Our Agency understands that businesses are facing significant obstacles and may find it difficult to immediately pay insurance premiums. To address this situation and ensure continued coverage, we’re taking action to support our clients.
As each insurance carrier and finance companies differ in their guidelines, most are suspending all policy cancellations for nonpayment; waiving late fees and continuing with regular premium billing. In all instances, we are continuing to follow regulatory guidance and provide support that may be needed.
Please contact us if you are experiencing any payment difficulties or concerns, so we can discuss the best way to handle your insurance needs.
Additionally, we’ve outlined the below benefits that are an interruption of the stimulus package that came out. Please refer to the IRS website for specific details.
Economic Injury Disaster Loan “EIDL” (different from SBA Loan)
- Grant up to $10,000 to small business and private non profits.
- $10,000 forgiven but can borrow up to $2,000,000 at low interest rate.
To be used for:
- Payroll
- Sick leave
- Increased production costs
- Rent
- Mortgage
- First come first serve
- Independent Contractors are eligible
- To apply go to https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
Loans from CARES Act (no personal guarantees)
Small Business Loans guaranteed by SBA at 4% but really 1%.
Eligible Applicants:
- Employers with 500 less employees
- Sole proprietors
- Independent contractors
- Self-employed
Loan payments deferred for 6 months but interest accumulates. First Come First Serve.
Intended for:
- *Payroll cost (Salaries, Commissions)
- Continued health benefits
- Interest on mortgage or rent of a commercial office
- Utilities
- Interest on any debt associated with the business
*75% must be used for payroll costs
- Must be able to show conditions causing difficulty in continuing operations
Payroll Tax Credit For Employers
- Employers who hold onto employees during the pandemic would be eligible for a refundable payroll tax credit. The 50% credit would offset the employer’s share of Social Security taxes up to $10,000 of qualified wages per employee. For employers with more than 100 full-time employees, qualified wages are wages paid when they are not providing services due to the COVID-19. For eligible employers with fewer than 100 full-time employees, all employee wages qualify for the credit.
Payroll Tax Payment Delays
- The bill would extend the time to submit payroll taxes. The extension for payroll tax would apply to the employer portion of self-employment taxes, too. The provision requires that the tax be paid over the next two years, with half due by December 31, 2021, and the remainder due by December 31, 2022.
Insurance Tips If Effected by CoronaVirus
Donegal
- Will adjust payrolls down to reduce premium
- All policy cancellations have been suspended through May 22, 2020 for nonpayment and waiving late fees
- This does not apply to any notices that were issued prior to March 22, 2020
- This does not negate the premium due just defers it
- Call the company so they can note your account 800-877-0600
Westfield
- Suspending all cancellations until 5/31/2020 or as directed by the state
- They are offering extended payment plans
- Call the company at 800-243-0210
Guard
- Extending grace periods, flexible payment plans, honoring payroll decreases and trying to work with all clients through this difficult time. Call 570-825-9900
USLI
- All cancellations for nonpayment suspended for now
- Policyholders can call them to discuss flexibility to their payment plan at 866-632-2003
Other Tips for Insurance
- Any Insurance Company may be contacted to discuss alternative payment plans, deferred payments and reduction of coverages. Each company has its own set of guidelines but is trying to work with their policyholders through this difficult period. The best option is to pick up the phone and call the company. We as an Agency can provide suggestions, tell you their general guidelines but do not have the authority to alter payments or defer payments. Only company staff can do that.
Personal Lines Suggestions Other Than Payment Plans
- If you have autos not in use at all because of the Coronavirus, increasing your deductibles will save premium. You can always decrease them once you are back on the road. At this time all registered cars are still required to be insured. Most companies require all cars to have the same limits so reducing limits on one car usually is not permitted. By increasing your deductible, it does still apply to all coverages such as vandalism, fire, theft etc. So consider all such decreases.
Commercial Lines
- The Companies in general are allowing policyholders to adjust payroll. By adjusting payroll on many policies IT MAY reduce premiums. Payroll serves as the rate basis on many policies. Most clients have had to lay off or furlough employees which will reduce their basis and reduce their premiums for General Liability and Worker’s Compensation. Call us and we can discuss your options for your current term and/or upcoming term.
- Pay As You Go Worker’s Compensation is a great plan many of our companies offer. This plan charges you based on your actual payroll each month so if there is low payroll it is less, if it is high payroll it is more premium. This is a great platform for seasonal companies or companies with varying payroll cycles.
- If you have a commercial fleet of vehicles not in use increase deductibles and/or decrease coverages (only if you are absolutely sure they will not be on the road and you don’t have an umbrella policy). Higher deductibles will still apply to such perils as theft, fire, vandalism etc. so consider your decisions carefully.