Potential Issues Allstate Insurance Agencies May Face Due to COVID-19

The impact of the corona virus is growing throughout the U.S, and like all small business owners, Allstate Insurance Agency owners will need to have a plan to navigate these uncharted waters. In an attempt to help, many states have already permitted small business owners to apply for low-interest loans to cope with the impact of COVID-19.

SBA is going to work directly with the governors of the state to implement the Economic Injury Disaster Loan program in the affected areas. According to this program, economic support will be provided to the small businesses so that temporary losses can be recovered to some extent. As Captive Allstate Agents begin looking into whether or not their Allstate Insurance Agency qualifies for the Economic Injury Disaster Loan program, they should also be researching alternative lending options in case they don’t qualify for Economic Injury Disaster Loan program or need access to working capital quicker than FEMA or SBA loan provides.

There are many reasons Allstate Insurance Agents may need access to working capital quickly due to the impact of coronavirus; few of them are listed below:

Working Capital Resources:

Incidents can cause strain on an Allstate Agencies financial capacity. As a result, they may find it difficult to make payrolls or respond to sudden increases and increases in demand. Allstate Agents should be prepared by exploring and testing their capital access options so they have what they need when they need it. Unlike traditional lenders, McQue Capital’s latest TPP Lending Program allows Allstate Agency owners to receive working capital loans (up-to 90% of their TPP value) within a matter of days.

Workforce Capacity:

Due to the attack of coronavirus, people are worried about their safety, and Allstate Agents may find it difficult to maintain their routine productivity levels. Along with working from home, video conferencing and other virtual office strategies are on the rise as Allstate Agents figure out how best to provide sales and service to their customers. Many Allstate Agency owners are now faced with the challenge of not only making payroll, but providing technology producing agents need to stay productive.

Office Remediation Cost:

Allstate Agency Owners are also responsible for enhancing protections for their staff and employees. In order to fight the coronavirus attacks, they need to clean the surfaces in their offices frequently. This can be another burden on business owners as they try to maintain supplies for cleaning with rising demand from other businesses. Professional cleaning services can be an additional cost agency owner may not have budgeted for.

Fluctuating market demands:

With the seriousness of the Covid-19 issue and the movement restrictions established by governments, customers may not be able to reach your office or they may be afraid of the exposure. Not only will Allstate Agents will need to be prepared to handle this new way of doing business, they’ll need to be prepared for the possibility of an increase in demand for insurance related questions and products. This may include hiring additional staff, new marketing strategies, online educational videos, etc. Allstate Agencies will need to roll these new services out quickly and McQue Capital’s new TPP Lending Program allows Captive Allstate Agents to receive working capital loans (up-to 90% of their TPP value) within a matter of days.

Marketing operations:

When people are already worried about safety measures, it may be difficult for you to explain to your customers about protective measures that you have implemented within your business premises. Some promotional activities must be carried out to make people aware of how your agency is safe for them to continue to work with.

The idea is to take preventive measures. You must have a solid backup plan to maintain stability within your agency in the circumstances caused by the Covid-19 attack. While the SBA and Economic Injury Disaster Loan Program are excellent resources that will no doubt help many small businesses, Allstate Insurance Agency’s should begin looking at alternative such as McQue Capital to help them gain access to working capital quickly.

You can visit www.McQueCapital.com to learn more or contact us via email at [email protected].