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Monday, 15 June 2020 17:37

Massachusetts Insurance Commissioner and ADALB Requested to Direct Attention to COVID-19 Exploitations

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As shops focus on providing a safe environment for both customers and employees during the COVID-19 outbreak, AASP/MA has received notice of a variety of collision repair industry related concerns.

As a result, AASP/MA Executive Director Lucky Papageorg requested “immediate steps to stop exploitative practices being employed by insurance providers” in a letter to Massachusetts Commissioner of Insurance Gary Anderson, copied to Gov. Charlie Baker, Lt. Gov. Karyn Polito and Attorney General Maura Healey.


“As the ‘first responders’ meeting the needs of the motoring public, the collision repair industry and the customers we serve are subjected to the potentially life-threatening exposure of the pandemic virus,” Papageorg wrote. “New procedures and protocols are now required to protect both the customer and our entire workforce. This requires that insurers must acknowledge and pay for the procedures and the associated costs that will help protect the vehicle owners and the dedicated professionals who repair collision-damaged vehicles.”


AASP/MA requested Anderson issue “a directive to the insurance industry to ensure the health and safety of vehicle owners requiring collision repair services and collision repair technicians during the COVID-19 pandemic,” identifying four items requiring immediate attention


  • A proper time allowance for the application of disinfecting materials;
  • Proper reimbursement for additional PPE items required, including covering of vehicle interiors and high contact components, such as steering wheel shifters and door handles;
  • Proper reimbursement for additional administrative costs, such as pick-up and drop-off services, preparing documentation and uploading required documentation to the insurer; and
  • The inclusion of “hazard pay,” similar to what other industries have implemented.


Papageorg concluded his letter by noting, “The insurance industry has been saving millions during this current state of emergency. Some insurers have provided minimal discounts of premiums (the average is about 15%) due to a dramatic reduction in driving that has reduced claims by as much as 70%. They do so while exploiting those of us in the ‘essential’ business of collision repair. The actions of the insurance industry are unfair to consumers and repairers alike and it only magnifies the insurers' commitment to subordinating 'consumer safety' to ‘corporate profit.’”


AASP/MA also addressed a letter to Healy, copying the previously mentioned group, to commend her handling of the current situation regarding insurers’ exploitative practices.

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