Commercial Insurance Rates Going Up? Here’s What to Know

4/29/2024 12:00:00 PM

Commercial Insurance_header

Over the last few years, businesses across many different industries have been faced with the persistent challenge of rising commercial insurance rates.

According to the Council of Insurance Agents and Brokers, commercial property/casualty insurance premiums increased by an average of 7% in the fourth quarter of 2023. While that was down slightly from an increase of 8.1% in the previous quarter, it was still the 25th consecutive quarter of premium increases.

Insurance rates have been going up because of continued high inflation that has increased the cost to rebuild or replace structures or vehicles, along with catastrophic weather events across the country that have led to high claims activity and payouts, among other factors.

“That all has a major impact on how much insurance carriers are spending, and those costs get passed down to the consumer,” said Ryan Onken, commercial insurance advisor at Bell Insurance in Bloomington, Minn.

In the midst of rising rates and higher costs, businesses should consider taking proactive measures to manage risks, minimize losses and ensure they have the best insurance coverage for their situation.

Mitigating Risk

One of the biggest steps a business can take to control rising insurance rates is assessing and managing risk, Ryan said.

“Now, more than ever, having a risk management strategy is important,” he said. “You need to make sure that you have a plan in place to manage the risks associated with your business. Your insurance broker should be a critical piece in helping to establish your plan so that they can properly communicate details to the insurance market.”

Reviewing and improving your business’s capital expenditure plans, safety measures, employee safety training and disaster preparedness, for example, could help protect against damage from severe weather or other outside factors. Taking those steps not only reduces your overall exposure to risk, but also lowers the possibility that you may need to file expensive insurance claims in the future. Plus, sharing that information with your carrier could result in your receiving a better rate on your policy.

Review Coverage

Businesses should also review their commercial insurance policy on a regular basis, and work with a trusted insurance broker to make sure they have the right coverage for the best possible price.

“You need a broker who understands what coverage is available and can help clearly explain your options, identify your risks and negotiate insurance terms and pricing in your favor,” Ryan said. “Risk continues to evolve, and knowing, understanding and pricing your insurance coverage has never been more important.”

Bell Insurance Can Help

If your commercial insurance rates are going up, contact Bell Insurance at 800-369-2501 to see how Bell can help.

As an independent agency, we can worth with different carriers to find the best commercial insurance options for your situation. We combine experience, data and analytics with exceptional personal service to help you protect what matters. Contact us today to start the conversation.

Bell Insurance Services, LLC is a wholly owned subsidiary of Bell Bank. Products and services offered through Bell Insurance are: Not FDIC Insured | No Bank Guarantee | May Lose Value | Not A Deposit | Not Insured by Any Federal Government Agency.

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