Insurance agents - looking for support after a natural disaster?

In the wake of natural disasters like Helene and Milton, communities were devastated, leaving businesses and families struggling to recover. For independent insurance agents, the recovery process can be even more challenging as they balance rebuilding their own businesses with helping clients navigate the aftermath.

Fortunately, there are resources available to assist business owners during these difficult times. The National Association of Professional Insurance Agents (PIA) Disaster Relief Fund provides crucial assistance to agents across the country, offering vital support to help them get back on their feet and continue serving their clients.

Michael Skiados (pictured), CEO of the PIA, emphasized the relief fund’s broad applicability: “It’s set up to cover independent agents facing hardship due to any natural disaster—whether it's fires, floods, earthquakes, hurricanes, tornadoes, and more,” Skiados explained.

Other resources for assistance:

Independent agents can also access support through resources including:

• FEMA
• DisasterAssistance.gov
• Independent Insurance Agents & Brokers of America (IIABA) Trusted Choice Relief Fund

How to determine if you're eligible

To qualify for relief funds, such as those provided by the IIABA or PIA, applicants must either own or work for an independent insurance agency and show evidence of a loss, economic disruption, or financial hardship caused by a natural disaster.

The PIA Disaster Relief Fund offers grants of up to $2,500, with applicants required to submit a brief application outlining their situation and specifying the expenses they need assistance with.

Skiados provided a helpful tip for agents completing the application, stressing the importance of thorough documentation. "It’s crucial to attach the requested photographic evidence to ensure your claim is processed smoothly and efficiently," he advised.

What’s covered?

Funds from both IIABA and PIA may be used to cover expenses not covered by insurance, grants, or federal or state loan programs for things such as, but not limited to:

• Lost wages, payroll, and benefit expenses.
• Essential property loss, including items lost from offices or personal residential property.
• Living and housing expenses.
• Office operation expenses such as equipment, rent, mortgages, recurring or non-recurring fees for service or equipment, and technology for remote workers.
• Incurred insurance deductibles (not to exceed $2,500).

While both funds cover a broad range of eligible expenses, the PIA application has an additional requirement: applicants must be based in an area affected by the declared disaster. This includes locations officially designated as disaster zones by FEMA or other relevant authorities.

Fast relief: funds in action

Skiados expressed gratitude for the $100,000 donation from Progressive to the PIA Relief Fund, received last month. He highlighted that $32,000 of those funds have already been distributed to agents in need, stating: “We are ensuring that the money is going out quickly to those who need it.”

While traditional insurance processes can assist agents affected by natural disasters, claims can take time to be processed. Skiados highlighted that the PIA Disaster Relief Fund is specifically designed to provide immediate financial support to agents.

One PIA grant recipient shared, “Hurricane Helene's destruction has been unlike anything I’ve ever experienced. This grant will help my family get back to our new normal much quicker. I know this grant will benefit so many others who have been living through this for months now.”

Sharing a story from another PIA grant recipient, Skiados recounted: “One recipient had their businesses’ bridge wiped out. While we weren’t able to cover the full cost, we contributed towards rebuilding part of it. Each story is unique, but we’re proud to play a small role in helping agents get back to serving their clients.”

Preparing for the next disaster

While the PIA Fund offers immediate help, Skiados stressed the importance of agents preparing in advance for crises. “Planning before a disaster strikes can make all the difference,” he shared. “Having a process in place gives you something to lean on when everything's in chaos.”

If you're an independent agent, here are some essential tips to help protect your business when natural disasters strike:

• Create a business continuity plan: Ensure you have procedures in place for maintaining operations if your office is impacted, including data backups, remote work capabilities, and emergency contacts for staff.
• Develop client communication strategies: Set up pre-written client communications, letting them know what steps to take and how to reach you in case of emergency.
• Store important documents offsite: Keep copies of critical business documents, insurance policies, and client records in a secure, cloud-based storage solution that is accessible from any location.
• Invest in disaster preparedness training: Educate your team on disaster response procedures and ensure they know their roles in a crisis.
• Monitor local and federal resources: Stay updated with FEMA alerts and state-specific disaster relief programs to ensure you have the most current information for your clients and your business.