Businesses across all sectors are facing mounting financial pressures as inflation drives up costs. From raw materials to insurance premiums, companies are seeing expenses rise rapidly. This makes having proper insurance cover in place more critical than ever before.
In the insurance industry, rates are climbing fast across many lines. Commercial property premiums alone rose over 20% this year - the first time since 2001. And motor insurance premiums are expected to jump 16% in 2023 and another 11% in 2024.
Higher claims costs are fueling these increases. Supply chain disruptions make business interruption protections more important. Construction materials shortages slow rebuilding after fires or storms. Even vehicle body repairs are becoming more expensive with pricier parts and labor.
As costs escalate, some consumers and businesses are tempted to drop or reduce cover. But this leaves them vulnerable. Being underinsured or uninsured can lead to real financial hardship in the event of a loss.
All companies need to review policies to ensure adequate limits and coverages are in place. Business interruption, commercial property, vehicle, liability and other policies should provide sufficient protection against rising claim costs. Speak with Keep Insurance Brokers to map out risks and lock-in adequate insurance at an affordable premium.
Staying properly covered amid volatile times can come at a cost. But it’s one that pales in comparison to the alternative. Mounting expenses bring growing risks and vulnerabilities. Businesses maintaining robust insurance programmes today will thank themselves tomorrow.