The industry’s powerful lobbyists, led by the American Property Casualty Insurance Association (APCIA), say “business interruption” policies never were intended to cover contagions. Even if they had been, the estimated claims just from small businesses during the coronavirus pandemic could total more than $430 billion a month, threatening to create a “solvency event” for the industry, said David A. Sampson, the group’s chief executive.
Guide For How Your Small Business Can Survive the Pandemic
Recent weeks have impacted small businesses around the globe. To slow the spread of COVID-19, governments have mandated social distancing and self-isolation tactics, forcing millions of people to turn to remote working. Some businesses have closed altogether, while others are promoting online sales and eCommerce. If you’re wondering where to turn during these complicated times, we’ve put together a comprehensive state-by-state small business guide on how to receive aid and keep your business open.
CARES ACT: The CARES Act passed in late March, which is a $2 trillion emergency relief package to help Americans impacted by the coronavirus pandemic. Importantly, the CARES Act includes Rubio’s Keeping American Workers Paid and Employed Act, a bipartisan small business emergency economic relief plan that provides more than $377 billion for small businesses to meet their payroll and expenses and receive education and assistance.
CARES Act SBA Loan Calculator: NAV has worked to create a calculator to help business owners see how much they qualify for.
FEMA Supply Chain, Delivery of Goods, Business Continuity Support Businesses that are experiencing issues regarding supply chains, delivery of goods, or business continuity should contact the FEMA National Business Emergency Operations Center. This is a 24/7 operation and they can assist in directing the inquiry to the proper contact.
Economic Injury Disaster Loan Program Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to COVID-19. The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by COVID-19. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
Federal Income Tax Filing and Payment Deadline Extension The federal tax return filing deadline is now July 15, 2020. For tax payments of up to $10 million, the IRS has also extended the deadline for both individuals and businesses. Estimated tax payments for 2020 originally due on April 15, 2020, will now be due on July 15, 2020.
Check with your state tax agency to find out if your business has more time to file or more time to pay state and local taxes this year. Several states have already aligned their tax filing and payment dates with the new federal deadline. States also may waive or reduce penalties on late tax payments.
Reimbursement of Medical Leave Costs for SMBs The IRS recently updated information for employers regarding COVID-19-related medical leave.
The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
SBA Access to Capital provides a number of loan resources for small businesses to utilize when operating their business.
SBA Government Contracting: SBA is focused on assisting with the continuity of operations for small business contracting programs and small businesses with federal contracts.
If a situation occurs that will prevent small businesses with government contracts from successfully performing their contract, they should reach out to their contracting officer and seek to obtain extensions before they receive cure notices or threats of termination. The SBA’s Procurement Center Representatives can assist affected small businesses to engage with their contracting officer.
Use the Procurement Center Representative Directory to connect with the representative nearest you.
The President’s Coronavirus Guidelines for America: 15 Days to Slow the Spread
The Centers for Disease Control and Prevention (CDC) offers the most up-to-date information on COVID-19. This interim guidance is based on what is currently known.
State and Local
ALtogether is a one-stop-shop where Alabamians can ask for help or lend a hand during the COVID-19 crisis. This response effort is designed to connect businesses, nonprofits and people that need help with the right program partners–and to connect program partners with people and resources to help those most in need.
Alaska Small Business Development Center COVID-19 Resource Center: The impact of Coronavirus disease (COVID-19) on Alaskan communities and businesses is changing daily. The Alaska SBDC is here to support and prepare small businesses in the days, weeks, and months to come. Here you will find guidance, updates, and resources to help adapt in an unpredictable situation.
Read More Here -> https://sba.thehartford.com/business-management/covid-19-relief-guide/
If your small business has been impacted by the COVID-19 pandemic, learn how ICRS can help your business income loss claim.
Trump Tells Insurers to Pay Virus Claims If Pandemics Not Excluded
President Donald Trump on Friday staked out his position in a legal battle over business-interruption claims: Unless the policy excludes pandemics, insurers should pay.
Trump spoke about the issue for a minute and a half during his daily coronavirus task force briefing after a reporter asked if he is concerned about growing credit card debt resulting from business closures. The president said that he was and that the White House has spoken to credit card companies about reducing interest rates.
Then he moved on to the subject of business-interruption insurance.
“You have people that have never asked for business-interruption insurance and they have been paying a lot of money for a lot of years for the privilege of having it and then when they finally need it, the insurance company says ‘We’re not going to give it,’” Trump said. “We can’t let that happen.”
Trump said that he had purchased business-interruption insurance for some of his businesses when he was in the private sector.
“I’m very good at reading language,” Trump said. “I did very well in these subjects, OK? I don’t see pandemic mentioned. Now, in some cases it is; it’s an exclusion. But in a lot of cases, I don’t see it. I don’t see a reference that they don’t want to pay up.
“I would like to see the insurance companies pay if they need to pay if it’s fair. And they know what’s fair. And I know what’s fair. I can tell you really quickly.”
Read More Here
Businesses facing huge losses from pandemic thought their insurance would cover them – Not really
Government-ordered closures of restaurants, stores and other businesses because of COVID-19 are not enough to trigger coverage, insurers say
As the frantic queries for financial help came flooding in from business facing huge losses following the coronavirus shutdown orders, Holly McGlinn speedily assembled a spreadsheet to help her track the now 125 claims — and counting — for coverage of business losses sought by her insurance agency clients.
“I’m filing as fast as I can,” said McGlinn, whose firm, Breakwater Strategic Insurance Solutions that she owns with her husband Ryan, represents a broad swath of local businesses — restaurants and bars, event planners, retailers, pilates studio operators, and tech companies.
So far, all the responses have been the same — denial of coverage.
Despite a still rapidly expanding coronavirus pandemic that has financially ravaged businesses locally and across the nation, companies are quickly finding out that their property insurance policies, which include protection against the interruption of business, simply don’t apply in the world of COVID-19.
In many instances, claims are rejected because the policies include a specific exclusion for losses due to “virus or bacteria,” a legacy of the SARS outbreak of the early 2000s. Insurance company adjusters are also citing a more nuanced explanation, namely, that the shuttering of businesses due to coronavirus was not related to nor did it cause actual property damage, as in the case of a fire or hurricane.
The Coronavirus (COVID-19) has interrupted many businesses, impacting their income and revenue.
Most policies exclude viruses but many business interruption policies trigger coverage for business loss due to a pandemic event or civil authority. If your City or State has issued an order to shut down your business we can assist you in determining if your policy language can arguably trigger coverage and assist you in filing your claim. Insurance Claim Recovery Support is offering a free consultation by way of a free review of your policy to advise whether your business may have coverage for loss of income. Simply fill out the form below, we will contact you within 3 business hours and you will receive a link to schedule 30-minute complimentary consultation.
Skilled, trusted public insurance adjusters can advocate for their business owner/operator clients with both claim adjusters and examiners — and how they negotiate with each will change significantly in this market. If COVID-19 caused your business to close, contact the experts at ICRS.
Business Interruption Loss Claim Review
Has Coronavirus interrupted your business, income, and revenue? Civil Authority for the shut down of restaurants and businesses may trigger coverage.