Monday, June 22nd, 2020
Cayemitte Clips: News You Can Use
WELCOME to The Cayemitte Group (TCG), a minority-owned and certified full-service insurance brokerage and management consulting firm that provides a full spectrum of tailored solutions to each of its valued clients. Our unique area of specialty is the development and support of small, veteran, minority and women-owned business enterprises (MWVBEs).

In each edition of Cayemitte Clips we will share timely information that we consider pertinent to business health and growth. Read on!
Here's The Latest

As our country continues to struggle with the economic fallout from the COVID-19 Pandemic, now is the time to make sure you understand the insurance coverage(s) you currently have in place.

We Are Seeing a Myriad of Restrictive Exclusions Required on Quotes Going Forward, such as:  

  • Business Interruption Exclusions mandating direct physical damage insured by the Commercial Property policy
  • Specific COVID-19 Exclusion on Workers’ Compensation
  • Communicable Diseases Exclusion on Professional Liability and Workers’ Compensation
  • Lay-Off Exclusion
  • No Prior Acts being offered on new Professional Liability policies

Market Trends:

We are seeing premium increases of 10% to 15% on accounts with no claims and 20% to 25% premium increases on accounts with poor claim experience.

We are starting to see insurance carriers offer lower limits as insurance companies are concerned about future claims exceeding their reserves.

Many businesses have been closed due to government-ordered shutdowns. Interruption claims are being denied and now insurers are seeking coverage through court rulings. Coverage decisions at the state and at the federal level are going to takes years to be determined and decisions will differ geographically.

Unfortunately, viruses are generally outside the scope of business interruption coverage due to the absence of any physical damage. Most insurance policies do not cover this exposure and most commercial insurance companies have stated:

”Premiums were never collected for a Pandemic.”
David Cayemitte
President
215-850-4546
David Shadle
CPCU, ARM, AU
Director of Risk & Insurance
609-521-4501
TCG Areas of Expertise:
  • Insurance Brokerage
  • Capital Management
  • Surety Bonding
  • Small/MWVBE Business Development
  • Risk Management
  • Management Consulting
In federal and state courts across the United States businesses are seeking business interruption coverage for coronavirus-related losses. In most of the cases the policyholders argue that the presence of the coronavirus in or around a property constitutes physical damage, which should trigger coverage for income lost due to government-ordered restrictions on business activities.

A recent New York court and a Pennsylvania Supreme Court decision both ruled in favor of the insurer.

We encourage you to read:


Civil Unrest Claims

The recent civil unrest comes as business owners continue to cope with the economic impact of the Covid-19 outbreak. While there has been much debate about whether business-interruption insurance covers pandemic-related loss, property damage from riots, civil commotion and vandalism are generally covered under standard policies, according to the Insurance Information Institute.


BEST PRACTICES FOR MANAGING RISK EXPOSURES
  • Work with an insurance broker who understands your business and can provide the most appropriate insurance recommendations.
  • Schedule and perform regular risk assessments with senior management.
  • Evaluate the causes of your prior losses.
  • Establish a safety program based on your loss activity.
  • Review current insurance policies for potential gaps in coverage and to ensure that limits are sufficient in the event of a loss. 
If you are interested in discussing our services including
insurance and bonding, capital management or capacity building
for your business, please call David Shadle.

The Cayemitte Group, 306 Farnsworth Avenue, Bordentown, NJ 08505
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