An Insurance Update from Morris & Garritano
Morris & Garritano is dedicated to not only serving our clients, but to being a dependable partner to support you in your time of need. We recognize the uncertainty and financial challenges that many businesses are facing due to COVID-19. To help navigate through this new environment, we have outlined the insurance-related elements that we feel are most relevant and pertinent to ensuring you have the knowledge and information to successfully develop your business continuity plan.
What you should know...
Return Premiums
The California Insurance Commissioner issued a bulletin on April 13th asking insurance companies to adjust premiums; providing a refund to consumers on their auto, workers’ compensation, liability, and any other policies that may have seen a decrease in exposures due to the stay at home orders. 
 
Insurance companies have until June 12th to develop their guidelines on how much premium should be returned, eligibility requirements, and how they will administer the returns. They are working with the Commissioner’s office directly for plan approval. The Commissioner has asked that refunds be distributed to customers by July 12th.
 
We’re looking forward to hearing from our carrier partners on how they pla n to distribute funds, and will update our Carrier Contacts page as announcements are made.
Changes to Exposures
We understand that many businesses have and will experience increases, decreases or changes to their operations and exposures due to COVID-19. In addition to refunds, insurance companies are showing great flexibility through midterm adjustments of payroll and/or sales estimates to accommodate these temporary changes and alleviate future cash flow. We are here to facilitate discussions with your insurance company to determine a solution tailored to your needs during these uncertain times.

It is truly amazing to witness the level of creativity and innovation occurring among businesses both locally and abroad. This ability to pivot will be critical to ensure business continuity and resiliency now and into the future. If you have already or plan to repurpose any of your products, services, facilities, or staff, we encourage you to discuss these necessary changes with your Risk Advisor. We are here to evaluate any potential liabilities or health and safety issues involved in such changes and develop a strategy to best manage that risk.
Workers' Compensation
Compensability of illness or disease is determined by satisfying certain qualifying factors. The illness or disease must be occupational, meaning that it arose out of and was in the course and scope of the employment; and the illness or disease must arise out of or be caused by conditions peculiar to the work. Typically, it is extremely difficult to conclusively determine how and where an employee contracted a communicable disease. 

However, in these extraordinary times, legislatures around the country are rushing to enact state statutes declaring that COVID-19 is presumptively related to various classes of occupations. In California, proposed amendments to AB 664 would allow for COVID-19 related workers' compensation benefits to first responders and healthcare workers. There are also proposals currently under consideration that would more broadly encompass all workers deemed essential.  

The Workers' Compensation Insurance Rating Bureau of California (WCIRB) recently conducted a cost analysis of such proposals and the impact to the workers' compensation system which may be found online here We will keep you updated on any new developments.
Legislation / Business Continuity Funding
Paycheck Protection Program
Through the CARES Act, Congre ss established the Paycheck Protection Program (PPP) which provided up to $349 billion in loans to small businesses. Due to staggering demand, the fund was quickly exhausted, necessitating an additional $320 billion be added to the fund on 4/24/2020. We recommend working directly with your lender to discuss your options in applying for this funding. Though this extraordinary governmental action has helped many businesses, we believe a bolder step is needed to address the unprecedented economic challenges facing our nation.

Business and Employee Continuity and Recovery Fund 
Morris & Garritano supports the creation of a “COVID-19  Business and Employee Continuity and Recovery Fund .” We are joined by a coalition of the business community in asking Congress and the President to create this fund, which goes beyond the CARES Act in helping businesses keep employees on payroll, maintain worker benefits, and meet debt and rent obligations.
 
This coalition of over 60 trade groups includes the International Council of Shopping Centers (ICSC), American Hotel & Lodging Association (AHLA), National Retail Federation (NRF), and International Foodservice Distributors Association (IFDA). We encourage all our partners, clients, and vendors to join us in advocating for this legislation. 
 
A summary of The Fund can be found here ; the letter sent to government leaders outlining The Recovery Fund can be found here.
Payment Flexibility
Many insurance companies are offering payment deferrals and have halted cancellations for non-payment of premiums. If you are struggling to make your premium payments please refer the our Carrier Contacts page for information on what your Insurance Company may be able to offer.
As your trusted advisor, we will do all that we can to help you during these difficult times. While there are still many unknowns and new developments almost daily, you can be confident knowing Morris & Garritano is remaining diligent in our research and leveraging our partnerships to provide you with the expertise and resources to best help you adapt to this new business landscape.

Please reach out to your Account Manger or Risk Advisor if you have any questions.

Thank you,


Morris & Garritano
Please visit our  COVID-19 Resource Page  to access recorded webinars and links to various local and state programs, legislative updates, and other educational materials that are reliable and may be relevant to your business operations. 
Commercial |  Employee Benefits |  Personal | License #0305584