The COVID-19 pandemic has created varying levels of disruption for underwriters and insurance providers in the professional liability market, with many expecting more sizable increases in claims, according to a recent report from AM Best. The report put a negative market segment outlook on the professional liability insurance market, which wrote approximately $35.8 billion in direct premiums in 2019 using the sum of other liability (claims-made). Also, the directors and officers (D&O) insurance marketplace, including Orlando Professional Liability Insurance providers, is seeing significant spikes amid the pandemic as financial services firms, for example, are facing new professional liability-related exposures.
Since the beginning of the pandemic in the U.S., COVID-19 has become the newest underlying D&O exposure. Clients in the industry have turned their concerns to the potential financial impact that the virus might have on their company and revenues. Every insurer has new worries about what type of claim will hit its operations in the coming months.
Essentially, COVID-19 underlines every professional liability insurance policy, whether it’s a new submission or renewal. For every D&O request, multiple questions naturally come related to the pandemic and the underlying financial impact that it’s having on a company’s business operations.
Furthermore, the pandemic has also brought to light the exposures that cyber risks bring to the marketplace. With many companies moving their workers from the corporate office to the home office, there is the potential that businesses and their employees will expose themselves to cyber risks, such as malware or ransomware, which has seen a 72-percent rise since the pandemic began.
Cyberattacks result in lost business, revenues, and income, while the shutdown of operations for a certain period cause irreparable damages to a company and its overall reputation. There is coverage baked into cybersecurity policies widely available to most businesses for these types of cyber risks. However, there is rising concern that cyber-related claims might bleed into the professional liability insurance space causing a primary problem for additional losses.
To help companies with the wide range of additional challenges that have come out of the pandemic, the Hilb Group of Florida offers expert advice and specialization in the Orlando Professional Liability Insurance market, along with a broad network of specialist underwriters to provide clients with the right level of coverage to meet the demands of these unprecedented times.
About The Hilb Group
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.