After the longest period of reduced commercial property and casualty insurance rates in industrial history and throughout the Great Recession, there is change, of rising commercial property and casualty insurance rates. Is this a signal of yet another period of rising costs to come? Considering personal insurance rates have been on the upswing for years, business owners should not expect this trend to reverse itself anytime soon.
Where are increases the greatest? Currently, it appears Workers Compensation and Professional Liability seem to be taking the greatest increases of 15% and higher. That's not to say that certain Companies may not be modifying rates and factors across many lines of coverage including but not limited to Business Property and Commercial Auto.
Reasons for overall commercial insurance rate increases appear to be following the depressed investment environment, eroding policyholder surpluses required by state insurance commissioners of insurance companies countrywide to maintain. Coupled with sporadic periods of losses, yields the current environment of rising business cost.
What remediation does a business owner have in this inflationary / recessional period? Of course a business owner should be consulting with their business insurance professional regularly and for a period not longer than every twenty four months to ascertain their business insurance protection is of the highest product quality and lowest overall cost and to confirm that they are receiving the highest level of professional service and support their lbusiness deserves.