Brexit – How do you prepare?
Will there be a “hard” or “soft” Brexit? At this moment that is more like looking into a crystal ball. As an entrepreneur you do not know what the consequences are for your company. Yet, there is no reason to wait passively. It does not hurt to be prepared. That way you are ready when there is more clarity and you are ready to quickly take measures.
The Dutch National Government, VNO-NCW and MKB-Nederland offer you practical tips on how to start your Brexit preparations on: www.hulpbijbrexit.nl (in Dutch) With the Brexit Impact Scan you can easily map out the consequences for your company. You can also request a Brexit voucher on the website. This is convenient because you consequently apply for a subsidy for expert advice on alternative markets and the consequences for your company.
So far, that is it, in general. In this newsletter we talk about some important points in our own field that may apply to your insurance policies.
Some important points:
Insurance of local branches in the United Kingdom
Do you have branches in the United Kingdom and are they insured under a Dutch policy? Brexit can have consequences for those insurance policies. If after Brexit, the UK government no longer allows insurance from another country, you must take out local insurance for those locations.
Area of Coverage in the European Union
Your policy description determines whether changes are needed. Is the area of coverage on the policy 'European Union'? Then for example, the export of products to the United Kingdom, is no longer insured after Brexit.
Area of Coverage in Europe
There are also insurers that handle 'Europe' as an area of coverage. The United Kingdom geographically belongs to Europe. Withdrawal is then no problem regarding insurance coverage.
Does your company import products from the United Kingdom? After Brexit you are then an outside the European Economic Area (EEA) importer. This means that according to the law you are not only a supplier, but also a producer. This means your company is at a greater risk.
It is important that you properly contract the liability caused by a defective product from the United Kingdom with your suppliers and customers in the EU. We do not expect insurers to increase premiums for this change.
Have you increased your stock levels in the United Kingdom and/or in the Netherlands in preparation for Brexit? Then you may have to take account of under-insurance. It is important that the value matches the insured sums stated in your policy.
As of 29 March, large delays may occur at the borders due to controls and customs procedures. The consequences of these delays are often not insured under your transport [marine cargo] insurance.
Collisions in the United Kingdom
ou can no longer submit a claim in the Netherlands for a collision with a local vehicle. You can also no longer call on the Dutch Motor Insurance Insurers [het Nederlands Bureau Motorrijtuigverzekeraars] to investigate the insurer of the British counterparty. This 'Visitor Protection' is in fact based entirely on the EU directive for motor insurance. This will no longer exist after Brexit. The United Kingdom will continue to participate in the green card system.
What can you do and what can you expect from us?
Do any of the above situations apply to your company? Then contact your Meijers insurance advisor. Please call 020 - 642 05 24 or send an e-mail to email@example.com. In the meantime, based on the information known to us, we will also check whether Brexit has consequences for your company. If that is the case, we will discuss which adjustments we will make with you.
Michiel Vink, Manager Accountmanagement