What to Do When You Face a Higher Insurance Premium
While commercial insurance premium keeps rising, experienced brokers like Rick Callaway and his team help business and commercial property owners look for discounts, compare rates, review and update policies.
Facing a Higher Insurance Premium? What to Do
Are you facing a higher insurance premium on your commercial insurance renewal? If so, you might be surprised by the change. What happened? Did you do something wrong?
The truth is that economic pressures have pushed commercial insurance rates higher for everyone. However, that doesn’t mean you’re stuck. There are steps you can take to lower your premium.
Let’s take a look at why insurance rates are higher and what you can do to get a policy that matches your budget.
Why Are You Seeing a Higher Insurance Premium?
Commercial insurance in the United States has been pushed higher by the inflation we’ve seen over the last year. In the fourth quarter of 2022, composite rates for commercial insurance went up 5.1%. That continued a trend — in Q3, the composite rates increased by 5.28%. In 2021, our blog post discussed commercial insurance premium increase due to natural disasters and the “evergreen”, ever present cyber breaches.
What’s driving this increase in 2023?
The first factor is inflation. When costs go up, the things that insurance pays for are more expensive. Repairs, replacement equipment, liability costs, and all the other coverages cost more to fulfill, so the price of the insurance will be higher.
Another part of the price increase is lawsuits. People can — and do — sue businesses for almost any reason, and that can result in high awards that insurance companies have to pay. Because these awards have been getting higher and higher, companies have to increase liability insurance rates to compensate.
Finally, cybercrime continues to be an issue. Criminals hack business computer systems and demand a ransom to release them. Ransomware attacks have been increasing dramatically, meaning insurers have to charge more to cover these risks.
How to Get a Better Commercial Insurance Premium
As a business owner, you haven’t done anything wrong that caused an increase in your insurance premium. However, there are things you can do that may lower your premium.
The first thing to consider is whether you have all of the discounts available on your commercial insurance policies. The more you can do to promote a secure and safe business environment, the more you’ll save.
Discounts to ask about include:
- Alarm systems
- Sprinklers to help prevent fires
- Maintaining your building and landscaping well
- Providing ergonomic working areas and/or protective equipment to employees
- Taking specific cyber security precautions to reduce risk
- Having well-documented, frequently practiced safety procedures
Taking steps to make an insurance payout less likely not only saves you money on insurance, but it also makes your business a safer, better place to work.
Compare Rates For a Better Price
As your business insurance broker, we can help you compare rates between a variety of insurance companies. If you’re unhappy with your commercial insurance premium, contact us and let us shop around to find you high-quality coverage at a better rate.
Get Customized, Affordable Commercial Insurance
You’re not at the mercy of your insurance premium. While there are understandable economic reasons that prices are going up, there are steps you can take to improve your situation.
From discounts to comparing rates, we’re here to help. We have decades of insight and business experience to help you get the policy you need at a price that makes sense.
Contact us today!
We are the Extra Milers to protect businesses and properties
The Rick Callaway Team is known as the Extra Milers in protecting your business, employers, employees, and assets. We leave no stone unturned to get you the best deal. No under coverage. No overpricing. Fast turnaround. We have board level business acumen for understanding your business operations to customize your coverage. Please call us for a free consultation: 925.771.2334 or email us at: email@example.com.
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