COMMITTED TO PROTECTING YOU AND OPEN TO SERVE YOU: BUTLER CARES COVID-19 UPDATE April 1, 2020
Coverage for Delivery – Hired & Non-Owned Coverage
Small Businesses, like restaurants and other services are looking to generate some additional revenue through delivery of food or products. If you are looking to offer delivery you should check with your insurance agent or agency. Many insurance carriers know that small business owners like restaurants who face unprecedented financial pressure and are looking for options to generate additional revenue. Some are making exceptions to “Delivery Exclusions” and allowing this provided there is “Hired & Non-Owned” commercial auto liability coverage. Many policies have this coverage already but check to make sure your insurance carrier is ok your practice doing delivery prior to offering this service.
If employees are using their personal vehicles to do the delivery many insurance carriers normally exclude this type of use on personal insurance policies. But again, given the unique times we are living in they are allowing this use on short term basis. The team members you have doing delivery should check with their personal insurance carrier, agent or agency to make sure they won’t have an issue. The Hired & Non-Owned Auto coverage on your commercial policy will not cover damage to their vehicles so it is important for them to confirm they can use their vehicles on a short term basis for this use.
♦♦ Payroll Protection Program♦♦
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
- Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
When can I apply?
- Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
Where can I apply? You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution
that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it
is participating. Visit www.sba.gov for a list of MN SBA Lenders.
We hope you stay safe and healthy!
Your Butler & Associate team members are working remotely to serve and protect you.
Here’s 6 easy ways to reach the team at Butler & Associates Insurance Agency anytime:
Your understanding that your experience with us may be a little different during this time of uncertainty is greatly appreciated. Although our physical office is closed, our team remains 100% committed to serving you.
BELOW ARE RESOURCES TO HELP YOU IN THESE UNPRECEDENTED TIMES:
PLEASE CONTACT US OR YOU INSURANCE CARRIER –
THEY MAY HAVE FLEXIBLE BILLING OPTIONS IF YOU ARE EXPERIENCING A HARDSHIP.
WE CAN ASSIST YOU!!!
BUSINESS INSURANCE RESOURCES:
- Family First Coronavirus Response Act (FFCRA) – Employee Rights Poster
- Webinar about HR, Business and Covid-19
- Business Interruption and Delivery Insurance
- Caliper: You’re Suddenly Managing Remote Teams. Now What?
- Steve Anderson: Protect Yourself From Coronavirus Scams
- Angela Adams: We Can Prepare Your Agency for a Successful Remote Work Environment
- Harvard Business Review: 15 Questions About Remote Work, Answered
- LCG: Cybersecurity Threats and How To Stay Safe During the COVID19 Pandemic
- Forbes: How Coronavirus Is Creating a Watershed Moment for Remote Work
- The Hartford: Business Continuity Planning for Infectious Disease Event
- PaySphere: Tips to Handle an Infectious Disease Outbreak
If you need any other assistance, or have questions about insurance or any other subject, please reach out to us. We are here to help and support you, your family and your business in any way humanly possible.
We appreciate this and every opportunity to serve you!
Bill Butler and the whole Butler & Associates Team