As your agency faces the difficulties of COVID-19, we know how important it is to get current and correct information regarding how COVID-19 affects both your clients’ coverage and your agency as a whole. HawkSoft would like to provide some basic information and resources we’ve found helpful in 3 major areas of focus for your agency in these unprecedented times. Read the full article or click the quick links below to go directly to the resources we've curated.
As the federal and state governments respond to the pandemic, legislation affecting both businesses in general and insurance agencies specifically is changing rapidly. For example, many states have imposed moratoriums on policy cancellations and nonrenewals due to nonpayment. It’s important to stay abreast of news such as this and communicate it to your clients as required.
If you haven’t already, we recommend joining a network or association in your state (such as Big I or PIA) or following your state’s Department of Insurance to receive updates and resources specific to your state. You can also go to the National Association of Insurance Commissioners (NAIC) to see bulletins and actions related to COVID-19 by state.
Make sure your agency has the resources you need to operate under the constraints of COVID-19, whether your staff is working remote or you are making accommodations for necessary distancing in your office. HawkSoft’s Work from Home Resource Hub links to resources that will help your agency equip itself for both the technical and social aspects of working from home. In addition, ACT offers disaster planning resources for agencies, and Corporate Risk and Insurance and Agency Nation give tips for maintaining business continuity during COVID-19.
Another thing to be aware of while working remotely is the increased cybersecurity risk to your agency’s data, due to employees working on personal equipment and possibly on unsecured networks. LCG-Global (provided by Big I) and Comparitech give tips for preventing and detecting threats to a remote work environment.
Lastly, during this time your agency may be able to benefit from the Paycheck Protection Program. PIA’s guide explains the parameters and how to apply.
One of the most important things your agency can do right now is understand and advise your clients on how COVID-19 impacts different risks and coverages. This can be a moving target, with new legislation and lawsuits happening every day, but below we’ve included some of the areas that are most affected by the pandemic, with some resources on each. Insurance Journal also gives a good overview of affected coverage lines, including possible claims scenarios and relevant legislation or court cases.
Business Interruption
Business Interruption Resources:
Workers' Comp
For Workers' Comp, whether COVID-19 is considered an occupational hazard seems to vary on a case by case basis. NCCI states: “While WC laws provide compensation for ‘occupational diseases’ that arise out of and in the course of employment, many state statutes exclude ‘ordinary diseases of life’ (e.g., the common cold or flu).”
In addition, most Workers' Comp coverage requires that the injury/illness arise out of and in the course of employment, which can be difficult to prove with COVID-19, except in sectors that clearly put employees at a higher risk of contracting the virus, such as the healthcare industry. For example, the state of Washington’s Department of Labor and Industries has changed its workers' compensation coverage for healthcare workers and first responders to “pay for medical testing, treatment expenses if a worker becomes ill or injured, and provide indemnity payments for those who cannot work if they are sick or quarantined” (NCCI).
Workers' Comp Resources:
Event Cancellation
Event Cancellation Resources:
Other Coverages
There are many other policies and coverages that may be affected by COVID-19. Below we’ve linked to resources for a few other areas being impacted by COVID-19.
Many organizations have entire resource pages devoted to COVID-19’s impact on insurance, which are regularly updated with the most current legislation, articles, webinars, and more. Here are some of the resource pages that HawkSoft has found most helpful in staying up to date on COVID-19 concerns in the insurance industry.