We hope that you, your family and your co-workers are safe and well during the COVID-19 pandemic.  There are many new stressors during these times.  We hope this information can help relieve a small bit of that stress.  Please be sure to read this email in its entirety.

60 Day Moratorium on Policy Cancellations (March 29, 2020 – May 27, 2020)

We are reaching out to inform you of an Executive Order issued by Gov. Cuomo and how this may be of help to you and your business if you should need it.  This Executive Order states that in the state of New York, there is a moratorium on your insurance company cancelling your insurance policy for a period of 60 days, even if premiums are not paid.  This Executive Order was put in place to protect policyholders due to the financial effects of the COVID-19 pandemic.

Up to this point, individual insurance companies have employed varied responses in how to handle cancellation issues due to non-payment of premiums associated with the COVID-19 pandemic and tried to work with policyholders on a case by case basis.  This was difficult for policyholders.  This Executive Order has put all insurance companies in New York on the same page and helped bring clarity and a definitive 60-day moratorium on cancellations for your policy.

This means that insurance companies will not be cancelling policies in New York during this time, regardless of whether you receive a cancellation notice or not.  Please note that some cancellation notices are automated and cannot be stopped, however, they will not be enforced during this time.  If a policyholder does not make a timely premium payment and can demonstrate financial hardship as a result of the COVID-19 pandemic, your insurer may not impose any late fees relating to the premium payment or report you to a credit reporting agency or a debt collection agency regarding such premium payment.

The goal is to try to keep small businesses protected during this 60-day window as the pandemic has put a strain on businesses from various angles.  The Executive Order does not state that the insurance premiums are forgiven, but only that policyholders cannot be cancelled during this period even if they have not paid.  We understand that small business budgets are being squeezed at this time and hope this can be a small help.

Catching up on Overdue Insurance Payments

Please note that we are encouraging our music clients to pay insurance premiums due if they are able to do so at this time.  This is due to the fact that this moratorium is not forgiving or erasing premiums that would be due the insurance company.  Instead, it is allowing repayment in the future using a catchup period over the next twelve months.

The regulations require your insurance company to permit you, as an affected policyholder, to pay the overdue premium over a 12-month period if you did not make a timely premium payment due to financial hardship as a result of the COVID-19 pandemic and can still demonstrate financial hardship as a result of the COVID-19 pandemic.

Next Steps

If you have already paid your insurance premium or are able to pay your insurance premium there is no further action required at this time.

If you are not able to pay your insurance premium at this time, please call or email us for assistance.  We are asking that our music clients communicate with us if they cannot pay the insurance premiums.  If a small business cannot pay premiums due to financial hardship, there is a simple process.  The Executive Order states that policyholders can just attest that they are having financial difficulties from the COVID-19 pandemic in order to validate their request not to pay.  What we are asking is that our music business clients call or email Emery & Webb to advise that they cannot pay their current premium due to hardship from COVID-19.  We will ask for an email attesting to that fact which we will keep on file for the business and then also be able to communicate to the insurance company.

If you would like to review the Executive Order, a copy of the Executive Order can be found at https://www.governor.ny.gov/news/no-20213-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency

Our office is fully functioning, and we are here to help.  All phone lines and email addresses are working so please reach out to us so that we can help.

Change brings with it the opportunity for fraud.  It’s a reality of the world and society we live in.  When hurricane’s happen, fraudulent contractors often show up on the doorsteps of victims offering to help.  When they have gathered valuable information, they disappear with your money.  When large banking organizations are absorbed by even larger organizations, fraudulent telemarketers crop up, offering to assist you with transferring your money, when in reality it was already seamlessly transferred without the consumer having to give up private information.

 The change in our healthcare system is especially rife with opportunities for fraud and identity theft.  There is already a lot of confusion surrounding the new healthcare system.  To compound the issue, many of the websites designed to provide information and enrollment were overwhelmed by consumer logins and developed glitches, causing them not to function correctly.  Unfortunately, this only helped to set up an environment for crooks to prey on well-meaning, confused, innocent Americans who are only trying to do the right thing and figure out this new system.

 PROTECT YOURSELF:  TWO THINGS TO WATCH FOR 

1.  State governments have contracted thousands of “Navigators” to help consumers through the process of signing up for insurance and understanding their options.  This is legitimate.  However, con-artists posing as “Navigators” may show up at your doorstep or give you a call as well.

•  True Navigators will not ask for your Social Security Number.
• They will not ask for financial information.
• They will not ask for you to make a payment of any kind. 

 2.  Fake websites will be created by con-artists, designed to look like the State exchange websites.  The domain names may be extremely similar, only off by one character.  They will probably require consumers to enter financial information in order to enroll.  In this way, they will capture financial information and perhaps even sign up users for non-existent insurance plans, leaving the insureds holding the bag on thousands of dollars of medical bills.  

• ·        Know what your state website looks like.  If you are unsure, first go to www.healthcare.gov.  At the bottom of the page, click the link for “Find the Marketplace in your State”.  Some states have chosen to use the Federal Site.  Other states have created their own sites.  Choose your state from the drop down box and then follow the link to the appropriate, state approved website.
• ·        New York:  https://nystateofhealth.ny.gov
• ·        New Jersey:  www.healthcare.gov
• ·        Massachusetts:  https://www.mahealthconnector.info
• ·        Legitimate sites do not require financial information upfront in order to enroll.

It’s never too late to start exercising regularly.  It’s never too late to quit smoking.  It’s never too late to start eating a healthy diet.  However, when a hurricane is barreling up the coast, it may be too late to prepare adequately for the impending disaster. We are an endlessly optimistic society, believing that “it will never happen to me”.

However, preparing ahead of time for a disaster is not pessimism or doomsday thinking.  It’s quite the opposite.  Planning ahead gives you an edge over your competitors.  It provides security and peace of mind for your employees, giving them good reason to remain loyal after the worst case scenario.  It gives you a resource, a tangible plan of attack, a pre-chartered course to take when your head is spinning and you’re trying to think clearly.  With a solid plan in your back pocket, you will not be the one standing in a pile of rubble wondering where to start or what to do.  You will be the one who squares their shoulders, pulls out the list, and starts working – and is back up and running with new inventory and safe, healthy employees, before you know it.

When we think of “preparing for disaster”, we think of hurricanes, tornadoes, flooding and earthquakes.  However, disasters are not always Natural Disasters.  Terrorism and workplace violence are an increasing threat.  Be proactive and think through a lock down and response plan ahead of time.

The Basics:

1.  Don’t count on your cell phone.  If an area is without electricity for several days or weeks, it may be difficult or impossible to charge your phone.    As a society, we don’t memorize phone numbers anymore – they are stored in our cell phones.   Write down important phone numbers the old fashioned way, and store them away from your primary location, so that if you can get to a land line, you will have the necessary numbers available.
2. Create a plan for communicating with your employees in the aftermath of a disaster – and review this plan with your employees on an annual basis.  You don’t want the “new guy” to be kept out of the loop just because he missed last year’s meeting.
3. Back up. Back up. Back up.   Back up your data and your critical files.  Store this information in the Cloud or on portable drives or servers that are NOT located at your primary facility.  Create a plan for backing up your data either monthly or quarterly – whatever works best for your size business.
4. Storage.  Do not store important files, documents or old computers & hard drives in the basement or the lowest level of your facility.  The basement and lowest levels of a building are the most susceptible to flooding damage.  If you must store them on site, put them on the top floor or in an attic storage space.  Avoid cardboard.  Plastic storage bins are more likely to keep out humidity, rodents and water.
5. Research.  Know ahead of time what resources are available in your community.  Does FEMA have an office? Are shelters designated?  Does the Red Cross have a headquarters?  Does your community have an evacuation plan that needs to be followed?  Find out ahead of time.
6. Protect your people.  The value of CPR training and first aid training cannot be over emphasized.  In any disaster, preserving human life is the number one priority.  Provide CPR and first aid training for you entire staff on a yearly basis – so that they can help each other and help the community if a disaster happens.
7. Unfortunately, work place violence and the possibility of terrorist attacks are a real threat.  And they are a threat to every business in every community.  Every business needs a lockdown procedure as well as a clear shelter-in-place plan and a clear evacuation plan.  Practice.  Do drills with your employees.  If all employees are clear on the plan, and it is well rehearsed, it will reduce panic in the event of an emergency.
8. Protect our first responders: Evacuate ahead of time when the first notice to evacuate is given.  Too many first responders lose their lives every year, rescuing those who decided to ignore the evacuation orders and “ride out the storm”.
9. Does your business rely on inventory, parts and supplies from other businesses?  Are those businesses likely to suffer a disaster (e.g. coastal businesses, wildfire hazard zones, higher risk chemical plants etc.)?  Have a back-up plan if the suppliers you normally use are suddenly unavailable.
10. Insurance.  Insurance cannot cover everything for you.  However, it is designed to make your business whole again, following a disaster, when used correctly.  The cost to re-build a building is often very different from its market value.  Make sure your buildings are insured to their correct rebuilding cost.  Make sure that your business income insurance includes coverage for power outages.  Flooding is NOT covered by a traditional business property policy – the only way to cover flooding is with a Flood Insurance policy.   Most business policies exclude coverage for earthquakes – if you’re on a fault line, make sure this coverage is added back in.

The Federal Government and national organizations such as the CDC and the American Red Cross, have developed significant resources over the last few years in an effort to help businesses prepare, protect their employees, and mitigate damage after it has occurred.

1. FEMA
2. American Red Cross
3. Center for Disease Control
4. Federal Government/Homeland Security
5. OSHA