April 2, 2020

 

This is truly an unprecedented time in our country, as we all cope with the spread of the COVID-19 virus.  We, at Lawley, hope that you are safe and healthy during this trying time. As we have been in good times, and bad, we are here for you. Our insurance, employee benefits, retirement, risk & claims teams are reviewing all new pertinent information and we continue to produce updates we deem important and necessary to our clients and the communities we serve.

In order to fulfill our mission of being a one-stop resource for our clients and friends, our team developed Lawley’s COVID-19 portal. We encourage you to visit our portal located here. You will find updated information on employee benefits and paid leave, construction and real estate, corporate wellness, business insurance, and updates from our associations. Our team continues to update our portal as new information becomes available almost daily.

Last month, we provided you with information on prevention and control measures, human resources information, health insurance and NYDBL/PFL, retirement plans and 401(k)s and travel insurance.

With national workforce disruption, organizations are finding day-to-day operations irregular. Our insurance professionals are here to help you answer any questions pertaining to your specific commercial insurance involving business interruption insurance, including what is covered and what is not. We are not able to offer a blanket comment on business interruption insurance coverage pertaining to coronavirus situations because every situation is unique and every client has different policies in place that should be reviewed with someone on our team.

If you believe that your business has sustained a loss as a result of the COVID-19 situation, it is imperative that you promptly report the claim, as required by loss notice provisions in your policy, and that any damages are well-documented.  While we anticipate a number of COVID-19 related claims may not be covered under the policy forms, our claims consultants are prepared to assist you with any potential claim you may have under your policies and will facilitate the investigation and coverage review of the matter with your carrier. Remember, your claim cannot be considered for coverage if it is not reported.

In addition, Lawley is working closely with the insurance industry to try to find a solution. We are keeping our finger on the pulse of not only the insurance industry, but also legislative and regulatory initiatives that may provide relief to small businesses. Here are two we are watching closely.

  • This past weekend, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The Act allocates $350 Billion to help small businesses keep workers employed. The Paycheck Protection Program is outlined in detail in the attached U.S. Chamber of Commerce guide and checklist. If this program can assist your business, we suggest you contact your bank as soon as possible. The administration indicates that this program is expected to be available by April 3. Please view this easy to read guide.
  • On March 31, our associations joined several trade groups to ask Congress to create the “COVID-19 Business and Employee Continuity and Recovery Fund.” This is modeled after the September 11th Victim Compensation Fund. The CIAB report states that “it would be backed by the federal government and be authorized to contract with interested businesses to administer and facilitate the distribution of federal monies and liquidity to businesses and their employees. The relief would be tied to requirements to keep employees on the payroll, maintain worker benefits, and meet financial obligations. Strong anti-abuse provisions, including post-event audits, would be included.” We are watching this proposal daily and will post updates on our COVID-19 portal.

The NYS Department of Financial Services directed all insurance companies to notify policyholders that they are suspending cancellation and non-renewal of coverage due to nonpayment through May 15, 2020. They cannot charge late fees or penalties during this period. Some companies are doing this automatically and some require a request from policyholders.

In addition:

  • Consumers experiencing financial hardship due to COVID-19 may defer paying life insurance premiums for ninety (90) days.
  • Consumers and small businesses experiencing financial hardship due to COVID-19 may defer paying premiums for property and casualty insurance for sixty (60) days.
  • Premium finance agencies are required to provide the same relief as insurers.
  • If you continue to have financial hardship as a result of COVID-19, you may request to remit missed payments over 12 months.

As things develop and more information emerges, we will strive to keep you informed by posting on our portal.

We wish you all the best. Please stay healthy and, of course, do not hesitate to contact us should you have any questions.

Sincerely,

Bill Lawley | Principal

Mike Lawley | Principal

Chris Ross | Principal