The end of the “old” business closure insurance

November 5, 2020 – The insurers want to introduce new conditions by canceling changes. In the new policies, there is usually no protection for diseases that develop into a pandemic or epidemic. The terms and conditions are now clearer. This means that the mega-dispute over benefits from the corona lockdown on the basis of the often unclearly formulated old conditions should hardly be over.

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Currently, all customers receive the Allianz Insurance AG a change notice for your previous business closure insurance (FSIO). The company confirmed this on request. Other insurers are also offering their customers new contracts. In this way, the insurance companies want to create clarity about insurance cover in the event of pandemics.

Often performance obligation in old contracts due to lack of transparency

Lawyers and courts often see insurers from the old conditions in the obligation to provide benefits. This applies, for example, if the clauses were formulated unclearly. In the event of a lack of transparency, the insurance companies have to pay (Insurance Journal Archive).

Customers can also have a benefit claim from the second lockdown. This applies to conditions that can be challenged and if the customer has not already exhausted his maximum benefit duration of 30 or 60 days through the lockdown in spring. In addition, the contract must of course continue to exist. But it doesn’t look like that.

Pandemics are excluded

“In our opinion, insuring against the corona virus in times of pandemic is not possible at fair prices in terms of risk,” an Allianz spokesman explained the changeover.

There is now a clear exclusion of pandemics and epidemics in the new BSV conditions. At the same time, however, all diseases listed in the Infection Protection Act (IfSG) would also be insured. This means that Covid-19 is also insured in the new FSIO after the end of the pandemic.

However, this only applies if the customer has to close due to an official order due to a Covid-19 incident in the insured company.

There are similar offers from the Axa Insurance AG and the R + V group.

The change is currently being well received.

Allianz Insurance AG

The conversion of the business closure insurance is running successfully

At Allianz, “a few thousand customers” are affected by the new version of the conditions. These include, for example, butchers, bakeries, ice cream parlors, restaurants, hotels and hospitals.

“In order to rule out any ambiguities for the future, Allianz has been submitting this to all of its existing customers in Germany since the beginning of September […] an offer to convert to the new business closure insurance.

If there is no change, the contracts will be terminated in due time at the end of the respective term, ”explained an Allianz spokesman. “The change is currently well received,” it continues.

Things are going even better with the Basler Versicherung AG. “About 90 percent of our customers have decided to continue their insurance coverage under the new framework,” explained a spokesman.

Thousands of customers have already been compensated

The Basler belongs next to the Barmenia Allgemeine Versicherungs-AG, the HDI group, the Signal Iduna Allgemeine Versicherung AG and the Munich Association of General Insurance AG to the few insurance companies that affirm a general obligation to provide benefits from the corona lockdown.

The HDI has already paid 54.2 million euros for around 2,100 cases. So far, Barmenia has paid EUR 31.7 million in compensation to 2,114 companies. At Signal-Iduna, it is around 2.2 million euros for 126 cases. The Munich association has also compensated in six figures.

For most of the “payers”, however, the regulations are not yet complete. Therefore, the benefits are likely to increase.

According to this, company closings are now also expressly ordered by the authorities […] insured if employees have Corona.

Signal Iduna Allgemeine Versicherung AG

Termination after compensation

The HDI will no longer reimburse a second lockdown loss. In the event of damage, customers received a notice of change. This also applies to existing contracts without BSV damage. The customers receive a proper contract termination for the respective expiration, as a spokesman announced. Signal Iduna does the same.

However, both insurers emphasize that Covid-19 is still included in the new BSV policies. “According to this, official company closings are now also insured by individual decree due to Sars-CoV-2 if employees are sick with Corona,” says Signal-Iduna, for example.

In contrast, like most insurance companies on the market, Basler explicitly rules out pandemics. Barmenia is still working on new BSV conditions.

This also applies to The liability insurance VVaGwith the General Association of the German Insurance Industry eV (GDV) and reinsurers developed new BSV conditions. At the same time, the old policies were initially terminated by the end of March 2021, depending on the process. Customers can respond to this within three to six months.

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