Unique Challenges Facing Businesses During Covid-19
As we continue to navigate through these unprecedented times, we recognize that each business is experiencing unique challenges. Whether your business has furloughed workers, shifted to teleworkers, ceased operations or is now offering a delivery service all these changes affect your risk and your bottom line. With that in mind, we would like to provide a range of ideas and information that you may find useful.
Workers Compensation for Michigan Furloughed Workers
For companies with furloughed workers, or if you are continuing to pay employees who are not working, we recommend that you track these wages. Keep track of the length of time this goes on, and the amount you pay, even if done so through the (Payroll Protection Program) funding. You may track this in Excel, your payroll system or any other method that will clearly show time and wages. The state of Michigan has set up a new workers compensation class code of 0012 for this payroll. We expect all insurance carriers to adopt this same approach. It is important to note, any payroll in this classification at the time of your audit will be removed from your policy completely. As such, you will not be charged for that payroll therefore no claims for those workers will be allowed during the time they were not working.
Teleworkers
If you have employees that are now performing office work from their homes that normally would be in the field or perform predominately non-clerical tasks, also keep their payroll separated. This will likely be moved to a clerical rate at audit, again reducing your audit charges.
Ceased Operations
For businesses that have temporarily stopped operations, please know that many insurance companies have suspended any vacancy clause triggers, that would have otherwise reduced coverage for property in an unoccupied building.
Delivery Service
Businesses that set up a delivery service due to Covid-19, in many cases, will receive special consideration. Contact your agent for a proper review of your coverage and to notify your specific insurance company of your new operations. This typically will not generate an additional charge to extend coverage during the quarantine.
If your employees use their own personal vehicles to deliver, encourage them to contact their insurance agent to review their personal auto policy terms, as again, most companies are now providing coverage where previously excluded for delivery.
Additional Ways to Save During Shelter-In-Place Executive
As this quarantine continues, there are other ways to explore cost savings through your insurance such as:
- storage credit or lay-up credit for parked vehicles
- reduced or removed coverage on equipment not in the field
- lowering of sales projections
- payroll reductions
Should you need to make special arrangements on payments due, we recommend you call your insurance company directly, as they are providing unique terms directly to clients based on your individual needs.
Doyle & Ogden Insurance Advisors are here to help find solutions that fit the specific needs of your business. We are all in this together and as such will do everything in our power to help you navigate the challenges ahead. Please know we are working remotely and open for business during normal business hours. Contact us at info@doyle-ogden.com or at 616-949-9000.
