Extreme weather events seem to be becoming the new normal. The commercial property insurance market is hard, and looks to be getting harder – meaning insurance carriers tighten coverages, terms, and limits and raise rates.
Business owners and decision-makers are not powerless in the face of these trends, though. It’s time to be more strategic than ever with your risk management.
7 Steps to Stay Ahead of the Hard Market
- Develop a strategy for your next renewal and begin preparing at least 4 months before coverage is bound (or as far in advance as possible).
- Evaluate your risk tolerance, understand how much coverage you’re purchasing, and evaluate different program structures.
- Use data to your advantage and preemptively use cat modeling and other emerging analytics tools to structure your carrier RFP and enhance your negotiating leverage.
- Reconcile all valuations, and be sure to confirm that all assets are measured accurately ahead of your renewal.
- Prepare a clear narrative that highlights the specific safeguards you have in place that make your property a favorable risk, as underwriters are flooded with daily submissions.
- Demand a detailed coverage analysis from carriers and conduct an audit of all policies to ensure coverage is adequate and meets your goals.
- Implement a stewardship plan by working with your broker to hold regular meetings that keep everyone informed of current market conditions and what to expect at renewal.
Watch the video below for more information about Hard Market Stratagies and how you can make a soft landing.
Connect with your local advisor to make sure you understand the hardened commercial property insurance market and learn more about what you can do to navigate it beyond these initial 7 steps.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. Baldwin Risk Partners, LLC (“BRP”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. BRP does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, BRP does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
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