Chamber Highlight: Navigating your online business by a tough insurance coverage market | Native

If you’re a business owner or a homeowner, you’ve seen your property and casualty insurance costs go up. Property, liability, home, car, excess, employment practice liability, cyber insurance, directors and officers, and professional liability are increasing, with the possible exception that employee compensation is provided.

You’ve probably heard that this was due to a tough market, but do you really know what it is and is there a strategy for navigating it?

A tough insurance market is when the money available to write risks shrinks, then companies and insurers become much more discriminatory about who they offer insurance to and the cost of that insurance increases as a result.

There are many factors that can create a tough market. Disasters like the California fires are one of them. An increased frequency and severity of claims is another. Think of the rising costs of repairing or replacing new, technologically better equipped vehicles, or the requirements for rebuilding a home at today’s prices.

A less obvious factor is “social inflation”. Originally coined by Warren Buffett in his 1977 Chairman’s Letter to Shareholders, he described this as an expanded definition of insurance policies by the company and the juries. In recent years it has been used to describe changes in society’s attitudes and beliefs that lead to much larger jury awards. According to a report by Cornerstone Research, $ 4.1 billion was paid out in 77 class action lawsuits in 2020, compared with 2019 when $ 2.2 billion was paid in 74 judgments.

One of the most frustrating aspects of a tough market is how some are hit harder than others. Most homeowners and business owners saw modest to moderate increases in their property and casualty insurance lines. Others, who may have poor loss history, property in a rural “brush area”, or are in a high risk industry have seen exponential gains.

On-site, rural properties are largely unrepeatable, and owners are forced to choose options that cost double, triple, or even more with less coverage.

Agricultural business risks are generally affected by general increases, but especially by their excessive liability costs. Truckers have suffered massive growth for several years and wineries in very rural areas are struggling to find property insurance for some of their structures and inventory depending on where they are.

If there is good news in the insurance market, we see signs that the tough market is flattening out. Many insurers had a better than expected year in 2020 and the uncertainty surrounding COVID-19 is subsiding. We’re not at the point where prices will start falling or companies will suddenly grab the chance to write a rural property, but slowing the rate of increase is a welcome start.

Although we are at the mercy of the market to some extent, there are a few things you can do to get your business through a tough market:

• Be prepared. Talk to your agent early on and make sure you are aware of the issues that you and your company are facing. Together, come up with a plan for removing potential obstacles. When faced with massive gains that are having a huge impact on your business, it is a good idea to know as soon as you can to better manage the impact.
• Check your insurance program frequently and analyze your coverage. It is of the utmost importance that your insurance program meets your needs. Make sure your agent is an experienced professional who can guide you through the process.
• Prioritize your needs and discuss your risks. If your insurance costs are limiting your budget, prioritize your needs. The cost-benefit analysis changes from a soft to a hard market. What was once broad and affordable policy may have turned into stripped-down, expensive policy. Determine your risk. Can you take more risks and insure certain risks yourself? All of this must be done with careful thought, caution, and a thorough understanding of what you are doing.
• Know and understand your loss history and trends. It is important to understand your losses, how they occurred, why they occurred, and how you approached the situation in order to prevent similar losses from occurring in the future. Being able to express this and demonstrate it to an insurance company can help your attractiveness.
• Focus on risk management. It pays to invest time to identify and analyze risks in order to mitigate or even eliminate them in your company. Reducing the frequency and severity of claims makes you more attractive to the market. Additionally, companies that have put the time and effort into risk management can usually tell a very positive story about what they achieved and how they achieved it. These stories are wonderful to share with insurance carriers.

The Santa Maria Times has partnered with the Santa Maria Valley Chamber of Commerce to highlight local Santa Maria and Orcutt businesses that built their business futures right here.

We’re going to publish two Chamber Spotlight articles from Santa Maria Valley companies highlighting their path to opening, growing, and maintaining their businesses. We will also publish a monthly video showing an interview between a company featured in the region and a digital ambassador from the chamber.

Learn more about the work and impact of the Santa Maria Valley Chamber of Commerce on their website www.SantaMaria.com

The Santa Maria Times has partnered with the Santa Maria Valley Chamber of Commerce to highlight local Santa Maria and Orcutt businesses that built their business futures right here.

To highlight the impact of these individual companies on the lives and communities in the Santa Maria Valley, we publish two company profiles and a spotlight video each month in which a digital ambassador from the chamber sits down and speaks to a local company about why they made the decision have met to open their business here.

This month’s main focus is on Safran Cabin, 2850 Skyway Drive in Santa Maria, which specializes in manufacturing high quality parts, materials and products for overhead bins, toilets, galleys and more for commercial and residential aircraft.

Learn about their business and how they are expanding their Santa Maria location during the coronavirus pandemic.

Read the Chamber Spotlight about Hans Duus Blacksmith on SantaMariaTimes.com in March https://santamariatimes.com/news/local/chamber-spotlight-hans-duus-blacksmith-makes-new-home-in-santa-maria- valley / article_96ae64d0-2be4-5f40-b3df-e000cf45ee5e.html

Learn more about the work of the Santa Maria Valley Chamber of Commerce on their website – https://santamaria.com/

For more information about the work done by Safran Cabins, please visit their website – https://www.safran-cabin.com/

Video by Sergio Ruiz

The Santa Maria Times has partnered with the Santa Maria Valley Chamber of Commerce to highlight local Santa Maria and Orcutt businesses that built their business futures right here.

To highlight the impact these individual companies have on the lives and communities in the Santa Maria Valley, we publish two company profiles and a spotlight video each month in which a chamber digital ambassador sits down and talks to a local business owner about why they are doing the Have made your choice to open your business here.

Learn about the personal journey each local dealer took to start a new business, expand an existing business, or relocate a successful business to the Santa Maria Valley. and learn how the Chamber of Commerce helped on this trip.

For this week’s Chamber Spotlight video, we’re focusing on Hans Duus Blacksmith Inc, 2976 Industrial Parkway, Santa Maria. Hans Duus spoke to Chief Ambassador Alli Borja about moving his successful blacksmithing business from Buellton to the Santa Maria Valley in 2017 and why the Santa Maria Valley was a great place to move.

You can listen to the full interview online, but you can watch the full interview on the Santa Maria Valley Chamber of Commerce website.

You can see photos, videos, and browse some of the great work available from Hans Duus Blacksmith Inc on the hansduusblacksmith.com website.

Read previous profiles with Naughty Oak Brewing and the important impact of summer internship programs on SantaMariaTimes.com and learn more about the work of the Santa Maria Valley Chamber of Commerce on their website santamaria.com.

For this week’s Santa Maria Valley Chamber Spotlight, Ron Cossa of Tolman & Wiker Insurance Services offers some insights and tips on how to avoid costly fees and price hikes during this challenging time in the insurance market.