FSB Insurance Service’s Brexit Advice

Last updated January 2021. FSB Insurance Service updates this blog regularly.

The Brexit deal has been agreed and UK businesses now have several new considerations when trading with or dealing with the European Union.

We have compiled four key points relating to your insurance, that business owners should be looking at in order to make sure they are prepared for the new relationship with the EU.

Green Cards

British drivers taking vehicles to the EU will be required to carry an EU ‘Green Card’ to ensure their vehicle insurance is valid within the EU. This must be a physical card and will be provided for free by the insurer, but it is the insured’s responsibility to request one.

When applying for a green card, you will need to provide the dates of travel, name of driver(s), countries travelling to/through and the vehicle(s) make, model and registration.

You should not require a green card when hiring a car, but your UK insurance policy will not cover you for your driving within the EU and you will need to contact your insurer around a month before travelling in order to drive your vehicle abroad. The cards themselves will be free, but you may incur admin charges to acquire one. You will need a physical document rather than an email or e-document.

You may also need an international driving permit (IDP) to drive in certain countries. Check whether you’ll need one here.

European Health Insurance Card

Whilst travelling after Brexit, your EHIC will no longer be valid or cover you for healthcare in the EU and EEA. The government has revealed its plans to replace the European Health Insurance Card (EHIC) with a Global Health Insurance Card (GHIC) which you can apply for through the NHS website.

The GHIC will be valid within the EU, but not Iceland, Liechtenstein, Norway and Switzerland, which were included under the EHIC. If you have an EHIC you won’t need a GHIC until it expires.

Even with a GHIC, it is advisable that you take out a travel insurance policy to cover for medical care whilst abroad.

Impact on General Insurance

The 16 million insurance policies held by UK households and businesses with insurers in the EEA will continue to be serviced by those insurers post-Brexit, so even if your policy is held with a European insurer you should still be alright, though this legislation hasn’t yet been fully agreed.

For UK Insurers, there is concern as Insurers without registered offices in the EEA will no longer be able to cover policies within the EU unless the individual Member State has transition arrangements.

Stockpiling for Brexit

If you have increased your stock as part of your Brexit preparations, it’s vital that you declare the updated value of your goods to your insurer. Your existing cover will only apply to the sum insured that you agreed at the start of your cover and if this has changed then you might find yourself with uninsured stock. This is of extra importance when you consider that holding more stock may make you more vulnerable to theft. You should make sure your premises are secure and comply with your policy’s terms.

If you’re unsure about what your requirements are, speak with your insurance broker and check that your policy do not need any amendments in order to remain valid after Brexit. If you’re still feeling a bit stuck, get in touch with us on 020 3883 7976.

You can also visit the Transition hub on the FSB website for more information. This hub will be updated as more information becomes available.

If you need any advice on your insurance needs give us a call on 020 3883 7976 from Monday-Friday between 9am and 5.30pm.