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The Importance of Reviewing Your Insurance Policies During The COVID-19 Pandemic The COVID-19 pandemic has taken the world by storm. Millions of people all over the world have been infected and businesses have ground to a halt. During this time, it is important for everyone to take a breath, pause, and look at their insurance policies.

The reality is that the economic crisis is following in the footsteps of the obvious public health emergency. In order for everyone to hold their finances together, it is important to explore all of the options. This includes looking at insurance policies.

Business Interruption Insurance

One of the first policies or riders that everyone has to look for is called business interruption insurance. This is an insurance policy that might be able to assist companies that are struggling with reduced revenue streams due to interruptions in their normal business operations.

For example, if a business is forced to shut down due to the COVID-19 pandemic, this might fall under the category of business interruption insurance. This can help businesses bridge the gap until they can reopen again.

Civil Authority Clauses

This is a feature that is common in property insurance. This insurance claim can be triggered if government policies restrict the entry of people onto the property of the policyholder. If this restriction leads to lost income, then the insurance policy can be triggered. Everyone should check their policies to see if this clause is included as this can provide funds to businesses that might not otherwise be able to stay open.

Defensive Policies And Riders

Finally, defensive policies are often put in place to help companies defend against lawsuits that might be filed against the company related to injuries and illnesses. Without a doubt, there will be a slew of lawsuits filed related to the COVID-19 pandemic. Defensive policies can help companies cover legal fees, settlement costs, and other expenses related to these lawsuits.

Defensive policies are also called D&O insurance (Directors and Officers Insurance) as well as General Liability Insurance. It is important to read the insurance policy carefully to see if these policies are included.

Businesses need to explore every available option when it comes to reopening. These insurance policies can help them survive the COVID-19 pandemic.

What's Ahead For Mortgage Rates This Week - August 10, 2020 Economic readings released last week included construction spending, public and private-sector job growth, and government reports on initial and continuing jobless claims. Freddie Mac also released its weekly report on average mortgage rates.

Construction Spending Falls in June

Commerce Department reporting for June showed lower construction spending for the fourth consecutive month, but spending fell by -0.70 percent as compared to May’s negative reading of -1.70 percent. June’s construction spending was $1.36 million at a seasonally adjusted annual rate.

Residential construction spending fell by 1.50 percent in June as public construction spending fell by -0.70 percent. Analysts said that construction spending has held up relatively well in the pandemic as spending was up 0.10 percent year-over-year in June.

Public and Private Sector Jobs Growth Slows Sharply in July

ADP reported 167,000 private-sector jobs added in July as compared to 4.31 million jobs added in June. A resurgence in coronavirus cases contributed to the downturn, as consumers, employers and workers remained cautious and followed state and local guidelines for minimizing exposure to the Covid-19 virus. The leisure and hospitality sector led the falling private-sector jobs growth rate by adding 38,000 jobs in July as compared to approximately two million jobs in June.

The government’s Non-farm Payrolls report posted 1,76 million public and private sector jobs added in July, which surpassed the expected reading of 1.68 million jobs added but fell short of June’s reading of 4.79 million public and private sector jobs added.

The national unemployment rate decreased to 10.20 percent in July and was lower than June’s reading of 11.06 percent and the expected reading of 10.60 percent. While higher than pre-pandemic unemployment rates, July’s lower reading was good news amid overall economic hardship.

Mortgage Rates Reach Another Record Low; Unemployment Claims Mixed

Freddie Mac reported another week of record-low mortgage rates. The rate for 30-year fixed-rate mortgages averaged 11 basis points lower at 2.88 percent. Rates for 15-year fixed-rate mortgages averaged 2.44 percent and were seven basis points lower; rates for 5/1 adjustable rate mortgages averaged four basis points lower at 2.90 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Initial state jobless claims fell to 1.19 million from the prior week’s reading of 1.44 million first-time jobless claims filed. Continuing state jobless claims were also lower than for the prior week with 16.10 million claims filed; 17.00 million ongoing jobless claims were filed the prior week.

What’s Ahead

This week’s scheduled economic reporting includes readings on inflation, retail sales, and consumer sentiment. Weekly reports on mortgage rates and new and continuing jobless claims will also be released.

The Importance of Reviewing Your Insurance Policies During The COVID-19 Pandemic

What’s Ahead For Mortgage Rates This Week – August 10, 2020

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