Insurance Regulations

Pandemic sparks requests for extra liability coverage- COVID19’

extra liability coverage

It’s the nightmare accusation that will inevitably haunt populations around the world for the foreseeable future. And while it’s hard to prove exactly where and when someone contracted the corona virus, this will not stop plaintiff attorneys from taking on these ‘he said, she said’ liability disputes. When it comes down to it, Americans will have to defend themselves against such accusations in court. If someone files a lawsuit against somebody else alleging that they gave them COVID-19, that could easily become a protracted case in court. Consumers do get some personal liability insurance on their homeowners’ policy or a condominium policy, but if they have a personal umbrella policy over that, then they have more layers of protection. As long as they didn’t intentionally give COVID-19 to somebody else, their insurer has a duty to defend them and cover defence costs. The personal umbrella insurance market in the United States is very hot right now, according to MacGillivray. It was competitive prior to the public health crisis and will very likely remain so over the next few months. Some new companies have recently entered the market, which the team at Shaw, Moses, Mendenhall and Associates are actively canvassing in order to meet the rise in client demand.

Every insurance companies are really trying hard to find that middle ground in order to help people. There’s a lot of semantics behind everything in the policies and the forms and the coverage, but they’re doing everything that they can to help, to make concessions and to figure out solutions that work for everybody.

During the current COVID-19 pandemic, some states have loosened their licensing requirements. Some may still require you to hold a license in their state before you can practice in that state. Providing teletherapy or online therapy across state lines becomes an interstate practice venue challenge. Before using online and teletherapy with your clients, read and understand each state’s laws, which may have been recently modified due to the pandemic. All state regulatory boards have these regulations on their websites.

Extra liability insurance should cover the legal costs of challenging these types of charges and restoring your reputation. The bottom line is that umbrella liability or the personal excess liability insurance is an important supplement to existing insurance policies. How much liability insurance should you have that is difficult to answer! Even if your state doesn’t require liability insurance, it’s a good idea to have at least $500,000 worth of coverage that encompasses both types of liability coverage like property damage liability and bodily injury liability.

According to employees corporations are worried about the ‘You gave me COVID-19’ accusation on the workers’ compensation front, MacGillivray explained. The State Compensation Insurance Fund or State Fund compensation insurer created as a public enterprise fund by the state of California – recently announced that employees who allege they contracted COVID-19 on the job will automatically receive coverage under their workers’ compensation policy, without having to show proof. They’re helping the business owners by not counting those coronavirus claims towards their experience modification rating, which means this coverage decision won’t overly impact their premiums. In contrast, other workers’ compensation carriers still place the onus on the employer to disprove the employee caught COVID-19 on the job.

The grace periods are seven days for auto insurance and thirty-one days for life insurance, but can vary among companies and states. Coverage can lapse and terminates due to late payments. In some cases a policy can be reinstated by catching up with payments, but insurance companies are generally not obligated to reinstate coverage. Efforts to ease the financial strain on policyholders are in the form of time extensions, not the forgiveness of the payments.

Auto Insurance companies are offering payment help due to COVID19,

Allstate says that customers can request a special payment plan that allows them to skip two premium payments without a penalty. This applies to auto, property and power sports insurance payments.

American Family says customers with financial difficulties should contact them to discuss options.

Amica says that through June 2, 2020, they will not cancel policies due to unpaid premiums and won’t charge late fees. Amica says customers should call them if they need to talk about payment alternatives.

Farmers says customers can take extra time to pay and won’t have their policies cancelled, through May 1, 2020. Customers have time until at least May 1 to make a mid-term payment, if one is due. All unpaid balance will carry over to the next billing statement with no late fee or other penalty.
Geico will not cancel coverage due to non-payment or policy expiration through April 30, 2020. When normal billing resumes, customers out special payments plans.

Progressive is allowing late fees and will not cancel or non-renew policies due to non-payment through May 15, 2020. The company says that they’re also providing payment leniency to customers who call and ask for it.

Due to this pandemic the economy is drowning day by day thus the insurance companies are highly effected. People are loosing their jobs the earning is decreasing day by day since we are fighting with the corona virus. That is why most of the industries are giving extra liability coverage since it has been very tough for people to pay their premiums for their policies nowadays. And in most policies, especially the policies that we’re providing to our clients on the liability side, the answer to that is yes. Policyholders will be covered, and the insurers have a duty to defend them. Insurance companies are really trying hard to find that middle ground in order to help people. There’s a lot of semantics behind everything in the policies and the forms and the coverage, but they’re doing everything that they can to help, to make concessions and to figure out solutions that work for everybody. Consumers do get some personal liability insurance on their homeowners’ policy or a condominium policy, but if they have a personal umbrella policy over that, then they have more layers of protection.

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