Increased Premium on my A/E Firm’s Business Owner Policy

Why has the premium on my architect/engineer firm’s business owner policy increased?  There are many factors that are considered when the insurance companies are rating your policies, but here are some of the reasons the premium may have increased.

Business personal property – this coverage commonly increases every year to keep up with inflation.   For example, your firm has limits of $30,000 of business personal property this year and the following year it increased by 3% to bring the limit to $30,900.  This will increase year after year along with the premium.  This may apply to your building coverage as well.

Rate increase- the insurance company may have a standard rate increase on all policies.  This rate increase isn’t just with your firm’s policy; it applies to all of the policies the insurance company provides.  The insurance company will file the rate increase with each state that will have the increase and then notify your firm is that is the reason for the increase.

Endorsements – check the endorsements on your business owner policy, have there been changes to those endorsements, added endorsements or deleted endorsements.  The endorsements may have been changed by the insurance company.  The endorsements may be a reason for the increase in premium.

Policy changes – has your firm made policy changes such as, changing locations, adding a location, deductible change, or increasing limits.   Also, did your firm add an umbrella; this could come as a part of the business owner policy.  These types of changes may increase your firm’s premium.

There are many factors that can affect your business owner policy renewal premium.  Always read your policy and notifications from the insurance company so your firm knows what those changes may be.   If you have questions please call or email your Professional Underwriters agent.