Pushing Past the Pandemic With Errors and Omissions Coverage
COVID-19 continues to impact every facet of our lives; together, we are all experiencing the effects of this global pandemic. Amid the many worldwide changes — unemployment, remote work, social distancing measures — the need for insurance remains consistent.
While many industries are severely impacted and unemployment rates have soared to unprecedented heights, the U.S. Chamber of Commerce reports that some small businesses are “uniquely suited to the COVID-19 crisis and have seen an uptick in demand.”
Errors and omissions (E&O) coverage is especially important for small businesses that are more likely to feel the effects of a claim and do not have sophisticated operations or human resources departments. As more small businesses begin to open their doors again or continue to work in a remote setting, their exposure to potential lawsuits remains present.
As companies start to return to normalcy, the need for management consultants, human resources consultants and technology consultants is likely to rise. Businesses both small and large may need to seek advice on regrowing business operations, handling employment issues and assessing the new “normal,” including remote employees and the challenges that these changes have created. The pandemic has opened up consumers’ eyes to why E&O coverage is needed, and it has highlighted why it is important for insurance professionals to educate consumers and provide protection for their needs.
The uncertainty surrounding how to overcome the challenges presented by the virus has presented opportunities for individuals and organizations with professional expertise. These professionals, including consultants, advertising agencies and video production services, are thriving. As the economy starts to recover, we expect the trend to continue, with growth in other areas, including employment agencies, event planners and travel agencies, as well.
USLI writes over 100 classes of business, and our appetite ranges from startups to larger operations with up to $15 million in revenue. Despite the current economic climate, we have seen the following classes stay in high demand:
- Couriers and messenger services: increased demand due to the surge in delivery and on-demand services
- Educational consultants: increased demand due to exponential growth in virtual learning
- Human resources consultants: increased demand due to businesses dealing with the legality of layoffs, downsizing and temporary halts in operations
- Technology consultants: increased demand due to the need for businesses to get their employees set up remotely, frequent website changes and applications that help customers access businesses from a distance
- Management consultants: increased demand as businesses seek advice on growth, strategy, efficiency and profitability
Services such as 24/7 web quoting and Instant Phone Quoting make quoting E&O easier than ever. USLI’s Business Resource Center offers a plethora of services to policyholders at no additional charge, many of which are being utilized now more than ever before.
While there is uncertainty and fear in what the future holds, there is also hope. As insurance professionals, we can continue to help others understand not only the need for coverage, but also the value in receiving coverage from a stable insurance carrier. Together, we will push past this pandemic and come out stronger than ever before.
As always, thank you for your support and business.
Contact Kevin Wills
Senior Vice President | 888-523-5545, ext. 2482
Written by Erika Cordivari
June 4, 2020