The State of the Insurance Industry during COVID-19
As many states begin to announce plans to reopen the local economy, the residual impact of COVID-19 still remains. The insurance industry has taken steps to provide relief for policyholders that have been impacted as a result of “shelter-in-place” orders.
While the hot button topic as of late is Business Income or Business Interruption and whether coverage would apply, there are a number of positive steps the insurance industry has taken to aid those affected by COVID-19.
Most insurance companies have continued to offer to delay cancellations as a result of non-payment of premium. In addition, many are offering premium credits on personal auto policies for the months of March, April, and even May in some cases. These are essentially refunds of 15% – 25% depending on the carrier – due to a drastic decrease in driving habits.
Vacancy clauses on many commercial policies have been waived as well given the decreased capacity due to employees working from home. We have even seen similar premium refunds offered on small business policies with certain carriers.
Health carriers have taken steps to eliminate deductibles for COVID-19 cases and have increased payments to cover Coronavirus testing.
We continue to monitor industry and carrier actions closely as they evolve.