Insurance is all about risk protection. And the last two years have driven demand for insurance products as businesses seek assurance in a world filled with uncertainty
However, risk protection is coming at a higher cost, say insurance experts
There are a number of factors affecting rates, and they vary depending on where a business is located as well as the industry in which it operates
The major factors for rate increase are natural disasters, cybercrime, lawsuits over employment practices , motor vehicle accidents, etc.
Add to all that fact, many insurance companies lost money last year, primarily on natural disaster and cybercrime claims, and that money has to be recouped in some fashion
The only bright spot, in New Hampshire at least, is workers’ compensation
Workers compensation rates have been declining in recent years as manufacturing jobs left the state or were automated, people began working from home and workplace safety practices improved.
The most important thing is to sit with your broker and clearly discuss in detail what your company is doing. Make sure it is understood and not assumed.
We are not going to tell people that insurance should be low. That is not the only way of the world. But if they budget a 10 percent increase, in most cases they will be right