Insuranceciooutlook

How Insurers and Policyholders are Handling the COVID-19 Challenges?

By Pamela Morgan, Insurance CIO Outlook | Monday, November 02, 2020

Some states need insurers to provide coverage for employees of businesses like restaurants who use their vehicles to deliver food and products to customers.

Fremont, CA: Insurers and policyholders are faced with challenges in personal and commercial like because of the COVID-19 pandemic. Many retail and service businesses have been ordered to close while food services have been restricted from take-outs and deliveries.

Policyholders are seeking insurers’ help, and many regulators are taking measures to provide specific guidance such as:

Premium Changes and Billing:

Some states are asking insurers to decrease premiums and offer extra time for policyholders to pay their bills.

Policy Cancellations:

Regulators in some states expect insurers to halt canceling policies for reasons such as expired driver’s license.

Additional Coverage:

Some states need insurers to provide coverage for employees of businesses like restaurants who use their own vehicles to deliver food and products to customers.

Claims and Litigation:

Standard business interruption policies had excluded losses caused by bacteria and viruses for several years. Some Congress members have started to help insurers cover the losses. Still, some groups are against any attempts to allow insurers to cover their losses for risks that have not been underwritten.However, this does not mean business will not file claims or sue insurers in the future.

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