Does the pandemic affect your premiums?

The changes in the way local businesses are operating during the COVID-19 pandemic warrants a call to their insurance agent to discuss specific coverage and how premiums may be impacted. That was the recommendation from two local insurance agents who participated in a recent webinar hosted by the Fortuna Chamber of Commerce.

Allstate agent Kevin Bradley and State Farm agent Lisa Fryrear both said they have been reaching out to their customers and have also received many calls from businesses.

“There’s no such thing as a dumb question,” Bradley said. “Talking to us is very important. We want our customers to be taken care of. We’re here to help, not just here to try and sell you something.”

Fryrear echoed those comments. “We want what is best for you,” she said. “For insurance when it is regarding your livelihood, it is important to have a local agent that you can sit down with. We’re here for you (and) we want to help… ask us questions,” she said.

Since business insurance policy premiums can be based on several factors including gross sales and payroll, it is important to contact your insurance agent when there is a when there is a change in one or both.

“Employees working from home and employees providing delivery service where there once was none are two instances that could affect your business insurance, as well as your worker’s comp,” Bradley said. “If you have staff working from home, that changes your worker’s comp policy because they’re not in the office. That could lower the exposure because they’re not in front of a

customer and they’re not traveling … they’re at home (and) that’s something you should be talking to your agent about, because that could affect your premiums dramatically.”

Businesses currently offering delivery service which previously did not also should contact their insurance agent Fryrear said. She has had calls from some of her customers who said, “Hey, we didn’t used to do delivery but all of a sudden we do and is that covered in my policy?”

Both Bradley and Fryrear also said if the employee delivering products on behalf of a business is using their personal vehicle, it’s a good idea to review that personal insurance policy as well.

No insurance policy offers pandemic coverage because it would be too expensive.

“If you put it in to the (insurance) policy, premiums would be off the charts,” Fryrear said, “(and) nobody would be able to afford a policy because it is so catastrophic.

“All you can do is the best you can do to limit your exposures,” Bradley said, “and understand it’s not going to be an insurance thing, it’s going to be more of a legal issue, unfortunately.”

Allstate Insurance has already sent their customers a rebate on their vehicle insurance policies, and Bradley said a second wave of rebates is being considered.

“We’re not sure if it’s going to happen but there is discussion that it could,” he said. “A lot revolves around businesses opening up again and increased risks because are driving.”

State Farm Insurance customers will see a rebate in June in the form of a reduced premium to be paid.