The current lockdown is likely to become more restrictive before the rules are eased. As a result, many businesses are having to close their premises, and some are allowing them to be used as COVID-19 vaccination sites.
However, there are some insurance considerations that need to be taken into account when either step is taken.
Standard commercial property insurance policies contain clauses which kick in when premises are unoccupied. If a business is forced to close their premises due to the pandemic, they may pay little thought to the provisions of such policies.
In addition, if a business wants to allow their premises to be used as a COVID-19 vaccination site, this could be seen by insurers as a change of use, particularly due to the possible additional risks and increased flow of footfall such use could bring. It could also fall outside the use provisions of an occupier’s lease.
This change of use may lead to higher insurance premiums. If insurers aren’t notified, businesses could leave themselves uninsured. Also, the use of premises for COVID-19 vaccinations may put occupiers in breach of their lease, with the risk of being liable to the landlord for damages or the lease being terminated for breach.
If lockdown has meant your property has not been in use, first you need to review your insurance policy. If you are a leaseholder, you also need to review your lease to understand your obligations when your property is forced to close. Those may include an obligation to notify the landlord and the landlord’s insurer and/or an obligation to take certain steps to ensure the safety and security of the property.
If you are planning to use your premises as a vaccination centre, you should check if you are required to let your insurer or broker know. If you are a leaseholder, you should also review your lease to understand whether such use is permitted. You may be prohibited absolutely from allowing such use, or you may only be permitted to do so with the prior formal consent of your landlord.
These issues are complex and the wisest course of action to take is to enlist specialist legal guidance to review the requirements of your lease to ensure that you are not met with unforeseen consequences.
Our team can help and has expertise in commercial property, property litigation, retail, real estate and local authorities law. We can provide the specialist guidance you need to safeguard your interests in this latest lockdown.
If you need legal advice or have any questions, please feel free to contact me directly.
