Inflation – no one loves it. When it hits a business, it affects the cost of goods, particularly for any business that manufactures products, and can have an impact on the cost of business insurance. The types of policies that may increase in price due to inflation include:
Commercial property insurance: The construction industry is suffering growing pains, exacerbated by the radical increase in the price of materials. Replacing or repairing any damage to a facility will be much more costly than it was in the past, and you can expect to see higher rates for coverage.
Commercial auto insurance:The auto industry has been affected by inflation, with the cost of repairs to vehicles on the increase, with added issues related to chip shortages. Your commercial auto insurance may increase in cost due to this situation.
How to Manage the Impact of Inflation on Your Business Insurances
Your business insurance policies should be reviewed on a yearly basis. New programs become available every year, and you want the best deal possible – the highest coverages at the lowest rates. Rather than looking at an insurance bill from your provider and just paying an increased rate, it is advised that you work with a local business insurance agent to help you find the most affordable option, with the best coverage, and offset the added costs associated with inflation.
How to Lower Your Business Insurance Premiums
The only method by which you can avoid excessive increases in insurance premiums is to shop for a better policy. While dealing with insurance may not be your favorite activity, with help from a local agent, you can get the professional help you need to find a better option. Business insurance agents have access to the market and can identify the best options for your operation. The ideal policies are those that provide the highest level of coverage at the lowest rates. When a favorable option comes on the market, your agent does the heavy lifting for you. All business owners should have the support of an insurance agent they trust to be a partner to navigate the ever-changing market.
Is Inflation Slowing?
Inflation appears to be slowing, but only time will reveal how long increased rates will continue. The positive impact of reduced inflation should begin to become evident in the last quarter. We all look forward to the costs of doing business reducing, and a more stable, predictable economy in the coming years – and more options to reduce the costs of business insurance. Stay in contact with your agent to stay ahead of the curve and save when and where you can.
The Labor Market, Inflation, and Insurance
Business owners have weathered many storms over the years, and the current rate of inflation brings one more challenge, along with a labor shortage that most company owners are experiencing. Throughout every up and down in the economy, one thing holds true – your business must be thoroughly protected with business insurances from reputable providers.
It’s the perfect time to remind ourselves to plan ahead for the ones we love.