If you have a CFC reinsurance position or US Domiciled Captive you can purchase a Covid reinsurable product to offset future employee required payroll expenses. This Covid reinsurance product will help you mitigate future employee Covid claims.
Example of how it works:
If you have 100 employees and reimburse an employee’s full salary up to 12 weeks when they are unable to work do to Covid related issues, you would qualify for a 12 month term policy with a premium of $150,000*. That premium is paid by you and ceded into your reinsurance position. When an employee qualifies for a Covid related expense you pay their salary from your premium inside the reinsurance position. At the end of the 12 month policy term any remaining premium has fully earned and subject to the same benefits as other earned product premiums.
*Premiums are based on a number of factors that will be discussed during the questionnaire process. The above was an example. Premium amounts vary.
Signed under the Cares Act any employee who is quarantined due to Covid related issues is entitled to receive compensation from their employer. This includes:
Administration fee is 10% of premium up to $35,000