Insurance Rates | Boizelle Insurance Partnership

How COVID-19 Has Affected How the Insurance Industry

Since the COVID-19 pandemic, insurance companies have made significant adjustments to their policies to accommodate the shift to remote work for business owners and employees. Here are the main ways these changes have manifested:

  1. Business Interruption Insurance:
  • Coverage Adjustments: Many businesses that had to close their physical locations or reduce operations during the pandemic discovered that their business interruption insurance often didn’t cover pandemics. In response, some insurers have clarified or adjusted their terms, explicitly excluding or including pandemic-related disruptions.
  • Remote Work Impact: The trend toward remote work has prompted some insurers to re-evaluate and re-calculate business interruption. If a business continues to operate remotely, the risk factors change (e.g., no foot traffic at physical locations). Insurance policies may have been revised to account for the reduced risk in these situations.

 

  1. General Liability Insurance:
  • Home Office Liability: As employees began working from home, concerns arose over whether businesses were still liable for incidents that happened at employees’ home offices (e.g., an employee injuring themselves while working). Some insurers extended liability coverage to home offices or added riders to address this change. However, businesses were often required to make adjustments or provide proof of home office conditions to maintain proper coverage.
  • Telecommuting Risk: Insurers are now assessing the potential risks associated with employees working from home, particularly around cybersecurity, data breaches, and liability for accidents that occur outside of the traditional office setting.

 

  1. Workers’ Compensation Insurance:
  • Remote Work and Coverage: One major concern for insurers and employers is whether remote work changes the scope of workers’ compensation claims. If employees are working from home, it’s important to determine if incidents that occur at home (e.g., falls or injuries) are still covered. Many workers’ compensation insurers clarified that as long as employees are performing work-related tasks, injuries occurring at home may still be covered, but some insurers have asked businesses to report remote work arrangements or adjust their premiums.
  • Telecommuting Guidelines: Some states and insurers introduced new guidelines or modified reporting requirements to ensure businesses met workers’ compensation obligations when employees worked remotely. Employers were often required to maintain records about the home office setup or specify if the employee’s job was suitable for remote work.

 

 

  1. Cybersecurity and Data Protection:
  • Increased Focus on Cyber Liability: With the shift to remote work, many employees accessed company data from less secure home networks, increasing the risk of cyberattacks. In response, insurance companies that offer cyber liability coverage began to update their policies, often increasing premiums or offering new coverage for risks associated with remote work.
  • Security Measures for Home Offices: Insurers might now require companies to implement specific security measures (like VPNs or employee training on cybersecurity) to mitigate the risks posed by remote work. Some policies may only provide full coverage if a business takes certain precautions.

 

  1. Property Insurance:
  • Home Office Equipment: As employees moved to remote work, many companies needed to ensure that their property insurance covered office equipment used at home. Insurance companies adjusted their policies to clarify whether home office equipment (computers, office furniture, etc.) would be covered under standard business property policies or if a rider would be necessary.
  • Equipment Coverage: Insurance policies have also had to address whether businesses were responsible for replacing office equipment employees used at home if it became damaged or stolen.

 

  1. Premium Adjustments and Flexibility:
  • Temporary Premium Adjustments: Some insurance providers temporarily reduced premiums or offered rebates during periods of reduced in-person operations (such as during lockdowns). The idea was that less physical business activity led to lower risks and therefore warranted lower premiums.
  • Flexible Coverage Options: To better support businesses adjusting to remote work, insurers also began offering more flexible policy options. Some insurers allowed businesses to easily adjust coverage levels or made it easier to switch from traditional office-based policies to ones that cater more to remote or hybrid workforces.

 

  1. Employment Practices Liability Insurance:
  • Change in Claims: As businesses adapted to remote work, new employee-related claims emerged, such as discrimination, harassment, or wrongful termination in the context of remote working conditions. Some insurers adapted their EPLI policies to address theses changes, either expanding coverage for remote work issues or adjusting exclusions.

 

  1. Health Insurance and Employment Benefits:
  • Telemedicine and Virtual Health: With the increase in remote work, there was a surge in the use of telemedicine. Many insurance providers adjusted health plans to include or expand coverage for virtual healthcare services. Some companies now provide employees with a broader range of remote healthcare options to maintain well-being during times of isolation.
  • Mental Health Coverage: The pandemic also led to heightened concerns over mental health, especially as employees dealt with stress of working from home. Many insurers enhanced mental health coverage and offered more flexible benefits, including virtual counseling.

 

Insurance companies have adapted to the rise of remote work by updating their policies to better address the evolving risks that come with it. Businesses have had to review their coverage options carefully to ensure their employees’ work-from-home situations are fully protected. Insurers have responded with tailored solutions that address the nuances of remote work, from liability to cybersecurity, while offering more flexibility in premiums and coverage adjustments.

 

 

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What Should My New Year’s Resolution Be With Regard to My Insurance?

The coming new year is always a time when people feel inspired to assess their accomplishments of the previous year and to see how they can make improvements to their moving forward. From traveling more to getting into the best physical shape of your life, the ideas certainly can make up a long list. But, when was the last time you thought about your insurance coverage? Are you sure that you have enough in place? What if something disastrous happens? Will you be covered? Are your current coverages sufficient enough to cover the damages? Now may be a good time to consider giving us a call!

  1. Review and Update All Policies
  • Why: Over time, your life circumstances (new job, home purchase, family changes) may affect your insurance needs.
  • Action: Make it a habit to review your auto, home, life, and health insurance policies annually. Ensure that your coverage amounts are still appropriate and that you’re not overpaying for unnecessary coverage.

 

  1. Increase Your Deductibles to Save Money
  • Why: Higher deductibles generally result in lower monthly premiums.
  • Action: If your financial situation allows for it, consider increasing your deductibles to save on premiums. Just make sure you can afford the higher deductible in the event of a claim.

 

  1. Add or Review Supplemental Insurance
  • Why: Sometimes, basic coverage isn’t enough for certain needs.
  • Action: Look into adding supplemental policies like disability insurance, critical illness insurance, or an umbrella policy if you think additional protection is needed.

 

 

  1. Ensure You Have Enough Life Insurance
  • Why: Life insurance should reflect the current needs of your family and dependents.
  • Action: If you’ve had major life changes (e.g. marriage, children, or a home purchase), review your life insurance policy to ensure it’s adequate.

 

 

  1. Focus on Preventative Health Measures
  • Why: Good health insurance can be more affordable and valuable when used for preventative care.
  • Action: If you have health insurance, make sure you take advantage of preventative care benefits. Staying healthy can help reduce overall healthcare costs and premiums.
  1. Set a Goal for Claims-Free Status
  • Why: Maintaining a claims-free status can lead to discounts and fewer premium increases.
  • Action: Try to minimize accidents or damages, and avoid unnecessary claims to keep your rates low.

 

  1. Read and Understand Your Policies More Thoroughly
  • Why: Knowing the ins and outs of your coverage will help you make informed decisions.
  • Action: Take time to carefully read your policy documents and learn about your coverage limits, exclusions, and claims process.

 

  1. Consider an Umbrella Insurance Policy
  • Why: It offers extra liability coverage beyond your home and auto insurance, which can be beneficial for unexpected situations.
  • Action: Research whether an umbrella policy fits your needs for an extra layer of financial protection.

 

  1. Assess Your Auto Insurance Coverage
  • Why: Driving habits, the type of car you own, and even the area in which you live can influence how much coverage you need.
  • Action: Reevaluate your auto insurance limits, considering factors like commute distance, vehicle value, and driving history.

 

Making a resolution to stay on top of your insurance ensures you’re both financially protected and not overpaying for your insurance.

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Reduce Your Car Insurance Premiums

Writing a check for car insurance isn’t your favorite thing in the world. We get it. Here are a few tips to help you get great auto insurance coverage—while paying less:

  • Drive Safely: Seems obvious, but it’s true. If you get into fewer accidents, your premiums are lower. We also offer First Accident Forgiveness so one little mishap won’t send your payments through the roof. Talk to us for details.
  • Bundle: When you insure more with ERIE, we’re able to cut you a break on your premiums to thank you for your loyalty. Whether that means insuring multiple cars with us or buying life insurance with us, buying in bulk saves you money.
  • Discounts: Ask us about what discounts you qualify for—you might be surprised. From discounts for college students and drivers 55+ to safe driver discounts, you can save in many ways.
  • Lock it in: With ERIE Rate LockSM, your low, locked-in premium will never change—even if you submit a claim—until you add or remove a vehicle or driver, or change your primary residence.

At Erie Insurance, it’s our job to keep you safe and covered—but great coverage doesn’t have to break the bank.

Contact Boizelle Insurance to find out how you can reduce your premiums while keeping the level of protection you have learned to expect.

Originally Posted by: Erie Insurance

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Lowering the Cost of Auto Insurance

If you’re looking for insurance, you’re interested in lowering your auto insurance rates. Have you ever wondered how auto insurance rates are determined?

Insurance companies must balance rates with the cost to cover claims. Factors that may affect the cost of your policy:

  • Accident history
  • Driving record
  • Vehicle make and model
  • Annual mileage
  • Vehicle usage
  • Your credit-based insurance score
  • Your age and eligibility for discounts

Auto insurance rates vary by state too. Rates in any given state are based in part on historical claim frequency and repair costs for car accidents or theft, as well as other factors like the cost of medical care. Within a state, some territories have higher rates than others.

Keeping Rates as Low as Possible

Why are auto insurance rates rising?

Insurance companies pay claims using the money collected from their Policyholders. Higher auto repair costs, higher medical bills, and costlier auto accident lawsuits have made claims more costly to settle.

ERIE does all it can to control expenses and offer low rates, but as the costs increase for goods and services, premiums must be raised to cover those expenses. Premiums could also increase on individual policies because additional drivers are added, there is a change in the autos insured, or an accident or violation results in the loss of a discount.

Erie Insurance is committed to keeping your auto rates as low as possible through fiscal responsibility and disciplined underwriting practices. ERIE further lowers your rates through numerous discounts.

ERIE also offers ERIE Rate Lock®, which helps you avoid auto insurance rate increases. Even if you have a claim, your rates won’t change until you make certain changes to your policy:

  • Add or remove a vehicle from your policy
  • Add or remove a driver from your policy
  • Change your primary residence

We’d like to explain the details in person or on the phone. Contact Boizelle Insurance to get an auto quote that includes ERIE Rate Lock®.

By: Erie Insurance

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