Insurer Entity Restructures
For UK domicile businesses that are undertaking work in the EU, the territorial limits of policies should not change and we would not expect there to be any issues.
At the moment, some Insurers, such as Aviva are able to ‘Passport cover’, under ‘Freedom of Services’, placing cover for property, and public and products liability for entities based in other EU/EEA Countries by including them on the master policy issued in the UK and paying the relevant tax in the entities domicile country. The outcome of whether this will still be possible post Brexit is unclear.
You should find the following link of interest which explains the passporting of cover and includes a useful video….
Insurers & Lloyds are preparing for various outcomes and in some instances have arranged for offices in the EU & EEA territories and have also restructured their UK Entities in preparation.
For example Aviva Insurance Limited will transfer the parts of policies where risks are situated in the EU/EEA from Aviva Insurance Limited to Aviva Insurance Ireland DAC. Purely a transfer between companies within the Aviva group.
Motor Insurance – Green Cards
Another area that may change is that Green Cards may be required again, for using vehicles outside of the United Kingdom, rather than having EU Certificates of Motor Insurance.
The following is an extract from The British Insurance Brokers Association (BIBA), with regards to the possible outcome of a ‘No Deal’:
Update from BIBA on Green Cards post 29 March 2019.
“In line with many other HM Government departments the Department for Transport (DfT) are planning for the possibility of a ‘no deal’ ‘hard’ Brexit and have called on the insurance industry to make preparations to assist UK motorists and companies using their vehicles in Europe after 29 March 2019.