California Insurance Commissioner Ricardo Lara approved increases in the limits of coverage to the California FAIR Plan Association’s commercial programs offered to businesses, no later than May 1.
Lara’s action allows businesses unable to secure insurance coverage in the normal insurance market access to insurance needed to operate.
“Businesses have been struggling. These increases in the limits of coverage will help youth camps reopen and businesses of all kinds keep serving their customers,” said Lara said in a statement. “The FAIR Plan has not kept pace with rising costs for more than two decades, which my action addresses for the first time. Offering expanded coverage to businesses will help as our state continues its economic recovery from the pandemic.”
The increases expand the combined coverage limits for the FAIR Plan, under its Division I Commercial Property Program, from $4.5 million to $8.4 million, and, under its Division II Businessowners Program, from $3.6 million to $7.2 million.
The FAIR Plan issued the following response:
“The California FAIR Plan Association is committed to supporting California consumers who are unable to find commercial coverage in the traditional insurance market. We are glad that we were able to partner with the California Department of Insurance to increase our commercial policy limits. The FAIR Plan is working diligently on programming and testing and expects to launch the new coverage limits on May 1, 2022.”
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