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COVID-19 pandemic prompts numerous policyholder accommodations

COVID-19 pandemic prompts numerous policyholder accommodations

Insurers recognize favorable trends and announce refunds and credits for policyholders

The unprecedented financial disruption caused by the COVID-19 pandemic has prompted insurance regulators and insurers to implement an array of accommodations for adversely impacted policyholders.

Some accommodations were first announced voluntarily by insurers, such as premium refunds for private passenger auto insurance (to reflect reduced miles driven during mandated stay-at-home orders), while subsequent measures were urged, or mandated, by gubernatorial executive orders and/or state insurance department directives and bulletins.

Regulators expand on refunds with requests for cancellation forbearance and free coverage

Because the impact of the pandemic has been uneven across the country, the need for accommodations, and the relief offered or mandated, has varied by state, but the most common measures have been:

Additionally, many insurance departments have urged insurers to make any and all “reasonable accommodations” for adversely impacted individuals and businesses.

Recent directives from regulators expand to include businesses

While most of the above accommodations could apply to personal or commercial insureds, some relief has been targeted to the unique needs of business insurance.  Examples include:

Many individuals and businesses have sought and received the type of accommodations outlined above since the start of the COVID-19 pandemic, and insurance departments continue to monitor the market closely to determine whether extensions or added measures are needed.

Individuals or businesses in need of first-time or additional relief should consult the website of their respective state insurance department to understand what accommodations are available. Businesses can also contact their third-party administrator (TPA), risk-management consultant, agent-broker, or their insurer directly to explore options for appropriate accommodations.

This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.

This website is intended to be informational. Descriptions are provided only as a summary outline of the products and services available and are not intended to be comprehensive and do not constitute an offer to sell or a solicitation. The products and services described may not be available in all states or jurisdictions. See your policy, service contract, or program documentation for actual terms, conditions, and exclusions. Any inquiries regarding the subject matter set forth herein should be directed through licensed insurance professionals.

Coverage and insurance are provided and underwritten by Liberty Mutual Insurance Company or its affiliates or subsidiaries. When we offer insurance products, we will state clearly which insurer will underwrite the policy. Some policies may be placed with a surplus lines insurer. Surplus lines insurers generally do not participate in state guaranty funds and coverage may only be obtained through duly licensed surplus lines brokers.