Hard market coming?

The part of the insurance cycle in which premiums rise significantly. It is usually associated with a sharp decline in the capacity of the companies.

We experienced a hard market after 911 and the insurance companies experienced tremendous losses. There is now a soft market in commercial insurance. This means that the pricing is lower and more companies are looking to place the same business.

The perception as of fall 2010 is that we will need to see a huge catastrophic loss of $82 billion or more before prices will harden again. Once this occurs a hard market is expected to come back with the cost of insurance going up. At the same time there will be greater difficulty in placing certain high risk types of business.

The current soft market is helpful to the consumer. There is an opportunity to shop for more coverage at good rates for the commercial insurance that a business needs.

Talk to your agent or commercial insurance broker. This is a good time to do a review and see if there is something better available to you. Ask the questions and get the answers you need to control your insurance.

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