Increased Coverage Cap For Businesses Using Fair Plan
Sacramento, CA — The maximum coverage for commercial properties under the California Fair Plan, the insurance of last resort, is going up.
The Fair Plan is often utilized in areas where consumers have difficultly acquiring insurance from traditional providers. The Fair Plan’s Division I Commercial property program had a combined limit of $4.5 million ($3-mililon for structures and $1.5-million for personal property). The new combined coverage cap is $8.4-million. Also, the Division II Businessowners program will have the coverage cap increased from the current $3.6-million to $7.2-million.
Lara says, “A top concern that many business owners large and small have voiced to me are their challenges in getting insurance coverage which, in turn, impacts their ability to serve their customers as best they can.”
Adding, “Our state’s economic recovery can’t wait. I will no longer tolerate delays from the insurance companies running the FAIR Plan when businesses and consumers need help today.”
Lara took similar action related to coverage caps for homeowners back in 2019, increasing the dwelling coverage limit from $1.5-million up to $3-million.