Bulletin 2020-17 was issued on May 18th, 2020
In a new bulletin, the Division of Insurance is advising all Massachusetts insurance carriers with respect to vacancy provisions during the COVID-19 public health crisis. Noting the critical part in helping stabilize the Commonwealth’s economy, the DOI is expecting Massachusetts insurance carriers “to take all of the necessary steps to preserve insurance coverage during this emergency period.”
“With restrictions on certain types of activities, the Division is aware that many businesses were not considered essential businesses and were ordered to not remain open, causing many Massachusetts properties to be unoccupied during the public health crisis. Recognizing that many commercial properties may include provisions that limit coverage in the event that a property is vacant for a certain number of days, the Division believes that Carriers should be looking for all ways to be flexible in counting days of vacancy to provide coverage to business owners in what the Division hopes will be a short-term disruption in the business environment.”
How carriers should address Vacancy Limitations
Accordingly, the DOI advocates that all property and casualty Carriers provide as much flexibility as “reasonably possible” during the COVID-19 public health crisis in order to maintain existing coverage. In addition, they are expected to do the following:
- Take steps to be flexible with accounts regarding vacancy limitations in policies issued to those businesses not deemed ‘essential’ under Governor Baker’s Emergency Orders and which have not been allowed to operate under COVID-19 rules.
- When counting days that a property is considered vacant, exclude days that the property is vacant due to the Governor’s Emergency Orders, provided that the property is properly secured according to the terms of the coverage on those days.
More information
For this interested in accessing a copy of the official Bulletin, it can be viewed or downloaded here. For those who may have questions concerning the Bulletin, the DOI requests that you contact DOI Deputy Commissioner Kevin Beagan at 617-521-7323.
