Business owners understand the importance of insurance and may have noticed that business insurance costs have been increasing even without any claim history. Some factors that directly impact the cost of insurance include the type of business, the size of the business, location, and various industry regulations.
While insurance rates change over time, there are other factors aside from the ones listed above that have been driving up the cost of business insurance that may not be obvious. Some factors include increased use of technology, increased cost of materials and labor, and increased frequency of natural catastrophes. An article in Big I's Independent Agent October 2024 issue states that according to Swiss Re Institute, natural catastrophes have resulted in global insured losses of $60 billion in the first half of 2024 which is 62% above the 10-year average. This statistic is one of many that shows why the cost of business insurance is increasing.
Recognizing these trends and others can help find ways to manage the increasing cost of insurance. We are here to help!
For more, see this article from our partner Main Street America.
Top Factors Impacting Business Insurance Costs | Main Street America Insurance (msainsurance.com)
