CARES Act and Covid-19 Impact Offset allowed in Automotive Reinsurance Positions
Sterling Dealer Products today announced the COVID-19 IMPACT OFFSET program. The product, by design, helps Automotive, RV, and Powersports dealerships mitigate the financial risk of employee compensation related to COVID-19.
TAMPA, Fla., Sept. 9, 2020 /PRNewswire-PRWeb/ -- The COVID-19 IMPACT OFFSET allows retailers a new way to set aside future employee compensation costs associated with COVID-19, as mandated by the CARES Act signed into law in 2020.
"The financial impact of COVID-19 on retail operations has been significant. We created this reinsurable product to help dealers manage their risk associated with their employee's compensation. Our average client's annual premium exceeds $1.4 million. That premium can cede into new or existing reinsurance positions, allowing the dealership to better control future employee liability. There are thousands of family-run dealerships in America. When one of their associates is sick or caring for a family member affected by Covid-19, that dealership will take care of the associate and their family—in many cases, far outpacing any requirements mandated by the Cares Act. That's when the Covid-19 IMPACT OFFSET program helps," says Scott Lear, President of Sterling Dealer Products.
The features and benefits of COVID-19 OFFSET include:
- EPSLA benefit offset up to $471,992.75 in ceded premium
- Short term disability up to $242,307.25 in ceded premium
Ceding guidelines adhere to EPSLA/EPSLA mandatory benefits requirements:
1. an employee is unable to work due to quarantine or isolation order
2. a health care provider has advised an employee to self-quarantine
3. an employee is experiencing COVID-19 symptoms
4. an employee is caring for an individual in quarantine or isolation
5. an employee is caring for a child who's school our care facility has been closed due to COVID-19
6. an employee is experiencing and conditions as outlined by the Secretary of Health and Human Services
COVID-19 IMPACT OFFSET is available immediately. Existing captive, CFC, and new reinsurance positions are eligible.
For additional information http://www.sterlingdealerproducts.com
Sterling Dealer Products is a leading technology and product provider to the Automotive Retail industry. With over 20 years of industry experience, Sterling is committed to helping dealers internalize and brand F&I product offerings while removing the commission waste associated with existing undifferentiated products and processes. Automotive dealers are praising Sterling for its ability to maximize F&I profitability through innovative products and technology. Greater transparency equals greater dealer profits. It's that simple.
SOURCE Sterling Dealer Products
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