Have you been keeping an eye on the cost of general liability insurance this year? You’re not alone. The past year of pandemic times, amidst inflation concerns, and increasing costs across most industries has left insurance-holders feeling a bit worried. With good reason! The hardening market is usually an indicator of rising insurance costs and this will likely continue to hold for the 2021 general liability insurance market outlook too. Here, the experts at Nowell Agency break down what you can expect for the remainder of this year in terms of insurance costs and trends in 2021 so that you can prepare and budget accordingly.
General Liability Insurance Trends to Watch
Being prepared is always a good idea, so be aware of these market trends that may affect your general liability policy cost.
Increasing Medical Costs 2021
In recent years, the cost of medical care has skyrocketed. This is largely due to advancements in health and injury treatment that have helped people live longer lives after accidents. However, these wonderful advancements have also led to more costly medical care, resulting in higher liability claims after accidents thereby increasing insurance costs. This cycle of rising costs is predicted to continue at around a 5% annual increase rate.
Covid-19 Related Insurance Claims
If you were unfortunate enough to get sick after visiting your favorite business, would they be liable for the damages? With the rise of COVID-19 and insurance carriers not covering pandemic-related claims, businesses should be aware of the potential of liability lawsuits concerning contracting Covid-19 in your place of business.
Social Inflation Risks for Insurance
In the last few years, insurance companies have been facing rising costs due to social inflation. This is the increased severity and frequency of individuals making insurance claims which ultimately increases the cost of insurance policies, including general liability insurance plans.
Tips to Reduce Costs of General Liability Insurance
With all this doom and gloom, it should be a light at the end of the tunnel to realize there ARE things you can do to lower the cost of general liability policies.
Work with your Nowell Agency insurance broker to stay informed about insurance market trends and costs. Your helpful insurance agent can recommend tips for loss prevention to keep general liability insurance costs low.
Make a plan for Covid-19 related insurance claims or lawsuits and be sure to adhere to federal, state, and local regulations so that you remain in compliance with Covid-19 prevention protocols.
During renewal periods, be prepared for increased scrutiny from underwriters which could even lead down a slippery slope towards losing coverage entirely. This is especially true for those who work in industries with high liability exposures. You should prepare your budget for possible double-digit rate hikes in general liability insurance rates and the potential of facing difficulties with securing general liability high coverage limits.
Review your general liability insurance plan and be sure it doesn’t have any gaps! Your Nowell Agency representative can go over the plan with you so that you have full general liability coverage for your protection and peace of mind!
Best General Liability Insurance Companies
As we end 2021 and move into 2022, it’s evident that the insurance industry is facing some of its most challenging times. Policyholders will continue to deal with rate increases for general liability insurance due to reduced capacity and market fluctuations. The good news is that the Nowell Agency has some solutions! Besides offering helpful tips for saving money on general liability insurance, our extensive network of insurance providers enables us to find the lowest rates for general liability insurance to offer YOU. All it takes is a short phone call to one of our general liability insurance agents or you can fill out a short form and get a free quote for insurance online! We look forward to hearing from you!
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