News

Insurance Rate Reductions -- positive news from MHBA member Blake Fryer

Apr 28, 2010
Posted In: General

“After years of increasing or flat rates on our business related insurances, this year we have seen a reduction in these rates.  It seems to be a result of rates retreating in the insurance industry, combined with increased competition.  In any case, it is a welcome change.” Kate Rush, Evolo Home Center

One advantage of the current market condition is the price reductions being seen in the insurance industry, with some being as much as 40% to 50%.  Rates have steadily declined over that past few years and insurance companies are willing to sharpen their pencils and broaden policy coverages.

With our experience in the modular industry, we have also seen insurance companies add industry specific coverages they would not normally have been willing to offer.  It is also extremely important to conduct annual policy reviews to not only adjust sales and payroll numbers which dictate the cost of insurance, but to properly recognize any new business functions which may not automatically be covered under the policy.  With insurance premiums down, companies are paying closer attention to claims, which means that policies need to be written properly to avoid a reduction in claim payout or even a denial.  We are also seeing an increased number of clients using our safety program services to drive down the cost of workers comp.  Claims management, safety programs and reducing the comp experience mod seem to be the current hot buttons of many of our clients.  By investing a little time with your Agent, you will not only improve your bottom line, but you’ll make sure you are properly protected.  Now, more than ever, is the time to engage your Agent as a true partner to look for innovative ways to take your business to the next level.

Items to consider when renewing your commercial insurance:

• Look for a steady decrease in cost over the past few years.
• Have your agent review and handle claims with you.
• Set goals with your agent to reduce your workers comp experience rating to lower costs.
• Make sure you are covered for all aspects of your business including vacant homes, transportation of boxes, projects under construction and update values of any lot models.