After a year in which the United States saw three heavy hurricanes hitting nearly back to back to back, mudslides, extended periods of cold weather and deadly wildfires, reports are showing that the price of business insurance plans may be on the rise in 2018 and on and for good reason.
Particularly on the west coast, the three hurricanes, Harvey, Maria and Irma, no question made their mark. As did the series of wildfires. By burning, destroying and flooding cities and towns and leaving much unturned with work and efforts by volunteers and companies still being done to restore those areas.
Reports are showing that rates for commercial properties located in catastrophe-prone areas may rise nearly 10%-20% in 2018, a huge spike. Potentially even reaching 25%. While other commercial properties in non-catastrophe-prone areas may still see an increase, a smaller increase of nearly 5%.
This should not come as a huge surprise, as the damage these hurricanes caused made this a record hurricane season as well as costing insurers $135 billion and those numbers may not be final yet.
Some estimate this will be the worst quarter on record in terms of cost for insurance companies around the globe.
In fact, many believe that most insurance plans and rates will go up, claiming that even those with the cleanest and least risk may still see a single percentage increase. This is mainly due to the insurance companies trying to protect themselves and allow them to get back ahead after a rough hurricane season.
Even though many of these disasters were strictly on the west coast, the rest of the nation will follow suit, to keep the playing field even.
While insurance plans may increase their rates, it is important to realize they are working with you, the busy hurricane season cost many of these companies time and money in order to protect and serve their clients. This bounce back will fall to those paying for the rates and the increase, but if the time comes, they will be protected and taken care of.
Even with an increase in price, having the right small business insurance is key and picking the right business insurance plan is so important to keeping yourself safe and secure.