Insider Tips Proven To De-Risk Your Portfolio

Nationally, commercial insurance buyers have been experiencing more stringent underwriting, higher premiums, restricted terms, and reduced capacity, all signs that this trend will only continue upwards for the rest of 2020.

At each renewal, your broker is there to help you navigate the murky, ever-tightening market. They will help you maximize your spend and show you how to stretch your insurance dollar.

Your broker can also help you avoid the inevitable deductible trap. Many corporations opt for a high deductible to counteract the rate increases, but then experience a loss, and are on the hook for much higher costs. At the end of the policy term, you might look back and wish you had taken the higher rate and lower deductible - and now you're trapped.  

Let’s take some of the worries away - here are some of the best strategies to avoid the trap:

1. Trust the past: Unfortunately, there's a reason carriers are requesting higher deductibles. The attritional losses of the past have had an impact on the loss ratio. The type of losses that have been negatively impacting the carriers will now impact you.

2. Have the hard conversation: When speaking with the executive team and LP's, share that the total cost of risk has gone up. It's often a hard conversation, but it only gets harder if avoided.

3: Transfer The Risk: It's not enough to require renters insurance - you need to enforce the requirement. 31% of all renters remain uninsured, even when required to maintain coverage. A platform like LeaseTrack will help to actually transfer the risk of a resident-caused claim.  

What methods have you used to de-risk your portfolio?