Insurance Offices: Essential Or Not?

During the COVID-19 pandemic, many countries and states implemented stay-at-home orders, forcing non-essential businesses to close to slow the spread of the virus. While the definition of essential services varies depending on the location and nature of the event, insurance offices are generally considered essential. This means that insurance businesses are allowed to remain open and their employees are classified as essential workers, alongside doctors, nurses, grocery store attendants, and military personnel. However, insurance offices are encouraged to use their discretion in determining essential functions and to limit in-person interactions as much as possible, utilizing remote work and digital communication tools whenever feasible.

Insurance services during COVID-19

Insurance services are considered essential during the COVID-19 pandemic. In the United States, insurance companies and agencies are deemed "essential" to the economic security and community protection of all residents. This includes health insurance, which is vital for covering testing and treatment for COVID-19.

During the pandemic, insurance providers have been encouraged to offer flexibility to their customers. This includes relaxing due dates for premium payments, extending grace periods for delayed payments, waiving late fees and penalties, and allowing payment plans for premiums. Many insurance companies have also implemented remote working, with staff available by phone or email, and some have offered refunds or credits to reflect reduced travel during lockdowns.

In terms of travel insurance, most standard policies are unlikely to provide trip cancellation or interruption coverage related to COVID-19. However, some travellers may be covered by their policies, depending on when the policy was issued and whether it contains a pandemic exclusion.

For those without health insurance, the Affordable Care Act offers the option to enrol in a quality, affordable plan. Some states in the U.S. have also opened special enrolment periods, allowing individuals and families without insurance to sign up for comprehensive health insurance.

Insurance agents as essential employees

Insurance agents have been deemed essential workers during the COVID-19 pandemic. While many businesses were forced to close their offices and have their employees work from home, insurance businesses were largely allowed to remain open.

In the United States, the decision to classify insurance industry professionals as essential was made on a state-by-state basis. States that exempted insurance from restrictions and considered it an essential business include Alaska, California, Connecticut, Delaware, Hawaii, Illinois, Indiana, Kansas (Johnson County), Louisiana, Maryland, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania (7 counties), Washington, and Wisconsin.

The decision to deem insurance agents as essential workers was influenced by a memorandum issued by Treasury Secretary Steven Mnuchin, which specified that financial services, including insurance, are a "critical infrastructure sector," and that employees should continue to work during the pandemic. The Department of Homeland Security (DHS) also issued guidelines that described workers in critical sectors related to insurance as:

> "Workers who are needed to process and maintain systems for processing financial transactions and services (e.g., payment, clearing, and settlement; wholesale funding; insurance services; and capital markets activities)."

However, it is important to note that even as essential workers, insurance agents were still encouraged to practice social distancing, limit human contact, and work remotely whenever possible. The Centers for Disease Control and Prevention (CDC) issued guidelines for essential workers, recommending that they maintain social distancing in the office, send employees home if they are experiencing COVID-19 symptoms, and follow other safety protocols.

Remote working for insurance offices

During the pandemic, many insurance companies were deemed essential businesses and were exempt from "shelter in place" orders. However, insurance offices were encouraged to administer their services remotely where possible to protect employees and customers.

There are several insurance companies that hire for remote insurance jobs, including health insurance jobs and insurance sales agent jobs. These include:

• Anthem (formerly known as WellPoint, Inc.)
• Conifer Health Solutions
• CVS Health
• Lincoln Financial Group
• National General Insurance Agency, Inc.
• New York Life
• Parallon
• Progressive
• Sutherland
• Willis Towers Watson

Remote working has several implications for insurance, including car insurance, home insurance, health insurance, and life insurance.

Car Insurance

If you are working from home, you may be able to save money on your car insurance by switching to a pay-per-mile insurance policy or taking a low-mileage discount. This is because you are driving less, and therefore have a lower risk of getting into a crash. However, it is important to note that some states require you to have a registered car to be insured, even if you are not driving.

Home Insurance

If you are working from home, you may need to adjust your home insurance coverage. Homeowner's insurance covers your personal property when used for personal reasons, but there are limits on business coverage. If you are a full-time employee, your employer's insurance coverage may include business items such as laptops and phones, as well as injuries, which are typically covered under workers' compensation. However, if you are self-employed, you are responsible for this coverage and may need to take out a separate business insurance policy.

Health Insurance

The transition to remote working has had a positive impact on health insurance, as employees are spending less money on their commutes and are less exposed to germs and commuting stress. However, there has been an increase in ergonomic, eyestrain, and mental health issues associated with poor home office setups and anxiety around the pandemic.

Life Insurance

The COVID-19 pandemic has led to changes in the life insurance industry, including increased premiums and the addition of questions about contact with COVID-19 on applications. Additionally, many policies now require a virtual medical exam for approval, rather than an in-person exam.

Overall, the COVID-19 pandemic has accelerated the shift towards remote working in the insurance industry, and many companies are now offering remote insurance jobs. This trend is likely to continue, as employees appreciate the improved work-life balance and companies benefit from a more productive and loyal workforce.

Insurance as an essential service

During the COVID-19 pandemic, many countries implemented lockdown measures to slow the spread of the virus. These measures included the closure of non-essential businesses. However, insurance services were deemed essential in many places, including California, Illinois, New York, Pennsylvania, and Quebec and Ontario in Canada.

In the US, the decision to classify insurance as essential rested with individual states. Most states allowed insurance businesses to remain open, but some did not specifically name insurance as an essential business, instead mentioning financial services, which usually include insurance. The federal government classified financial services and insurance as a "critical infrastructure sector", but individual states could decide to impose more extreme measures.

The classification of insurance services as essential was important for several reasons. Firstly, insurance services provide essential financial support to people in times of crisis, such as after a fire or flood. During the pandemic, insurance services also played a crucial role in providing health insurance to individuals and supporting healthcare providers. Additionally, the closure of insurance businesses could have resulted in people driving uninsured and being unable to enroll in health plans.

While insurance services were essential, insurance agents and brokers were encouraged to practice social distancing and work remotely whenever possible. This involved adopting new ways of interacting with clients, such as using digital tools and photographs to assess damages and issue policies. For older clients who were uncomfortable with technology, in-person meetings were sometimes necessary, but social distancing and other precautions were recommended to protect the health and safety of both parties.

Financial services and insurance

During the COVID-19 pandemic, many countries and states implemented stay-at-home orders to limit people's interaction with one another and slow the spread of the virus. However, financial services and insurance were recognised as essential services in most places, allowing them to remain open while other businesses were forced to close.

In the United States, the Department of Homeland Security deemed financial services institutions as essential to the country's well-being. While specific guidelines varied between states, most allowed insurance businesses to remain open. States such as California, Illinois, and New York included insurance services in their "essential critical infrastructure" lists that accompanied their stay-at-home orders.

In Canada, Quebec and Ontario issued orders for many companies to close their doors due to the COVID-19 pandemic, but insurance was included on the list of essential services, along with grocery stores, taxi services, and hardware stores. This decision was welcomed by industry leaders, who recognised the importance of insurance services, especially in times of crisis.

While insurance offices were generally considered essential, many states and companies encouraged remote work and social distancing practices whenever possible. The Pennsylvania Administration, for example, urged non-essential businesses to close during mitigation periods to protect employees and customers, while recognising that insurance businesses could be administered remotely or with limited in-person interaction.

The designation of insurance as an essential service ensured that people could continue to receive the financial protection and support they needed, especially during challenging times. It also allowed insurance companies to meet their obligations and provide essential services such as processing claims and issuing cheques to those in need.

Frequently asked questions