The Coronavirus – COVID19 has hit the world like a ton of bricks and it feels like a heavy load to carry. As entire industries, businesses, communities, families and individuals deal with this unprecedented event we are bombarded with information that is not only ever changing but also at times contradictory. It’s a stressful time for everyone and we know we don’t have to tell you that.
As clients start to adjust their collection efforts because of the current Coronavirus Crisis – it is important that you remain steadfast and vigilant in making sure you have the present right to repossess a vehicle before attempting to pick it up. Failure to make sure an account is still open and that a present right to repossess exists could cause a wrongful repossession situation and increases the likelihood of you being asked to take vehicles back to customers. Be certain should this situation arise that you are properly documenting the timeline of all communications with your clients. We have been apprised of situations where clients are changing the status of an account in the various portals they use or are asking repossessors to alter the dates of repossession after they are told an account shouldn’t have been picked up and has to be returned. This could pose problems should a lawsuit be filed down the line.
We understand and share members’ fears and concerns about the sustainability of their businesses during these times. Members who are concerned about whether they will be able to maintain their insurance coverage during these challenging times are encouraged to prepare as much as they can. If you’re finding yourself not being able to work a lot of assignments because of client holds, now may be the time to focus on collection efforts. Often members express that they are in situations where their clients are 60, 90, 120 days or more behind in payments – this would be a good time to ramp up collecting those payments so you can hopefully bring in the money owed to you as you prepare for a reduction in business.
It is also suggested that you try to empty your lot of stored vehicles to limit your potential liabilities and help limit potential deductibles associated with lot claims. If you’re not being paid for storage, which most of you say you’re not, then it only benefits you to get the vehicles off your lot(s) so if you were to experience a storm, theft, act of vandalism etc., there are fewer or even no vehicles to be damaged.
With RSIG unlike traditional insurance policies with a set monthly payment, when your business decreases, so does your monthly payment. So in tougher times and when you experience a sudden, unexpected decrease in business your monthly fees are automatically reduced based on the volume of your business.
To make paying for insurance easier, RSIG recently partnered with EpayPolicy and can accept your payments online, anytime from any device. You only need internet access and you make your payments simply and securely. Many members are already utilizing this service and have said how easy it is to use. Use this link https://rsig.epaypolicy.com/ to get started when you need to submit your next payment.
RSIG will be closely monitoring communications from the Insurance Departments regarding any directives they make regarding cancellation of policies and like we always do we will try to work with members who find themselves in a bad spot. But best practice is not to get to a point where your policy is in danger of cancellation. Carriers are not required to reinstate and decisions to do so are based on a number of factors including reviewing an account for losses and prior payment history. Remember also that if Insurance Departments change how policies can be terminated, it does not relieve the insured of the obligation to pay – it may only provide additional time to pay the required payments.
One other thing to keep in mind is that many people think taking vehicles off their tow truck policies is a quick and easy way to save money on insurance premiums. Before making this decision consider these things:
• If there is a lienholder on your vehicle, it is usually a requirement that you maintain comprehensive and collision coverage on the vehicle, not just liability coverage;
• If you would be negatively impacted if you lost the vehicle due to theft, vandalism, natural disaster, fire – then you should not take comp/collision off the vehicle.
• When Departments of Insurance mandate carriers NOT cancel insurance for any reason, they also often say that an insured cannot add additional vehicles/coverages to their policies. So if you take vehicles off your policy to reduce costs today, but need to add the vehicle back in a few days, a few weeks – you may not have that option available.
Several people have asked about Business Income Interruption insurance. This is a type of property coverage that can sometimes be purchased as an optional coverage through your provider who writes your building and contents coverage, but not all providers offer it in conjunction with that policy. Purchasing this coverage now mid pandemic will not provide the protection you need to protect your business today. It is like trying to get health insurance coverage after you’ve been diagnosed with a lifethreatening condition or trying to get flood insurance when a hurricane is in the forecast for your area.
This week our office is understandably being inundated with emails and calls from all of you. The common theme among them all is “What are you going to do for me?” Each and every person reaching out is grasping and we get it. The only thing in recent memory that even comes close to what is going on now was 9/11. Generally when we see work flow interruptions it is localized to one area of the country with a storm or flooding – not on a national basis like what is going on now. We know it is a scary time, but please also know that just as you are trying to figure things out with your businesses, we are trying to figure things out with this one as well.
Unlike a lot of other insurance providers who don’t specialize in the repossession market and have diverse books of business to support their operations, RSIG and Lighthouse ONLY work for YOU. When you struggle, we literally feel and share in your pain. When you can’t pay your insurance, we feel it too – which is why we always try to work with you as much as we can. But insurance is not, cannot and never will be free. We can follow the direction of the state Departments of Insurance and as long as we are able to we can try to work with payment plans on outstanding deductibles and even monthly reports if/when the insurance departments say policies can’t be cancelled, but we can’t make it go away. We support your business with access to insurance, education and training, legal and industry support, etc., but you financially support our staff each and every month. We are just as dependent on you as you are on us.
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