Importance of Risk Management for Small Business Insurance

How much risk management for small business insurance costs depends on many different factors, including the type of operation and its location, its exposures, the industry served, claims history, etc. The coverage features and policy terms in an insurance program, along with its policy limits, of course, also affect the cost of coverage.  Additionally, today’s firming insurance market is impacting the cost of insurance across the board, including in all industry sectors.

Recent reports from several insurance industry sources indicate rate increases will continue through 2020, including for Commercial General Liability, Commercial Property, Umbrella, Directors & Officers (D&O) Liability, Employment Practices Liability, and Cyber Liability coverages. In the Property insurance market, extreme weather (flood and wind, tornadoes) in several parts of the country and the wildfires on the West Coast over the last few years have directly affected pricing. 

Rates in the Liability insurance market are increasing as a result of catastrophic litigation stemming from a range of hazards including the California wildfires, the opioid epidemic, and employment practices lawsuits. The Cyber Liability market has seen a rise in the frequency and magnitude of ransomware across all industries, resulting in an uptick in premiums.

Spotlight on Loss Control

Driving home the need for robust loss prevention and risk management programs has become even more critical to help keep small business insurance costs in line. Distinguished encourages you to take advantage of the loss control and risk-prevention information sheets we provide on the niche markets we serve and share these with your clients. For property owners of habitational risks to the hospitality industry (restaurants and hotels) and more, you will find a wide range of relevant and effective loss control information designed to help improve your clients’ risk profile.