Businesses Can Defer Part of Their Payroll Tax Until Next Year

Employers are responsible for withholding Social Security and Medicare payroll taxes from their employees’ paychecks and paying these taxes along with the employer’s share to the IRS each month.  The Social Security tax is 12.4% total, with 6.2% withheld from the employee’s wages and the employer paying 6.2%.  The Medicare tax is 2.9%, with 1.45% withheld from the employee’s wages and the employer paying 1.45%.

As part of aid to businesses provided in the Coronavirus Aid, Relief and Economic Security Act (CARES Act), employers can defer depositing the employer’s share of Social Security taxes until December 2021. For payroll periods starting March 27th through the end of this year, employers may defer their share of the Social Security tax (6.2%) and not deposit it with the IRS. Instead of depositing the usual amount of payroll tax, employers can simply hold back their portion of the Social Security tax each month and use it for other operating expenses.  *Please note this only applies to the employer’s portion of the Social Security tax.  Employers may not defer the employee’s part of the Social Security tax, and employers must still deposit both the employee’s and the employer’s portion of the Medicare tax each month.

Employers who decide to defer their part of the Social Security tax have until the end of next year to start depositing the amount they deferred. Half of the deferred payroll tax amount must be deposited with the IRS on December 31, 2021, with the other half due by December 31, 2022.

All employers may take advantage of this payroll tax deferral, including employers who have received a Paycheck Protection Program (PPP) loan.

For more information from the IRS about payroll tax deferral, please click here.

This payroll tax deferral is not the same as the payroll tax credits that employers may take for providing paid leave to employees or the employee retention credit. The IRS has detailed information about these credits here.

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New Law Provides Flexibility on PPP Loan Forgiveness

Under a new federal law effective June 5, 2020, the requirements for PPP loan forgiveness have been relaxed in favor of small businesses.

What is included in the bill?

The bill, which passed with a bipartisan vote, makes the following amendments to the PPP to provide relief to borrowers:

  • Loan repayment terms—The bill extends the minimum loan term for unforgiven PPP loans from two years to five years.
  • Payroll costs vs. nonpayroll costs— For forgiveness eligibility, the bill reduces the portion of PPP funds that must be spent on payroll costs from 75% to 60%, and raises the nonpayroll cost limitation from 25% to 40%.
  • Covered period extension—The bill extends the covered period during which borrowers must spend the PPP funds to be eligible for forgiveness from eight weeks to 24 weeks from the date of origination of the loan.
  • Payroll tax deferment—The bill permits borrowers to defer payroll taxes without being penalized while still remaining eligible for loan forgiveness.
  • Extension of rehiring safe harbor—The bill extends the rehiring safe harbor by six months to provide borrowers with additional time to restore payroll levels or rehire employees without facing a reduction in the amount of forgiveness for which they are eligible. The original date was June 30, 2020, and the new date is Dec. 31, 2020.

In addition to the provisions above, the bill provides loan forgiveness eligibility exemptions for borrowers that are not able to rehire an employee or a replacement. There are also exemptions for loan forgiveness eligibility for borrowers that are not able to return to the same level of business due to complying with COVID-19-related orders or circumstances.

What’s next?

Borrowers should review the bill carefully and speak to their lender should they have any questions. In addition, borrowers should direct any questions regarding their PPP loan to their lender.

We will continue to monitor any additional developments regarding the PPP and deliver updates as necessary.


Workers’ Compensation and COVID-19: What Employers Need to Know

The Covid-19 global pandemic changed how Americans work, seemingly overnight. As many offices transitioned their teams to remote work, others in industries deemed essential scrambled to procure PPE and prepare their workplaces for new socially distant norms. Now that non-essential workers are beginning to return to their workplaces, a common question for employers becomes, “What happens if an employee is exposed to Covid-19 on the job? Is this a workers’ compensation issue?”

That depends, says Paul Hughes, president of Orlando-based Libertate Insurance Services, which provides workers’ compensation coverage to professional employer organizations, including XMI.

Normally, a communicable disease that could be contracted during the ordinary course of life (like the cold or flu) is excluded from workers’ compensation coverage. But several states have already amended their workers’ compensation laws to include Covid-19 “presumption” clauses.

To date, 26 states have added presumptions to their workers’ compensation laws (Tennessee is not one of them).

To read the full article, please click here. This was originally published on XMI’s website.

California Workers’ Compensation Impact Projections – COVID19

As our clients continue to grow their businesses during the COVID19 pandemic, it has never become more important to select the right client company exposures to take risk on and those to lay off on guaranteed cost policies.  Having an underwriting strategy for risk selection and understanding of proper pricing as a result of COVID19 is an issue that needs to be focused on in this dynamic environment.

As with any projection, as time goes by, the future is understood with greater certainty.  As I continue to monitor the “risk load” attributable to COVID19 on a State by State basis, it made me think of one of my literary heroes and a famous quote of his:

“A habit of basing convictions upon evidence, and of giving to them only that degree or certainty which the evidence warrants, would, if it became general, cure most of the ills from which the world suffers.”  – Bertrand Russell
Why?  Because we are still dealing with “evidence” on COVID19 that is uncertain.   How much we can warrant forecasted outcomes as a result is therefore uncertain.  Besides the fact we are dealing with a 1 in a 100 year pandemic with no script to work off from the past, the models forecasting number of events and costs are built off of social distancing and staying at home; these variables being complicated by the reopening of States on the rise and social demonstrations triggered by the Floyd case/police brutality.
That said, based on the evidence in California at present, the middle of the road estimate is the addition of $1.2B of system costs to the current system costs of $18.3B, or 7%.
The low end is 3.3% and high end 11%.  These costs emanate from the mid-range loss estimate of 31,100 COVID19 claims.  Please note that this projection is based off the Governor’s order of presumption only lasting through July 1, 2020.  Of these expected claims, it is anticipated the costs will be as follows:
Claim Type               %               Expected Costs per Claim
Mild                           82                          $2,100
Severe                      10                           $74,800
Critical                        3                           $191,100
Death                         5                            $280,500
While I found this projection on the surface to be light, Mr. Stypla and I than contemplated the facts that California was one of the first to close and has been very strict in “stay at home” protocols.  As a result, their fatalities per 100,000 people are far less than other populous states:
Cases/ Fatalities/ 100,000
California – 347/12/100,000
New York – 1,951/157/100,000
Texas – 270/6/100,000
Florida – 307/13/100,000
New Jersey – 1,855/139/100,000
Illinois – 1,020/48/100,000
Michigan – 651/60/100,000
Wisconsin – 366/11/100,000
Ohio – 335/21/100,000
Mass. – 1,507/108/100,000
As you can see, there is a wide range of events by State with California being on the lower end of the spectrum.  So the take away is based on evidence today, California appears to be outperforming against initial forecasts and the country as a whole.  Hopefully the numbers will stand, but to belabor it, these are very fluid forecasts based on evidence available as of today.

Regulators and Lawmakers Introducing Workers’ Comp to COVID-19

By Jim Sams, April 20, 2020

Sympathetic state lawmakers and regulators in states both red and blue promise to make COVID-19 a major cost driver for workers’ compensation insurers.

The governors of Kentucky, Arkansas, North Dakota and Florida and state regulators in Illinois, Washington, Michigan and Missouri have issued executive orders or amended rules to expand eligibility for workers’ compensation.

Most of those decrees ease the path for benefits only for healthcare workers and first responders, but an emergency order by the Illinois Workers’ Compensation Commission creates a presumption that work is the cause of COVID-19 if contracted by any “frontline worker” identified in Gov. J.B. Pritzker’s March 20 stay-at-home order. That includes workers at grocery stores, laundries, banks and hardware stores, among other businesses.

Kentucky Gov. Beshear issued a similarly broad executive order that created a COVID-19 presumption for workers in grocery stores, child-care centers, domestic violence shelters and rape crisis centers, in addition to first responders and healthcare workers.

In the meantime state legislators are also pushing to expand benefits for COVID-19. Earlier this month, Alaska Gov. Mike Dunleavy (R), Wisconsin Gov. Tony Evers (D) and Minnesota Gov. Tim Walz (D) signed into law bills that create a COVID-19 presumptions for first responders and some healthcare workers.

Bills to create presumptions for COVID-19 have been introduced in the New York, New Jersey, Pennsylvania, Ohio and Utah state legislatures.


Philadelphia defense attorney Cliff Goldstein said he saw the avalanche of presumption bills coming as soon as heard the first reports of the disease spreading into the United States.

“I don’t think there’s any way to stop that steamroller,” he said.

Data from the California Division of Workers’ Compensation bears him out. As of Thursday, 1,527 claims coded for COVID-19 on claims notices had been filed, according to agency spokeswoman Erika Monterroza.

Goldstein is not the only defense attorney predicting a flood of COVID claims.

“There will likely be many workman compensation claims because of the ease of filing, there is no requirement to prove negligence, and for many people their greatest contact with others, and hence the greatest chance of contracting the virus, is at work,” David Boies, managing partner of Boies Schiller Flexner LLP in New York, told Bloomberg News.

Goldstein said presumption legislation promises to be a boon for claimants’ attorneys, who will take a percentage of any permanent disability benefits awarded.

“You are just dangling meat in front of hungry lions,” he said.

Goldstein said his office — Chartwell Law in Valley Forge — has already received a handful of claims, some of them death claims. He said employers should resist any kind-hearted urge to quickly approve such claims based on the employee’s job category. Instead, each claim must be individually investigated, he said.

COVID-19 claims that require admission to an intensive care unit will likely run into the six figures for medical costs alone, he said. What’s more, employers will be taking full responsibility for whatever complications arise from a coronavirus infection far into the future.

Goldstein said Congress passed a pair of relief bills in March that should make it easier for employers to delay acceptance of a claim. The legislation requires employers with fewer than 500 employees to grant up to 80 hours of sick leave to workers sickened by the new coronavirus, which will be reimbursed with tax credits. Gov. Gavin Newsom issued an executive order Thursday that requires the same benefit from employers with more than 500 workers.

For workers who lose their jobs because of coronavirus, the federal emergency law also allows up to 16 weeks of unemployment insurance benefits at rates ranging from $875 to $1,500 per week, depending on the state, Goldstein said.

Vulnerable Occupations

Claimants’ attorney Julius Young in Oakland, Calif. said those benefits won’t make workers whole. Usually workers lose their health insurance if they lose their job, which makes workers’ comp a vital benefit for employees who were made sick because of their exposure to the public while at work. Also, some workers may be permanently disabled by COVID-19.

He said presumption bills make sense for workers who can’t avoid constant contact with the public.

“A lot of these people in vulnerable occupations shouldn’t have to go through this roulette-like maze wondering whether they are going to be covered,” Young said.

Young said the federal benefits will help in the short-term. He said state regulators should start thinking about whether and how any federal benefits paid can be offset from workers’ compensation awards.

Medical research indicates that there is a real possibility of permanent disability from COVID-19.

According to Science Magazine, the lack of oxygen and widespread inflammation caused by COVID-19 can damage kidneys, liver, heart, brain and other organs. Studies show that severe pneumonia caused by other diseases sometimes lead to scarring that causes long-term breathing problems. Pneumonia also increases the risk of future illnesses, including heart attack, stroke and kidney disease.

In one study of 138 patients hospitalized in Wuhan, China due to pneumonia from COVID-19, 20 percent suffered acute respiratory distress syndrome.

A separate study published by the New England Journal of Medicine in 2011 Regulators and Lawmakers Introducing Workers’ Comp to COVID-19found that of 109 survivors of ARDS, 51% suffered physician-diagnosed depression, anxiety or both. Perhaps more relevant to workers’ comp, that study found that just 77 percent of the 83 patients who survived throughout the study period had returned to work five years after being treated. The study found that only 39% of patients were able to walk the distance expected for their age group in six minutes five years later, suggesting a high degree of physical impairment.

As of yet, none of the major workers’ compensation rating organizations has released any projections on the potential impact of COVID-19 on workers’ comp loss costs.

The National Council of Compensation hopes to release next week an analysis of potential claim costs under a variety of scenarios, said Executive Director Jeff Eddinger. For example, one scenario project costs if a large percentage of workers who contract COVID-19 file claims and 100 percent are found to be compensable. He said the analysis will make projections for a variety of infection and claim-acceptance rates.

Eddinger said NCCI does not yet have any data on how many claims have been filed. He said insurers don’t report their losses until six months after the policy period expires. But he said there is some data available. For example, the Centers for Disease Control and Prevention reported that between 10 percent to 20 percent of COVID-19 cases were healthcare workers.

The California Workers’ Compensation is working on similar projections, said President Alex Swedlow.


Want to learn more about how COVID-19 affects your company? Give us a call at 305-495-5173, or email us at

Take a ‘Deep Dive’ Into the Nonprofit Sector: Nonprofits Treading Water as Market Hardens

April 9, 2020 by Stephanie K. Jones & Amy O’Connor

The task of insuring nonprofit organizations is a complex one and agents, brokers, underwriters and carrier representatives say that in order to fully serve those entities that serve our communities in myriad ways, it’s vital to take the time to understand what they do and how they do it.

Specialists in this segment are more important than ever as the commercial market has tightened and property and liability coverage rates continue to rise, challenging the slim budgets of most nonprofits.

Headlines from the #MeToo movement and large jury awards for sexual abuse cases have also spooked carriers who write nonprofit business into offering smaller limits or pulling out of the space altogether, nonprofit insurance experts say.

As the third largest employment sector in the United States — behind retail and manufacturing — the nonprofit world, made up of 501(c)(3) tax exempt organizations largely focused on contributing to their communities, faces the types of operational challenges that exist in the for-profit universe but also issues that are unique to the charitable sector.

Funding is one such challenge, as nonprofits typically have smaller budgets than for-profit entities with funding coming from donations as well as from contracts with larger nonprofits or local, state and federal governments.

Finding the proper insurance coverage can be another challenge for nonprofit organizations in light of the different factors that affect the organization, such as its funding sources, liabilities that stem from its mission, its property, clients, staffing and a heavy reliance on volunteer participation.

The class requires specialists who take the time to really understand a nonprofit’s different challenges and exposures, experts say, particularly considering the changing market.

“We spend a lot of time on doing what somebody might call a deep dive into what they do,” said Polly Kosyla, president of S. Wolf and Associates, a Chicago-based independent agency focused solely on the nonprofit sector.

She said that includes developing an understanding of the nonprofit’s mission, their activities, the responsibilities of their volunteers and staff, their funding sources and the other entities with which they work.

“I think the front-end work of what we do is very labor-intensive to really get a full understanding of what an organization is not only doing now, but also trying to accomplish in the future,” added Charlie Kosyla, vice president at S. Wolf and Associates.

Because of the variety of nonprofit risks, there’s no one carrier that can provide the coverage needs for all of them, Charlie Kosyla added. In crafting solutions for their clients, it’s a matter of finding a fit with “the collection of carriers and MGAs we work with. It’s fitting all the policies because there’s no one carrier to cover them all. It’s a vast market.”

Peter Andrew, president and CEO of Council Services Plus in New York, an agency that only writes nonprofits, said there are few carriers that regularly and comprehensively work with nonprofit organizations because of their exposures, which can make it difficult for the smaller nonprofits to get all the coverage they need.

“There are certain coverage features that nonprofits like to have that maybe for-profit businesses don’t, like coverage for volunteers, coverage for special events, fundraisers, the ability to name additional insured, funding sources, municipalities, conference, location hosts, things of that nature,” he said. “There’s only a handful of insurance companies who are really writing a policy that’s comprehensive for the nonprofit world in that way.”

Hardening Market

In a space that is already limited in terms of carriers that specialize in it, nonprofit insurance experts say exiting capacity is a huge risk to the segment that could make nonprofits vulnerable to being underinsured or without the coverage they need to operate.

Andrew and other specialists say there are signs of a tightening market with higher rates and lower capacity for both liability and property insurance after many years of a very soft market.

“In addition to a shrinking capacity, some of the for-profits [carriers] are completely withdrawing from the nonprofit market or certain sectors of the nonprofit market, especially sectors that have high exposure to the molestation abuse — so nonprofits serving children, vulnerable adults,” said Brian Johnson, chief underwriting officer for the Nonprofit Insurance Alliance, a nonprofit-focused insurer writing business in 32 states and D.C.”

“Carriers are getting out of foster care, they’re getting out of camps, they’re pulling back limits on misconduct, on D&O; they’re even taking it out of the umbrella in some cases. They’re non-renewing or maybe extending [coverage] for a month,” said Peter Persuitti, managing director of the Nonprofit Practice at Arthur J. Gallagher.

Nicole Jolley, director of Nonprofit at Church Mutual Insurance Co. in Merrill, Wis., noted there has been “some tightening in the property space and we’re looking at liability as a potential next line of business that will be hardening.”

She added that the #MeToo movement and changes in sexual misconduct reviver statutes across the country, where many states are suspending the statutes of limitations for abuse and molestation, are having an impact on liability rates for both nonprofit and for-profit businesses.

Certain segments, particularly those that have exposure to minors or vulnerable adults, are seeing the biggest shift due to a swell in plaintiff attorneys going after nonprofits.

Mike Liguzinski, division president, Specialty Human Services at Great American Insurance Group in Cincinnati, Ohio, said the social inflation caused by a very proactive plaintiff bar, which is pursuing and winning more verdicts and high jury awards, is impacting rates. It’s not a new phenomenon, rather a trend that seems to cycle around about every 10 years, he said.

“We’re going to see rising rates for the next two to three years because of social inflation,” Liguzinski said.

Brad Baumgartner, executive vice president with IMA Inc. in Denver, said liability and property coverages in the nonprofit space are mirroring what is happening in the P&C market in general.

“Comp prices are coming down, which is great, because that has historically been a big spend for them. But just like anywhere else in health and human services, professional liability has been going up,” he said.

Nonprofit insurance broker Jordann Coleman with Heffernan Insurance Brokers in Walnut Creek, Calif., said a soft workers’ comp market has been a “silver lining” for many nonprofits as property and liability rates rise.

“Workers’ compensation has been the one area that we’ve been able to — at least rate-wise — provide some relief,” she said.

Carriers that specialize in nonprofits are taking note of the market changes.

Liguzinski wouldn’t go so far as to say that the market is in a crisis mode, but he acknowledged his company is “getting a ton of calls” from brokers trying to place business. “Let’s put it this way: Our phone is ringing. We don’t have to go looking for it,” he said.

Johnson of the Nonprofit Insurance Alliance tells a similar story.

“Our submission account for 2019 was up overall 25% year-over-year, and a lot of that is because some of the for-profits [carriers] are saying, ‘Yep, we’re out. We’re not doing it anymore.'” he said.

While the market is changing, Polly Kosyla says coverage is still available for most of her clients.

She said she has been in insurance long enough to remember a time when there were no carriers that would insure a shelter or provide a sexual abuse liability policy.

“There certainly are carriers that are willing to write a bulk of what our clients do,” she said.

Kosyla said her agency has succeeded in weathering the ups and downs in carrier capacity by working with a core group of carriers that “we can go to for more standard risks and … more unusual risks.”

For accounts that aren’t in the religious sector and haven’t been hit with lawsuits, Heffernan’s Coleman says coverage is still available, and she hasn’t seen much change from the specialized carriers that write the business.

“I think the ones that are in it have been in it for the long haul and will continue to stay in it for the long haul,” Coleman said.

Council Services Plus’ Andrew said he doesn’t think the nonprofit market is in crisis — yet.

“There’s only a handful of insurance companies who are really writing a policy that’s comprehensive for the nonprofit world, and when they start to go away or they start to firm up, then there’s even less options in the marketplace,” he said. “I don’t think it’s reached crisis level, but does it have to reach crisis level for us to get ahead of something?”

He said the landscape is shifting, and, “if we’re not careful, we’re going to have hundreds and hundreds, if not thousands of nonprofit organizations wasting resources to pay for more premiums or being outright canceled and not being able to get insurance. Then we really have a crisis.”

Impact of Funding

A nonprofit’s revenue sources are highly influential not only to how the organization is managed and its ability to complete its mission, but to the development of an insurance program for the risk, the experts say.

Many nonprofits receive funding from grants or contracts from municipalities, states or the federal government, and that funding dictates the level of limits or coverages that nonprofits must have.

Charlie Kosyla said brokers need to pay attention to those details, so that nonprofits have all the proper insurance in place and carriers feel comfortable writing the risk.

“The funding difference between a nonprofit and a for-profit is a for-profit might have a product that they’re selling or might have a revenue stream that’s coming in and supporting the business, whereas a nonprofit, they’re going to rely on multiple revenue streams,” Charlie Kosyla said.

“Nonprofit organizations are under obligation contractually to have certain insurances in place, and if that insurance isn’t available or it’s only available at a cost prohibitive price, then it threatens the nonprofit sector unlike it threatens any other sector,” Andrew said.

Andrew noted he has had clients with $8,000 budgets that have to spend $2,000 on insurance; dedicating such a big portion of their budget to insurance takes away their ability to help their local community.

“Every dollar that goes to insurance is one less dollar to its mission,” said Andrew. “We can’t do that to communities.”

Helping Nonprofits During Uncertain Times

Nonprofit experts agree this segment needs agents and underwriters who specialize in it and can help their clients understand their exposures and what coverages they need. That knowledge will be especially important to helping nonprofits navigate a firmer market with limited coverage availability.

“Insurance isn’t the top of their list of things that they’re doing on a daily basis,” Baumgartner of IMA said of the nonprofits with which he works.

Baumgartner said sometimes he sees exposures a previous broker hadn’t paid much attention to. Nonprofit brokers need to do a “thorough risk review, where you’re reading the terms and conditions of the various policies, discussing the limits, and benchmarking the pricing,” Baumgartner said. “I’ve run into a number of scenarios where there are a lot of coverage gaps.”

Polly Kosyla said many clients who have transitioned to her agency previously worked with agents that had been trained to work with commercial accounts but not necessarily with nonprofits.

“We get a lot of clients who are with insurance that doesn’t fit them or had premiums that are way too low or way too high because it doesn’t fit what they do. I can understand why a commercial agent would be frustrated trying to figure out how to insure a group that they really don’t understand,” she said.

An agent’s expertise and deep understanding of the client’s operation is not only essential to the client, it’s a big factor in how underwriters look at the risk, as well, said Penny Parisoff, non-profit product management director at GuideOne Insurance in West Des Moines, Iowa.

She said agents need to understand the types of clients the nonprofits serve and clearly articulate their story to the underwriter.

“I think that’s true on all of the nonprofits — because the nonprofit space has such variety to it — is that agent really learning the risks?” she said.

Agents and brokers can help their clients by working with them on their processes and procedures, their safety culture and preventative measures, and help them establish a risk management plan with steps in place, Great American’s Liguzinski said.

“Help them wear that hat or co-wear the hat with them, the risk manager hat,” he said. “A number of the carriers have risk management tools and portals and online training, and sending out a loss control person to work with them on their processes, procedures, background checks.”

Nonprofit Insurance Alliance’s Johnson says he tells his brokers one of the most important things to do is understand what contracts nonprofits are signing “because it’s the broker’s job to help the nonprofits figure out what coverages they need, what limits they need, and an important factor of that is what contracts are they signing, what liability we’re taking on.”

He also noted that brokers need to understand the differences in policy forms that different carriers offer and “not just go where you get the most commission, not just go where you know the person best.”

“Make sure you understand the policy so you’re going to get the nonprofit the best coverage available for the best price. Understand loss control services that the companies are offering,” he said. “Make sure you’re taking advantage of their employment risk management services.

Make sure you’re taking advantage of their driver training.”

He added brokers should be aware of different statute changes around the country and the changes in social inflation and he cautioned against brokers going with a policy that offers the highest limits because it may not be to the benefit of smaller nonprofits.

“It’s easy for a broker to say to a nonprofit, ‘You need a $10 million umbrella. Get as much coverage as you can get as possible,’ because they can never be accused of not offering to give them enough coverage — they’re protected,” he said. “Nowadays, what that does is it puts a target on their back, so the lawyers will say, ‘They got $10 million of coverage. I think I’m going to demand $10 million.’ It never fails.”

Andrew says he wishes more brokers would become specialists in the nonprofit sector and learn about it on a “grassroots level.”

That intimate knowledge would help underwriters feel more comfortable offering coverage in the segment.

“If more brokers got into the sector and took time to understand the sector, then yes, more companies would understand what nonprofits are and then understand that these organizations are not the risk that they might be perceived. No one’s taken the time to really talk through what this organization does with an underwriter,” he said.

Nonprofits are evolving and working to address and manage their exposures, said Persuitti. “It’s a very dynamic sector that is in many ways at the edge of lots of risk, but very committed to screening its volunteers. It’s learned so much. It’s taken that knowledge and science and the advancements of technology.”

Persuitti said despites its challenges, the nonprofit segment is a “remarkably growing space” that is very rewarding to work in.

Andrew said he hopes the insurance market will work to ensure the availability and affordability of insurance for nonprofits before it becomes a crisis because that would be devastating for not just the nonprofits themselves, but the communities they help.

“That worries me because I see what these small community-based organizations are doing on the local level,” he said.

Insureds and insurers benefit from fair premiums being charged for the risk — not too high or too low, he said. The broker’s job is to “bring those two ends together” so both sides get a fair deal.

“When those two things come together, the nonprofit’s expectations and the company’s understanding, boy, that’s a great thing,” Andrew said. “We don’t have enough of that right now.”


Want to know more about how COVID-19 could affect your company? Give Sharlie Reynolds a call at 305-495-5173 or email her at