A number of Fleet insurers are able to offer reduced coverage for vehicles that have to be laid-up by businesses during the current Covid-19 Crisis.

This reduction in cover enables the insurer to issue a credit against the premium already paid, a credit that can be used by the policyholder to ease cash-flow or fund other vital debts that a business continues to face. It’s called Laid Up/Fire & Theft (LUFT) coverage. In short, the cover reduces from Comprehensive to LUFT,  perils insured are then limited to Fire and Theft only. This can be useful for those customers that have secure premises where groups of vehicles can be stored. It’s not for everyone!

The advice from our broker is that you speak to your broker as soon as possible to see what options are available.

Proof of the Statutory Off Road Notification (SORNS) for each vehicle to be laid up will be required by insurers

And then the following in general will need to be answered:

• List of vehicles to be laid up, including latest valuations. 
• Details of vehicle storage (all locations if more than one) including postcodes.
• Details of security in place (including CCTV, Man Guarded, Perimeter fencing).
• Details of vehicle keys security (how and where they are being stored).
• Details of separation (how far apart from each other will the vehicles be kept).
• Will vehicle batteries be disconnected whilst laid up?
• Time period to be laid up (if known)?

Further guidelines :

Guidelines on Separation

• Try to ensure each vehicle is accessible from at least one side to allow a fire to be fought so unburnt vehicles can be accessed and moved to prevent the fire spreading.
• Ideally this will limit any row to a depth of 2 vehicles side by side.
• You should try to maintain a separation distance of 6 metres between rows or blocks of vehicles.
• Suitable firefighting equipment should be provided to the store where possible..
• Suitable and sufficient fire risk assessment should be completed.
• Some form of fire alarm (manual if appropriate) should be provided where possible.

SORNed Vehicles are also to be removed from the Motor Insurance Database (MID)

Our understanding is that these are being looked at on a case by case basis and there is no ‘one size fits all scenario’.

Should you need assistance from Pay as you Track during this difficult time please contact us.