If your business insurance renewal came with a bit of sticker shock this year, you’re not alone. Across industries, commercial insurance premiums are climbing—and fast. But before you resign yourself to paying more, let’s break down why this is happening and, more importantly, what you can do about it.
Why Are Rates on the Rise?
The short answer? More risk, more claims, and higher costs for insurers. The long answer:
- Inflation’s ripple effect – Higher costs for materials, labor, and repairs mean pricier claims, which means higher premiums.
- Disasters and disruptions – Wild weather, supply chain breakdowns, and cyberattacks are hitting businesses harder than ever. Insurers are adjusting their risk models accordingly.
- Reinsurance pressures – Insurers rely on backup insurance (aka reinsurance), and when those costs go up, yours do too.
What Can You Do About It?
The good news? You’re not powerless here. A few smart moves can help keep your coverage strong without wrecking your budget.
- Fine-Tune Your Coverage – Work with your broker to make sure you’re covered where you need to be—but not paying for what you don’t.
- Double Down on Risk Management – A strong safety culture, solid cybersecurity, and proactive claims prevention can make you a lower-risk (and more insurable) business.
- Think Beyond Traditional Insurance – Options like captives, higher deductibles, or self-insurance strategies might help offset rising costs.
- Leverage Your Broker’s Expertise – A knowledgeable broker isn’t just there to send you a renewal notice—they can negotiate rates, find hidden savings, and keep you ahead of industry changes.
Bottom Line
Insurance is a critical piece of protecting your business, but it doesn’t have to break the bank. A proactive approach—and a trusted partner like OneDigital—can help you stay covered without getting squeezed by rising costs.
Want to strategize on keeping your insurance affordable? Let’s chat.
Our goal with the Risky Business series is to help you manage your risk and make better business decisions.
