Across the country, commercial property rates are on the rise as insurers are forced to contend with a rise of natural disasters, social unrest and the COVID-19 pandemic. In addition to these tumultuous times, insurance companies have become stricter with their underwriting by restricting some coverages and excluding risks that have been covered in the past.
While it might seem like the rates have increased because of the pandemic, commercial property rates have actually been on the rise for the past two years or so. Nevertheless, a recent report published through Business Insurance reported that the average property insurance rate increased 20% for policies that renewed on July 1, 2020. While a 20% increase is high, rate increases are even higher for some commercial enterprises that have certain types of risks associated with that particular business. As previously mentioned, insurers have taken various steps to restrict coverage, including:
- Civil commotion, strike/riot exclusions
- Communicable disease exclusions
- Reducing coverage for business interruption claims that do not include physical damage to the business
- Overall reduced limits
- Higher deductibles
As a business owner, you want to make sure you are doing all you can to protect your business. While extenuating circumstances beyond your control can happen, parameters of protection help ease the burden should an interruption occur. At Ramey King Insurance, we know the importance of protecting and insuring businesses. Contact us today to speak to one of our Commercial Insurance agents about protecting your business.