Commercial Insurance, short term

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Hi All,

I know this question may be a little vague, but wondering if any insurance bods can advise if it is possible to take out short term insurance, for things like public liability etc. but for a term of less than 12 months. For example, let’s say someone took on a short term office lease of 3 months, can you get a policy just for that period, or would you need to do a 12 month and then cancel it afterwards?

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The short answer is ‘possibly’

If you have an existing business policy, you can generally extend that to cover a new situation. If you then vacate, you can delete the situation from the policy.
Certain policies will extend liability to include all situations from where you operate, others require a separate liability cover per situation.

If you are taking out a new policy, most (almost all) insurers will require a 12 month policy. In certain circumstances, you can short-term a policy but this is quite regulated ( usually it has to be for a minimum 6 or 9 months and only for a targeted date eg to fall in line with another policy or end of financial year).

Bear in mind that if you take cancel any policy before the expiry, any broker or underwriter fees or commissions may not be refunded and the insurer may keep an amount of premium which is more than the pro-rata amount used on the policy (especially liability covers)- the cancellation policy should be in the policy wording.

Let me know if you need me to clarify anything.

Regards,

Mark

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