Recent events led to a deluge of business closures across the United States. As an insurance provider, you likely have a tide of business interruption claims flooding in from business owners seeking financial relief.
You want to do what you can to help business owners keep their doors open and remain financially viable, but you may lack the financial resources to do so on such a scale. Learn more about the situation and how you can help your customers.
Business interruption policies target catastrophic incidences such as fire, explosions and other forms of direct physical damage. When it is not physical damage that forces businesses to shut down, you may bear no obligation to accept claims. Much like other insurance carriers, you may not have the funds necessary to cover months and months of policyholder losses, which is another reason why you may refuse to honor a business interruption claim.
Some insurance companies recently backed a federal relief fund intended to help business owners with operating expenses and retaining employees. A U.S. Department of the Treasury administrator would act as the fund’s manager.
The Terrorism Risk Insurance Program, birthed along with terrorism risk insurance in 2002, could offer you a measure of relief. With the program, the federal government would support insurance carriers at risk of going bankrupt from honoring substantial claims.
Unfortunately, implementing the federal relief fund is no guarantee. Until the federal government reaches an official decision, you may have little choice but to do what you can to help your policyholders. A low-interest loan or another type of financing could provide your customers with a measure of financial relief.
Professionals may help you understand your options and rights regarding how to properly handle business interruption claims. Get the information you need to plan the next move for your business and your policyholders.