What does “furlough” mean anyway?

Furlough. It’s a rare term to hear in the workplace until something like a government shut down or pandemic such as Covid-19 happens. There’s a difference between a furlough and a layoff and it’s extremely important for both employers and employees to understand them fully.


A furlough is when the employment is maintained but hours are reduced or the employee is placed on unpaid leave. This would make sense if an employer wanted to keep the employee and thought a temporary hardship would be better than terminating them completely. With a furlough, the employee may still qualify for unemployment as well.


Exempt employees (those not eligible for overtime) have to be paid their normal weekly salary if they do any work at all so it is usually, in a situation like our current Covid-19 quarantine, employers would encourage employees to NOT work at all. Non-exempt employees can be paid for actual hours worked without any further pay implications.


Typically, the furloughed employee can keep their health insurance but will be responsible to pay their portion of the premiums throughout the furlough. Often times, companies will restore employment following a furlough and provide back the following:


– Retention of seniority
– Maintained benefits such as health insurance with no lapse in coverage
– The ability to use any PTO/vacation time/sick leave as accrued


A layoff is less promising as it’s usually permanent but a temporary layoff could be an option if it’s just due to a short period of time where there is no work for that employee. A layoff does include actual termination of employment, whereas the above mentioned benefits would not apply.


In an ideal world, neither furloughs or layoffs would happen. However, as we’ve quickly learned, they can become reality and we all need to be prepared to make appropriate arrangements in the event something like this occurs.

Auto Insurance Relief Refunds pending approval

Our agency is proud to partner with several companies that not only provide great coverage for our clients but also keep their best interest at heart. Our goal is to help protect our clients and their families during these challenging times and we are excited to share some good news!

Many drivers are using their vehicles less as they abide by our current stay-at-home orders. Therefore, Nationwide, Safeco, Auto Owners, Mercury, Progressive, Chubb and AAA will all be issuing a one-time premium refund for personal auto policies during the COVID-19 pandemic. Each company is handling it slightly different so we’ve included the details below. This only applies to motor vehicle policies (not including golf cart, motorcycle, ATV or boat). This is still awaiting final regulatory approval but is headed in the right direction.

The best part about this is that policyholders don’t need to do anything! Refunds will automatically be either credited to their policy account or refunded to the most recent method of payment (for example: automatic withdrawal, credit card, personal check), likely within the next 30 days.

Nationwide:
$50 per policy active as of March 31, 2020

Safeco:
15% of premium as of April 7, 2020 for 2 months

Auto Owners:
15% of premium for April and May, 2020

Mercury:
15% of premium for April and May, 2020

Progressive:
20% of April premium (refunded in May) and 20% of May premium (refunded in June)

Chubb:
35% of premium for April and May, 2020 upon annual renewal

AAA:
20% of auto premium for April and May, 2020

Again, we are honored and grateful to do business with companies like these that really look out for their clients and do what’s right in times of need. Please reach out to us any time you have questions regarding auto insurance. You can call us at (352) 371-7977 or email [email protected]. Stay well and safe!

Health insurance options during COVID-19

Unfortunately during the current pandemic we’re experiencing, some people are losing their jobs. While there’s hope to be rehired once this has passed, one of the immediate concerns is the benefits that go along with that job. Here are some options that may relieve a little bit of the worry and fear surrounding this.

Current Options for Health Insurance:

  1. Purchase Individual Health Insurance Plan – Losing a job with employer-provided coverage qualifies for the Special Enrollment Period (“SEP”) exception outside of Open Enrollment. Some may even be eligible for subsidies based on their income, which would offer premium assistance.
  2. Temporary Plans – These are also available if someone is only interested in more catastrophic coverage for a short period of time.
  3. Cobra – One’s employer (if they have 20 or more full-time employees) may offer this to extend coverage for up to 18 months after employment ends. It is recommended that anyone eligible for Medicare avoid this option but details can be discussed further on a case-by-case basis.
  4. Direct Primary Care – These are membership based clinics that focus on proactive, preventive care by establishing a relationship and individualized plan of care. They do not accept or file with health insurance companies and don’t include coverage for major health needs or hospitalization. However, it may be worth a conversation to see what they offer since it could be a lower cost option during tough times. Here is a map that shows where DPC’s can be located: https://mapper.dpcfrontier.com/
  5. If 65 years old and Medicare eligible – It’s most important to be timely in applying and seek guidance on Advantage Plans, Supplements, and Prescription Drug coverage. It’s best to start this process around 64.5 to avoid any potential penalties financially.

We are happy to help navigate these options to see which is the best fit for your needs, whether it’s temporary or long-term. Please reach out anytime at (352) 371-7977 or [email protected]. Stay safe!

Families First Coronavirus Response Act

On March 25, 2020 the Department of Labor (DOL) published a required notice under the Families First Coronavirus Response Act for employers with fewer than 500 employees. Those employers must post this notice by April 1, 2020. The notice is available here. This notice must be placed in a visible location within the premises and/or it can be emailed directly to each employee. 

The DOL has provided a few resources which are linked below:

Action Items for employers with fewer than 500 employees before April 1st, 2020:

  • Draft a handbook policy for Emergency FMLA and Emergency Paid Sick Leave (contact us for a sample)
  • Post and/or distribute DOL notice poster Update leave and FMLA policies to anticipate these new required policies

As you face the day to day questions of balancing business concerns, the law, and health and safety, we are here to help and assist in any way we can. Stay safe!

Benefits of Auto Pay for Your Insurance Premiums

We currently happen to be in a time of uncertainty with some businesses temporarily closing or being short staffed due to Covid-19 social distancing recommendations. One of the concerns that has developed is people still being able to pay their bills, such as insurance premiums.

Thankfully, most insurance carriers accept payment either online or via an automated phone system but Auto Pay could alleviate any worry or doubt you might have about these payments being processed correctly and on time. There are several benefits to Auto Pay, depending on what type of policy it is.


– When it comes to life or disability insurance, a lapse without timely reinstatement could mean that you will now require an underwriting review, sometimes involving medical evidence or you could even have to secure new coverage at your current, older age and possibly lesser health.


– For a health insurance policy that cancels due to late or non-payment, it cannot be reinstated at all and you would be left without coverage until the next open enrollment period for the following year. Scary, right?!


– For auto or home insurance, it would depend on the company if they were willing to reinstate or rewrite the coverage. The biggest risk here is that something detrimental and very expensive could happen in that lapse period where you would have no coverage at all.


Auto Pay is convenient, yes. It saves paper and printing costs, yes. It’s peace of mind and one less thing to worry about, yes. But it’s also imperative for maintaining some pretty important coverage. This is coverage that you may not be able to get back if you elect to receive a paper bill that gets lost or doesn’t get paid. An Added bonus is cost savings as well you can almost always save on installment fees by going this route.


If you’re able to arrange Auto Pay either through EFT (electronic funds transfer from a checking account), recurring credit card, online bill pay with your bank, or whatever options there are it’s definitely the safest way to ensure that your coverage will not be interrupted or affected.


If you have questions about a specific policy or company that we work with, please let us know anytime at [email protected] or (352) 371-7977.