An insurtech small business insurer is cutting April premiums by 25% for its customers with general liability, professional liability and commercial auto policies to help them get through the coronavirus crisis.
Next’s founder and CEO Guy Goldstein said he is also challenging “all other insurers to do the same” as a way to help small businesses hit hard by the coronavirus crisis.
“To provide temporary financial relief, we will charge only 75% of the amount due for all monthly payments occurring in April. We will not attempt to collect this discounted premium at any point,” Goldstein wrote in a letter to the company’s agents.
This 25% reduction in April premium will only apply to customers written on State National Insurance Co. and Next Insurance paper, which the company said is the majority of eligible policies. It applies to those who pay monthly or paid their full annual premium upfront and who purchased coverage before March 1.
The discount is subject to state regulatory approval. As of April 4, the company said 38 states have approved it.
Next’s move is in keeping with other moves by insurers finding small ways to assist the businesses, families and individuals being hurt by the coronavirus shutdowns even as they have to tell clients their business income policies do not cover their coronavirus-related losses.
Farmers Insurance and Allstate are temporarily adding insurance coverage to policies of customers who are now using their personal autos to make restaurant, grocery, pharmacy and other deliveries. Customers will not be charged for this temporary additional coverage.
Medical malpractice insurer The Doctors Co. is providing free medical professional liability coverage to retired physicians formerly insured by the company who volunteer during the crisis.
“We are 100% committed to supporting agents, partners and customers’ needs during this difficult time. We’re continuing to look at options to help during the COVID-19 crisis,” Goldstein said.
Next Insurance began as a managing general agency but in 2018 it ditched its agency status to become a licensed insurance carrier. It sells its proprietary policies either on Next carrier paper or State National paper depending upon in which state the policy is sold.
Next Insurance provides small business insurance nationally through a digital platform, with a focus on allowing business customers to acquire all of their property/casualty insurance products in one place. It targeted accounts include contractors, construction, consultants, fitness instructors, cleaning companies, beauty salons, therapists, entertainers, educators and others.
Last September launched Next for Agents, a portal designed to help independent agents quickly quote and sell its policies.
Founded in 2016, Next’s capital funding has come from MunichRe, Redpoint Ventures, Nationwide, Markel, American Express Ventures, Ribbit Capital, TLV Partners, Group 11, and Zeev Ventures.
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