Commercial Insurance To Increase In 2021

​Since 2017, commercial insurance rates have been on a steady incline and are projected to continue up to this year. A recent survey forecasted that commercial rates would increase up to 11.6% nationwide across all lines.
 
The continued increase in rates are driven by several factors that depend on the type of insurance, which includes but are not limited to:

• Higher litigation and jury awards
• Increased medical costs for injury claims
• Increased property claims costs for natural catastrophes
• Higher reinsurance costs for extraordinary claims.

 
The following are the predicted increased rates for commercial lines:

1. Medical Malpractice by 17.5%
   Independent and small groups physicians started to shift to larger groups and hospital employments – which causes juries to award larger damages due to perceived higher incomes.
   
   
2. Commercial Auto by 14.2%
   Costs for modern vehicle reparations continue to rise at higher rates. Additionally, distracted driving caused by smartphone use has spiked the number of vehicular accidents.
   
   
3. Commercial Property by 13.6%
   Damage claims have been more prevalent as natural disasters and catastrophe occurrences become more frequent (and more intensified).
   
   
4. Directors & Officers Liability by 13.2%
   More and more investors have been suing boards and officers for negligence and poor performance.
   
   
5. Environmental by 12%
   There has been an increase in lawsuits against perceived polluters.
   
   
6. Professional Liability by 11.7%
   Prices of insurance increase as heightened litigation in various industries or professions become more apparent.
   
   
7. General Liability by 11.3%
   It is attributed to increasing claims costs and larger jury awards.
   
   
8. Cyber Insurance by 10%
   Since almost all businesses have transitioned to or have a digital infrastructure, cyberattacks have become inevitable. The existence of ransomware that makes companies pay a ransom to cybercriminals to release their hostage systems has become more apparent.
   
   
9. Employment Practices Liability by 10%
   Employee allegations of sexual harassment and discrimination against their employers have been on a steady rise. More states have enacted Employment-related laws protecting victims of workplace discrimination, abuse, and harassment.

 
Moreover, being usually barred from securities investments, the insurer also experiences low investment incomes, especially in the low-interest-rate environment – they just settle for bonds and other safer modes. 

With several commercial insurance companies tightening up their policies, businesses are forced to double their efforts on risk management, safety, and adherence to environmental and employment-related laws. 

These efforts may not help you avoid higher rates, but they can help you get reduced rates.

At Priority Insurance LLC​, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (864) 297-9744. Get your free quote today by CLICKING HERE.