Business Owners Fear Rising Insurance Costs as Severe Weather Intensifies
Tuesday, September 10th, 2024With extreme weather events on the rise, U.S. business owners are increasingly concerned that their insurance coverage may not be sufficient to handle future losses, according to a recent Gallagher survey. A staggering 91% of respondents expressed concerns about severe weather’s potential impact on their operations, and 80% worry that their current policies may not cover specific losses.
The study highlights that secondary perils, such as severe convective storms, now represent a significant portion of insured losses in the U.S., adding strain to the insurance market. Many insurers are scaling back coverage and increasing premiums, particularly in high-risk areas like the Midwest and Colorado. To counter these challenges, business owners are adopting resilience strategies, including relocating facilities, retrofitting buildings, and incorporating stronger materials to withstand extreme weather.
These measures not only reduce long-term exposure to property damage but can also help lower insurance premiums. Gallagher’s research indicates that proactive risk mitigation may attract more favorable terms from insurers, providing businesses with a competitive edge in the evolving insurance landscape.
