Because insurance carriers
are experiencing higher than expected losses, a hardening insurance market is
rearing its ugly head. A hardening market means increased premiums and tighter underwriting
requirements for many lines of coverage, including; commercial property,
E&O, D&O, Auto and EPL. The 2017 hurricane season and the 2018
California wildfires resulted in a combined insured loss of more than 212
billion dollars and are major contributors in this turn.
One area being hit particularly hard is the adoption & foster care sector. Due to increased litigation,
settlements and judgments, some carriers are now reluctant to offer broad coverage
with high limits. Some carriers are even exiting these markets all together, making
it much harder for some brokers to have access to carriers that are willing to
write these risks, let alone even to provide a quote.
In a hardening market, there
are three things that can help you ride out the storm:
Broker:Having a broker that specializes in your line
of business and knows your unique risks and exposures is imperative in positively
representing your best interest to the insurance carriers. Their specialty
allows them stronger relationships with underwriters, greater negotiating power
to lower premiums and access to more carriers than that of a generalist broker.Remember, an insurance broker (vs. an agent) works
for YOU, not the insurance carrier.
Management: A clean loss
history is always more favorable than a poor loss history.A poor loss history tells the carrier that
you are a bad risk.This can result in even
higher premiums or worse yet a non-renewal notice. By designing and implementing a
strong risk management plan, your broker can paint a positive picture to the
insurance carrier and show that you are proactive in helping to eliminate or
reduce your risk.
3. Don’t Hop
Around: Believe it or not, jumping
from carrier to carrier every year looking for the lowest price can cost you
more in the long run. Carriers have been known not to quote simply
for the fact that the insured is not loyal to any one carrier. Showing stability
and loyalty (even if you have a loss and premiums increase) is a positive
indicator in the eyes of the carrier.
Even in this hardening market, Hawley & Associates continues to exclusively serve the nonprofit and social service community. Our specialty allows us broad access specialty markets & programs, including programs for hard-to-place risks, such as adoption & foster care. Let our mission empower your mission!
Veteran's Day was November 11th, so I am a little late in writing this post. But, it is never too late to thank and honor all the men and women who have served in the United States Armed Forces. We are forever grateful for your service and sacrifice.
The Wayne Hawley Giving Grant is exclusive to H&A clients, and has helped support programs, projects and organizations whose focus is to benefit children, families and our communities.
We would like to thank everyone who applied for the grant in 2019. We had a record number of applicants and it was so difficult to make our selection! Everyone was so deserving! Thank you to all our clients for the amazing things they are doing to help make the world a better place for so many. Please click here for information on this year's recipients.