How P/C Agents Guide Their Clients Into The New Normal

Ever since our world was overtaken by the COVID-19 pandemic, there has been much talk of “a new normal” – social distancing, quarantining, masks and temperature checks. Now that a vaccine is on the horizon, that notion is quickly fading. But the truth is, our reality has been forever changed.

While someday we may be able to go grocery shopping without a mask, this pandemic has been a reckoning of what is possible. Many businesses were profoundly affected - temporarily closing, operating virtually or shuttering for good. But COVID-19 was also one of only several impactful events to serve as a sobering reminder that so many “what ifs” can indeed happen. From the pandemic to the most active storm season on record, rampant wildfires to vandalism in the wake of protests, 2020 has been one big cautionary tale.

But 2020 isn’t an anomaly, and the industry should take note. It is our job to reduce uncertainty and make loss manageable. As more events that warrant coverage or require mitigation or remediation become likely, people should turn to insurance professionals for guidance. It is up to us to seize this moment and be a resource for the “new normal” so that clients are prepared to get back to business, and life, as quickly and safely as possible.

The Pandemic

As cities across the country were ordered on lockdown, many businesses faced their first encounter with business interruption. While losses due to COVID-19 were not covered, business owners could now clearly see how easily they could lose the ability to operate, perhaps making that insurance they had previously passed on buying much more appealing.

Many business owners also pursued enhanced cleaning measures to ensure that their customers and employees are safe, but also to make it clear to the public that they are committed to that safety. While you may not be able to offer them coverage for shutdown losses, you can guide them to trusted service providers to help them get back to operating safely as quickly as possible.

It’s also inevitable that, despite the pandemic, other disasters and tragedies still occur. Clients still need protection, and they still need assistance in assessing and fixing damage. As an expert in these circumstances, it is more important than ever that you are quick and reliable in guiding them through these events, and serve as an advisor for quality service providers who adhere to COVID-19 safety measures.

The Vandalism

Natural disasters and freak accidents have always been potential threats to homes and businesses, but vandalism was typically a concern only for those in high-crime areas. This being 2020, that has changed. Protests and civil unrest in cities across the U.S. incited violence and vandalism. Fortunately, traditional policies cover this type of property damage, but clients will undoubtedly need guidance and the reassurance of a provider who can assist with cleaning graffiti, fire restoration and other unprecedented issues.

Additionally, these protests created another business interruption for many, either because of safety, damage or even prohibited access. Again, this sparked a conversation around additional coverage.

The Storms

According to the former chief of the Hurricane Specialist Unit at the National Hurricane Center, this year, 3,598 of 3,613 miles of coastline have received either tropical storm or hurricane warnings or watches. That’s 99.6% of the entire Gulf and Atlantic coastlines.

Storms are becoming more frequent and more intense, creating more damage and affecting more people. Those clients who may have avoided flood insurance may be experiencing their first real (or real risk of) storm surge or wind damage. People tend to hold out hope that they will be spared from storms, but as we are witnessing during this very active year, that is becoming more unlikely.

And after the storm hits, clients will need your help – filing claims and fixing the damage.

The Fires

As climate change yields powerful storms in one part of the country, it creates hot and dry conditions in another, transforming wildfires from seasonal events to ones that occur year-round. And like the storms, these fires are larger and more devastating, reaching farther into residential areas, particularly as urban sprawl encroaches on forested areas. The larger, uncontained fires also spread smoke and soot to new places. San Franciscans, for example, will likely never forget the September day when the sky glowed an eerie orange.

While homeowners may be prepared for these events with their standard policies, the need for renter’s insurance rises. Additionally, people unfamiliar with smoke and soot damage need guidance on remediation, and for others, how to rebuild.

In a year marked by so much turmoil and loss, many are eager for the fresh start of 2021. While we could all use a healthy dose of optimism, the reality is that we must take what we have learned and carry it forward. With these events fresh in our minds, it is up to us to step forward and guide our neighbors to a well-protected future.

Michael Z. Stahl, CPCU, is the chief marketing officer of SERVPRO. He previously held chief marketing officer roles at UnitedHealthcare and at HealthMarkets. He may be contacted at [email protected].

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