the need for up to date information been more pertinent than now as the economy begins to recover after the effects of Covid-19. Helping insurers understand your business with up to date information can be important in getting the credit limits your business needs. Some financial information that will assist insurers in understanding your business and the risks associated include:
- Current Strategy and Plans
- Financial statements
- Management information
- Liquidity metrics
- Cash flow balance
- Cash flow projections
- Funding availability and options
- Any other extra financial information
It is important that you engage early with insurers in the run up to the ending of the UK Trade Credit Support Scheme to discuss the trade credit cover your business needs.
Pension Scams
The ABI has warned people to be on their guard against scammers looking to cash in on the financial hardship that Coronavirus is causing for many families and firms. Fraudsters could offer bogus insurance products and high-risk investment and pension products.
Don't panic with your pension
We're reminding savers during COVID-19 to think twice before making any rash financial decisions. Be on the alert for pension scams and don't be tempted to view your pension as a way of quickly raising cash.
Pensions are invested in a range of assets, including in shares of companies. This helps those companies to grow and means your pension can benefit from that growth.
Being invested means your pension will change in value. Over time, the value of pensions tends to go up. However, stock market volatility, as a result of Coronavirus, resulted in the value of some pensions going down. Since then, the value of shares on indexes across the world has since partly or wholly recovered. You can check your pension’s current value with your provider.
If you’re close to retirement and in a workplace pension, in most cases your pension will have been gradually moved into less risky assets which will have helped cushion the impact of the falls. All workplace pensions have to have a plan for how to manage investments based on how they think customers will access their pensions, so do get in touch with your provider if you are unsure.
If you are concerned about how Coronavirus is affecting the economy and the value of your pension, you can get in touch with your pension provider, or the Government’s Money and Pensions Service.
Remember that pensions are long-term investments. Most importantly, stay calm and don’t rush financial decisions.
If you want or need to take money out of your pension, you will need to think carefully about all of your options, including whether now is the right time to do so.
You can contact Pension Wise, which is part of the Money and Pensions Service, or check with your provider about your options.
You can also pay a financial adviser who will be able to give you a personal recommendation based on your individual circumstances.
This is a time of uncertainty, but decisions like these can have long-term impacts and it is important to stay calm and not rush financial decisions.
If you have other sources of finance, there may be fewer long-term risks if you access those first (depending on what these are e.g. cash savings).
The Government has announced a range of measures to offer support to people during the pandemic. You may wish to investigate whether you are eligible for this support before withdrawing money from your investments.
In difficult times like these scammers try to take advantage of uncertainty to convince people to take decisions they wouldn’t otherwise make. If someone you don’t know has approached you about transferring your pensions unprompted, it may well be a scam.
Scams can take many forms and often appear to be a legitimate investment opportunity.
The regulators recommend four simple steps consumers can take to protect themselves from pension scams:
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- Reject unexpected pension offers whether made online, on social media or over the phone.
- Check who you’re dealing with before changing your pension arrangements – check the FCA Register or call the FCA helpline on 0800 111 6768 to see if the provider you are dealing with is authorised by the FCA.
- Don’t be rushed or pressured into making any decision about your pension.
- Do not make any decisions under pressure and remember that if the offer seems too good to be true, it probably is. If you have any concerns, you should talk to your pension provider or the Money and Pensions Service. You can also visit the FCA’s ScamSmart website and use their checklist to find out more.
These are unprecedented times and the desire to try and access long-term savings is understandable, but in the vast majority of cases you cannot legally access your pension before the age of 55. Unless you were in a pension before 2006 that allowed you to access it before age 55, your provider will not allow you to.
If you transfer your pension to a company that claims to allow you to access to your pension before age 55, it could be a scam and the consequences could be disastrous. Accessing your pension before the age of 55 can lead to HMRC applying a 55% tax charge on your savings.
If you want to talk to someone about this, you can contact Pension Wise, which is part of the Money and Pensions Service, or check with your provider about your options.
The Government has announced a range of measures to offer support to people during the pandemic. You may wish to investigate whether you are eligible for this support. A summary of this support can be found on the Money and Pensions Service Website.
If you are over 55 you can access your pension, but such decisions should never be taken quickly. Accessing your pension now could have tax implications and it is vital to fully understand the decision you are making.
Making decisions about your pension based on short term circumstances - especially at a time of market volatility - can have significant long-term consequences for your financial wellbeing and retirement.
If you are still working and contributing to your pension you may find that, after accessing it, you are unable to contribute as much in a tax efficient way.
One way of accessing your pension is through a tax-free lump sum. However, if you take tax free lump sum now, you might not be able to take another one later.
The Government has announced a range of measures to offer support to people during the pandemic. You may wish to investigate whether you are eligible for this support before withdrawing money from your investments. A summary of this support can be found on the Money and Pensions Service Website.
Whilst opting out of pension contributions can seem like a tempting option in difficult times, it can also do long term damage to your retirement prospects.
Saving into a pension is the most efficient way of saving for retirement and if you opt out you risk losing:
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- Employer contribution – In most cases when you pay into your pension your employer will be putting in a contribution worth at least 3% of your salary. If you opt out this is lost.
- Tax Relief – Your pension contributions are taken from pre-tax income which could mean that 20% you would have paid in tax goes into your pension, for a basic rate taxpayer.
If you continue to save into your pension you may benefit as it will be invested at a lower price than before the market downturn.
The Government has announced a range of measures to offer support to people during the pandemic. You may wish to investigate whether you are eligible for this support. A summary of this support can be found on the Money and Pensions Service Website.
During the course of the pandemic, private hospitals have supported the NHS by providing their facilities to help the national effort to fight the virus. This meant that many non-urgent treatments for PMI customers were delayed. With the situation in the UK having stabilised, normal service has resumed in private facilities.
People who are due urgent and time-critical support and care, such as cancer treatment, will still be treated as a matter of priority. Some delays may still be possible for customers due to have non-urgent treatment but they will still receive their treatment.
We believe this is the right and the responsible response to the continued strain the pandemic is putting on health services.
Value of primary care services - Health insurance provides a range of benefits to policyholders which continue to be accessed during the Coronavirus outbreak. This includes the ability to have virtual and telephone (24hr) contact with GPs and consultants, as well as gaining specialist help for physiotherapy or mental ill health. These services have been expanded where possible during the course of the pandemic. Insurers are ensuring their customers have full awareness of the benefits that can be accessed from the comfort and safety of their homes.
Managing mental ill health - During this outbreak, insurers have an important role to help people manage their conditions and their mental health as a priority, protecting both NHS capacity and ensuring patient safety. This means customers do not need a GP referral to access an initial assessment for their condition.
Cancer care not affected - Cancer care for customers is crucial and insurers and private hospitals are working to ensure minimal impact on services. Private hospitals are endeavouring to continue to provide cancer services at dedicated sites throughout the UK.
Some treatments will be deferred - Whilst customers still have access to urgent and time critical care, a proportion of customer claims may need to be deferred due to the current surge in covid cases throughout the UK, however some regions may still have the ability to deliver non-urgent procedures and treatement, when it is safe to do so. We are working to ensure that deferred treatments remain authorised so they can be accessed as swiftly as possible as services return to normal.
New services - Where some treatments are deferred over this period, insurers are focusing on delivery of other services. As well as expanding delivery of existing virtual services, insurers have created new virtual services than can be accessed remotely, such as providing musculoskeletal consultations and treatments to help customers manage their conditions. This also includes providing symptom checkers for a range of conditions, including Coronavirus.
Managing treatments - Consultants have offered virtual diagnostics and treatment (for example pain relief and pain management) during the outbreak period whilst claims and treatment are deferred.
Supporting health and well-being - Insurers are also looking to improve virtual services to support health and well-being, to help customers during a period when gyms are closed and other restrictions mean it is harder to access normal health services or to exercise away from the home.
Cash back - If customers are hospitalised with Coronavirus they will be treated through the public health system, as there are no private intensive care facilities. If customers need to receive NHS treatment for Coronavirus, some insurers are offering a cash benefit to provide support to customers.
We recognise that this is a challenging time for people financially and personally but cancelling your health insurance policy may lead to difficulties in obtaining a new health insurance policy covering health conditions you may already have, or may develop in the time that you are not covered.
We understand that patients who are currently in a care pathway which is urgent, such as cancer treatment, should continue to receive their care. Some other patients will have their care paused due to the extraordinary crisis the pandemic has caused; individual hospital groups and other stakeholders are taking their own decisions for different services, parts of the country, and patient groups.
Please get in touch with your consultant or hospital to find out the on-going status of your treatment.
The best source of information on the pandemic is the NHS and Public Health England website and we encourage customers to follow news posted there. Your insurer will keep you up to date with developments on how they can help you during this difficult time. If you are currently under the care of a provider, they will also keep you up to date on your care options and when any postponed care may be re-scheduled.
Anything you can do to help, no matter how small or large, can make a real difference to the lives of people just like you – mothers, fathers, brothers, sisters, and children. There are many ways to volunteer, including approaching the NHS directly, your local authority (who will co-ordinate social services), and local neighbours. Plenty of advice can be found online on how to help. Do follow government advice on social distancing or other measures announced, at all times, as this is the best chance of reducing the spread of the infection in the community.
