Insurance company adds gift card reimbursement coverage to its policies

Posted at 3:58 PM, May 06, 2020
and last updated 2020-05-06 17:40:18-04

NORFOLK, Va. - A lot of small businesses are encouraging people to buy gift cards right now to help them stay afloat until they can reopen.

But what happens if they don't reopen?

One insurance company decided to remove the risk for its customers so they can continue supporting local shops.

Erie Insurance has added gift card and gift certificate reimbursement coverage to its homeowners policies.

It went into effect for policy holders in Virginia on May 1 and does not cost any extra.

"You can go ahead and support your local business person by buying gift cards and gift certificates really with no risk because if unfortunately that business can’t reopen or doesn’t make it, we will reimburse you the value of the gift card or gift certificate that you purchased," said Vice President and Product Manager Bob Buckel.

Customers can be reimbursed up to $250 per gift card purchased at independently-owned and operated local businesses if they close within a year of the purchase.

Initially the coverage was only going to be available during the pandemic, but Buckel says they've decided to permanently include the feature as part of their coverage.

You can learn more by clicking here.

Click here for full coronavirus coverage.