Gulfshore Insurance > Gulfshore Blog > Business Continuity > Insurance Considerations During the COVID-19 Crisis

Insurance Considerations During the COVID-19 CrisisAcross the world, COVID-19 is upending daily life. Below are two important insurance updates to keep you in the know.

COVID-19 and Auto Rate Relief

Americans who are suffering financially due to COVID-19 may have relief coming for insurance payments. Many insurers have announced auto insurance premium discounts to recognize that insureds are driving less during the coronavirus crisis. According to the Insurance Information Institute, these discounts, refunds, dividends and credits total $8.1 billion. It is estimated that this total will reach $10.5 billion as more auto insurers announce their offers. In addition to offering discounts, many carriers are also relaxing payment terms, and some are adding free coverages for identity theft, delivery services, and other needs. Many states have asked or ordered auto insurance companies to provide flexibility to customers who are financially affected by COVID-19. Specifically, Florida has encouraged insurers to be flexible with premium payments in order to avoid lapses in coverage.

 

COVID-19 and Teleworking: Coverage Issues

With many “shelter in place” municipal orders in place, it logically follows that more business operations and activities are now occurring in the home. You might be wondering, what are the insurance implications of this? Homeowners policies contain various property restrictions for business property and liability exclusions for business activities occurring in the home. Such restricted coverage reinforces the policy’s intent to cover only personal-related loss exposures and not business-related ones. This approach thus encourages individuals to cover their business loss exposures with commercial insurance policies or home business endorsements. Courts have generally held that a business must contain two elements: (a) continuity of the business activity, and (b) a profitability goal. Thus, for traditional employees who previously worked in an office Monday through Friday and now telework those same days on a temporary basis, they are likely not to encounter any new coverage gaps. Conversely, a business owner who operated his or her business outside the home and now operates this business in the home should reach out to his or her insurance agent to properly insure any emerging and uncovered loss exposure gaps from this ever-evolving COVID-19 phenomenon.

We will continue to provide updates on emerging insurance issues amidst the COVID-19 crisis. If you have any questions or concerns, please do not hesitate to reach out to Gulfshore Insurance.

Andrea Pelletier, CPRIA, CPIA is Client Advisor and Partner at Gulfshore Insurance specializing in Private Risk Services. Andrea works with successful individuals and their families on creating and customizing package insurance solutions in the areas of luxury homes, car collections, jewelry, fine arts, watercraft, and personal excess liability. Comments and questions are welcome at apelletier@gulfshoreinsurance.com