How Proactive Maintenance Can Save You On Commercial Insurance Costs

In the past few years, insurance costs have absolutely exploded. In 2013, the annual cost of commercial insurance was only $1,558. However, based on how insurance rates have risen since 2013, this annual premium could be as high as $4,890. So, what exactly is spurring on this massive increase?

The most pertinent reason is the high cost to insurance buildings from the insurer’s perspective. In 2023 alone, there were 28 extreme weather events. This includes 19 major storms, 4 floods, 1 wildfire, and several other large-scale occurrences. Consequently, there was an estimated recovery cost of $92.9 billion to compensate. Unfortunately, this trend is only expected to get worse as the number of extreme weather events is anticipated to be as high as 42 by 2030.

Fortunately, there is a way to keep insurance premiums from rising as a policyholder. By staying on top of your commercial building’s maintenance, you make yourself a much better risk to insure. This not only means that you’re going to get more favorable rates, but you’re also eligible for more carriers, so you’re sure to get the best price available. Most insurance carriers even give you a discount just for completing your annual inspections.

Ultimately, insurance costs are bound to go up due to the expensive nature of natural disasters. However, there are options to mitigate insurance costs. Staying a step ahead of building maintenance is the best way to make sure you stay on top of your building’s needs and your insurance premiums.