Premium relief to benefit insureds for BOTH commercial policies and personal auto coverage
The Main Street America Group has announced that it will return nearly $27 million in premium relief to both commercial lines and private passenger auto insureds in response to the COVID-19 pandemic.
“We know businesses are taking a hit right now. We wanted to support our commercial customers, too, during this challenging time,” said Chris Listau, Main Street America’s president and CEO.
Main Street America says that commercial insureds with a business owner’s policy and/or a contractor’s policy will receive a two-month premium credit equal to 20 percent of policy premiums due in April and May 2020. While other insurance companies have recently announced premium relief for personal auto customers, Main Street says it is one of the only insurers to be offering commercial customers relief as well.
According to the official announcement, the commercial premium credit applies to policies in force as of March 31, 2020. Main Street estimates it will credit approximately $10.4 million in premium to customers with these policies. The insurer notes, however, that Commercial Auto, Workers’ Compensation, Umbrella and other commercial policies are excluded.
Personal auto refund will be a one-time relief payment of $50 per eligible vehicle
Main Street America’s personal auto policyholders will also benefit with all personal auto policies in force as of March 31, 2020 receiving a one-time relief payment of $50 per eligible vehicle via check. The check can be spent as the policyholder chooses. All in all, MSA estimates it will provide premium relief of approximately $16.5 million to personal auto customers.
“As a mutual holding company, we value our policyholders and recognize their important role as stakeholders in our company,” said Listau. “Safer-at-home orders and other measures have resulted in a notable decrease in average miles driven per day as well as a subsequent decline in personal auto claims, and we expect these trends to continue in the near term.
“While the impact on commercial lines is different, many small business owners have also had unprecedented impacts. Most restaurants have been restricted to drive-through or take-out operations only. Most non-essential retail businesses have been closed. And many contractors and service businesses have been affected,” added Listau. “Main Street America is committed and prepared to serve our policyholders, independent agents, employees and communities during this trying time. As conditions change, we will continue to make decisions in real-time to make sure those counting on us have the support and protection they need.”
Other initiatives Main Street America has taken in response to the COVID-19 pandemic:
- accepting premium payment extension requests without penalties or fees up to 60 days;
- offering restaurant insureds hired and non-owned auto coverage for food delivery; and
- postponing physical premium audits and inspections for commercial insureds.
- The company is also providing temporary coverage for individuals using personal vehicles to deliver food from local restaurants, extending rental car return days if vehicles cannot be repaired or returned due to business closures, and waiving inside inspections of homes.
In addition, Main Street America through its NGM Charitable Foundation and employee matching gift program is providing funds to support relief efforts to those facing financial uncertainty and other needs.
More about Main Street America
Headquartered in Jacksonville, Fla., Main Street America offers a wide range of commercial and personal insurance, as well as fidelity and surety bond products, to individuals, families and businesses throughout the United States. The company writes more than $1.1 billion in annual premium exclusively through independent insurance agents. Main Street America carries an “A” (Excellent) Financial Strength Rating, with a Stable Outlook, and “a+” Issuer Credit Rating from A.M. Best. In 2018, Main Street America merged with American Family Insurance, the nation’s 13th-largest property/casualty insurance group, becoming the enterprise’s channel to distribute products through independent agents.
