Authored by Sara Weathers

According to a recent Insurance Journal article, commercial property insurance premiums increased by 20.4% in Q1 of 2023. This is the highest increase in the first quarter of a year in more than 20 years.

Inflation and the increased risk of natural disasters are the main reasons for such a large increase in the cost of premiums. Supply chain issues have also contributed to this, as rising labor and materials costs have also increased repair costs.

With more weather events, the frequency of claims being made has also increased, causing prices to increase. While insurance premiums may be rising, your firm should keep your insurance plans up to date, as the cost of not having a plan at all could be detrimental should your firm be a victim of an unexpected event.

Have questions about your firm’s property insurance plan and premiums? AdvoCap Insurance is here to help.

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