Groups that fight for consumers’ rights are calling on insurance companies to roll back premiums for restaurants and other commercial customers, and to include the pandemic in the list of conditions covered by their “business interruption” policies. Managing editor Tami Roleff has more information…
Consumer groups want the insurance companies to help prop up the restaurant industry, which has taken a massive hit in the COVID-19 crisis. Tens of thousands of restaurants have been forced to close their dining rooms, and many have closed entirely, resulting in massive layoffs. Doug Heller, an insurance expert with the Consumer Federation of California, urges insurance companies to lower premiums during the shutdown.
“All of us are struggling through these times; insurance companies shouldn’t be the benefactor.”
Farmers Insurance says it’s reducing premiums on many business customers by 20 percent for at least two months, and other companies may follow suit. However, some restaurant groups are suing their insurers to force them to honor “business interruption” policies, which normally include natural disasters. The companies say the virus doesn’t cause property damage, so it doesn’t qualify.
Heller points out that state insurance commissioners are elected to protect consumers, and he’s urging them to take the lead on this issue.
