Is it normal for my commercial insurance to go up? It all depends…
Inevitably, coverage costs rise and fall. There are many reasons why. Some of which you may be able to control and some of which you simply can’t. This is why when you’re renewing or changing your insurance in any way, it’s important to work with a broker who knows the marketplace.
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3 reasons why your insurance may go up
- Material changes in risk happen to your business. – You’re bound to accurately and completely represent all known facts. These facts can materially influence an insurance company when they set your rates and/or premium, appraise your risks and or decide to provide coverage. Any changes in joint ventures, operations, subsidiaries, services, products, property, automobiles &/or automobile use, drivers or procedures at renewal may contribute to your insurance going up.
- You add a property – Your property insurance covers mainly property, contents, equipment and operations at your insured location(s). If your business is adding to its commercial properties, expect costs to go up. A new insured location will lead to increased coverage costs.
- You decide to add loss payees, mortgagees & additional insured’s – Liens, leases, mortgages or any other encumbrances or changes in insurable interest change your commercial insurance. Adding to your property, automobiles, liability &/or third parties as additional insured’s to your insurance policies may potentially increase your insurance rates.
Related Matters: High insurance costs? It could be because your commercial auto fleet includes older models of Ford pickup trucks…Canadian Underwriter
Does a hard insurance market cause costs to go up?
Unfortunately, it often does. A recent article in Insurance Business Canada magazine cites the current hard market in commercial lines as a key trend.
“The Canadian commercial lines insurance market is hardening. Carriers are pushing for more rate, they’re tightening their policy terms and conditions, they’re increasing deductibles, and they’re assessing how much participation and capacity they’re willing to retain on accounts. It’s a very different market to 10-years-ago.”1
If you’re looking at insurance cost increases and want expert advice from our commercial insurance brokers, we’re here to help.