A recent study indicated Commercial
Insurance pricing in the United States increased by an average of 5% in 2012 Q1 over the same period last year, noted Tower Watson consulting.
This represented the fifth consecutive quarter that prices rose for all standard commercial lines, according to the professional services company’s Commercial Lines Insurance Pricing Survey (CLIPS).
What does this mean to our Commercial Insurance rates in Alberta?
Historically, our rates trend similarly to the US and we should prepare for similar increases. For the last five years we have seen fearce competition for Commerial Insurance in Alberta which has led to very favourable 'soft' premiums for our customers. We are now seeing this trend impacting certain classes of business here with Insurance Companies looking for increases in the 5% range.
What can you do as a Commercial Insurance Customer to control your costs?
Review your limits of coverage to make sure you are insured properly-Business Insurance Overview. Raising your deductible is another method to offset increasing costs. When your deductible increases your premium is reduced as you are prepared to assume more of the risk yourself.
Has your broker reviewed your policy lately? Perhaps it is time to check the market to see if there is a more competative option for you. Armour represents multiple top Canadian Insurance Companies and would be pleased to review your needs.