We’ve partnered with Champion Risk & Insurance Services to provide you with important information about insurance coverage that can help you mitigate risk for your business. In this article, we’ll review the current state of the insurance market and make sense of claims trends. We’ll cover why the cost of business insurance is increasing and steps you can take to protect your moving company.
Why is the Cost of Business Insurance Increasing?
If you’re wondering, you’re not alone. In 2021, premium prices rose 15-20% and cyber insurance premiums increased 27.6%. There are three main reasons for these increased costs:
1. General Liability & Umbrella Policy Rates are Getting Higher
Apart from Workers’ Comp, commercial insurance rates are on the rise because of large judgements, the cost of litigation, and the number of lawsuits against businesses. In the future, rates may rise because of the ongoing pandemic, specifically for a company’s failure to adequately follow and communicate public health guidelines. In addition, insurers are now including communicable disease exclusions in their liability policies.
2. Commercial Vehicle Insurance Costs are Rising 15-25%
If your insurer paid out a significant settlement on your behalf, your rates may jump more than 25%. However, there are a number of other factors impacting insurance costs at the moment, including;
- Growing theft and vandalism
- Young, untrained drivers
- Increased cost to repair vehicles due to supply chain issues (complicated electronics and semiconductors)
3. Property Insurance Coverage May Cost More
Wildfires, hurricanes, tornados and flooding are more frequent and intense than in years past. If your business is in an area prone to frequent natural disasters, changes in coverage may include increased deductibles, reduced policy limits and larger policy increases.
What Can I Do to Protect My Business?
Companies with a strong safety culture, strict hiring standards, and good driver safety protocols that utilize enhanced technology may not see their rates increase as much. In addition to these best practices, there are other ways to mitigate the impact of these increases on your business.
Now is a good time to double down on your risk management efforts to reduce your exposure. Here are some things you can do as a moving business:
- Protect your property against catastrophes,
- Enhance your van operator training and safety programs
- Implement more rigorous workplace and warehouse hazard training and policies
- Review your insurance policies and ensure your limits are adequate
Casey Myers is an insurance industry veteran with more than 16 years’ experience. As vice president for Champion Risk & Insurance Services, she specializes in providing insurance coverage and advice for moving and storage clients. Prior to joining Champion Risk, Casey worked for Paul Hanson Partners.
She is well-versed in industry trends, challenges and changes facing the household goods industry and serves as an associate board member for the California Moving & Storage Association (CMSA). For advice and help to protect your business against rising insurance costs, contact Casey today at [email protected] or call (707)225-4846.