All companies can benefit from insurance, especially if you’re a small business. An accident or disaster can seriously impact your enterprise’s productiveness, and trying to cover costs on your own can put your company underwater. However, with insurance prices rising, some businesses are foregoing vital plans and putting themselves at risk. Here we take a look at the cost trends in 2019 and how you can find affordable plans.
Reasons for Insurance Prices Rising
One of the major questions asked by those insured is why premiums seem to go up every year but benefits remain the same. This is primarily due to market influences, such as the amount of competition and the number of claims processed. If companies experience a high number of claims, they may raise premiums to offset losses.
There are two kinds of property insurance: catastrophe-exposed and non-catastrophe-exposed. While both of these are expected to have cost increases, cat-exposed risks are likely to climb as high as 7.5%, while non-cat-exposed risks may increase by as much as 5%. With more intense and frequent weather-related disasters each year as a result of climate change, this trend is unlikely to continue for the foreseeable future.
Commercial Umbrella Insurance
Commercial umbrella insurance is one area companies may skip as a strategy to avoid high premiums. However, these policies offer protection in several important areas:
- Invasion of privacy
Companies at risk of litigation can benefit, even though premium costs are expected to rise. It’s really a matter of comparing the price of maintaining this insurance to the cost of a court battle or settlement.
Professional Liability Insurance
Also known as errors and omissions insurance, a professional liability policy is essential if you offer legal or financial advice in the course of your business. Even companies that provide other products and services, such as construction or installation, can benefit from such policies. In 2019, rates may rise by as much as 2.5%, but the degree to which your business is affected depends on the services you provide.
Workers’ Compensation Insurance
Despite most premiums trending upwards, not every insurance type is seeing a spike in costs. Workers’ compensation policies are actually seeing a decrease of up to 1.5%, which is good news for companies that deal with a great deal of risk to their workers, such as those in the following industries:
- Truck driving
Commercial Automobile Insurance
Like policies covering personal automobiles, commercial vehicle rates are predicted to rise. Premiums may increase by up to 12%. However, since vehicle insurance is a legal obligation in most places, forgoing it isn’t an option.
Great health insurance is a huge draw for many employees, especially as healthcare costs have skyrocketed. However, the price of providing these plans has nearly doubled in the last 10 years, and data suggests premiums will continue to increase as the fate of the Affordable Healthcare Act remains undecided by the courts.
Insuranceguys.com is dedicated to helping you get the best policies for the lowest cost. We compare insurance rates to find affordable plans that meet your company’s unique needs. To learn more, contact us online or give us a call at 800-347-5373.