The Government Job Retention Scheme may provide wage roll payments to employees who are ‘furloughed’ by your customer. Once an employee is furloughed, they’re unable to work in a capacity which either makes a profit or provides a service to the employer. However they’re able to perform activities such as learning and development, volunteering, and the execution of regulatory responsibilities, whilst continuing to remain an employee of your customer. The requirement for Employers’ Liability insurance remains as does the exposure, albeit it’s reduced to non-manual and mental health in nature.
We expect exposure estimates for furloughed employees to be included in wage roll estimates and declarations.
For our mid-corporate products estimates should include furloughed payments as a separate item and will not be charged for during the temporary pause in working.
For our packaged products premium is calculated in a different way. Products which rate on wage roll may be adjusted to capture furlough wage estimates (on an annualised basis) as clerical wage-roll during the temporary pause in working. Products which rate per capita may be adjusted to reflect the actual number of employees not-furloughed through the temporary pause in working down to a minimum of one.
Your customers can find out more about supporting their people on the Allianz COVID-19 resource hub.