The Rising Cost of Insurance and How to Cope

There is no denying that all insurance costs across the Board start continues to rise. During the five-year cost insurance continues in diving and diving, dipping lower and lower than I've ever seen before in the market. Insurance carriers writing alarming levels low all the risks that I know will can no longer be maintained. One of my bosses had previously used to call them all "flavors of the month" carrier. And boy was he right.

Now fast forward to this year.  Carriers are beginning to tighten up their reigns and become more

Strict on what they will accept and what they will decline.  Minimum premiums are beginning to rise again and you most likely are seeing more carrier declination's from your broker than quotes.  Some carriers that flourished during these tough times are at "capacity" and not writing any new business.  Ahhh, the flavor of the month.   In turn, some of my clients are having to now scramble, move carriers yet again and take a real premium increase due to choosing those insurance carriers.

A few things to note during these times.

   He will pay to stick with insurance companies that are already well established and it is not too early for the market. Your premium may also be slightly higher than the insurance carrier of the "flavor of the month".

But if you could add a few extra dollars, stay with the carrier that is more secure, proven. You'll save money in the long run time.

    Check up on your insurance carrier.  Go to AM Best and look at your insurance carrier's rating, if it is not in your quote that the insurance broker provided.  Typically, anything under A- VII you should avoid as their financial situation may be a little shaky.

    Don't be afraid to ask your broker to market your insurance renewal out.  This is their job!  Specifically ask a marketing summary of insurance carriers and their responses upon renewal.  This not only helps avoid assumptions that your broker didn't do his or her job, but it also keeps you in tune with what the insurance marketplace is doing.  Are insurance carriers quoting a high premium or are they even quoting at all?  Or are there only a few carriers that will entertain your type of business?  Market, market, market your insurance renewal.  Knowledge is power.

    Between 2013 and 2014 I would suggest paying close attention to your workers compensation and professional liability lines of insurance.  These are the two lines of insurance that I have seen get hit the hardest in the past year.  Workers compensation rates are rising rapidly and professional liability premiums and deductibles are fluctuating swiftly from carrier to carrier.

The good news is that the even though the flavor of the month's are beginning to be plucked from the pack, the insurance carriers that are remaining will continue to be reliable and successful which should be of comfort to you and your company.  Knowing that your insurance carrier will be there through tough claim situations is what you really want and need.  

                                                    Read : Less Clients, More Service

If times are hard and you can't afford to stick with Mr. Reliable Insurance Carrier and are forced to go with the Flavor of the Month Insurance Carrier...it's OK.  But just try and get back to that reliable carrier as soon as you're able to.  Your pocketbook will thank you!