COVID-19 has brought our everyday life to a halt and left us with many unanswered questions. Below are common FAQs our team has been receiving as it relates to the ongoing pandemic. As we navigate through the COVID-19 disruption, we will keep you informed through our COVID-19 Resource Center and continue to update you with relevant developments.
Will the Government be providing salary reimbursements for our employees that are being mandated to stay home?
HR 6201 - Families First Coronavirus Response Act, passed on March 18th. This law is two fold.

  1. Provides 10 days/80 hours of paid sick leave to all employees working for companies with fewer than 500 employees (common FMLA aggregation rules on common ownership apply to determining headcount here).
  2. Extended paid FMLA to employees under quarantine, personally sick with COVID-19, caring for a child whose school is closed for COVID-19, or otherwise unable to work due to coronavirus, after 30 days of being employed (rather than 1 year/1,250 hours of service).

Employers will receive a 100% tax credit for the salary they must pay to employees that qualify for leave under HR 6201.

A detailed Compliance Alert on this law is below.
If I need to lay off employees due to business closure, will employees be able to stay on their employer sponsored health plan?
Employers will need to contact the carrier of their group plan to inquire if the carrier will waive the 'actively at work' requirement in the plan for a lay off, and if so, for how long. If the carrier waives this requirement for a set period of time, the full premium will still be due. This may be paid in full by the employer, or under the same employer and employee premium share presently in place (if employees can still afford their share). Otherwise, COBRA needs to be offered to anyone who is laid off (employer may pay the full COBRA premium as well).
If an employer needs an extension on paying their insurance premiums, will their insurance carrier allow this?  
Carriers may be more lenient there, but at this time, there is no general rule permitting employers to miss premium payments, while keeping the group plan active.
If we have to close our doors, will our employees be able to continue coverage (i.e. COBRA) if there is no longer an employee sponsored plan that exists?
COBRA only applies for as long as there is an underlying group plan. In the case of a business closure, as long as 1 employee remains on payroll (usually an owner who will wind down the business) COBRA will apply. Keep in mind this would be a qualifying event allowing employees who lose coverage to apply for an exchange plan and subsidy in the marketplace.
I am concerned about the losses in my 401(k). What should I do? Is there a conservative option that will not lose money?
Losses in a 401(k) or 403(b) are not realized until you actually take the money out of your plan. The best thing to do in volatile times is to re-evaluate your asset allocation and make sure that your investment strategy is still appropriate. Now more than ever is it a good time to reach out to your Advisor to reassess your goals and objectives.

Every plan should have a money market, stable value or guaranteed interest Type of account. Contact your plan provider to see what this option is.
What happens to our benefit package if we need to lay off, furlough or reduce hours of our staff?
Under a furlough or layoff a employer could continue to offer benefits for a period of maybe 2 months and continue the cost share between employee and Employer. Carriers will honor as long as premiums are paid. Ancillary benefits can be handled the same way. If a employer doesn’t want to contribute to the cost of benefits then COBRA should be offered to those affected employees. Where there is reduction in hours a employer can handle the same option as Layoff and Furloughed employees. 
Do we have liability coverage if someone claims they were infected at our business?
In most cases, no. For certain industries, like healthcare, there may be some available coverage triggers and only if you have proprietary endorsements, it is not an off the shelf coverage. That said, it is questionable as to whether the liability for this is very high because of the difficulty in proving causation.
Do my employees have coverage if they are infected at work?
Potentially, please see below Coronavirus Guide for Businesses (reference page 5). As the pandemic continues, expect the work comp system to be under stress. It will be important to have a strategy with your work comp claims administrator to navigate this for your workforce.
To find information and resources such as our Coronavirus Guide for Businesses , assembled to help businesses navigate through the COVID-19 disruption, visit heffins.com/COVID19
If you have further questions, please reach out to you broker directly or visit cdc.gov. Stay healthy and stay safe!
The material provided on or through this email and our website is for information purposes only and is not intended to provide any financial, legal, or medical advice or opinion in regard to any individual situation. This information should not be relied on to determine insurance coverage or lack thereof. Insurance forms and endorsements, and insurer rules and guidelines, evolve over time and vary based on insurance company, changes in edition dates, regulations, court decisions, and state jurisdiction. The information provided here is based on a review of insurance coverages that may be implicated in regard to COVID-19 from sources we deem to be reliable, and communications we have received from insurance companies and other relevant resources. We make no representation or warranty as to the accuracy of this information as applied to any individual case. Please advise our office if you want to discuss your specific insurance coverages or needs, or to submit a claim for coverage with your insurance provider.