Inflation – nobody loves it. When it hits a business, it affects the cost of goods, especially 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:
- Insurance for commercial properties: The construction industry is suffering from growing pains, exacerbated by the radical increase in material prices. Replacing or repairing any damage to a facility will be much more expensive than it was before, and you can expect to see higher prices for coverage.
- Commercial Auto Insurance:The automotive industry has been affected by inflation, with the cost of vehicle repairs increasing, with additional problems related to chip shortages. Your commercial auto insurance may increase in cost because of this situation.
How to manage the impact of inflation on your business insurance
Your business insurance policies should be reviewed on an annual basis. New programs become available every year, and you want the best deal possible – the highest coverage at the lowest prices. Instead of looking at an insurance bill from your provider and just paying an inflated rate, it is recommended that you work with a local business insurance agent to help you find the most affordable option, with the best coverage, and offset the additional 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 buy a better policy. While managing insurance may not be your favorite activity, using a local agent can give you 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 business. The ideal policies are those that provide the highest level of coverage at the lowest prices. When an advantageous 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 as a partner to navigate the ever-changing market.
Is inflation missing?
Inflation appears to be slowing, but only time will tell how long the interest rate hikes will continue. The positive effect of reduced inflation should start to become clear in the last quarter. We’re all looking forward to lower costs of doing business, and a more stable, predictable economy in the coming years – and more options to reduce the cost of business insurance. Stay in touch with your agent to stay ahead of the curve and save when and where you can.
Labor market, inflation and insurance
Business owners have weathered many storms over the years, and the current rate of inflation brings another challenge, along with a labor shortage that most business owners experience. During every ups and downs in the economy, one thing is true – your business needs to be properly protected with business insurance from reputable providers.