3 Tips for Managing a CA Commercial Insurance Rate Increase

As everyone in the country battles inflation and rising prices, business owners also face higher premiums on commercial insurance.?

Nationally, in Q2 2023, the average premium renewal rate change for commercial property insurance was 9.77% vs. 8.89% in Q1 2023. The CA commercial insurance rate increase was part of this average.

What can you do as a California business owner to manage commercial insurance rates so you can continue to get the coverage you need within your budget? Here are some tips to help you save money on CA commercial insurance.

Work With a Broker For the Best Rates

With the changes in the California commercial insurance landscape, it’s hard for a business owner to know what companies offer the best rates. Fortunately, an experienced broker can help you determine what companies can offer the coverage you need at an affordable price.

Working regularly with a broker will help ensure that at each renewal, you’ll be connected to an insurance company that offers excellent coverage at the right rate for your needs — and it will save you a lot of time shopping around and contacting companies yourself.

As a business owner, you’ve already got a lot to do — let an experienced broker take care of ensuring you get the best rates for the coverage you need.

Find Ways to Lower the Risk of Loss

A savvy business owner can get discounts on commercial insurance by taking steps to lower the risk of loss. When certain safety management steps are in place, you can get discounts and better rates that help offset a CA commercial insurance rate increase.

Some of the safety measures to consider include:

• Having a sprinkler system, smoke detectors, and fire alarms in your commercial buildings
• Ensuring your team has and uses proper, good-condition safety equipment
• Maintaining adequate lighting throughout your property and parking areas
• Implementing a safety plan and practicing it regularly

Having verified safety measures in place will help insurers see that you’re serious about managing risk, which can help your organization get better commercial insurance rates.

Review Your Deductibles

Finally, take a look at your commercial insurance deductibles and see if you can afford to raise them. Higher deductibles mean you pay more if there’s an insurance claim, but you pay less every month for your insurance premiums.

Be sure you do this carefully — insurance claims do happen, and you want to make sure you can afford the deductible if you need to pay it. If you simply choose the highest available deductible to save a few dollars, you’ll regret it if there’s an insurance claim and you can’t afford your portion of the damages.

An experienced broker can talk to you about the various options and help you choose the right deductible for your situation.

You Can Manage the CA Commercial Insurance Rate Increase

Rate increases happen regularly, especially when the price of the supplies used for repairs and replacement goes up. Fortunately, you can take steps like the ones above to help keep commercial insurance rates affordable for your organization.

If you’re looking for a broker who can help you navigate the California commercial insurance market, I’m here to help. Contact me for a quote today!?