Arnold, Bruce & Doerfler Insurance Blog
The rising losses in the casualty insurance market will bring a higher price rate across most commercial lines of business this year. For more insights, continue reading as this article will discuss commercial insurance rates in various sectors.
Auto Insurance Rate
According to experts, the constant rise in premiums in the auto division has a significant impact on the increase of commercial insurance premiums. It is expected that auto rates will upsurge between 6 to 12 percent this year. Auto liability is the leading casualty loss for commercial insurance providers, and the remedial pricing feat through the past three years has not yet surpassed failing loss budgets. This is the reason why insurers are experiencing sustained ascending insurance premium rate pressure. Not to mention, over the past seven years, it has been noticed that the first quarter of 2018 is the uppermost rate increase in commercial auto insurance (7.7 percent rise).
Business Owner’s Policy
Common factors affecting the cost of Business Owner’s Policy (BOP) include the number of employees, claim history, overall annual revenue, and the replacement cost of the building, equipment, and contents. Also, the value of the policy depends on the type of industry you’re involved in. For instance, industries with high-risk require higher premiums. On the other hand, those low-risk industries pay lower rates.
According to the study, the quarterly average in BOP last December is at 4.23 percent. This is a 0.08 percent increase compared to the previous quarter average. Here’s the explanation: There is increasing BOP rate because of snowballing industries with high-risk.
General Liability Insurance Rate
A lot of businesses are being challenged by the continued rise of General Liability (GL) losses. Numerous issues are pushing claims severity and fatalities. These include medical and legal costs, and new trends are arising. Moreover, catastrophes in North America like wildfires in California are making a significant mark linked to increasing business insurance rates.
Workers’ Compensation Rate
The average workers’ compensation rate dropped in the fourth quarter of 2018. It’s good to know that the average policy rates under this category have not increased since May 2017. Here’s what has been observed by experts: Most businesses today already know how to prevent work-related injuries. This is the principal reason why workers’ comp insurance premium doesn’t go up.
What You Can Do to Overcome High Commercial Insurance Rate
Understand the issues in your business. Be proactive in taking steps to decrease the impact on your insurance program. Review your current insurance plan so that you can identify those that are unneeded or overlapping coverages. For your convenience, you can make a proper assessment of everything with the help of a licensed insurance advisor.
One More Thing Before You Go
There will always be a solution even though the insurance rate is increasing. Still, having a sustainable business is crucial, so if you’re a businessman, obtain the right commercial insurance plan from a reliable insurer for your protection.
At Arnold, Bruce & Doerfler Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (503) 222-1951. Get your free quote today by CLICKING HERE.