Professional liability rate increases in a hardening market is one thing. In softer market conditions, it's a different ballgame altogether. Photo: lovelyday12/Adobe Stock
No one likes seeing insurance premiums jump, especially for a business necessity like professional liability coverage. Yet, we all know rate hikes are a reality in a hardening market, even if they're tough to swallow or sell to clients. That doesn't mean you should accept them blindly. It does mean you should look closer and think about what a carrier's approach to rate says about their business. (Hint: If a carrier is not raising rates right now, it's a red flag.)
While the majority of carriers have been raising rates over the past few years, we have seen a very competitive professional liability marketplace over the past several decades with declining rates across dozens of carriers. We have also seen a fair share of specialized and miscellaneous PL providers who are here today and gone tomorrow. Insight from this experience can help you read into the need for rate increases as you evaluate insurance partners for your clients and avoid missteps that may be more costly in the long run.
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