Insurance companies that are issuing refunds for personal auto policies since driving is being reduced due to COVID-19 are making headlines. The insurance companies are seeing great, profitable results since vehicles are not traveling as much.
A more significant issue with the same type of risk exists within the business insurance sector. Currently, business operations are limited or closed. The insurance rates for businesses are still being based on regular business exposure that subsisted when companies operated normally.
You should contact the insurance company that provides coverage for your business to address these issues if your business is being affected. Since the business insurance premium is based on sales, receipts, payroll, employees, etc. – a refund may be issued if your business is affected.
Also, commercial auto exposure may be reduced during this time and worker compensation. We recommend addressing these changes at your policy renewal and during the midterm of your policy. Realistically, insurance companies and agents should be proactively contacting you.
The insurance companies may be skeptical about issuing refunds to business insurance policyholders since the amount released could be much larger than what is received from an auto insurance policy. If you have questions about business insurance coverage, Strategic Claim Consultants are here to help. Schedule a consultation by visiting strategicclaimconsultants.com/contact-us/