What Every Mover Should Know about the Current State of the Insurance Market & Claims Trends

January 07, 2022

By Casey Myers

Last month, we examined commercial auto policies. This month, we’re discussing the current state of the insurance market and making sense of claims trends. In the future, we’ll share information about Warehouse and Cargo liability, Workers’ Comp, Employment Practices Liability Insurance (EPLI) and Cyber coverage among other topics.

Why are My Business Insurance Rates Increasing?

If you’re wondering, you’re not alone. The cost of claims settlements has increased. In 2021, premium prices rose 15-20% and cyber insurance premiums increased 27.6%. There were also upticks for claims in Commercial Property, Commercial Auto and Workers’ Compensation.

General Liability & Umbrella Policy Rates are Getting Higher

Apart from Workers’ Comp, commercial insurance rates are on the rise because of large judgements, the cost of litigation and the number of lawsuits against businesses. In the future, rates may rise because of the ongoing pandemic, specifically for a company’s failure to adequately follow and communicate public health guidelines. In addition, insurers are now including communicable disease exclusions in their liability policies.

Commercial Vehicle Insurance Costs are Rising 15-25%

If your insurer paid out a significant settlement on your behalf, your rates may jump more than 25%. Theft and vandalism claims are climbing. Younger drivers may create greater risk for your moving company, particularly if they are not well-trained before getting behind the wheel. Add to all this supply chain issues which increase the cost of repairing vehicles with complicated electronics and semi-conductors. There are ways to mitigate the increases, though. Companies with a strong safety culture, strict hiring standards and good driver safety protocols that utilize enhanced technology may not see their rates increase as much as those without these practices in place.

Property Insurance Coverage May Also Cost More

Particularly if your business is in an area prone to frequent natural disasters. Wildfires, hurricanes, tornados and flooding are more frequent and intense than in years past.  Changes in coverage may include increased deductibles, reduced policy limits and larger policy increases.

What Can I Do to Protect My Business?

Markets are hardening. Now is a good time to double down on your risk management efforts and reduce your exposure. Protect your property against catastrophes, enhance your van operator training and safety programs and implement more rigorous workplace and warehouse hazard training and policies. Review your policies and ensure your limits are adequate and consider increasing them.