We would like to provide you all with an update on how the insurance industry is responding to Covid-19.
Insurance Coverage for Covid-19 Claims
The spread of the Coronavirus (COVID-19) has many shops asking questions regarding their insurance coverage and how to file a loss claim.
While many policies have historically not been a source of recovery for losses involving contamination by disease-causing agents, there are substantial efforts to expand coverage and to create sources of recovery for losses, outside the original policy intent. Additionally, governmental programs are being considered which may provide some relief.
Accordingly, we are encouraging all shops to submit claims within the time-sensitive provisions of your policy and gather the proper information that is necessary to allow the carrier to investigate and make a coverage determination. Ultimately, the insurance carrier will review the facts of a loss to determine if coverage applies. Any suspected losses should be reported per the policy conditions. Please see COVID-19 Insurance Coverage & Claims Information for a description of how coverage could apply.
California Insurance Commissioner Statement
You may have read in the news that California’s Insurance Commissioner, Ricardo Lara, on Monday, April 13, issued an order to insurers to make an ‘initial premium refund” for the months of March and April to certain policyholders adversely impacted by COVID-19. The order further specifies six specific applicable coverage lines:
* Private passenger automobile
* Commercial automobile
* Workers’ compensation
* Commercial multiple peril
* Commercial liability
* Medical malpractice
Many of our shops are wondering how this Order may impact their policies and their payment of premiums.
It is very important to note, that the Order is addressed to insurance carriers-and requires that they provide the Department of Insurance with their plans, in writing, within 60 days from the date of the order (due: June 12, 2020) and provides 120 days for the insurance carrier to provide notification to affected insureds. That date is August 11, 2020, which means you should be hearing directly from your insurance carrier by August 11, if in fact your policy is affected by this order.
We encourage your patience as we and your broker await each insurance carriers’ guidance. We recommend that you continue to pay your insurance premiums on time. Some insurance carriers have extended their grace periods for cancellation for non-payment of premium, but these are simply extensions of due dates, not premium forgiveness.
If you have any questions about this, please let us know. We are here to help and be of service.