Extreme weather events seem to be becoming the new normal. The commercial property insurance market is hard and looks 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.
Visit our “Make a Soft Landing in a Hard Market” website for our full collection of informational resources to help you better understand and navigate the hard market.
Here are 7 ways to do so and stay ahead of the hard property insurance market:
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.
We know that finding the right coverage at a reasonable price point might not be a task for the faint of heart, which is why you also need to partner with a team of experts that has proven experience navigating a challenging property insurance landscape. Work with an insurance broker who embeds themselves within your team and taps into their relationships with underwriters to help you make a soft landing in a hard market.
Connect with someone from our team today to learn more about how we can work together to weather the storm.
Learn more about the conditions that have caused the property market and our recommended strategies. Visit our “Make a Soft Landing in a Hard Market” website.
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