Jody Sarchett Explains the Non-Pandemic Reasons for Rising Insurance Rates in Phoenix Business Journal
More than a year into the COVID-19 pandemic, businesses are still seeing insurance rates climb. In a recent article for the Phoenix Business Journal, Executive Vice President of Sales Jody Sarchett explains that the reasons for rising rates go well beyond the impacts of the pandemic.
Numerous factors that were at play long before the pandemic continue to push insurance rates up, Jody writes. Those factors include severe weather events such as wildfires, droughts and floods that have grown in size, scope and frequency, making it difficult for insurers to adequately predict losses. Additional factors include the influx of cyberattacks including phishing attempts and ransomware attacks that have resulted in higher cyber insurance claims, as well as economic and litigation factors at play in the insurance market.
Although businesses may not avoid higher rates completely, Jody highlights a number of steps to consider that can help mitigate any potential impact including addressing cyber risks, maintaining detailed records in case of potential litigation or other legal issues and evaluating alternative solutions like a captive or other self-insurance options.
If you’re nearing renewal or anticipating higher rates, the team at Lovitt & Touché can help you evaluate your current coverages and develop creative, cost-effective solutions that meet your needs while limiting any potential impacts.