“The cheapest loss is the one avoided.”
Commercial property insurance in on the rise, due to increased risks. The experts agree, property owners and operations need to invest in the risk control measures needed to avoid the loss in the first place to avoid rate hikes!
According to a recent article in the Insurance Journal, these are the facts that every owner and operator needs to keep in mind!
- In 2020, 19 lines are expected to see price increases with property, umbrella, and public company directors and officers (D&O) experiencing the most widespread hikes (20% and higher).
- Over and above the company’s baseline property rate pricing predictions, a micro-hard market can be expected to produce increases of 50% to 100% and even up to 400% for challenged occupancies with poor losses and/or risk control deficiencies.
- General liability predictions moved from the mixed category (increases and decreases approximately –5% to +5%) into single-digit increases for virtually all buyers.
- Social inflation is another key factor driving rate increases in the liability marketplace. Companies continue to be held accountable for social ills, whether they were actors or bystanders, and today’s juries seem numb to monetary values.
- “There’s work to be done in the short run to avoid the worst of the rate hikes,” said Peiser. “Buyers should allot plenty of time to work with their advisers, provide robust risk information to potential risk takers, consider options across the global marketplace and take advantage of analytic tools. They should also continue to invest in risk control measures. The cheapest loss is the one avoided.”
At Zendelity we believe your front line workers are the first line of defence in managing physical operating risk. If they don’t do their jobs, operations are exposed to physical, financial or legal dangers.
Command Center from Zendelity offers a cost-effective, mobile solution to manage adherence to the daily operating requirements needed to reduce physical operating risks of all kinds.