Insurance Update from Cover Notes brokers


Cover Notes have been working with the Music Industry and are the chosen Business Insurance partner of the MIA for over 20 years. In that time, they have helped to support Musical Instrument Retailers, Wholesalers, Manufacturers, Piano Tuners, Teaching Schools, Repair Workshops, Recording Studios or Allied Trades specific to the Music Industry – pretty much anything musical!

Today, they have an important update. Here is a note from Steve, Graham and the Team…

Many businesses are still in lockdown relating to the COVID 19 pandemic and there is controversy over the wordings of some insurers policies, in particular relating to business interruption. Brokers generally and as a result of pending legal action (see next paragraph) cannot comment on said wordings or on the validity of any claims based on them.

However S Johnson & Company Ltd in common with other brokers have provided information to the Financial Conduct Authority who are currently taking legal action seeking a Court ruling, as well as which the Financial Ombudsman Service are currently considering complaints.  The outcomes of these actions are likely to clarify matters.

It is important that if you feel you have a valid claim, you approach your insurer and register a claim with them, taking note of any reference numbers and the time and date of the call.  The reason for this is that all insurers have the option to reject claims that are not made ‘promptly’ or within  a reasonable timescale, in other words if you think you have a claim please act now to avoid leaving it too late and possibly having any valid claim time barred, otherwise you risk losing whatever cover there may be. Please also note that if it turns out that there is cover as insureds you should do whatever you can to mitigate any losses and co-operate to assist insurers in any recovery.  Keeping records is the key point here.

Once you have reported a claim there is a process which needs to be followed to its conclusion and an example of this can be seen on our website  – however please note that this is specific to our clients and you should speak to your own broker to determine your own best course of action.

Steve, Graham and the team.