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.
What is the SBA Phase Three Bill?
The Phase Three Bill allows the SBA to provide federally – backed loans from February 15, 2020 to June 30, 2020 to eligible businesses to cover operational costs, including payroll, rent, health benefits, and insurance premiums, etc.

Eligible businesses include those with 500 or fewer employees. Leeway for businesses with multiple “small” locations that provide accommodation and food services:

  • Sole proprietors, independent contractors, and self-employed individuals are eligible
  • Some relief from SBA affiliation rules for certain businesses
  • 2 eligibility criteria = good-faith certification of need for the loan + agree to not fire workers
What is the maximum amount provided for an SBA loan? What is my business allowed to use the SBA loan for?
2.5x of average monthly payroll costs up to $10M cap.

Businesses can use loans for almost all operating costs (with limits on individual comp above $100K, comp for non-U.S. workers, and “double dipping” for Families First paid leave wages already receiving credit).
Does the SBA Loan provide debt forgiveness?
Debt forgiveness up to the principal loan amount for certain costs incurred during the covered period.

  • Forgivable amounts = payroll costs, interest payments on loan obligations, rent, and utilities
  • Forgiveness amounts reduced for firing employees or cutting wages

See full details on SBA Loans below
What is the purpose of Phase 4 and who does it apply to?
Purpose:
  • Protect lost wages for employees unable to work because of COVID-19 illness
  • Preserve jobs through payroll assistance to help businesses retain employees
  • Support recovery through solvency assistance
  • Support women-owned and minority-owned businesses impacted by COVID-19
Eligibility:
  • Small businesses, nonprofits, veterans’ organizations, and tribal businesses (500 or fewer employees); as well as
  • Businesses of any size that can demonstrate impairment by COVID-19
 
What is the Families First Coronavirus Response Act?
On March 18, 2020, the U.S. Congress passed its second coronavirus relief measure – the Families First Coronavirus Response Act (Act). Effective immediately, the Act requires group health plans and health insurance issuers to cover COVID-19 testing without imposing any cost sharing (such as deductibles, copayments or coinsurance) or prior authorization or other medical management requirements. 
Who does this coverage mandate apply to?
This coverage mandate applies to the following health plans and issuers, regardless of grandfathered status under the Affordable Care Act (ACA):

  • All fully insured group health plans
  • All self-insured group health plans
  • Health insurance issuers offering group or individual coverage

During this public health emergency, health plans and issuers must cover FDA-approved diagnostic testing products for COVID-19, including any items or services provided during a visit to a provider, urgent care center or emergency room that relate to COVID-19 testing. This coverage cannot be subject to any plan deductible, co-payment or coinsurance. 

This coverage mandate does NOT require health plans and issuers to cover COVID-19 treatment at no charge. Exact coverage details for COVID-19 treatment, including any cost-sharing amounts, will vary by plan.  
Guidance for HDHPs
The IRS has advised that high deductible health plans (HDHPs) can pay for COVID-19 testing and treatment before plan deductibles have been met without jeopardizing their status. According to the IRS, individuals who are participating in these plans may continue to contribute to their HSAs. 
Are life insurance companies making any changes to underwriting to account for the virus?
Not at this time.
Are exams currently being completed?
Exam orders are either be rescheduled to once the ban is lifted (at our normal calendar availability) or being put on hold if the applicant does not answer or respond to calls. The scheduling window will be extended up to 45 days to give more appointment option.
If I conduct telehealth/virtual office visits in lieu of in-person care for my patient encounters, how is my NORCAL medical liability coverage affected and does this require a coverage change? 
Yes, you can provide care via telehealth. This does not require a coverage change, and it will not impact your premium. NORCAL   Risk Management resources and guidance on COVID-19   pandemic communications and telemedicine are available online.
I am a former NORCAL member (retired) and am returning to practice to help in the emergency. Will this impact my tail coverage?
If you are returning to practice because of the COVID-19 emergency and are not getting compensation other than reimbursement of expenses incurred in rendering such services, this will have no impact on your extended reporting period, or tail, coverage or the premium waiver with NORCAL.
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.