As summer comes to a close, Labor Day is a great opportunity to kick back, maybe take a trip, light up the grill, and to do it all while you are properly insured.

Whether the festivities are the traditional ones in the back yard, or the ones that feed your wanderlust, many come with risks that fall under insurance lines as varied as homeowner’s, renter’s, umbrella, auto, and even travel.

Understanding what goes into those policies will help end your summer on a high note if anything unexpected tries to rain you out.

Don’t Forget About the Insurance Risks in Your Back Yard

Lighting up the grill is perhaps the most iconic way to spend the Labor Day weekend. In fact, about seven in 10 adults own a grill or smoker, and according to the Hearth, Patio and Barbecue Association, 58% of grill owners plan to fire them up for Labor Day.

Whenever there is fire involved, the potential for disaster will follow. But thankfully if a flame jumps from a grill to a nearby structure, homeowner’s or renter’s insurance would be there to cover the damage.

But less obvious is what would happen if a guest gets hurt during that cookout. In these cases, homeowner’s and renter’s policies can come to the rescue too. Small injuries would be covered through the medical payments portion of the policy, while catastrophes would fall under the liability portion.

The medical payments portion of a homeowner’s or renter’s policy is a no-fault medical coverage, meaning that if someone is injured on your property, regardless of whose fault it is, your homeowner’s or renter’s policy can step in to cover a portion of their bill without them having to file a liability claim against you.

Medical payments policies are typically capped at $5,000 or less, meaning that if someone burns their hand or sprains an ankle, everyone is covered. It is important to know that this only applies if the injured person is someone who does not live in your household. If it was your daughter, then it will be up to your health insurance to pick up that bill.

Now, if the injury was serious and resulted in a larger claim – say someone fell off your deck, breaking both legs and couldn’t go to work for a month – this is where a liability claim would come in.

The liability portion of your homeowner’s or renter’s policy has a much more generous coverage limit – typically $100,000 or more. But keep in mind, a liability claim can only step in if the injury was the homeowner’s fault.

Also keep in mind that both the liability and the medical payments portion of the policy may decline to cover the claim if the injury was on purpose or involved illegal controlled substances.

A similar situation applies if you choose to fire off illegal fireworks. If the fireworks you shoot comply with local laws, but then land on your neighbor’s house, causing a fire, your homeowner’s policy would step in to cover that damage. However, if you are shooting otherwise illegal pyrotechnics, don’t expect your policy to protect you.

If you are looking at a particularly risky life – say you have a trampoline that all the neighborhood kids come and play on, or if your pool’s diving board is the must-do attraction, or even if you just have substantial personal assets and are worried you might be a tempting lawsuit target, an umbrella policy may make sense.

Umbrella policies are add-on policies that cover your liability over and above your other policies, and they protect you for $1 million or more in liability. They are also relatively inexpensive for the protection you get, often costing $300 per year or less.

Dog Bites and Alcohol Are Often Insurance Claim Culprits

It may not be obvious, but dog bites account for about a third of all homeowner’s insurance liability claims, and they can be substantial when they happen. According to the Insurance Information Institute, the average dog bite claim in 2020 cost $50,425!

One important caveat is that not all dogs are covered. Make sure your dog’s breed isn’t included in the insurance policy’s list of excluded dogs, or else you may be holding the liability yourself.

Another area of liability comes in if you are serving your guests alcohol and then letting them drive home. In many states there are laws called “social host liability” that say that if someone gets drunk on your property and then gets in a wreck driving home, you may be held responsible for their actions.

So, needless to say, if your guests overindulge, grab their keys and call them a cab or ride share. The consequences of driving under the influence are far more costly than paying for a ride.

Plus, if that guest gets pulled over and gets a DUI, the additional wreckage it does to their auto insurance premiums would be felt for many years to come.

Renting Out Your Property for Summer Fun Needs Insurance

If you decide to make a little extra money this Labor Day by renting out your home or your pool, it is best to understand the insurance implications.

New services, such as Swimply make it easy to rent out your pool for the day, and many pool owners are discovering they can earn some substantial cash by letting other people borrow their back yard oasis.

Before renting out your pool, though, take a look at your homeowner’s policy. In nearly every policy, liability stemming from a commercial use of your property is excluded, meaning that if you took money in exchange for someone using your pool, and then they slipped on the pool deck and broke an arm, you would be on the hook for that liability claim.

Going through a service, such as Swimply can help here, because they offer a $1 million liability guarantee for claims that happen while someone was using their service.

A similar situation applies for short-term home rentals. If you let another family use your house for a fee, your homeowner’s insurance becomes null. However, services, such as Airbnb offer their own $1 million guarantee if the worst happens while someone is renting your pad through their service.

The important takeaway here, though, is that if you decide you want to forego using these services and rent out your home or pool on your own, it would be best to consult your insurance agent first to make sure you get appropriate home insurance riders that would ensure you are properly covered if the worst happens.

On the Road Again…. with the Right Auto Insurance Coverage

The road trip is about as iconic a way to spend Labor Day as it comes. If that road trip involves a rental car, take a second to consider insurance. If you have your own auto insurance policy, start by knowing that it will almost certainly extend its coverage to your rental.

That said, it may still make sense to opt for the rental company’s insurance. That is because, while you would be covered if you backed into a tree, it might translate to years of higher premiums after your insurer pays for the damage. That extra $100 may have paid for itself relatively quickly if it meant that the $1,000 claim was covered and you didn’t have to face 20% rate hikes for years.

Whether getting additional coverage makes sense really comes down to your risk tolerance and your budget.
Either way, it is a great idea to do a video walk around of your vehicle before driving off the lot. Just pull out your phone and roll camera. That way, if the rental company comes back to claim you caused some pre-existing damage, you will have a better case to protect yourself.

If your trip is of the higher-end variety, trip insurance may make sense. Trip insurance is designed to reimburse you for any covered event that is out of your control, such as a weather event or a sudden illness or death in the family.
These policies reimburse you for your up-front costs. So, if you have to prepay for that beachfront condo or a cruise ship, trip cancelation insurance may make sense. However, if you are taking a road trip to grandma’s house, there won’t be many up-front deposits to justify buying trip coverage.

What trip insurance won’t cover you for is if you are worried that Florida is now a COVID-19 hot spot and now want to back out of your trip. Fear of travel is never covered by trip insurance unless you opted for the more-expensive “cancel for any reason” policy.

Do keep in mind that it is wild fire season in the West and hurricane season in Atlantic States and the Gulf South, so paying attention to weather conditions may be in order before heading out. But also know that if you opt for travel insurance, you likely have to book it shortly after paying the deposit on your trip. If you paid for your trip in April, but now are watching a disturbance in the Gulf of Mexico, it is likely too late to buy a travel insurance policy to protect you.

Look Back on Your Summer with Confidence

Everyone is ready for a little relaxation this Labor Day. Whether it is a back yard cookout, a poolside retreat, or even an iconic road trip, understanding risk, and the insurance policies that mitigate those risks, can be the difference between a lazy end-of-summer weekend and an unmitigated disaster.

The post Labor Day Safety and End of Summer Hazards Insurance Report 2021 appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

As bleak as the Delta-variant fueled surge feels, August 2021 is a world apart from a year ago. Between COVID-19 vaccines, more effective clinical treatments, and government shutdowns all but lifted, people are now beginning to make their way back to school and to the office.

And with those returns comes lingering questions: What is safe? Who should wear a mask? Who should get vaccinated? Is a remote world the best choice? Who should get the right to make those choices in the first place? And how does insurance play into all of those issues?

This report aims to lay out the insurance-based questions and decisions people are going to be facing as they head back to school, and in many cases, back to work.

Covering Elementary, Middle and High Schools Students

With the elementary school-age population too young for vaccinations still, the back-to-school conversation is all about masking. In some places, such as Texas and Florida, governors are prohibiting mask mandates. While in many other states, masked pupils will be the order of the day.

From an insurance standpoint, K-12 students should be included in a standard employer-based family health plans. But not every family is covered by an employee plan. And in that case, it is worth exploring the CHIP program — the Children’s Health Insurance Program.

The CHIP program is designed to help bridge the gap for families that earn too much to qualify for Medicaid, but who still need low-cost health insurance coverage for their children. Qualification criteria are established on a state-by-state basis.

Costs for CHIP plans also vary by state, but they aren’t ever supposed to exceed 5% of a family income for the year. Unlike other health insurance programs, there is no open enrollment program for CHIP plans, so families can enroll at any time of the year.

Employee Health Insurance

As employees go back to the office, they need to be on the lookout for their benefits packages. That’s because open enrollment starts with the fall weather. Employees should expect benefits packets around Halloween and should be ready to pick their plan before Thanksgiving.

Picking an employer-sponsored plan doesn’t have to be confusing. Presuming the employer plan is an Affordable Care Act-compliant plan, policies are graded in “metal” tiers – bronze, silver, gold, platinum. These define the cost for coverage, not the quality of care.

Higher tiers cost more in the premiums, but their co-pays and co-insurance costs are lower, and they tend to have lower deductibles. Silver plans make the most sense for most people. Younger healthy people get by just fine on bronze plans. People with chronic health problems often opt for the higher tiers.

Employees should also pay attention to the way the plan approaches the provider networks – HMOs, PPOs, and EPOs can vary greatly in how they handle non-emergency situations. So, rather than getting caught up on the acronyms, the important thing to ask human resources is which plan will cover the doctors you want to see.

Employees shopping for coverage should take all the costs into consideration. A low premium doesn’t mean much if it means a policyholder will have to pay a steep deductible before they are covered by their health insurance plan.

Office Safety and Business Insurance

While masks and vaccines have become a cultural flash point, the law bends in their favor when it comes to the workplace. That is because the Occupational Safety and Health Administration requires employers to provide a place of employment free from hazards.

While that doesn’t outright mean that every employer needs to offer masks and mandate vaccines, it is still a hefty burden that employers must consider.

The best advice to employers is to follow CDC best practices. That means pay attention to distance, space, ventilation, good hygiene, and cleaning. That matters because of liability laws.

If someone can prove that they contracted COVID-19 at their place of work because of negligence from their employer, that can open the employer up for a liability lawsuit, and a potential claim against their business owner’s policy.

Some states have passed liability shield laws just for such a case, but the details differ by jurisdiction. Some protections are ironclad, while others have huge loopholes.

The best practice is to act in good faith and to protect the health and safety for people who are relying on you. If you fall anywhere short of the CDC guidelines, you may be opening yourself up for a liability claim.

And as far as the employees go, ensure that they never go to work sick. Whether in the classroom or in the office, the days of the perfect attendance awards should be banished for good.

A Closer Look at Universities and Colleges

Student Health Insurance

University campuses across the country are welcoming a flood of returning students. Many campuses — particularly private universities — are stipulating that returning students must be vaccinated. And most campuses are requiring face coverings for at least the next few weeks.

And while vaccinations and masks can help protect students from COVID-19, properly crafted insurance policies can help protect them from other risks they may face while pursuing a higher education.

When it comes to health insurance, nearly every school is going to require proof of sufficient health coverage before allowing a student to enroll. Some schools go so far as to buy a policy on each student’s behalf that they then need to repay to the university unless they can show they already have qualifying coverage.

The primary thing schools want to ensure is that if a student falls ill, or faces an emergency, there is an in-network physician who will be there to help.

For students who are dependents of their parents and who are under 26, the Affordable Care Act changed the landscape for college insurance. That is because those students can stay on their parents’ policy, which in most cases will satisfy the university’s minimum coverage requirement.

The important thing here is to make sure the network covers the student in the state where they are at school. A policy isn’t much use in Miami if the only doctors in network are in Minnesota. In this case, it might still make sense to get a plan in the state where the student is enrolled.

Staying on a parents’ plan also isn’t an option for older students, or for students who are independent from their parents, or whose parents don’t have insurance. But even in those cases, there are plenty of options.

The first place to start looking for students in need of a health insurance policy would be to start shopping for state marketplace-based Affordable Care Act plans.

Marketplace plans can be extremely attractive for independent students because they would then likely qualify for a substantial premium subsidy based on their income, or lack thereof.

For example, an independent student who earns less than about $17,000 per year would likely qualify for Medicaid – but only if they are in one of the 36 states that have expanded Medicaid.

Unfortunately, though, just because a student is unemployed doesn’t mean they automatically qualify for the top subsidy. Marketplace subsidies are based on the income of the whole household – not just the person who needs insurance. So, if that student is living at home, even though they may have filed their own taxes, they would likely still have to include their parents’ income on their health insurance application.

Another option for students to explore is a high deductible plan with an accompanying health savings account. While these don’t pay for much routine care, their premiums are very attractive, and might be a good option for an otherwise young and healthy college student.

The good news is that any Affordable Care Act complying policy will cover COVID-19 expenses, testing, and vaccination.

Life Insurance for College Students?

As far as life insurance, most college students wouldn’t normally give a life insurance policy a second thought. Life insurance is designed to cover financial obligations in case someone dies. In the case of most student loans, if someone dies, the debt they carry dies with them. But that isn’t the case in some loans, such as a Parent PLUS Loan.

With Parent PLUS Loans, the parent takes on the debt obligation. So, if a college student is asking their parent to take on a huge debt obligation on their behalf, this would be a good case for a term life insurance policy that would cover that college debt in case the student unexpectedly dies — particularly a term life insurance policy.

Auto Insurance for College Students

Students should also be thinking about insuring their vehicle while they head off to college. Much like health insurance, if a student is a dependent and can stay on their parents’ auto policy, that is likely to offer the most protection at the lowest premium.

If a student has to get their own policy, one truth of auto insurance rates will hit them right in the face — younger people tend to pay more for the same coverage. On top of that, adults tend to have other policies they can bundle in with their auto policy, bringing the premium further down.

Insurance for College Housing

Renter’s insurance is another way students can be protected, because, living in a dorm or an apartment comes with risks, which renter’s insurance helps mitigate.

Because renter’s insurance doesn’t pay to protect the actual structure, the rates are surprisingly low – in the ballpark of $20 per month or less. And with that premium, students are protected if their bike or laptop is stolen, or if their clothing is destroyed by a busted pipe, or if something is lost due to vandalism, theft, fire, lightning, windstorms, or hail.

Renter’s policies won’t cover normal wear and tear or unexplained/mysterious disappearances – so, police reports are likely required to make a claim if something is stolen.

And it is essential to read through the policy to ensure that flood or earthquake damage is covered, because it may require a specific rider.

Renter’s insurance also typically includes a personal liability protection and medical payments for guests in the case that someone is injured in the student’s home.

College Tuition Insurance

Tuition insurance is designed to reimburse a student in case they paid for their semester in full but can’t finish for a covered reason beyond their control. Tuition insurance can help in cases of injury, illness, chronic illness, or mental health. So, if a student contracts Coronavirus and can’t finish their term, tuition insurance can step in.

A typical tuition insurance policy covers tuition, room and board, and some fees. Most tuition insurance policies typically cost a little more than 1% of the cost of tuition. So, if you would be on the hook for $10,000 for the semester, expect to pay a little more than $100 for a tuition insurance policy.

For all your insurance needs it is recommended that you compare insurance quotes often and stay informed. This ensures you’ll get the most out of your policies for the best price.

The post The 2021 Back to School and Work Insurance Report appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

As climate change escalates, consumers are looking at a “new normal” on cornerstone personal insurance policies. Climate change is a hot button issue for the insurance industry too, as new regulations and new ecosystem threats have decision makers taking climate change insurance seriously in the second half of 2021. They both have good reason to do so.

In a new report by the Deloitte Center for Financial Services entitled Insurance Regulator State of Climate Risks Survey analysts say the threats from climate change are real and are expanding into dangerous territory.

“Climate change = insurance risk,” the study noted. “The escalating frequency and severity of extreme weather-related events—from wildfires in the US, to record heat waves in Europe, to floods in Japan—have shone a brighter regulatory spotlight on insurance risk and climate change.”

“One federal regulator in the US went so far as to suggest that the potential damage from climate change could end up being as severe as the fallout from the mortgage crisis triggering the 2008 financial crisis,” Deloitte stated.

The report also draws two conclusions that may keep insurance industry risk managers up at night:

• A majority of US state insurance regulators expect all types of insurance companies’ climate change risks to increase over the medium to long term—including physical risks, liability risks, and transition risks.
• More than half of the regulators surveyed also indicated that climate change was likely to have a high impact or an extremely high impact on coverage availability and underwriting assumptions.

Already, climate change events have escalated, triggering sky-high economic damage. For example, in 2017, Hurricane Harvey caused over $125 billion in damage. Two years later, massive Australian bushfires destroyed farmlands and killed one billion animals – and the financial damage amounted to $4.4 billion.

With more climate-linked issues expected over the next decade, insurers may need to change their business models on the fly to protect individuals and businesses, as humans and climate interact on historic levels.

The Impact of Climate Change on Consumer Insurance

How will climate change the insurance landscape going forward, and what will a climate-tinged “new normal” look like for the average insurance consumer? Experts say big changes are on the horizon.

“Natural disasters result in billions of insured losses, and that’s a big problem, as climate change has led to unfavorable weather conditions leading to disasters like forest fires, floods and other disasters,” said Rasti Nikolic, a finance specialist at Loan Advisor in San Francisco, Cal. “Increased frequency of these disasters means insurers have to bear more claims and losses.”

Insurance specialists say climate change is expected to have a significant impact on multiple consumer insurance fronts.

Homeowners Insurance

Climate change is already changing usable property and insurance rates. “With climate leading to more floods, many properties near water are becoming more dangerous and liable to own,” said Darren Nix, founder of Steadily Landlord Insurance, in Austin, Tex. “For instance, much of New York City is in a floodplain and much of the properties here are more expensive to own due to higher insurance premiums.”

According to Nix, home insurance can cover many disasters including hurricanes if the house is damaged, but that’s only for the structure. “Practically everything in the house is not covered,” he said. “In some instances, you need flood insurance in addition to house insurance. Flood insurance can cover damages from floods that don’t damage the house structure.”

U.S. homeowners who embrace alternative energy sources like geothermal, wind, and solar energies can save significantly on many homeowners insurance policies. Similarly, insurers are now offering home insurance policies that help owners install green energy sources and renewable construction materials into their homes after a natural disaster, like a fire or hurricane.

According to industry sources, about 33% of greenhouse gas emissions come from buildings and structures, while green building sources can curb emissions by up to 50%.

Health Insurance

The pollution that causes climate change has led to more disease and more need for health insurance. “If you have any respiratory diseases, you may need to be sure your insurance covers that,” Nix said.

“Additionally, heatwaves, droughts, and floods put an additional burden on climate-vulnerable populations like the
seniors, the poor, and people with pre-existing medical conditions,” said Fred Hoffman, co-founder of Seniors Life Insurance Finder, in Los Angeles, Cal. “Further, into the future, climate change will likely raise healthcare costs for climate-vulnerable regions through a variety of mechanisms, including:

• Rising sea levels contaminate drinking water increasing rates of infectious diseases; – extreme weather increases hospital admissions including heat stress.
• Higher average temperatures lead to more air pollution which in turn leads to a greater incidence of acute respiratory diseases.
• Climate change will place increasing demands on basic food supplies and distribution systems, leading to further health-related maladies.

Life Insurance

According to Hoffman, climate change doesn’t directly affect life insurance, but climate change has an indirect impact on life insurance because the climate is affecting natural catastrophes—earthquakes, hurricanes, and tsunamis—that can reduce the value of the property and cause death.

“Since climate change also affects human health in various ways, it indirectly impacts life insurance as well,” he said. “For example, in hot weather, people may be more likely to die from heat stress or dehydration or from the overuse of air conditioners. Climate change could reduce agriculture output around the world which would make people more vulnerable to malnutrition or starvation.”

Climate change has also impacted life insurance because climate change itself is impacting financial markets worldwide. “This climate-financial market link is yet another indirect way climate change affects life insurance,” Hoffman added.

Travel Insurance

The US is hardly alone in battling climate change – other countries have been impacted by climate change, “That includes Japan and Canada, both of whom have suffered climate catastrophe events,” Nix said. “Travel insurance premiums have increased significantly, as a result.

Scientists say that popular travel destinations that are especially vulnerable to serious climate events and natural disasters. In fact, weather-related events have surpassed terrorism as the number one reason that trips are cancelled.

Consequently, more consumers are buying travel insurance and “cancelled for any reasons” policies. Such policies tend to cost up to 40% more than standard travel insurance policies, but with demand on the rise, expect travel insurance policies to adjust to climate change events and allow travelers to cancel their trips if it proves too risky to jet to an at-risk vacation destination.

“Climate change has tremendously increased the risks involved in travel,” said Greg Rozdeba, president of Dundas Life, a digital insurance brokerage in Toronto, Canada. “As such, travel insurance premiums will go up to cover the increased risks. When shopping for travel policies for high-risk locations, look out for policies that cover trip cancellations and that offer high coverage for emergency evacuations.”

Auto Insurance

Drivers haven’t seen big changes in their auto insurance policies due to climate change, at least compared to other consumer insurance categories. But change is in the air for auto insurance consumers. “I can definitely see auto insurance impacted, especially in high-risk areas,” Nix said.

That’s one reason why auto policies now come with features like Pay-As-You Drive, or usage-based insurance. With PAYD, insurers are offering drivers lower premiums for driving fewer miles, which can help reduce air pollution. That’s a big deal, as auto emissions cause approximately 25% of all U.S.-based greenhouse gases.

Climate Concerns in Some Insurance Policies Are Here to Stay

No doubt, climate change is fueling big changes in consumer insurance markets, and that change will expand significantly over the next decade as climate events grow more severe.

“To properly protect yourself your family and your assets from extreme weather events, talk to an insurance expert and discuss how climate change can impact you,” said Nate Tsang, founder of Wall Street Zen, a digital-based financial services firm. “Your insurance agent may advise you to get other policies outside of your normal insurance experience, as general insurance doesn’t usually cover extreme weather conditions.”

As a side note, shopping for insurance quotes frequently can also help you find the best deals, and keep your monthly premiums under control.

The post 2021 Climate Change and Insurance Report: Changes Are in the Air appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

In many ways, the beginning of the summer travel season ushered in a return to normalcy. But as the dog days arrived, they brought with them a dreaded fourth spike of COVID-19, fueled by the vicious delta variant. Now, the risks of travel, and specifically, traveling during a pandemic are coming back into focus.

So, along with masked airplane rides, and frequent virus testing, the importance of travel insurance has again taken center stage. On the bright side, the pandemic’s influence on the travel insurance industry has broken generally in the consumers’ favor. Pre-pandemic, infectious diseases tended to be specifically excluded in travel insurance policies.

But, faced with a flood of COVID-19-related claims, the travel insurance carriers surprised many observers by looking past that contractual exemption, and instead largely treating COVID-19 like any other illness covered by a travel policy. That is to say, most paid out coronavirus-related claims.

So, moving forward, with a delta-variant-fueled surge threatening late summer and fall travel, a look at how the pandemic has affected the travel industry makes a lot of sense.

The State of Travel Insurance Yesterday, Today and Tomorrow

When travel ground to a halt in 2020, many industry observers predicted a coming spike in travel insurance premiums. Thankfully, so far at least, those rate increases have not materialized. Instead, companies modified policy language so it is better equipped to face down the pandemic.

It is useful to start by looking at what is included in a typical travel insurance policy today. At its most basic, a travel insurance policy is there to protect your investment in prepaid, nonrefundable deposits in the case that your trip is canceled for a reason that is both beyond your control and that is covered by the policy.

So, say you booked a cruise, but the week before the trip, a hurricane knocked out the port you were supposed to leave from. Or, say your wine country vacation was canceled by a raging wildfire that forced the evacuation of the county you were slated to visit. Those are scenarios tailor-made for travel insurance.

Interruption clauses, found in many of today’s policies, are also handy if you have to cut your trip short for covered reasons beyond your control, like if you fell ill mid trip. But travel insurance policies come in more than just one flavor.

Travel insurance policies can also cover health care you might need on your trip. If you have private health care insurance, this may not seem like that big a deal — your private plan would cover you in the case of an emergency, even if you were away from your home network.

But routine care would not be covered – or at least would charge you out-of-network prices. Without a travel insurance policy to kick in, you may be on the hook for something that doesn’t rise to an emergency level but still needed medical attention – say you caught a stomach bug, or you developed a rash and needed to see a local doctor.

The health portion is especially valuable if you travel overseas, where your private health care is much less likely to extend protection. Travel policies also cover so-called medical evacuations, which kick in if you have a medical emergency and need to be transported a long way to get appropriate care — which, without coverage, can cost a pretty penny. The medical portion of your trip is really where international travel policies shine.

The other place international travel insurance policies become essential is when your destination country insists on coverage. Since the onset of the pandemic, some countries have begun insisting that travelers take out a minimum travel insurance policy as a condition of even getting a visa in the first place.

Travel insurance policies also can be valuable if they cover any lost or destroyed luggage, and many kick in to help you if your passport is lost, damaged, or stolen.

How Insurers Calculate Travel Insurance Pricing

Travel insurance companies take a lot of factors into consideration when they are setting pricing. Typically, policies are priced as a percentage of your un-refundable portion of travel – 4% to 10% of the insured cost, depending on several variables.

Overall Cost of Trip

More expensive trips with large up-front costs are more expansive to insure. Longer, more complex trips, and ones involving many different travelers are also more expensive, because with every variable comes another opportunity for the trip to get ruined.

Traveler’s Age

The age of the traveler is also a huge factor when it comes to pricing, but it isn’t a sliding scale the way life insurance is. A 24-year-old will typically pay the same as a 27-year-old, but once you hit a threshold, the cost jumps. Those thresholds are called age bands, and different policies set their bands at different ages. The general rule, though, is that older travelers present more of a risk than younger travelers, and so their policies are priced higher.

Where You Are Going

Where you are traveling matters, too, in many policies. Every destination presents unique risks. For example, a remote island or a deep jungle with few backup-travel options in and out will cost more than a hub city with loads of ways to take care of you and get you home in the event of an emergency.

Possibly If You Are Vaccinated or Not

One thing that may emerge as a factor when it comes to pandemic travel is the COVID-19 vaccine. Currently there are no public plans to mandate the vaccine as a condition of getting a travel insurance policy, but there are conversations, especially in Europe, among some insurers that may start mandating a vaccine as a condition of getting a policy, especially if the European Union or other countries mandate vaccines for incoming travelers.

You could also imagine higher rates for unvaccinated travelers, or even denying policies to people, depending on vaccination status. But any movement in that direction is still a ways away.

Unique Considerations for Cruises, Resorts and More

There are some trips that make a lot of sense to cover with a travel insurance policy, while some make no sense at all. For one, since cruises or resort destinations tend to require large prepaid deposits, or even payment in full in advance, they present a particular risk for travelers.

Cruise lines and resorts offer some coverage, but that doesn’t mean they are automatically the best deal. Any time you have to put thousands of dollars down for an un-refundable deposit, a travel insurance policy makes a lot of sense.

Most hotels have adopted generous cancelation policies during the pandemic, but that isn’t the case with many private-party reservations, such as through Airbnb or VRBO. Many of those private owners are asking for cash up front with no cancelations allowed, which again make travel insurance attractive.

When it comes to rental cars, many risks are often covered by travel insurance policies, but whether that coverage makes sense depends on each traveler’s individual situation. Comprehensive automotive policies on their own vehicle would typically extend to a rental car, so buying coverage for a rental car through a travel insurance policy may be redundant.

On the other hand, getting a separate travel policy may make sense so that any claim wouldn’t translate to several years of hiked premiums if the rental car company makes a claim against your personal policy, especially for a relatively small claim.

In that same spirit, look at other places you might already be covered when you travel. Some premium credit cards may include some travel insurance if you use that card to book the trip. And some other things you already pay for, like a AAA membership, may already offer coverage for no extra cost.

As you are booking your travel, pay special attention to those cancelation policies. If your airline offers to waive change fees, and if your hotel offers to let you cancel without penalty, you should really look twice whether a policy makes sense at all.

The Final Word on Travel Insurance Through 2021

While many policies have adapted to the pandemic, don’t make any assumptions. Just like with any insurance policy, read the fine print before you buy. And don’t be afraid of asking questions – if you don’t understand it, the worst thing to do would be to take something for granted when it is not explicitly stated in the policy.

Not all policies are the same, and they don’t all cover the same thing. When you are considering travel insurance, don’t necessarily take the first, most convenient option. Shop around. Find the right policy at the right price. Don’t overpay, but make sure your coverage is up to your risks.

Also make sure to book your insurance policy early. Once you pay your deposits, the clock starts ticking. Many companies won’t write policies if you don’t buy it within just a few days of the trip being purchased. So, if you booked your trip in April but are now worried about the delta variant, it is likely too late for travel insurance now.

One of the most important points when it comes to travel insurance is that it only covers things that are beyond your control. Fear of travel is never covered. So, while it might be scary to travel to a COVID hotspot, that doesn’t mean that your insurance policy will pay a dime if you choose to cancel your trip because of an outbreak.

Also, government shutdowns aren’t typically covered by standard travel insurance policies. In the case of government shutdowns, and fear of travel, the only way you would be covered is if you purchased a “Cancel For Any Reason” policy. These are more expensive, and they pay out a smaller percentage of your costs, but just like their name implies, they pay out for almost any reason you chose.

This can be a great option if you are a timid traveler, or if you have a lot of unknown variables to consider.

And finally, even if it isn’t required, don’t overlook the readily accessible and typically free COVID-19 testing — before, and especially after your trip. While they aren’t required by travel insurance policies, they are just a good idea for the safety and peace of mind for you and your loved ones.

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Summertime brings with it the promise of the open road, adventure, and lazy days by the water. But it should also bring to mind thoughts of protecting yourself and your family from risks brought along for the ride.

Especially in 2021, people are yearning for the dream of summer. Following the lockdowns of 2020 and the uncertainty brought by the coronavirus pandemic, summer is the perfect time to review all things insurance, paving the way for life to get back to normal.

Whether it is travel insurance to protect that perfect summer getaway, reassessing all your family’s insurance policies, finding a policy to protect an upcoming event, or even just relaxing with a newly legal joint (depending on where you live obviously), this 2021 Summer Insurance Outlook aims to lay out our best seasonal insurance advice.

Travel Insurance

Trips are expensive, and wasting the expense for a costly getaway isn’t fun for anyone. Thankfully, while COVID-19 made a dramatic hit to the travel insurance industry, it didn’t derail the availability of policies moving forward.

Stan Sandberg, co-founder of Travelinsurance.com, said that while travel insurance was forced to pivot during the pandemic, it is back on track, with new policies ready to be written for this summer’s travel.

The main challenge travel insurers faced at the onset of the pandemic was that epidemics were generally excluded from most policies. That meant that if they had decided to, insurers could have chosen to just issue a blanket denial on all claims.

But rather than dig in their heels, Sandberg said many of the insurers instead pivoted toward their customers and treated COVID-19 just like it would have treated any illness that would have prevented travel – that is, they covered it.

In general, if a traveler contracted the coronavirus while they were traveling, Sandberg said that the companies reimbursed them for their costs.

“They opened up really a whole world of coverage that prior to COVID was not provided for in these plans,” Sandberg said.

And consumers appear to be seeing value in travel insurance as a product. According to a recent survey conducted by insuranceQuotes, 43% of Americans say that for their next international trip, they plan to have travel insurance. And that could translate to a lot of policies, because according to our same survey, 41% of Americans say they are planning a post-pandemic international trip.

Many destinations are still requiring that unvaccinated travelers go through a quarantine period, while others are lifting many restrictions for people who have taken the jab.

Some destinations, Costa Rica in particular, are going as far as requiring travel insurance for incoming travelers. After Costa Rica imposed the requirement that travelers show $50,000 of travel medical coverage, as well as $2,000 in accommodation coverage in the case of a travel interruption, many travel insurers updated their policies to accommodate those new limits, Sandberg said.

“We saw a flurry of activity, and a bunch of carriers modified plans or brought out new plans that brought out that requirement,” Sandberg said.

Thankfully for consumers, Sandberg said that the polices he is seeing on the market are sticking pretty firm in price, without any real post-pandemic inflation.

“Travel insurance is regulated by each state’s regulator, and that includes pricing,” Sandberg said. “Traditionally these policies are priced off two main variables – the age of the traveler and the trip costs that you were insuring. Those things really haven’t changed, so there really haven’t been any pricing reaction to COVID.”

When travelers are considering trip coverage, it is important to act quickly. Many policies, and particularly the popular “cancel for any reason” policies, require that travelers purchase them within a short timeframe of paying for the trip. Wait too long, and your options dwindle significantly.

“If you committed to a trip and then five months later get concerned and want to buy a policy, that’s too bad – it’s too late,” Sandberg said.

Another thing to keep in mind is that while the travel policies flexed their language to include catching the coronavirus as a covered event, in general they aren’t covering trips that were canceled by government shutdowns — more reason to consider a cancel for any reason policy — or even one of the relative newcomers, an interrupt-for-any-reason policy, which kicks in even after the first leg of your journey has begun.

The Whole Spectrum of Personal (and Family) Insurance

The pandemic has tossed many families’ finances into uncertainty. Whether it was dealing with a flood of incoming stimulus money, or dealing with extended layoffs and the maze of federal and state unemployment insurance, there haven’t been any shortages of personal finance questions coming out of the pandemic.

So, as families have been reassessing their finances, many are looking at the costs they pay for their insurance premiums. Respondents to our survey told us that 37% of Americans say the financial impact of the COVID-19 pandemic led them to reassess my insurance policies. And when they looked closer, many decided they didn’t necessarily like what they were seeing and told us that 62% of Americans believe they are likely paying more for insurance than they need to.

Auto

For consumers worried about their monthly premiums, one of the highest impact places they should start looking is their auto insurance. Start by assessing whether the coverage you have is appropriate to your situation.

Make sure the age, condition, and value of your vehicle warrants both comprehensive and collision insurance. Also, consider whether your finances could absorb a higher deductible in the case of a loss. Even raising the deductible by $250 can translate into much lower premiums.

Also, take a close look at your liability limits. But beware. While it may be tempting to skimp on liability to save a buck, dropping things like uninsured motorist coverage limits may cause you financial ruin later.

And always make sure to shop with many different insurance companies. Because of the ways that different companies assess risk, the same coverage with one company could be drastically less expensive than the exact same coverage with their competitor.

Health

Health insurance premiums are another place consumers can look to find some savings. While you traditionally have to wait for open enrollment to come at the end of the year to start shopping for health coverage, Congress has opened a Special Enrollment Period for Affordable Care Act policies. And with the Supreme Court putting the end to challenges to those plans, there is no reason to not sign up and see if your family qualifies for a federal premium subsidy.

But it is important not to wait, because that enrollment period closes August 15. After that you will have to wait until November until the next open enrollment period opens for the 2022 policy year.

Anyone who was laid off can also take advantage of a generous Congressionally funded benefit — COBRA insurance.

COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, is a way to extend your employer-provided coverage even after you are no longer employed. In normal circumstances, COBRA is a very pricy option, but in the American Rescue Plan, Congress decided to subsidize the entire cost of COBRA plans until at least October.

Life

The pandemic also gave people an opportunity to contemplate mortality, and with that comes a reassessment of their life insurance needs. According to our survey, 37% of Americans say they do not have a life insurance policy.

While nobody wants to think about their death, it is important to look at your finances honestly and ask the question: If you died, and your income wasn’t there anymore, who relies on you that would be left in a bind? Think about your budget, your mortgage, your student loans, your children’s future tuition, even wedding plans years down the road.

People who haven’t shopped for life insurance for a while are likely going to be pleasantly surprised. Term life insurance rates began falling about 20 years ago, and they are at historic lows. For most people, moderate sized term life policies are very approachable.

And unless you have a wealth management plan that calls for a permanent life insurance policy, term policies are the way to go.

Home

Summer is a perfect time to do a checkup on homeowner’s or renter’s policies. That is especially true following the pandemic, where industry estimates show that as many as three out of four homeowners took on a renovation project during the pandemic — and a record number of new pools were sunk into back yards across the country.

All of that is a great time to reassess your homeowner’s insurance needs.

Adding things like rooms, bathrooms, and even solar panels all mean that the valuation of your property may have gone up, and so you may need more insurance. And that pool, or trampoline, or even that puppy you adopted during lockdown, all may mean your risk has creeped up, too, and so might your premium.

Summer also brings with it the risk of natural disasters, whether that be hurricanes, wildfires, or really anything Mother Nature throws at you.

When you are looking at your policy, consider whether your dwelling coverage is sufficient. If your house burned to the ground, will your policy be enough to build it back the way it was? And double check that your policy covers wildfires, if that is a risk where you live — not all of them do.

Also give a good look to what is inside your home. Does your coverage give you enough to replace all your contents? Don’t assume it does. The stuff you own adds up fast, so make a room-by-room inventory of everything you would want replaced. Video walkthroughs and photos help a lot here.

Some policies even help pay for landscaping — presuming it was destroyed in a covered peril, such as a named storm or fire, rather than just natural causes.

Another important area to look at your policy is an area called “loss of use.” That is, if you have to evacuate, how much will your insurer pay you for that temporary displacement? Many cover hotels and meals and some other costs if you are ordered out of your home.

And in advance of any disaster, do as much as you can to mitigate the risk ahead of time – buying storm shutters, cleaning gutters, clearing back your tree line and removing yard debris all can prevent a claim in the first place.

Also be aware that homeowner’s policies never cover floods, so it is a good idea, whether you live in a flood-prone area or not, to purchase flood insurance from the National Flood Insurance Program. Your existing agent would be more than happy to help you with that.

Natural disasters aren’t the only perils worth thinking about during the summer. Even fun things, like having friends over for a backyard barbecues or a dip in your pool can bring some risk.

Make sure your homeowner’s liability limits are appropriate for the risks you are taking. An additional umbrella insurance policy may make sense if you regularly have kids over to swim, or if you have a nervous dog who might confuse a squeal of delight with a threat.

And be smart. It is never a good idea to let your friends drive home after imbibing too much, especially in those states with so-called social host liability rules that hold you responsible if someone gets into a crash on the way from an event where you served them alcohol.

Cannabis Business Insurance

Cannabis is having a moment in the United States. According to our survey, 75% of Americans believe that it’s inevitable that adult use marijuana will be legalized in all 50 states. And state legislators are beginning to take notice, with nearly a score of states fully legalizing recreational marijuana, and many more states changing laws to various levels to liberalize rules related to the drug.

Still, according to the federal government, cannabis and all its psychoactive products are still controlled substances, which means that for nearly every insurance policy, marijuana is a problem.

Medical marijuana is not covered by any health insurance because of its federal classification, which goes against the apparent will of our survey respondents. According to our survey, 70% of Americans believe that medical marijuana should be covered by health insurance.

Still, without a nod from the feds, or the research and grant funding that might accompany legalization and potentially prove its medical use, medical insurance for cannabis is still sidelined, even if recreational pot is fully legal in your state.

Simple business insurance is also a struggle for companies that deal with cannabis. A few insurers, particularly some based in London or Canada, are offering some business coverage to cannabis growers and retailers. And Congress is considering a few bills that would make it easier for insurers to protect cannabis-related businesses. But as a whole, finding proper coverage is a struggle.

As for personal insurance, the case law can be a little muddled when cannabis gets involved. One thing is absolutely certain, though, and that is that driving under the influence is illegal, whether pot is legal or not, just as it is with alcohol. Drivers who get tagged with a DUI for marijuana are certain to see their auto insurance rates skyrocket.

One debate the courts are still struggling with, however, is how to establish if someone was driving under the influence of marijuana, or if they merely had it in their system from several days ago that is still showing up in a blood sample. For now, there aren’t good roadside testing options for police, making a DUI assessment largely based on demonstrable impairment.

When it comes to homeowner’s insurance, there is some mixed case law about whether cannabis should be covered in the case of a grow accident of if the plants were stolen. The more legal the activity involved is, the more likely it is to be covered, but that hasn’t been universally true, again, largely because of federal prohibition and the legal cloud that casts.

There are also questions about whether life insurers will give their best rates to marijuana users. Some have been looking the other way, while others see it much like they see tobacco or some other substance use and are raising premiums accordingly.

As legalization continues to become more widespread, and as studies are allowed and more case law emerges, some of these questions will begin to get more firm answers.

Events Are On Again, Is Insurance Ready?

One of the areas of the economy absolutely crushed by the pandemic was special events, whether that was a convention, a concert or festival, or even just a family wedding. It all came to a crashing halt thanks to the coronavirus, said David Carbrey, owner of Direct Event Insurance Brokerage LLC.

A typical special events policy covers event liability — like damage to the venue because of negligence, or even an injury to one of the participants. And that aspect of the policy was largely unaffected by the pandemic. However, there is an add-on coverage for event cancelations. And that is where the industry took a beating.

“Every cancelation policy that was in place when COVID hit the news, they all got canceled. And they all got covered,” Carbrey said. Because the coronavirus was an unknown threat, most cancelation policies kicked in — unless they specifically excluded epidemics and pandemics. “Basically, it was a teachable moment there,” Carbrey said.

Now that COVID-19 is known, no new policies would cover a cancelation because of it. And for that matter, most newly written policies also specifically exclude pandemics and communicable diseases. That said, policies covering events are “absolutely being written,” Carbrey said.

He said some underwriting details were tightened, and many automated systems that were in place to issue the policies before the pandemic are no longer in place. “As a rule, underwriters are putting eyes and hands on everything,” Carbrey said.

But, policies are available. And that is good news to an industry that is quickly coming back to life. One study by Visit California showed that travel was quickly expected to rebound to 75% of its pre-pandemic levels — with the exception of international visitors.

And according to travel industry research the U.S. should be mostly vaccinated in just a few more months, leading to an acceleration in demands in all segments of travel, including many special events. Even concerts are roaring back, with the “Hella Mega Stadium Tour,” featuring Weezer, Green Day and Fall Out Boy, which was postponed in 2020, resuming its tour at the end of July, for example.

With that rebound, producers are again insuring those events, but Carbrey said they are going to find that rates for cancelation products have gone up — in some cases by more than double their pre-pandemic pricing. On the other hand, the liability portion of those products didn’t face quite the same headwind, but even they will likely have communicable disease exclusions written into their new policies.

“But the good news is that we haven’t seen anything that we can’t do anymore that we used to before the pandemic,” Carbrey said. “Everyone is hoping to get back to normal.”

Insurance Isn’t Out for Summer

If we learned anything in grade school, it is to look forward to summer. And as the country continues to emerge from the pandemic, summertime opportunities are going to be evermore tempting.

Whether people are traveling, or they are redoubling their at-home enjoyment, summertime is also a great opportunity to look at all areas of your insurance life.

Methodology

The survey for insuranceQuotes’ Innovation and Insurance Report was conducted online using Survey Monkey. The national sample of 1,081 adults spans across U.S. geographic regions and income levels and was weighted to reflect the gender distribution and the age distribution across the 18-44 and 45+ age brackets in U.S. census data.

The post 2021 Summer Insurance Outlook: Travel, Home, Health and Events appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

While innovation isn’t the first thing most people think of when the topic of insurance comes up, changes are afoot in the insurance industry to help protect today’s consumers from emerging risks.

In nearly every corner, insurance is growing to meet today’s needs.

InsuranceQuotes conducted a survey of more than 1,000 consumers to gauge their interest in new technology, as well as the insurance options to protect them.

Our survey found that consumers are buying into the idea of electric vehicles, that more insurance options are needed for cryptocurrency, that rooftop home solar is the future, and that an increasing number of patients are embracing telemedicine.

How People Feel About Electric Vehicles and Insurance

Nearly every automaker has rolled out plans to convert their fleet to an electric model within a decade, and most consumers now see electric vehicles as the transportation of the future. And automakers aren’t making those plans on an island. Our survey found that 65% of Americans say that for their next car, they will consider an electric vehicle.

That is an astounding shift in recent years, and it may come from a combination of the success of some high-profile electric vehicles, such as Tesla, as well as a growing investment in the nationwide charging infrastructure, easing their so-called range anxiety – the worry that they will be stuck away from home with a dead battery and nowhere to charge back up.

Unfortunately for consumers, even though electric vehicles are becoming more attractive, they haven’t hit a critical mass yet needed to drive market forces in areas like mechanics and spare parts.

Because only select mechanics are certified to repair electric vehicles, the ones who are can charge a premium when something goes wrong. The same goes for spare parts makers. Because there just aren’t as many electric vehicles on the road, the only option if something breaks is to replace it with parts from the original manufacturer, which are notoriously more expensive.

And so, because electric vehicles tend to cost more to repair after accidents, their car insurance tends to cost more — a few hundred dollars a year or more depending on where you live, what model you drive, and your driving history. Insurance costs drive up the cost of ownership, so many people are hoping that to encourage the more environmentally friendly vehicles to be more widely adopted, those costs should come down.

In our survey, we found that 75% of Americans say that they would be in favor of legislation providing auto insurance discounts for electric vehicle drivers.

For its part, Tesla has stepped in to try to bring down the cost of insurance. The electric vehicle-maker has partnered with an insurance carrier to offer Tesla-branded insurance in a few select markets.

Capitalizing on the onboard technology of the vehicles, Tesla downloads driving data from every model on the road. It anonymizes that data and then the insurer uses the aggregate data of how typical Tesla drivers behave on the road, along with loss data for Teslas, with the aim of driving down insurance costs for their vehicles.

Tesla points to much of its standard passive and active safety equipment as the reason for those lower rates.
Only Teslas are eligible for this specialized coverage. But in the markets it is being offered, some people are seeing significant savings over other insurers.

Cryptocurrency Insurance in an Expanding Universe

What started as an attempt to wrest control of the money supply from the hands of governments and central banks, cryptocurrency has largely gone mainstream.

Cryptocurrency exchange, Coinbase, went public on the NASDAQ stock exchange earlier this year. And according to our survey, 25% of Americans say they are invested in Bitcoin.

But because of the decentralized nature of cryptocurrency, there are no government agencies you could call if your coins were stolen or if you lost your key. And horror stories abound.

So, with the explosion of cryptocurrency popularity, along with its accompanying risk, many people are turning to insurance companies to help manage those risks.

Unfortunately, cryptocurrency insurance is still a bit of a fringe market, with only a handful of traditional insurers writing policies to protect coins.

Some of the cryptocurrency marketplaces are also offering some policies. There are still only a few options — but that may soon change. In our survey, 64% of Americans say that they expect the cryptocurrency insurance market to expand over the next 3 to 5 years.

Cryptocurrency comes in a few basic types: crime insurance, custody insurance, business insurance, and decentralized finance insurance. The crime insurance policies are there in case someone steals your coins, either by somehow acquiring your key, or by embezzlement.

Custody insurance is there in case you simply lose your key or otherwise no longer have access to your wallet.
The business policies come in the form of professional indemnity and directors and officers coverage. And the decentralized finance policies, known as DeFi, are there to ensure the cryptocurrency technology and software itself delivers what is promised.

Coincover, based in the United Kingdom, is one of the companies offering insurance on people’s cryptocurrency.
“At Coincover we are the safety standard for crypto, and we deliver to cryptocurrency holders the same type of protection the FDIC provides for bank deposits,” said Sharon Henley, CPO of Coincover.

Henley said it is important to read the fine print and ask good questions before purchasing a cryptocurrency insurance policy, such as who is in control of the keys, how are those keys protected and who has access to them, if funds are lent out to other exchanges (which can increase the risk for potential fraud), and is there a deductible in the case of a claim.

Companies like Coincover are also looking for some other innovative new ways to provide protection to cryptocurrency owners. “We are seeing a lot more interest for our cryptocurrency wills product. When the value of crypto increases, more and more people want to have a safe way to give it to loved ones in the case of their death,” Henley said.

Even with the insurance options that are now available, there are only enough policies available to insure a small fraction of the cryptocurrency that is in circulation. As cryptocurrency further expands into the mainstream, expect more and more insurers to step in with new coverage options.

What About Insurance Incentives for Home Solar?

Rooftop solar has been exploding in popularity of late. Driven by government incentives, energy buyback programs from utilities, and inexpensive new solar panels, demand has boomed.

In the past 10 years alone, rooftop solar has grown by 42%. Nearly 100 gigawats of power is now generated directly from the sun. And industry watchers expect solar to remain popular in the coming years.

According to our survey, 81% of Americans believe that solar technology is the future of home energy systems.

And thankfully for homeowners with solar panels on their rooftops, those installations are covered by almost every standard homeowner’s policy. That is because they are considered permanent additions to the structure.

Because a solar installation may increase the value of the home, homeowners should tell their agent about any new solar system install to make sure the homeowner’s policy limits are sufficient in the case of a major loss.

And if someone uses a non-traditional installation, such as putting solar panels on a detached garage, or a shed, or even just ground-mounted solar, it is especially important to tell the agent, because those may not be covered without an additional rider or policy.

As adoption becomes more widespread, many consumers would like to see further incentives to install home-based clean power. In our survey, 76% of Americans believe that solar-powered homeowners should get a discount on their home insurance.

While such discounts aren’t yet common, lower premiums might provide just another attractive incentive to encourage homeowners to adopt carbon-free power generation right at home.

How Will Telemedicine Change Health Insurance?

The pandemic drove most parts of our lives onto a computer screen. And health care is no different.

Pre-pandemic, a combination of spotty broadband coverage, state-by-state regulation, and inconsistent insurance coverage meant that telemedicine was the exception, rather than the rule when it came to health care.

In its most basic form, telemedicine is simply a doctor using some form of technology to remotely deliver health care to a patient. Every state offers some form of regulation allowing for telemedicine, but the rules are not consistent.

Some states say that the only way telemedicine should be covered by health insurance is if both the doctor and the patient are using real-time video and audio to communicate. In some states, real-time audio is sufficient.

And at the federal level, the Centers for Medicare and Medicaid Services made a rule change in December 2020 that will permanently expand some telemedicine services for federally covered programs.

By one estimate, as many as 63 million people who were enrolled in Medicare used some form of telemedicine during the pandemic.

And the trend was evident in private policies as well, with telemedicine usage growing by a whopping 3,000% increase. Our survey found 45% of Americans say that whenever possible, they do telemedicine doctor appointments rather than in-person visits.

In addition, 38% of Americans say that when selecting their next health insurance policy, they will prioritize telemedicine coverage.

Health care providers admit that telemedicine is not ideal for every situation — it isn’t easy to listen to a heartbeat or a patient’s lungs from the other side of a computer screen.

But for many other forms of care, such as mental health, dermatology, and many other routine visits, telemedicine may be coming into its own.

And that is not even taking into account the potential for telemedicine extending the treatment options for rural and remote providers, such as a cardiologist monitoring a patient’s diagnostic readings remotely, or a radiologist reading an x-ray from across the country.

Telemedicine was obviously useful for patients who were in mandated lockdowns and who were weary of leaving their homes and getting exposed to the pandemic. But other people realized that being able to log in to talk to a doctor may mean that they don’t have to find child care, or take time off work.

With broadband expanding all the time, and with patients growing ever more comfortable using technology, the future looks bright for telemedicine.

Insurance Like All Things Must Evolve

From its origins covering European shipping concerns in the 14th century, insurance has tended to be a conservative industry. But, just like the rest of the world, change is coming fast, and insurance in nearly every segment of the industry is working hard to change along with it.

Environmentally friendly electric vehicles will continue to pick up speed in the market, and with broader adoption should come lower insurance costs.

Cryptocurrency started as the Wild West of money, but as it has matured, it has drawn the interest of companies looking to insure owners from risk. As the market gets bigger, it is likely that more policies will emerge, with more players offering coverage.

Rooftop solar is rapidly becoming a major segment of the nation’s power supply, and as more people put panels on their roofs, more people are looking for ways to incentivize further adoption.

And with the pandemic, telemedicine was able to shine and prove itself as a viable health care delivery vehicle. Insurers and regulators have taken notice, as have patients, opening up the technology for potential future growth.

The next phase of insurance innovation will likely be in the form of ‘insuretech’—or technology startups focusing on the insurance industry

Already, insuretech trailblazers are using geospacial data and high-resolution arial photography to help with the underwriting and claims adjustment processes. Coupled with predictive analytics, they are aiming to reshape the insurance company-customer relationship.

Innovation happens fast, and in places you don’t always expect it. And as things evolve, the insurance industry is growing right alongside it.

Methodology

The survey for insuranceQuotes’ Innovation and Insurance Report was conducted online using Survey Monkey. The national sample of 1,081 adults spans across U.S. geographic regions and income levels and was weighted to reflect the gender distribution and the age distribution across the 18-44 and 45+ age brackets in U.S. census data.

The post 2021 Innovation and Insurance Report: EVs, Cryptocurrency, Solar and Telemedicine appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

Cryptocurrency: A Tough Sector to Financially Protect

The cryptocurrency market is largely unregulated by design, but that’s not stopping the industry from demanding more support from insurance companies. And to get the gist of this booming need, all you have to do is ask the experts.

“Everyone surely wants assurance that their hard-earned money is safe and secure,” said James Page, a technology executive at Crypto Head in Perth, Australia. “Cryptocurrencies are too risky for insurance providers which is why there isn’t any wide coverage of such.

Consequently, there is significant demand for insurance providers to find a business model that caters to crypto-insurance. Yet this call has been neglected over time.” Page said the insurance market for cryptos is still relatively nascent.

“The Great American Insurance Group was the first insurance agency to offer cryptocurrency insurance, in mid-2014,” he said. around mid of 2014. “Yet even after a couple of years, cryptocurrencies still remain uninsured.”

The Insurance Industry Shields Cryptocurrency Investors… to a Limit

“Back in November, coin desk issued $6 billion insurance coverage for all available cryptocurrencies, but these figures only compose of about 4.2 percent of the total value of the market,” he said. “It was a big step for insurance companies and they took a risk. But it showed insurers that covering the crypto market wasn’t impossible.”

An industry valued at $10.6 billion in 2013, the cryptocurrency market has skyrocketed to $758 billion in 2020. Yet a so-called “Wild, Wild West” market environment has fueled caution among most insurance companies, which are not on board with cryptocurrencies.

“Despite its huge popularity surge in recent years, cryptocurrency insurance coverage is not widely available,” said Chris Abrams, founder of Abrams Insurance Solutions, in San Diego, Cal. “The crypto market faces the unique challenge of being highly volatile and relatively new.”

The lack of available data mixed with the high liability for insurers has left many of the big-name providers to steer clever of the crypto market. “Most coverage is offered by crypto exchanges to protect clients against theft and fraud,” Abrams said.

Insurance for Cryptocurrency: What’s Available

By and large, cryptocurrency insurance policies protect investors and industry companies against cryptocurrency losses, theft, and general cryptocurrency capital loss.

Now that the crypto market has a foothold on insurance protection, what types of insurance are available for industry consumers? “Basically, cryptocurrency insurance can be classified into several key areas,” said Sharon Henley, Chief Product Officer at U.K.-based Coincover, which delivers crypto insurance at the hot wallet level.

1. Crime insurance. Theft, internal collusion, hacks. “This coverage comes into play if your crypto is stolen,” Henley said. That scenario happens more than investors might think. Back in 2014, Mt. Gox shed $460 million in cryptocurrencies to data thieves while a breach cost Coincheck $530 million worth of customer cryptocurrencies in 2018.

2. Custody insurance, including key storage, key recovery, disaster recovery, and cold-storage. “Custody insurance kicks in when you lose access to your crypto keys or the business holding your crypto goes out of business,” Henley noted. Industry data showed that between 17 percent and 23 percent of all bitcoins have keys have been lost, likely forever, signaling a potentially robust market for custody insurance.

3. Business insurance, including professional indemnity insurance (PII) and directors and officers liability (D&O) insurance. “These insurance plans primarily mean general directors insurance, but it’s becoming harder to get for crypto businesses,” Henley said. That’s due primarily to the loose regulations and high volatility of the cryptocurrency, along with the higher probability of cyberbreaches compared to traditional investment markets.

4. Decentralized Finance (DeFi) insurance. “Also called smart contract insurance, this insurance seeks to ensure a cryptocurrency’s software is hack proof and that it’s delivering on the promise of the transaction execution,” Henley added.

Some Insurers Are Stepping Up for Cryptocurrency

Although options are limited, crypto insurance coverage does exist.

“Etherisc is one of the largest providers of the crypto market,” Abrams said. “Since they focused on decentralized insurance, Etherisc is a go-to option for crypto investors. They provide up to $1 million in coverage against attacks on crypto wallets. Exchanges like Bitstamp and Coinbase also cover crime-related losses to inspire confidence in investors.”

Other main industry insurers include Coincover, which is underwritten by Lloyds of London and Aon. On the DeFi and assets on exchange sides of the insurance equation, Nexus Mutual is becoming more active as insurance provider.

That said, the crypto industry still has a “help wanted” sign hanging on market doors, as demand for good insurance rises, industry experts say.

“Insuring Bitcoin and other cryptocurrencies are different because the insurance industry is highly established and regulated while the cryptocurrency industry is not,” said Savannah Bilbo, a cryptocurrency specialist as Pelicoin, a secure ATM crypto network operating in southern U.S. states. “Since cryptocurrency is largely unregulated, insured exchanges are a requirement like regular funds are.”

Right now, insuring Bitcoin is similar to insuring cash – people can steal it quickly, and when that happens, it’s nearly impossible to get it back. “This high risk creates incredibly high premiums,” Bilbo said.

Cryptocurrency Exchange Insurance: The Big Picture

One area showing signs of promise on the crypto insurance front is in exchange insurance. With more stability (at least with the more sizable exchanges), insurers are increasingly viewing exchanges and third-party custodians as a good platform for insurance help.

“Exchanges have different types of insurance,” Henley said. “For example, they may have a blanket insurance for their cold storage offerings, like when $100 million is spread across all holdings.

Some exchanges such as Gatehub provide wallets to their users where they can purchase individual cover for the contents of their wallet. Additionally, some exchanges like Coinbase have supplementary insurance, by Nexus, where customers are covered when they lose more than 10% of their assets.”

Aside from Coinbase, cryptocurrency exchanges like BitRex ($300 million in insurance coverage); BitGo ($100 million underwritten by Lloyds of London); Gemini ($200 million, underwritten by a Gemini subsidiary); Fireblocks ($30 million); and CURV ($50 million) all have some level of insurance coverage.”

What Does the Future Hold for Cryptocurrency Insurance?

As the cryptocurrency landscape matures, cryptocurrency investors might understandably wonder what levels of insurance may exist in the future.

“We’re looking at InsureTech as an industry segment, as well as insurance products in general, as markets that are certainly set to evolve in the crypto space,” Henley said. “We see a world where users cryptocurrency holders will be afforded the same type of protection the U.S. Federal Deposit Insurance Corp. (FDIC) provides for bank deposits.”

Henley said industry insurers, like Coincover, should not only protect against the main cryptocurrency theft risk vectors, “but also against lost access to funds should you lose your private key, or if the business you are working with goes out of business.”

Industry insurers need to get creative, too. “Right now, we’re providing cryptocurrency wills, which enables crypto assets to be inherited by loved ones, without having to disclose confidential or security information,” Henley noted.

Coincover also sees significantly more insurance products developing in the PII, and D&O spaces – which as a great need for solid insurance coverage. “We’re working on launching such products within 2021, as it’s become increasingly hard for crypto players to obtain coverage,” Henley said.

Other insurance targets include volatility insurance, which protects against a downside market crash, escrow insurance, which covers large “whale-size” cryptocurrency transactions.

“We’re also seeing institutional investors come to us for “top-up” insurance, which adds to the existing level of coverage already obtained,” Henley added. “This way, institutional investors can guarantee their crypto funds are fully protected.

Insurance Tips for Cryptocurrency Investors Looking for Better Protection

If you’re either an investor or business owner in the cryptocurrency space, take these action steps to land the best insurance policy possible.

• Check the fine print. As with any financial document, it’s always important to read the fine print on any crypto insurance policies. “A number of exchanges will have an impressive quoted insurance number, but read between the lines,” Henley said. “For example, an insurer says it covers $100 million, but assets under their control could equate to $1 billion. Consequently, only 10% of the funds are actually covered by the insurer.”
• Share keys. There are several other ways to protect your crypto investments. For example, Bilbo recommends sharing private keys with trusted, independent custodians. “This can safeguard your wallet against theft,” she said. “It’s also a good idea to spread your investments into multiple wallets to avoid keeping all your eggs in one basket. This can minimize your risk in case one wallet goes belly up.”
• Know how the keys are protected. When working with a cryptocurrency custodian, ask if your funds are lent out to other exchanges or investors as this increases the risk profile. “Good questions to ask in this scenario include “Is there a deductible to pay on a claim?” and “How is the amount of theft calculated?,” Henley stated. “Also ask if an exchange is hacked and has funds stolen, how and when will the funds be returned and distributed?”
• Diversify wallet holdings. Abrams also recommend sharing private keys with trusted, independent custodians, but he advises taking an extra step in doing so. “Sharing keys can safeguard your wallet against theft,” he said. “It’s also a good idea to spread your investments into multiple wallets to avoid keeping all your eggs in one basket. This can minimize your risk in case one wallet goes belly up.”

If current insurance options are limited (which they look like they are), how do you keep your crypto safe? “Safe” is quite debatable and many have a preference, but Henley considers most crypto safety options come with a compromise or trade-off.

“For example, offline wallets or paper wallets are considered safe but you don’t have easy liquidity and access to trade,” she said. “You are also responsible for storing your wallet or paper in a safe place, as well as providing instructions should you pass on.”

“Always remember, hot wallets can be prone to attacks and theft,” Henley added. “Web-based cryptocurrency wallets are even easier to hack.”

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Key issues like a global pandemic, a changing of the guard in Washington, and an economy upended by COVID-19 – all of which were mainstays in the Fall 2020 Insurance Preview published by InsuranceQuotes earlier this year – will continue to loom large when the calendar flips to 2021 in a couple of weeks.

So, how will all those issues (and other hot button industry concerns) play out in 2021?

In the following report, insurance experts break out their crystal balls and make some interesting calls on what the new year will bring for the insurance industry, as well as what it ultimately means for the myriad consumers the industry serves.

The Fate of Business Insurance in 2021

From a property and casualty insurance standpoint, the coverages and conditions of an insurance policy are unlikely to be influenced significantly by the upcoming presidential administration change in January, or the introduction of the COVID-19 vaccine.

“There is a possibility for a public/private partnership regarding reconsideration of the availability of business income coverage,” said John H. Dwyer, president of Quilty, Dwyer, and Larkin Insurance Agency, in Kingston, N.Y.

Dwyer said that in 2006, an “Exclusion of Loss Due to Virus Or Bacteria” form was added to most (if not all) commercial policies nationwide, and it applies to all forms and endorsements within the policy. “Consequently, there could be development of an insurance product that functions similarly to flood insurance, which may be able to provide relief to businesses who incurred interruption of their business income due to operating restrictions put in place to protect public safety.”

“Many of us of course are waiting to see what may be offered, and if such a product were to become available, there would be questions as to how the coverage gets underwritten and, more importantly, what the premiums would cost the policyholder,” he added.

The Outlook for Travel Insurance

Expect travel insurance to continue not to cover anything COVID-related, said P.J. Miller, partner and independent insurance agent with Ohio-based Wallace & Turner Insurance.

“There may be some insurance carriers that could bring forth new coverages that could cover some COVID-related items, for a fee, with conditions,” Miller said. “This would potentially exclude coverage for the traveler, but cover some expenses for cancellations of usage, or cover the traveler but not the cancellations.”

Industry travel insurance policies will also most likely require a more in-depth questionnaire to purchase coverage. “For example, you’ll get questions like “have you received the vaccine”, “are you traveling internationally”, “are you traveling to a hot zone;” and what is your age and do you have pre-existing conditions,” among others,” Miller said. “At a minimum, expect rates to rise.”

A Special Look at Events Insurance

Can large special events including weddings, conventions, and concerts make a comeback and if so what are the insurance implications? That corner of the insurance industry should see more of the same in 2021 as well.

“Coverage is available now and will be available with the same conditions that are currently in-place – no coverage for anything COVID-related,” Miller said. “Or, event insurance could be based on number of attendees, such as the higher the number, the higher the premium. Additionally, some carriers may entertain smaller events, with specific conditions and restrictions.”

Policy prices are already skyrocketing for event insurance heading into the new year.

“The effects of COVID-19 on contingency insurance market have been devastating.” said Matthew Dewen, director of Full Time Cover, in London, U.K. “With a number of high profile losses, firms are shrinking in capacity to write events insurance.”

Dewen said that on events that have been able to go ahead during the COVI-19 crisis, his team has seen up to a 200% price increase in event insurance policies. “Not only have events been hit with huge price increases, we are noticing more restrictions happening, as well,” he said.

Will Health Insurance Cover the COVID-19 Vaccine?

“Thanks to the CARES ACT passed by Congress in March, COVID-19 vaccines will be covered free of charge for Medicare beneficiaries,” said Christian Worstell, a licensed insurance agent and a senior writer for MedicareAdvantage.com. “Medicare will also cover two doses of the vaccine if it’s needed. In addition, CVS and Walgreens reached an agreement with the CMS in October to help provide vaccines to residents at long-term care facilities and nursing homes.”

Additionally, the demand for simplified issue no-medical exam life insurance will continue to increase in 2021.

“Even with the vaccine underway, people are still apprehensive about letting people into their homes to get life insurance medical exams,” said Randy Vander Vaate, president of Funeral Funds, in Dallas, Tx. “Even with the vaccine underway, people are still apprehensive about letting people into their homes get life insurance medical exams.”

Consequently, the pandemic has increased the demand for no-medical exam life insurance in 2020, and this demand will continue to grow in 2021. “More than a third of life insurance companies have expanded and accelerated their underwriting to accommodate this demand,” Vander Vaate added. “People will opt for this option and most likely get it after the start of the year as part of their annual financial planning strategy.”

Restaurant Insurance for the Courts to Decide

COVID-19 has substantially increased risk in a number of areas in the restaurant and bar industry. “That especially includes workers’ compensation, general liability if the restaurant is the cause of outbreaks and employment practices liability due to layoffs and furloughs as restaurants open and close,” said Justin Nabity, founder and CEO of Nebraska-based Physicians Thrive, a financial advisory group aimed at physicians.

Other insurance specialists expect restaurant insurance coverage to wind up in court across the U.S.

“As with EVERY business or entity, the lost income due to COVID-19 will continue to be excluded (not covered), even though restauranters might have seen a few courts mandate that the insurance carrier pay the business income claim,” Miller said. “This will be fought, appealed and likely end up in a Supreme Court (state and federal). It is clearly excluded in 99.9% of all insurance policies, so it’s not just a carrier declining to pay “just because,” it’s a part of the contract; therefore, the carriers will contend that this will lead to a system of ignoring contract language.”

Lights, Camera… Film and TV Production Insurance

The film and television industry will see a continuation of strict guidelines. “Those guidelines will be focused on locations, contracts with studios, waivers, disability claims for actors unable to work due to COVID-19 infections, and on down the line to the theatres, nationally and internationally,” Miller said.

A 4-Step Action Plan for Insurance Consumers

Given the high level of volatility in the insurance sector in late 2020, it’s important for consumers to start early, be thorough, look at unique options and work with an expert. Following these steps will help consumers reduce their premiums and have the right kind of coverage when they need it most.

Nabity offers these tips and guidelines.

1. Start early. “Get your renewal information together early to get your submission to the top of the pile for carriers,” Nabity said.

2. Be thorough. “The more detail you can provide on how you are a better risk than others similar to you, the less you will be impacted by overall insurance rate policy increases,” he added.

3. Look at unique options. “Think about unique structures or insurance products that may be lower cost or protect you from new risks that may become real risks,” Nabity said.

4. Work with an expert. “Make sure you are working with someone who is an expert in your particular industry or who specializes in the specific type of insurance you’re seeking,” Nabity added.

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COVID cases are trending upward again as the holiday season kicks off, and that could mean travel trouble for Americans looking to get away from late November to New Year’s Day. So, with COVID cases up and the holidays on the horizon, how should travelers handle their travel insurance this year?

Travel experts expect that holiday trips will decline compared to previous years – and significantly so. According to new research from Travelocity, approximately 60 percent of Americans say they “won’t be traveling” for the holidays.

Still, many holiday merry makers are planning to hit the travel circuit for either Thanksgiving, Christmas, or New Years, among other celebrations.

The Travelocity 2020 Holiday Outlook survey reports that about two-thirds of holiday enthusiasts have already booked transportation tickets and lodging through the end of the year. Another 20% say they’re waiting for the U.S. presidential election smoke to clear before they book.

What does this all mean? If you’re planning a holiday trip this year, travel experts advise taking some specific travel insurance precautions before hitting the friendly skies or the open road.

These travel insurance tips should be at the top of your travel “to do” list, so take a look at InsuranceQuote‘s top 7 COVID travel insurance tips for this holiday season. 

Check Any Travel Barriers Beforehand

Before buying an insurance policy, check travel restrictions to the country or place of destination. “It’s important to know if there are travel bans or quarantines in place while planning the trip,” said Atilio Spaccarotella, founder of Rene, a consumer travel advisory platform.

Make sure your travel insurance policy covers COVID-19

Until recently most insurance companies excluded pandemics from their coverage. “Consequently, it’s critical to find a plan that covers medical expenses that arises due to COVID as well as medical evacuation,” Spaccarotella said.

Don’t Go for the “Cancel for Any Reason” Route

Be careful about going overboard with too much travel insurance over the holidays.

“With most airlines offering cancelable tickets, and very flexible hotel cancel policies, you’ll rarely need to pursue a “cancel for any reason” insurance upgrade,” said Alex Miller, founder of UpgradedPoints.com, a travel site that provides analysis, data and reviews to travelers.

“Getting a cancel for any reason policy is simply unnecessary.”

Take Prudent Health Care Precautions

Holiday travelers should purchase travel medical insurance when traveling to somewhere outside the scope of their normal health insurance. “For example, going abroad is a great reason to purchase travel medical insurance,” Miller said.

Explore Short-term Travel Insurance Options

If you’re purchasing travel insurance during Thanksgiving and Christmas, short term policies can be a good idea, Miller noted. “Alternatively, try to purchase insurance that’s trip specific,” he said.

“This may be advisable if you may cancel and want your money back. Keep in mind, COVID usually isn’t covered under most travel insurance policies.”

Look into Risk Mitigation

Take a proactive travel insurance strategy safety plan and build an individual threat assessment plan before you leave – especially if you’re flying to a foreign country.

“An ITA includes 15 critical modules and sections that cover risk reduction, risk mitigation, and resources,” said Carrie Pasquarello, a travel advisory specialist with Global Secure Resources Inc.

“For example, do your best to touch as few surfaces as possible. But, don’t stress when you do, just have your plan in place to immediately use hand sanitizer afterward or wash your hands. Or, make sure to mask up and keep your distance from others.”

Another risk mitigation strategy from Pasquarello. “When planning a stay at a hotel you can call the hotel or email to learn about the hotel’s measures to keep guests safe,” she said.

“Also, make sure to check out the U.S. Centers for Disease Control and Prevention (CDC) guidelines for hotel safety, especially with destination-specific COVID-19 information.

Consider Medical Evacuation Insurance

“Checking into medical evacuation insurance along with a supplemental addition from a medical emergency services provider can be invaluable in the event of a serious accident or illness away from home,” Pasquarello said.

“For example, a global air medical transport and travel security membership program for travelers with a provider like MedJet can be very helpful. One in 30 trips end in a medical emergency, and safety while traveling has become a growing concern.”

That’s important – according to Pasquarello, the top reason for injury and trauma during travel is trips and falls.

“You don’t want to get stuck in a hospital far from home,” she added. “Most travelers don’t understand that travel medical evacuation insurance will usually cover the evacuation to a suitable hospital for treatment.”

Conclusion

Make sure to consider a few extra things before you pack your bags, because there are more options to protect your trip, and the near future contains many more unknowns than the usual flat tire on the way to the airport. You’ll be glad you took the extra time to plan and get the right coverage.

Wherever you travel, and whatever you plan to do to get there, 2020 proves to add a couple of steps to the journey.

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From health care to unemployment, to business interruption insurance and business liability — the choice for president, Congress, and even some down ballot races will drive how insurance will work for years to come. This report aims to detail exactly what is at stake, as well as lay out how some outcomes might influence different insurance verticals.

How Your Health Insurance Could Change

The first major insurance question isn’t even directly on the November ballot, and that is the future of the Affordable Care Act. Passed in 2010, this Obama-era legislation governs how most major elements of health insurance operate. It established some very popular – though expensive – health insurance provisions.

Here are a few of the most important ones:

• mandating coverage for pre-existing conditions
• children remaining on their parents’ insurance until they are 26
• prohibiting annual and lifetime maximum caps on insurance benefits
• mandating no-cost-to-patients preventative screenings

The expansive law passed during President Barack Obama’s first term has reshaped much of how health care is delivered. Ever since it was passed, Republican politicians of all stripes have derided the law that they dubbed “Obamacare,” and vowed to dismantle it any way they could.

The Supreme Court upheld the law in a controversial 2012 decision when the Court, in a 5-4 majority decision backed by Chief Justice Roberts said the law could move forward as constitutional because it was, in a way, a tax. Still, Republican lawmakers for years have worked at passing what they hoped would be replacements, or to just outright repeal the law.

The most current attack against the law was launched following the passage of the Tax Cuts and Jobs Act of 2017. In that law, congress set the “tax” imposed on the individual mandate-portion of the law to $0. By doing that, they opened the door for Republican attorneys general, representing 18 states, to sue, claiming that without the tax justification for the law, it was now unconstitutional.

In 2018, a district court judge agreed with the attorneys’ general rationale and struck down the law in its entirety. In 2019, an appeals court upheld that ruling in part, but asked the lower court to reevaluate whether some of the law can stay in force, even if other parts may be unconstitutional.

A team of different states’ attorneys general challenged that decision and appealed the case. That case, known as Texas V. California, has wound its way to the Supreme Court – which agreed to hear the oral arguments Nov. 10 — a mere week after the presidential election.

While industry observers had already been anxiously awaiting the results of that case, the stakes jumped exponentially after liberal Supreme Court Justice Ruth Bader Ginsburg died Sept. 18.

Why that is important is that with a court now composed of five Republican-appointed justices and three Democratic appointees, even if Roberts switches sides again, that would merely result in a split decision, leaving the lower-court ruling in place. And that is before the Senate even considers confirming her replacement.

If there is a stalemate or an outright victory for the Republicans, then the lower court ruling would likely be left in place with the law struck down as unconstitutional.

Many court-watchers say that the Texas V. California case stands on shaky legal ground, and even if a portion of the law is struck down, that doesn’t mean the court has to gut the rest of the law as well. The outcome is far from certain.

An End to the Affordable Care Act?

One comforting thing to keep in mind for fans of the Affordable Care Act is that, even if the law does get repealed, that doesn’t mean that everyone will wake up the next morning without health insurance. Insurance contracts are written on a yearly basis, and by the time the decision comes down, the 2021 contracts will already be in place.

Even if the Affordable Care Act is torpedoed in its entirety, lawmakers will have at least until the 2022 policy year to patch together a replacement.

That doesn’t mean it won’t be without consequence if the law does get axed, because some elements of it could go away immediately, such as the federal subsidies given to lower-income people to help pay for their health insurance.

Without those payments, even though the policies were still in place, they may be so expensive that the policyholder would have no way of making payments.

All said, if the law were to go away and nothing were put in place to replace it, as many as 30 million people could be facing a world without health insurance.

How Different Election Races Will Impact Health Insurance

So, back to the ballot box — this is the point where voters’ decisions will begin to make a difference. The first, obvious race to look at is the presidential race. The president and his Democratic challenger approach health care from very different angles.

President Donald Trump says he has already created the replacement for the Affordable Care Act, and promises it will be less expensive, cover more people and healthcare concerns, as well as include protections for pre-existing conditions.

He has not released the plan publicly, though, so how he will accomplish those goals is still unclear.

Trump did sign an executive order on Sept. 24 stating that protecting pre-existing conditions is the policy of the United States government — but with the Affordable Care Act already protecting them, it is unclear what extra action that executive order will take.

Democratic nominee Joe Biden has published more details about his health care plans, and perhaps unsurprisingly, he supports a tune-up of the Affordable Care Act. Given that he was the vice president who oversaw the original passage of the law, it stands to reason that he isn’t looking to stray too far from where it landed.

That is not to say he isn’t suggesting any changes to it. His policies lay out some substantial “improvements,” including the introduction of a Medicare-like public option that would be available to anyone who wants it.

Regardless of who wins the seat behind the Resolute Desk in the Oval Office, that president is going to have to work with the newly installed Congress in order to make any lasting changes to health care.

If the Democrats keep control of the house, it is easy to see where their intentions are. In June the House passed the Patient Protection and Affordable Care Enhancement Act (HR 1425), a bill designed to strengthen and expand on the Affordable Care Act. If they retain control, it is unlikely they would suddenly change course with a new plan.

The GOP-controlled Senate, however, never took up the House bill. So, again, if the Republicans retain control of the Senate, it is not likely that retaining or expanding the Affordable Care Act policies would have a very welcome reception. But what if control were to flip in either chamber?

In the Senate there are eight toss-up races, six Republican and two Democrat. If five or six of the toss-up races go the Democrats’ way, it would flip the Senate, and the House efforts may be taken more seriously.

Conversely, in the Democratic-controlled House, there are 31open races, 19 Democrat and 12 Republican. In order for the GOP to regain control of the House, a net of 28 of those seats need to go their way. A Republican House isn’t impossible, but it might be a stretch.

Not much has been released about what a Republican-backed health care plan would look like, so if both chambers go to Republican control, it is anybody’s guess what that would mean for the future of health care. Insurance decisions aren’t relegated to the federal ballots, though.

After federal law is settled, details and rules governing health care in each state are set by their state insurance commissioner. In a few states, insurance commissioners are elected, and four of them are up for election this year: Delaware, North Carolina, North Dakota, and Washington.

In the other states, governors appoint the commissioners, and there are 11 gubernatorial seats up for election in November — six of whom are Republicans and five of whom are Democrats.

And if voters were keeping track of the Texas V. California Supreme Court case, three attorneys general who have signed on to bring the case are up for reelection – Missouri, Utah and West Virginia, though none of those races have traditionally been very close.

On the other side of that case, four attorneys general who are defending the Affordable Care Act are up for reelection — North Carolina, Oregon, Vermont, and Washington. Really only the North Carolina race is close on that side.

Business Insurance and Elections: A Closer Look

When businesses were ordered to shut down at the beginning of the pandemic, many turned to their business interruption insurance for some relief. Most did not like the answers they heard from their insurers.

Just as it sounds, business interruption insurance is designed to help replace revenue if a business cannot operate, specifically because of a fire, natural disaster, or some other damage caused to their premises.

Because a pandemic doesn’t damage the physical location, most insurers denied business interruption insurance claims. And on top of that, many, if not most business interruption policies included language specifically excluding pandemics — language that was added following the 2003 SARS scare.

Businesses haven’t taken that answer lying down. Many have brought their insurers to court, claiming that the virus did indeed cause damage — to the very air that their customers could no longer safely breathe.

While those court cases will take years to move through the system, another approach that is being tested is to appeal to state and federal legislatures to intervene.

In the House of Representatives many members, including Mike Thompson from California and Carolyn Maloney of New York, among others, have introduced legislation to address the issue. In some cases, the proposed laws would force insurers to cover the losses, even though the policy language would suggest they are exempt.

Another approach has been to propose a federal pandemic insurance system that would treat pandemics like floods are treated. State-regulated insurance agents could write the policies, but if there were major losses, the federal government would step in to pay them.

Several big players in the insurance industry are also weighing in proposing some manner of federal backing for pandemic claims. All of these proposals have generally been driven by Democratic House members. Very little has been officially proposed from the Senate side or by House Republicans.

That is not to say Republicans haven’t weighed in on post-pandemic insurance issues. They have aggressively pushed for businesses to be allowed to reopen, and when they do, to be protected from liability suits.

The Republican fear seems to be that as businesses reopen, they would be inundated by a flood of lawsuits claiming that employees or customers contracted Coronavirus on their premises. Those lawsuits would be covered, and ultimately paid out by each business’ liability insurance.

To prevent this, Republican lawmakers have been insisting that any new stimulus bill include liability protections for businesses that reopen — a provision generally unpopular among Democrats, who argue that exempting businesses from liability would lead to them taking unnecessary risks with the health of their customers or employees.

And What About Unemployment Insurance?

In the opening months of the pandemic, as businesses were closing en masse, the bipartisan CARES Act extended state unemployment insurance benefits to more groups of people, including gig workers, and kicked in a $600 weekly supplement to help ease the economic shock of mass closings. By many accounts, federal action softened the initial economic blow, but that stimulus has since expired.

While the payments were popular, they were anything but uncontroversial. Many Republican lawmakers listened to complaints from businesses in their districts who said that with the $600 weekly supplement, many workers were being paid more to stay at home than they were to return to work, slowing economic recovery.

When they returned to the negotiating table to hash out a potential extension of the benefits in August, Republicans were keen to see that benefit reduced, while Democrats largely wanted them to stay at $600. This was part of the stalemate, along with the final price tag of the proposals, that kept lawmakers from passing any replacement bills.

Amid the stalemate, Trump signed an executive order repurposing money from the Federal Emergency Management Agency to temporarily allow states to increase their weekly payments by an additional $300, but that money has also since run out.

Many people, not the least of whom Federal Reserve Chairman Jerome Powell, have gone on record saying that unemployment subsidies need to be extended, but it looks like any extension may have to wait until after the election.

Another key issue for unemployment insurance is that with the crush of jobless claims, most state unemployment trust funds are nearly empty. In most cases, businesses pay into those funds based on how many employees they have on staff, among other factors.

As the funds dwindle, they often trigger automatic insurance rate hikes for those businesses already struggling due to the pandemic. To avoid those increases, many states will be looking to Congress for some sort of bailout, and it is not clear what form it would take, or how receptive lawmakers would be to one.

Key Insurance Takeaways for Election Season

While voters won’t be casting their ballots for anyone with “insurance” written on their forehead, there are plenty of ways the decisions of newly elected officials will be felt throughout the insurance industry.

At the risk of oversimplifying, a vote for Democratic control would tend to favor health care more akin to the Affordable Care Act, expanded unemployment benefits, and a heavier hand in regulating business insurance policies and federal backstops.

Republican candidates would tend to favor more market-based approaches and policies that tend to favor employers and business owners.

Regardless of which party gains control and where, industry watchers have openly questioned whether, absent Congressional action, this pandemic may cause insurers to introduce pandemic exclusions into many more types of insurance than what existed before Covid-19.

In 2020, as in other years, always make sure to assess your level of risk and read your policies carefully.

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