Industry News

Many small business owners may not think they need cyber liability coverage, but small businesses are extremely vulnerable to security threats. And that’s why PIA members can sell PIA cyber insurance to their clients!

PIA and ABA Insurance Services have worked with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a cyber insurance program that responds to the most common threats facing small and mid-sized businesses.

The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as social engineering, funds transfer fraud, ransomware, network interruption, data breach, network security, and media liability. In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to Great American’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

Agents are able to purchase the same PIA cyber insurance for their agency for a significantly reduced rate through their local PIA affiliate producers.

Getting started is easy. Protect your clients today.

On June 3, the U.S. Senate passed H.R. 7010, the Paycheck Protection Program Flexibility Act, by unanimous consent. The bill extends the window for businesses to be able to spend the funds loaned under the program. The House passed this bill on May 28^th. It was signed into law by the president.

The legislation allows businesses that have received Paycheck Protection Program (PPP) loans to spend a smaller percentage of the money, 60 percent instead of the current 75 percent, on payroll and other qualifying expenses and still maintain forgiveness eligibility.

PIA National had urged Congress to repeal the PPP’s payroll requirement altogether, a move that would have provided small businesses with maximum flexibility as they struggle to stay solvent during this difficult time. The bill does give businesses some new flexibility by allocating more time for them to use their PPP funds—24 weeks instead of eight—and extending the deadline for rehiring workers from June 30 to the end of this year.

READ: S&P Analysis: The Paycheck Protection Program Impact On Jobs: (More) Help Wanted

PIA National will continue to work to improve the PPP in future legislation considered by Congress.

A Kaiser Family Foundation poll released on May 27 found that 48 percent of Americans said they or a family member has skipped or delayed medical care because of the pandemic, and 11 percent of them said the person’s condition worsened as a result of the delayed care. Since March, hospitals, health systems, and private practices dramatically reduced inpatient nonemergency services to prepare for an influx of COVID-19 patients. The poll also found that about 3 in 10 adults have had trouble paying household expenses.

According to the poll, nearly 7 in 10 of those who had skipped seeing a medical professional expect to get care in the next three months. Despite a significant number of adults saying they delayed care, 86 percent of adults said their physical health has “stayed about the same” since the onset of the outbreak in the United States. Nearly 40 percent of Americans, however, said stress related to the coronavirus has negatively affected their mental health.

Nearly 1 in 4 adults said they or a family member in the next year will likely turn to Medicaid, the federal-state health insurance program for low-income residents.

As the global pandemic of COVID-19 continues to affect the way we do business, PIA is highlighting specific programs that may be useful to you right now. We hope this is helpful.

Why care about this now? During this pandemic, your clients are finding themselves at home working remotely. Computer hackers can use this time to deploy aggressive ransomware attacks, and sophisticated social engineering scams to try and trick them into divulging sensitive information, so it is important that you educate your clients and protect them. As a PIA member, you can offer cyber liability insurance that responds to the most common threats facing small and medium-sized businesses.

What is it? PIA and ABA Insurance Services (ABAIS) have worked with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a cyber insurance program tailor-made for small and mid-sized businesses. The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as:

• Social engineering

• Funds transfer fraud
• Ransomware/extortion
• Network interruption
• Data breach
• Network security
• Media liability

In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to ABAIS’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

If you’re interested in purchasing cyber insurance for your agency, you can purchase the same PIA cyber insurance for a significantly reduced rate through your local PIA affiliate producers.

The insurance industry largely sidestepped the economic onslaught of the coronavirus outbreak, losing 4,400 jobs in April as the pandemic ballooned the nation’s unemployment rate to 14.7 percent, according to the U.S. Department of Labor’s Bureau of Labor Statistics (BLS). The April national unemployment rate represents the largest one-month jump since records began in 1948, the BLS said.

However, the industry-wide drop in the insurance industry was much lower than that seen in other sectors of the economy, representing a small proportion, about 0.16 percent, of the 2,813,100 workers employed in the insurance industry.

Meanwhile, BLS released figures for employment at the nation’s insurance agencies and brokerages in March 2020 over February 2020, reporting they were up 0.20 percent with 852,400 jobs. Employment within the direct property/casualty insurers sector was flat.

As stay-at-home measures were introduced in response to the COVID-19 pandemic, several scams and cybersecurity risks emerged as more people began spending more time on digital devices. The National Association of Insurance Commissioners (NAIC) notes that cyber criminals are targeting companies and individuals with scams involving vaccines and treatment, shopping, charities, phishing and malware, apps, investments, and vulnerable populations.

READ: Alert Clients to These COVID-19 Scams

Like many regulators in recent weeks, the Utah Insurance Department has been alerting consumers to various COVID-19 related scams, including fraud aimed at Americans’ economic stimulus dollars. Utah insurance regulators also have been concerned with COVID-19 fraud aimed at seniors. To that end, the Utah Insurance Department recently showcased tips from the Coalition Against Insurance Fraud, such as never responding to robocalls, unknown texts, emails, or door-to-door solicitors; avoiding “free” COVID-19 tests, vaccines, supplies, or treatments; and verifying any requests for Medicare or Medicaid information before responding

PIA National is pleased to be an active member of a new coalition urging the creation of a COVID-19 Recovery Fund for businesses and employees. PIA National along with over 100 organizations from the business and insurance communities, have formed America’s Recovery Fund, a group dedicated to developing a common-sense solution for businesses struggling to cope with the economic fallout of the coronavirus crisis.

The coalition calls for a COVID-19 Recovery Fund (Recovery Fund) within the U.S. Department of the Treasury. The Fund is modeled after the September 11th Victim Compensation Fund, operated by the federal government, and run by a presidential appointee with the authority to enter into contracts with interested businesses to administer the Fund and facilitate the distribution of federal funds to affected businesses.

“PIA has always been about providing solutions to problems in a proactive way, and that goal has become more essential than ever during this difficult time,” said Mike Becker, executive vice president and CEO of PIA National. “To that end, we’ve worked with our industry partners to develop a solution for businesses that have been hard hit by the negative economic consequences related to the coronavirus, while not upending insurance practices.” -more-

PIA Action Alert

Legislation is currently being drafted to create the COVID-19 Recovery Fund, but a bill has not yet been introduced. In the meantime, PIA National has issued this action alert for PIA members to send to Congress and urge them to support the creation of a COVID-19 Recovery Fund. Please take action today!

WASHINGTON -- The National Association of Professional Insurance Agents (PIA National) is pleased to be an active member of a new coalition urging the creation of a COVID-19 Recovery Fund for businesses and employees. PIA National along with over 100 organizations from the business and insurance communities, have formed America’s Recovery Fund, a group dedicated to developing a common-sense solution for businesses struggling to cope with the economic fallout of the coronavirus crisis.

The proposal creates a COVID-19 Recovery Fund (Recovery Fund) within the U.S. Department of the Treasury. The Fund is modeled after the September 11th Victim Compensation Fund, operated by the federal government, and run by a presidential appointee with the authority to enter into contracts with interested businesses to administer the Fund and facilitate the distribution of federal funds to affected businesses.

“PIA has always been about providing solutions to problems in a proactive way, and that goal has become more essential than ever during this difficult time,” said Mike Becker, executive vice president and CEO of PIA National. “To that end, we’ve worked with our industry partners to develop a solution for businesses that have been hard hit by the negative economic consequences related to the coronavirus, while not upending insurance practices.”

In recent weeks, policymakers in some states have begun proposing a requirement for insurers to retroactively recognize financial losses triggered by the coronavirus outbreak as part of their customers’ business interruption (BI) coverage. Two bills introduced in Congress would rewrite contracts to apply business interruption coverage to provisions that explicitly exclude losses due to viruses, pandemics, etc. PIA National believes such actions to be shortsighted and dangerous.

“Only about one-third of American small businesses have business interruption coverage,” said Becker. “As such, retroactive BI proposals fall far short of helping all businesses. PIA has helped create a real solution for all businesses struggling as a result of COVID-19, and it doesn’t upend existing insurance contracts and practices.”

The Recovery Fund would provide short-term liquidity for small businesses by creating a simple form that could be electronically filed to help businesses maintain solvency while continuing to pay their employees. The Recovery Fund would protect lost wages for employees unable to work because of COVID-19 infection, quarantine, or operational shutdown; preserve jobs through payroll assistance for temporarily closed businesses that continue to retain their employees; and provide solvency assistance for businesses in danger of failing as a result of the pandemic.

PIA National will continue to work with Congress and the business community on effective, efficient solutions that provide the necessary relief to our economy and help our nation recover.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes and businesses. PIA’s web address is www.pianet.com.

The U.S. Occupational Safety and Health Administration will not enforce recordkeeping requirements for COVID-19 in most industries located in places where there is ongoing community transmission, according to a memo released Friday.

This updated guidance will not apply to health care employers, emergency response organizations or correctional institutions, which are still required to make work-relatedness determinations of COVID-19 acquisitions. This announcement reverses previous guidance provided by the agency in March reminding employers that COVID-19 transmission in the workplace, unlike the flu or common cold, would be considered a recordable injury.

Many small business owners may not think they need cyber liability coverage, but small businesses are extremely vulnerable to security threats, especially when working from home.

PIA’s cyber liability insurance, underwritten by Great American E&S Insurance Company (rated A+ by A.M. Best), responds to the most common threats facing small and mid-sized businesses. The policy covers risks such as data breaches, funds transfer fraud, ransomware, network interruption, network security, social engineering, and media liability.

Coverage is available to agents through their local PIA affiliate producers using a simplified, slot-rated quoting process. The policy premium is significantly discounted from those rates found in the standard market and includes enhancements not typically offered by competitors.

PIA members can also protect their clients with the same PIA cyber insurance.