Shift in Remote Workforce Creates Professional Services Growth
With the economy’s continued shift toward remote workforces, the professional services industry is growing faster than ever. According to the U.S. Bureau of Economic Analysis, professional services reached 7.8% of the U.S. gross domestic product during the third quarter of 2021. In 2022, the industry is expected to grow at an annual rate of 10.9%.
The professional services sector comprises various consultants, accountants, advertisers, interior designers, surveyors and many more occupations that offer specialized services, knowledge or expertise to businesses, institutions or individual clients. Between its growing share of the economic pie and the unique services provided, the professional services industry faces many challenges.
Investments in startups and developing firms have given way to an increased exposure for shareholder lawsuits. Additionally, decentralized workforces have created their own issues for employers. For example, employers typically must follow the employment laws of the state in which employees are working rather than the location of the employer. Given the rise in changing employment laws, shareholder activism, workplace safety protocols and client interactions, it’s important that professional service firms secure adequate management liability insurance to safeguard against costly lawsuits.
Devon Park Specialty’s Management Liability product was designed to address these exposures. Some product features include:
- Lifetime Occurrence Reporting Provision for former directors and officers
- $1 million additional Side A coverage automatically provided to protect the personal assets of individual directors and officers in the event the company is unable to provide indemnification
- Full employment practices liability limit for third-party claims
- $100,000 sublimit for wage-and-hour claims, including defense cost and indemnity in most states (most carriers do not offer indemnity)
- Access to the Business Resource Center, a value-added service to help navigate state employment laws
With quick turnaround, excellent service and years of experience, we can successfully provide Management Liability coverage for a wide range of professional service firms.* These firms — along with manufacturers, technology companies and specialty trade contractors — are a top class for Devon Park Specialty, and one that we are quoting with our most competitive coverages and retentions.
*While we can write many different kinds of professional service firms, the following are our most common ineligible risks: law firms, doctors’/dentists’ offices and investment advisors.
Let us help you provide a competitive quote option to your clients and give them peace of mind by sending your submissions to [email protected].
As always, thank you for your support and business.
Contact Kenny Bang
Second Vice President, Team Leader | 888-523-5545, ext. 2923
Written by Timothy Nowlan