Commercial Insurance Premium Increase - What to do to Save Money
Rick Callaway
Commercial Insurance Broker | 30+ yrs | Insure businesses, commercial properties, manufacturers, brewers, technology companies, VC backed startups | Cyber insurance, Liability & Property Coverages | Licensed in 50 states
As commercial insurance premiums continue to rise, consult an experienced commercial insurance brokers like Rick Callaway can help businesses and commercial property owners find discounts, compare rates, & review and update policies.
What to Do When Facing a Higher Insurance Premium?
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.
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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.
Discounts
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:
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!