As the COVID-19 pandemic continues, life as we knew it is becoming a distant memory. Every aspect is experiencing the impact of a crisis for which most of us find ourselves ill prepared. Every trade, profession and industry is struggling to find a measure of stability in rapidly shifting times.
John Colis, president and CEO of Euclid Insurance Services, said part of the risk that program administrators have is because “retail brokers, particularly smaller ones, will be caught in a very difficult situation and will be reluctant to cancel clients they’ve had for five, ten, or fifteen years—many of whom are good friends. PAs need to keep a focused eye on the solvency of their brokers because if the insured pays the broker and the broker doesn’t pay us, we can’t cancel the insured and we’re on the hook to the carrier.”