It is probably no surprise to most companies, but insurance rates continue to increase although the rate of increase is slowing in a few lines of business. According to a report by Willis North America -- a major national insurance brokerage -- rates in property insurance are holding steady with slight increases and in some cases, slight dips in rates. This is largely due to the fact there have been fewer large catastrophic weather events during the last couple of years, resulting in fewer claims for insurance carriers reducing the need to increase rates. Policyholders can expect rates to decrease from five to ten percent.
Cyber risk insurance, which protects firms from losses related to data theft of personal information from customer databases, has become more sought after recently, which has forced the price down on this line of business. Rates will run from a decrease of 2 percent to a 5 percent increase. Liability lines of business have also had lower losses and increases are expected from 0 to 7.5 percent. Employee-related lines of business, such as employment practices liability insurance and employee benefits insurance, are seeing more significant increases of 5 to 10 percent as companies comply with new healthcare requirements and incur more employment related lawsuits.
Finally, workers’ compensation rates continue to increase as insurance carriers attempt to recapture profits after several years of running at a loss. In most areas, workers’ compensation rates will increase 5 to 15 percent, but some carriers will take 20 percent increases to secure more stable results.
All of these factors mean one thing -- your agent or broker should secure multiple quotes for you to ensure you are paying the most competitive price in the market. Although price should not be the only factor you use in selecting your insurance provider, customers should make sure they are getting good all-around value for their insurance premiums.
Western Growers Insurance Services (WGIS) represents many of the top insurance markets in the country and can match your needs with an appropriate insurance company. If you’d like WGIS to review your insurance situation, contact Greg Nelson, AVP of Commercial Lines.
Thanks to our Platinum sponsors for their support of Western Growers’ endeavors: Farm Credit: American AgCredit, CoBank, Farm Credit West, and Fresno Madera Farm Credit.
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