“Hard Market” and What Does That Mean for You?

We are now in the midst of a hard insurance market.  “A hard market is defined as ‘the upswing in the insurance market cycle, when premiums increase, coverage terms are restricted, and capacity for most types of insurance decreases.’”  (Insurance Risk Management Institute)

If you haven’t experienced these changes yet you will at your next insurance renewal.  Insurance carriers have not been profitable due to catastrophes (widespread fire; hurricane losses; unusually large amounts of rain).  Also, the legal climate in many states has become more favorable to the claimant resulting in large judgements and punitive damage payouts.

What does this mean for you? 

• Your insurance premiums will increase at your next renewal.
• There may be coverage restrictions on your policy (a large wind/hail deductible; increased minimum property deductible; exclusions of coverage on your liability policy, and larger required deductibles on auto)
• Your insurance policy may be non-renewed due to exposures and operations that are now unacceptable to your insurance carrier.

What can you do?

• Call us, your agent. And, please call us even if we are not your current agent. We can discuss options that include discounts and finding other carrier options for you.
• Make sure to let us know of any changes in your business operations including driver changes and states in which you do business.

Again, please do not hesitate to get in touch with us.  We can assist you in navigating this hard market environment.

Written by Elizabeth Allen – President & CEO