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Commercial Lines PPP Loan Forgiveness UpdateLast month, Congress was considering a law that would automatically forgive Payment Protection Program (PPP) loans under $150,000. If this law is approved, small businesses who received a PPP loan of less than $150,000 would have their loan automatically forgiven without having to file the forgiveness application with their bank.

As of now, Congress still has not approved automatic forgiveness of PPP loans for small businesses.

Because the forgiveness application is lengthy, many small businesses are waiting to file their applications in the hopes that Congress will approve automatic forgiveness. And many banks are encouraging PPP recipients to wait since interest is not incurring and there is not a tight deadline at this point to apply for forgiveness. Businesses have 24 weeks from the date of their loan to apply for forgiveness.

To apply for loan forgiveness, you will need to file an application (Form 3508) with the bank that issued the loan to you. If your business did not reduce the number of its employees or their wages, you can use the more streamlined Form 3508EZ.

You can download the forgiveness application [Form 3508] by clicking here, and the instructions by clicking here.

The simplified forgiveness application [Form 3508EZ] can be downloaded by clicking here and the instructions by clicking here.

We will continue to share information as it becomes available and keep you informed.

Ryan Schmidt is a Client Advisor and Partner with Gulfshore Insurance. Ryan specializes in working with commercial clients. Comments and questions are welcome at rschmidt@gulfshoreinsurance.com.

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

We recently sat down (over Zoom) with one of Gulfshore Insurance’s greatest assets, Senior Claims Advocate, Cheryl Roberts.  In the video below, we discuss some of the most common claims community associations are facing, and how associations can mitigate and protect themselves when claims arise.

Cheryl has been a licensed claims adjuster for more than 15 years.  For much of that time, she worked for the insurance companies, adjusting claims.  But for the last several years, she has been part of the team at Gulfshore Insurance working closely with our clients, handling hundreds of claims annually.  Her experience and expertise is invaluable during the process of a claim.

Whether you are a board member or an association manager, this video has a lot of great tips.  Enjoy!

Jeff Sanders, works with associations and companies throughout the state of Florida to meet their insurance and risk management service needs. Jeff and his team have a proactive style and hands on approach to providing insurance services to their clients. Not only is Jeff a commercial property and casualty specialist, he also holds a TRIP designation, is a member of the Community Association Institute (CAI), Hospitality Financial & Tech Professionals (HFTP) association, and Community Owners – Managers – Associates (COMA). Jeff is also a certified Continuing Education instructor for the community management and construction industries. Comments and questions are welcome at jsanders@gulfshoreinsurance.com

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

These conversations are difficult to have with associations, but we are currently in a “Hard” market for Property insurance. On average, property rates decreased from 2004 through 2017; however, approximately 18 months ago, the marketplace began to show the effects of multiple hurricanes in the east, wild fires in the west, and other global catastrophes. Now, amidst a global pandemic, we are entering what is being forecasted to be an extremely active Hurricane Season and the complete unknown of COVID-19.

Over the past 12 months, property insurance renewal rate increases of 25% or more have been typical for properties without claims, and 50% to 100% increases for those with significant claims.

Additionally, while the true effects of COVID-19 are still unknown, many experts are suggesting COVID-19 may be the single most costly event ever for insurance companies.

These “hard” markets are cyclical, so community associations should prepare and budget accordingly. And when the market softens, they should reserve those saved funds for the next hard cycle.

Market Factors:

  • Profitability: 2017 to 2019 was the most costly 3-year period on record for Property insurance companies.
  • COVID-19: Industry experts are suggesting this could be the single worst catastrophe the insurance industry has ever seen.
  • Hurricane Season: Forecasts predict 2020 to be a “hyperactive” hurricane season.
  • Roof Age: 20 years has long been the “magic number” for insurer sensitivity. Hurricane Irma claims data revealed a huge spike in claims for roofs older than 12 years.
  • Litigation: Litigation due to Assignment of Benefits, “social inflation,” and first party lawsuits have inflated losses for insurance companies.

Proactive Steps:

  • Education: Associations should be aware and prepared that the market has less capacity and is becoming increasingly more expensive.
  • Budget: Budget for these expected increases so associations are prepared.
  • Preparation: Contractors should be inspecting your roofs and buildings annually. This allows for better roof condition as your roof ages and shows record keeping of repairs and ongoing maintenance.

There is no magic bullet for these increases, but hardening markets have always been cyclical in the insurance industry. As weather patterns improve and profitability increases, more insurance companies will throw their hats into the ring creating a more competitive marketplace.

Jeff Sanders, works with associations and companies throughout the state of Florida to meet their insurance and risk management service needs. Jeff and his team have a proactive style and hands on approach to providing insurance services to their clients. Not only is Jeff a commercial property and casualty specialist, he also holds a TRIP designation, is a member of the Community Association Institute (CAI), Hospitality Financial & Tech Professionals (HFTP) association, and Community Owners – Managers – Associates (COMA). Jeff is also a certified Continuing Education instructor for the community management and construction industries. Comments and questions are welcome at jsanders@gulfshoreinsurance.com

Post-coronavirus Office Checklist

As organizations create return-to-work plans, many employers are reviewing best practices for their post-coronavirus office. By updating office layouts, encouraging new behaviors and expanding remote work options, employers can help prevent the spread of diseases and protect the health and safety of employees. Use this checklist as a guide when evaluating changes to your office.

Click here to download the checklist

This is a constantly evolving area, with new guidance being issued nearly every day. Gulfshore Insurance will continue to monitor the rapidly developing COVID-19 situation and provide updates as appropriate.

 

We have aggregated all Coronavirus resources and updates to one area on our website, available here.

Jeff Sanders, TRIP is Client Advisor at Gulfshore Insurance who works with a wide range of business clients to deliver strategic risk analysis and guidance. Comments and questions are welcome at jsanders@gulfshoreinsurance.com