Business Interruption Insurance

Business interruption insurance is designed to cover the loss of income normally earned by a business as a result of the forced suspension of operations. Unlike property insurance, which covers physical damage, business interruption insurance protects against lost income while the business is closed, and during the rebuilding period after the closing. 

Given the current coronavirus pandemic, the Governor of the state of PA, along with governors in many states throughout the country, has issued a state-wide mandate requiring all non-essential businesses to close. As a result, businesses are looking to their business interruption insurance to help them survive. 

Most business interruption policies will cover:

Profits that would have been earned, based on prior financial statements

Fixed costs still being incurred despite the closure

Extra expenses to allow the business to continue to operate until a return to more normal circumstances

Employee wages to allow you to retain your employees

Taxes to allow you to remain current on taxes and avoid penalties

Loan payments 

When businesses are allowed to re-open, […]

Paycheck Protection Program – What You Need to Know

The Paycheck Protection Program (PPP) is a federal relief program managed by the Small Business Administration (SBA).  The program is  designed to help small businesses keep their workforce employed during the COVID pandemic.  The financial assistance is structured as a loan, to be forgiven if all employees are kept on the payroll for eight weeks, and the funds are used primarily for payroll. Up to one quarter of the loan can be used toward rent, mortgage interest or utilities within specific parameters. 

The initial $349 billion commitment ran out in roughly two weeks, without meeting the total funding needs of small businesses.  On Tuesday, April 21, the Senate approved an additional $310 billion in PPP funding. The bill is widely expected to be signed into law later this week.  Some of the regulations pertaining to the program can be complicated so you should contact your local lending institution or refer to the SBA website. […]

Where Is My Stimulus Check?

Millions of Americans received their Economic Impact Payment this week through direct deposit into their bank accounts.  In total, 80 million people were estimated to receive their funds from the IRS during the week of April 13.  But millions more have not yet received any money.  If you have not yet received your money, don’t panic!  According to Money magazine, there may be many reasons such as:

You might not be eligible.  Details of eligibility can be found on the IRS Economic Impact Payment Information Center.  But, in general, you must meet the following IRS guidelines:

US citizen, permanent resident or qualifying resident alien.

Cannot be claimed as a dependent on someone else’s tax returns.

Have a valid social security number, or a spouse that is a member of the Armed Forces.

Have an adjusted gross income that meets the requirements. […]

Grocery Workers Request First Responder Designation

Roughly 30 grocery store employees have died as a result of COVID-19 and another 3,000 have been directly impacted by the virus, according to a recent report by the United Food and Commercial Workers International Union (UFCW).

On April 14, Kroger, the country’s largest grocery store chain, and the UFCW, issued a joint statement calling on federal and state governments to designate grocery store employees as  first responders. Doing so will allow priority access to personal protective equipment such as masks and gloves.  

Supermarkets have remained open throughout the pandemic.  Thousands of employees continue to work and many of these people have been working extended over-time hours to compensate for co-workers that have contracted COVID-19 or are taking time off to care for ill family members. Many of these employees are working without any protective gear. 

Industry experts anticipate difficulty continuing to retain and add new employees to staff the ever increasing demand for new jobs.  […]

PA COVID-19 Update

As of April 15, the PA Department of Health reported 26,490 PA residents infected with coronavirus. Of those who tested positive, 51% were aged 50 or older, 40% were aged 25-49, 6% were aged 19-24 and the remainder were under 18. 647 people died from coronavirus or related complications.

The most serious cases remain amongst the older population.  More than half of the total numbers of hospitalizations to date are of people aged 65 or older. Residents of nursing homes account for 13% of the total cases.

Cases have been reported in all 67 counties in PA. The counties of Philadelphia, Montgomery, Delaware, Lehigh, and Luzerne have the greatest number of cases.  All of PA remains under a stay home order through April 30. While freedom of travel remains, residents are urged to minimize non-essential travel and to limit grocery shopping to weekly. […]