Understanding Why Commercial Property Insurance Rates Are Rising Even During the Pandemic
If you own commercial property, you will have noticed that over the past year or so, the insurance you carry on your business properties has continued to rise. There are several reasons for this, many of which are out of your control as a business owner. From reinsuring your property to dealing with the devastating effects of a natural disaster, it’s a good idea to talk to your insurance agent to find out exactly how your policy has been affected.
Higher Reinsurance Costs
The cost of reinsuring business and commercial properties has gone up over the last year or so. In many cases, the cost of insuring your business increases due to new growth and an increase in the type of coverage you need for your commercial property. In some cases, it may have to do with the purchase of additional equipment. Other situations may involve an increase in overall liability and the need for increased security protocols. Talking with an agent may be just what you need to ensure you have the commercial property coverage you need to protect your business.
Changes in Technical Pricing
Over the past few years, changes have been made in how your commercial property insurance premiums are figured. Understanding what factors are taken into consideration and what you may be able to do to lessen your overall risk can help you keep your rates more affordable. Call your agent and ask them what is driving your premiums higher. Once you identify the area which is causing the increase, you may be able to take precautionary measures and bring your rates down to a more manageable level. Eliminating parts of your policy you may no longer need is a good place to start.
Dealing with the COVID-19 Pandemic
The COVID-19 pandemic has affected almost every aspect of people’s lives, including their businesses. Even though many companies have sent much of their workforces home to work remotely, companies must still protect their business properties. The buildings and offices may be occupied by fewer individuals, but everything still needs to be protected as part of your investment in your business. This may mean premiums will continue to rise even though your property is being used less.
An Increase in Natural Disasters
Over the past year, an increase in natural disasters may have also played a vital role in the increase of commercial property insurance rates. From tornadoes in the south to snow in the heart of Texas, commercial properties have been hit harder than ever before. As a business owner, keeping your commercial property properly insured is an important part of your business. Work with an insurance agent to ensure that your business is covered for any type of natural disaster that may come your way.
Wondering what is causing the spike in your commercial property insurance rates? Your first step should be to call the agents of Mayer Insurance and ask for a policy review. Our reputable agents will go over your policy and help you find out what is causing your premiums to rise and what steps you can take to keep them within your budget.