Dive Master Trade Update – COVID-19

When the current Social Distancing Restrictions are eased or removed within the UK we expect to see the UK Dive Trade experience higher market demand for UK diving and dive training. We all need to be ready to respond to this potentially higher demand on UK dive training and recreational diving activity. Divers will want to get back to diving, and with the potential of international travel remaining slow or denied to some traditional destinations, diving in the UK will become more important.

To help our UK Trade Policy Holders we provide this advice on how your Dive Centre Indigo Liability Insurance is structured to assist you getting your business back trading as soon as the “bounce” in the UK Dive Trade occurs.

These FAQs are to assist you in understanding the current situation on your insurances we provide to you, and how these will assist you in getting your business going again.

Question: Why haven’t we been offered “insurance holidays” on our premium for the period we haven’t been able to trade due to the pandemic restrictions?

Answer: Our trade premiums for this year are calculated using your previous year’s income as an estimate for this year’s estimated risk. This method of fixing the premium in your trading year is beneficial to the UK Dive Trade as insurance costs for the year are fixed, and there is no additional premium adjustment required if you do substantially more business and hence attract more risk as a result. You will simply pay a higher premium for the increased risk in your next insuring year based on your historical turnover from this year of trading.

However as the premiums are fixed for this trading year they will also not be reduced during a downturn in business, as in this case by the recent restrictions imposed by the government to alleviate the effects of the pandemic. Where a downturn occurs that reduces your turnover that lower turnover is then used to calculate your premium for next year. So if at your next renewal this year’s turnover is reduced this will be reflected in a lower premium for next year.

You will effectively benefit from a lower Fixed Premium at your next renewal.

Question: If I am about to renew my insurance with Dive Master Insurance, can I delay taking up the quote until restrictions are lifted?

Answer: Yes you can delay the start of cover if you wish.

This may not be ideal for all businesses where certain insurance covers are required to meet statutory requirements or to remain in status with your Association.

In these cases please contact us and we can look at alternative options. Minimum deposit adjustable premium options may be available but these may not be suitable for all businesses.

Where we offer this approach it will not be calculated on a Fixed Premium basis but on an adjustable premium basis.

Question: If I used Premium Credit to fund this year’s premium can I have a payment holiday?

Answer: It’s worth contacting Premium Credit to ask them if a payment break can be arranged, as they have agreed a one month’s payment break for certain clients and we understand that they are constantly reviewing this situation.