Insurance expert gives advice on increasing commercial property, auto insurance rates

Since the start of the pandemic, both commercial property and commercial auto insurance rates have sky-rocketed
THE THR3E(Recurring)
Published: Mar. 13, 2023 at 5:38 PM CDT
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BRYAN, Texas (KBTX) - Since the start of the pandemic in 2020, both commercial property and commercial auto insurance rates have sky-rocketed throughout the country.

Bradley Hurt of Service Insurance Group talked to The Three about the increased insurance rates, different insurance options, and what consumers can do to save money.

Hurt says commercial and business insurance are the same thing and are used interchangeably.

“It’s insurance that any business would require, just like you’re required for your home. You want to insure your home, you want to insure your vehicle. You are required by law,” said Hurt. “Any business that’s under contract with anyone else to do work, provide a service or a product, is typically required to have insurance.”

Commercial insurance covers repairs or replacements to your building or business property caused by a fire, storm, or other events covered.

Commercial insurance can also pay for work equipment and vehicles, worker’s compensation if an employee gets hurt on the job, liability, and Commercial Umbrella Insurance which provides an extra layer of protection by covering costs not related to your other liability coverage limits.

He explains commercial auto insurance covers the cost of bills and expenses if a business-owned vehicle is involved in an accident. In Texas, insurance is required for any vehicles used for work purposes.

“You see business trucks on the road all day, every day and those trucks are required to carry a certain amount of insurance if a truck has a certain weight.”

The Agency Principal says insurance rates for commercial property and commercial auto are up across the United States. Hurt says because of the accelerated rates, insurance companies are beginning to insure themselves against loss. It’s called reinsurance.

“They buy insurance from other insurance companies to help limit their losses. Reinsurance companies have just taken in by the chin the last couple of years. They have lost money in the last five out of six years. Most of that is related to catastrophic losses and weather events, all over the country and world, it’s not just the United States, it’s pretty much global,” said Hurt. “They pass those losses on to insurance companies who are then passing those increased costs on to the consumers.”

According to Hurt, business owners benefit from insurance coverage as it protects them from potential lawsuits, claims, or losses caused by their employees, themselves, or a product or service the business offers. Hurt says in some cases, the consumer can also be protected by a business’s insurance coverage.

He doesn’t see a chance for decline any time soon. Hurt says the best thing for a business owner who is concerned about increased insurance rates is to call an insurance agent and get started early because commercial insurance quotes are valid for only 60 days.

For more information regarding the commercial property or auto rates visit Service Insurance Group.