California’s Lara Approves Commercial Coverage Rate Increase for the FAIR Plan

California Insurance Commissioner Ricardo Lara has approved an increase in the limits of coverage for the business insurance offered by the state’s FAIR Plan. The insurer of last resort — he says — will give businesses that are unable to get the insurance they need to safely operate.

And Lara says this is an especially important decision for those operating a business in the state’s wildfire prone areas.

“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,” Lara said. “The FAIR Plan has not kept pace with rising costs for more than two decades, which my action addresses for the first time.”

The increases approved for Division I will go from $4.5 million to $8.4 million. Under Division II, that jump will go from $3.6 million to $7.2 million.

Lara says this will help farms, wineries, affordable housing entities, homeowners associations, recreational and summer camps and more.

Source link: California Department of Insurance —https://bit.ly/3CZ8gbT