A Message To PrimeOne Brokers On Our Response To The COVID-19 Crisis.
COVID-19 is disrupting individuals and organizations around the world. So without a doubt, these are particularly challenging times. First and foremost, we hope that you and your closest ones are healthy and safe! Next, we wanted to give you a brief update on our status and availability, should you need assistance and support from Thorson Specialty Insurance and/or PrimeOne Insurance Company.
Our California and Michigan offices are operating during normal business hours as we continue to deliver the highest quality policy and claims administration services.
Prior to making a policy change request or cancellation, please be sure to get enough information from your insured
Determine Circumstances of Individual Risk – does the insured have contracts/agreements/legal requirements that require insurance coverage to remain in place? Most insureds have landlord, mortgagees, vendors, customer contracts and state requirements that require coverage to remain in place.
Have an insured’s general information available and ready – policy period, policy number, class of business, business open/closed, etc.
Get clarity around an insured’s current operations by asking the right questions:
Is the business open, closed, or operating within a limited capacity? Are insureds adhering to OSHA and CDC guidelines to protect employees and customers? Has the insured reduced hours or moved to take-out only? Is the insured’s business closed permanently or temporarily?
Review an insured’s annual revenues and how many months they are anticipating being closed. While none of us could accurately determine a length of closure, you could divide annual sales by 12, calculate how many months the insured has had coverage, and then add projected sales for the duration of the crisis. Just keep in mind for receipts that have already occurred, the insured still owes earned premium even if annual sales are reduced mid-term.
Please address loss prevention measures with your clients
Security For Temporarily Closed Businesses – insureds should take all appropriate steps to secure their premises from vandalism and damage. Appropriate measures should be maintained per required safeguards such as alarms, fire sprinkler systems, etc. In areas where weather is an issue, proper measures should be taken to maintain to maintain minimal heat to prevent pipes freezing. All equipment should be maintained properly and security services or periodic checks would also be good loss prevention measures.
Additional Sources For Policyholders –sources like CDC, OSHA, SBA are all great places for policyholders to start. This particular site is a good starting point for restaurants and bars, who have been hit particularly at this time. – https://restaurant.org/Covid19Coronavirus Information and Resources | National Restaurant AssociationThe restaurant industry is home to more than 15 million trained and skilled employees in restaurants across the country serving the public every day. The restaurant industry is open and the tables at America’s 1+ million restaurant and foodservice locations are always a great place to gather with …restaurant.org
Our regular policy terms and conditions are still applicable
Business Interruption Coverage – business interruption coverage provided within the PrimeOne property policy is for loss sustained during an interruption caused by “direct physical damage” to the building or business personal property. There are additional exclusions that apply to mandates issued by governing entities (please refer to PrimeOne policy terms and conditions for details). Therefore coverage during the COVID-19 pandemic cannot be provided for these claims.
We are here for you and all our PrimeOne policyholders
As with any claim, PrimeOne will thoroughly investigate and evaluate the merits of each claim on a case-by-case basis. If a policyholder has a specific circumstance that may result in a claim, we encourage them to submit a claim to our team for consideration.
PrimeOne also wants to do what we can to keep policyholders in business. We will be allowing delivery operations and extending Hired & Non Owned Auto Liability for business owners provided we obtain a copy of the employee/driver’s personal auto insurance. We will also be waiving late payment charges with Pacific Risk Financial Services for the next 60 days for payments due now through May 18, 2020.
The Thorson Specialty & PrimeOne Insurance Team