Liberty Mutual pulling BOP line in California

Liberty Mutual Insurance is pulling its business owners policies (BOP) line of business out of California as it will stop writing new policies and plans to not renew existing coverages.

AM Best reported that the company will no longer offer BOP in California starting October 1, 2023 and nonrenewals will start in December.

According to Liberty Mutual, it regularly assesses its market positions, and during the process it was determined that the BOP product was not meeting its business objectives. The company said it is committed to the wider commercial insurance market in California and will continue to offer other products in the state.

Offering coverage for most major property and liability risks in a single package, BOP coverages are specially designed insurance solutions for small and medium-sized businesses. BOP coverage offers the advantage of only having one policy to review and can be more cost effective than purchasing separate policies, according to the Insurance Information Institute.

The news from Liberty Mutual is the latest blow to California’s insurance market, which has been on rocky footing as a number of property insurers have decided to slow and stop writing new business in the state. In addition to the state’s wildfire risks, steep rebuilding costs and rising reinsurance rates are driving many of these decisions, carriers report.

The decision in California caps a busy few months for Liberty Mutual corporate, as it recently sold personal and small commercial businesses in Latin American and Western European markets.

Related:

• Heavy lies the crown: Why California’s largest home insurer hit pause
• Could California be the next state to face an insurance crisis?
• Farmers Insurance backtracks on non-renewals in Georgia