The commercial property insurance market has hardened in recent years, resulting in quarterly rate increases since Q3 2017. Unfortunately, these rate increases—as well as additional policy restrictions—are expected to continue in 2022. Yet, this market may showcase some signs of moderation compared to 2021’s trends. It’s predicted that many insureds will experience single- or double-digit rate increases, lowered available capacity, higher sublimits, and various policy restrictions or exclusions—especially regarding losses tied to weather events or the COVID-19 pandemic. Policyholders who conduct high-risk operations with poor loss control practices or are located in areas prone to natural disasters may encounter more severe rate changes, higher retentions and lower coverage limits.
Determine whether you will need to adjust your business’ retentions or limits to man-age costs. • Gather as much data as possible regarding your existing risk management techniques. Be sure to work with your insurance profes-sionals to present the loss control measures you have in place.
• Conduct a thorough inspection of your commercial property and the surrounding area for specific risk management concerns. Implement additional mitigation measures as needed.
• Develop a documented business continuity plan (BCP) that will help your organization remain operational and minimize damages in the event of an interruption. Test this BCP regularly with various possible scenarios. Make updates when necessary.
If you’re a healthcare business looking to secure the right coverage for your company, don’t hesitate to reach out to ProAction Insurance at any time.