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UFG's Response to March 23 order from Wisconsin Insurance Commissioner

Released on: Mar 24, 2020, 14:00 PM
Please note that in response to COVID-19, the Wisconsin Insurance Commissioner has ordered all insurers who have extended CGL coverage to restaurants to communicate to those insureds that the insurer will make hired and non-owned auto coverage available.

As UFG strives to not only fully comply with applicable Wisconsin laws and regulations, but also partner with our agents and insureds to protect our insured and their businesses, we will honor any requests from our insureds to obtain hired and non-owned auto coverage for the exposure related to employing delivery drivers using their own vehicle. While the Bulletin could be interpreted as applying the mandate only to commercial general liability coverages, consistent with our pledge to provide superior customer service while emphasizing an ease of doing business for the accounts our valued agents have entrusted to us, we will extend the same type of coverages to restaurants to whom we have issued a BOP coverage form. 

Please contact your agency’s underwriter to discuss coverage options.   

Hired and Non-Owned Auto coverage 
*Taken from the Wisconsin Bulletin
It is common for restaurants who employ delivery drivers who use their own car to obtain hired and non-owned auto coverage for liability incurred by those drivers. This is often offered as a rider to a commercial general liability policy. Since many of the restaurants who may begin delivery services did not anticipate the need for this coverage, it is likely that their commercial general liability policy will not include a hired and non-owned auto coverage rider. OCI further believes that it would be impractical and untimely for these restaurants to shop for coverage that includes coverage for non-owned autos. 

For these reasons, OCI orders all insurers who provide commercial general liability coverage to a restaurant to notify their restaurant insureds that hired and non-owned auto coverage is available if requested. If the insured restaurant requests hired and non-owned auto coverage, the insurer shall, either through a rider or stand-alone policy, provide this coverage to any insured restaurant. 

This order shall apply to all commercial general liability policies in effect on or after March 17, 2020. The coverage afforded shall be effective upon the date it is requested. Insurers who offer retroactive coverage may request that the insured certify that they have not incurred any potential claims in the period of retroactive coverage. This order shall remain in effect until the public health emergency order is lifted, in whole or in part, to permit restaurants to resume normal operations. 

Any questions concerning this bulletin may be directed to Olivia Hwang, Director of Public Affairs, at olivia.hwang@wisconsin.gov