Insurance Headlines: “Premiums Are Going Up

By Frank Thompson on Jul 27 in BPN News.

Insurance Headlines: “Premiums Are Going Up

What they were trying to tell their readers is simply that insurance premiums are going up. There is no more “soft” insurance marketplace where one could expect a reduction in premium from the prior year; in most cases, the insurance renewal premiums are going to increase substantially.

Let’s take a look at how each of the above perils is impacting the insurance industry.

COVID-19 hit, for most businesses, the middle of March. By the beginning of April, most states were in lockdown, with businesses required to either close their doors or have people work from home. Many businesses with property insurance carried a coverage called Business Income and Extra Expense. (I wrote about it in the May issue.)

In the article, I quoted the wording from most policies and suggested that COVID-19, a virus, probably would not trigger coverage. However, if a marketer felt that they had a claim, they should turn any potential claim in to their insurance company and let them decide if they are going to pay the claim.Read More

Frank Thompson

Frank B. Thompson is a chartered property and casualty underwriter based in Phoenix. He is the owner of PT Risk Management, an independent insurance company specializing in writing propane and petroleum risk policies throughout the U.S.