Property Insurance Costs - On the Rise

 

CATASTROPHIC LOSSES A Leading Driver of Rising Property Insurance Costs   When the eye of the storm wreaks havoc, many commercial properties are faced with the aftermath. In 2022, hurricanes, floods, tornadoes, wildfires and blizzards continued to strain the industry at an alarming rate. Already in 2023, there have been more extreme events in America that cost at least $1 billion, exceeding the 2020 record.* Catastrophes, the mounting costs of building materials and four other driving forces are increasing the cost of property insurance.

Property Rate by the Numbers       Catastrophe Losses: Over the past five years in the United States, 89 events have generated losses of more than $1 billion each.¹       Reinsurance: In early 2023, the gap between reinsurance supply and demand was estimated at $60 billion, three times what it was the previous fall.²       Property Replacement Costs: Over the past three years, the cost of structural steel increased by 55% and the price of lumber increased by 35%.³       Skilled Labor Shortage: The Associated General Contractors of America found that nine out of 10 contractors are struggling to find skilled labor and are delaying projects as a result.4

Commercial Insurance

 Commercial insurance is a type of insurance that protects businesses from financial losses due to a variety of risks. From natural disasters to lawsuits, commercial insurance can provide peace of mind for business owners and help protect their investment.

There are many different types of commercial insurance available, including property insurance, liability insurance, workers' compensation insurance, and business interruption insurance.

Property insurance covers damage to a business's physical property, such as its building and equipment, due to events such as fires, storms, or theft. This type of insurance can also cover the cost of repairing or rebuilding damaged property.

Liability insurance protects businesses from financial losses due to lawsuits or claims of negligence. This type of insurance can cover the cost of legal fees and settlements, as well as any damages awarded to the claimant.

Workers' compensation insurance is required by law in many states and provides financial support to employees who are injured on the job. This type of insurance can cover medical expenses and lost wages, as well as provide death benefits to the families of workers who are killed on the job.

Business interruption insurance provides financial support to a business in the event that it is unable to operate due to a covered event, such as a natural disaster or a major fire. This type of insurance can help a business recover from the loss of income and continue operating until it is able to resume normal operations.

When choosing commercial insurance, it is important to work with a knowledgeable insurance agent who can help determine the type and amount of coverage that is right for your business. The agent can also help you understand the exclusions and limitations of your policy, so you know what is covered and what is not.

In conclusion, commercial insurance is a critical component of any successful business plan. It provides financial protection against a variety of risks and helps business owners maintain peace of mind and focus on growing their business. Whether you are just starting a new business or are looking to update your existing coverage, make sure you have the right commercial insurance in place to protect your investment and secure your future. Learn more at Community Insurance Solutions LLC.