How To Renew Business Insurance: A Complete Guide

Did you know? Several key macroeconomic trends are having an impact on Canada’s commercial insurance market. As a business owner, it’s important to stay informed and proactive so you can navigate the complexities of the current insurance market and secure the right insurance coverage that meets your business’s evolving needs.

5 TRENDS IMPACTING YOUR BUSINESS INSURANCE

1. Natural Catastrophes and Climate Change: The increasing frequency and severity of natural catastrophes, like severe rain, hailstorms, and wildfires across Canada, have significantly impacted the insurance market. This has led to more than $3.1 Billion in insured losses in 2023. These events strain the insurance industry, leading to more scrupulous underwriting practices and higher premiums. 

2. Inflation and Supply Chain Issues: The rising cost of construction and repair materials, partly due to supply chain disruptions, has caused an increase in property repair and rebuilding costs. This, in turn, has led to higher insurance premiums and potential underinsurance issues for policyholders. 

3. Labour Shortages: Worker shortages in construction and other industries have contributed to increased labour costs, further escalating repair and rebuilding expenses. These factors combine to create a challenging environment for insurers and policyholders alike. 

4. Changing Market Dynamics: The insurance market remains in a transitional phase, with insurers balancing growth and profitability. While there is a general trend of moderate premium increases, the market continues to face challenges from economic and social inflation, geopolitical tensions, and labour challenges. 

5. Technology: Advancements in technology and financial reporting have enabled insurers to better respond to loss trends and manage risks. However, these advancements also bring about new challenges and emerging risks. 

8 CONSIDERATIONS WHEN RENEWING YOUR BUSINESS INSURANCE POLICY

1. Understand Market Changes: Stay informed about the latest market trends, including rate increases, changes in underwriting practices and emerging risks. This understanding will help you anticipate changes in your policy terms. 

2. Evaluate Property Values: Ensure your property values are up-to-date and reflect the current market conditions. Insurance to Value, or underinsurance, can be a significant issue if the property values listed in your policy are outdated.

3. Assess Coverage Needs: Review your policy's terms and conditions thoroughly. Pay attention to any exclusions or limitations, and ensure your coverage is adequate for your current needs. It’s best to take advice from your local insurance brokers. 

4. Discuss Renewals Early: Talk to your insurance broker about your policy renewal well in advance of the renewal date. This will give you ample time to adjust to potential changes, especially in pricing.

5. Manage Risks Proactively: Implement effective risk management measures to prevent potential claims. Document these measures and communicate them to your insurer, as this could qualify you for premium discounts. 

6. Stay Alert to Cybersecurity Risks: With the rise in cyber threats, ensure your policy includes adequate cybersecurity coverage. The increasing sophistication of cyberattacks also necessitates robust cybersecurity measures. 

7. Prepare for Climate Change Impacts: Given the increasing impact of climate change, assess your policy's coverage against natural catastrophes and consider additional protections if necessary. 

8. Talk to your Broker: Your broker will help guide you through these challenges and considerations, helping you navigate the complexities of the market and make informed decisions about your insurance coverage. 
  

Looking for reliable insurance in Edmonton? A-Kan Insurance is here to protect your business from both predictable and unpredictable changes. We offer comprehensive coverage options tailored to your business needs. Our team is here to safeguard your business in all situations.