In the wake of the pandemic, people are making life changes, especially those who have the financial ability to do so, trying to best adjust to their “new normal.” With these major changes comes new risks and liabilities requiring different kinds of coverage. Here are some of the biggest changes your most financially stable clients are making and the coverages they may need during this time.
1. Hiring In-home Workers
When many children couldn’t return to school, parents across the U.S. scrambled to get help with online learning or, as with many parents of young children, replace it altogether. Parents who could afford it grouped several students together and hired a teacher/tutor for their “learning pod.” Tutoring businesses grew as much as 50% following requests for tutors to teach learning pods. This learning solution involves a couple of new insurance needs: 1) hosting a learning pod in a home may require additional general liability coverage for the homeowner, and 2) parents may need to ensure the teacher they hire carries professional liability coverage.
As well as teachers, many families turned to the caregiving community for nannies and elder care. Wanting to keep children home from day care and keep elder family members out of nursing homes, caregiving agencies received a surge in requests in the last year. Families in this situation may need to get a policy covering employment practices liability.
2. Working From Home
According to Pew Research, before the pandemic 20% worked remotely, whereas now 71% are doing so and 54% would like it to stay that way. Such an increase in remote work brings new liability concerns regarding workers compensation, property, and cybersecurity.
The Department of Homeland Security and other government agencies are warning that with increased remote work, hackers are seeking out flaws in network security and targeting vulnerabilities in virtual private networks and remote work tools/software. This is why cyber insurance is necessary for company’s shifting to a more remote workforce. Your clients can ask their employers about increased security measures and about how to respond in the event of a security breach. If your client has their own company or is an independent contractor, they will need their own cyber coverage.
When it comes to workers compensation, businesses need to make sure their “territory coverage” includes everywhere their employees are working, including their homes. Your clients should know accidents happening in relation to their work should be covered under their employer’s workers compensation policy.
3. Home Buying and Renovating
22% of U.S adults moved due to reasons related to the pandemic or know someone who did (Pew Research). While spending more time at home (working, learning, and socially distancing), many realized their homes were not conducive to the new lifestyle they were leading. Others decided to move to more affordable areas with more amenities and greenspace since their commute was no longer a factor. With all the transitioning, many insurers started getting calls asking about the coverages they’ll need in their new locations. Will they now need coverage for floods, wildfires, or earthquakes in their prospective new home? The answers to these questions helped them make purchase decisions.
In addition to property-related coverage, home buyers may need insurance to cover their move whether it be for their possessions during transport or storage if they have to live someplace temporarily between residences.
If people decided to stay put, many used their savings from eating out or not going on vacation to renovate their homes in response to their new lifestyle, creating dedicated office and learning spaces. According to a report by the National Kitchen and Bath Association, the percent of homeowners working on remodeling projects increased significantly from the first to second quarter of 2020, from 19% to 36%. Those buying homes may also choose affordable homes with “potential” so they can update them with renovations or add the features they want, like office or classroom space. The many clients in the market for renovations may need builders risk coverage for their projects.
Quaker Special Risk has the coverages your agency needs to serve your new clients’ risks due to their changing routines and living situations. Contact us for a quote.