Important Business Insurance Industry Trends in 2024
Who’s hungry for success in 2024? Right… Everybody!
One of the keys to achieving your business goals is identifying trends—in the economy, market conditions, buyer behavior, etc. The better you are at spotting and adapting to emerging business trends, the more advantage you have over your competitors. That’s always been true, but it may be even more critical in today’s fast-paced, digital world.
Do insurance industry trends and key coverages make it onto your radar? If not, they should, as this article explains.
Adapting Your Financial Protection to Changing Business Conditions
No doubt you’re busy as a business owner. But whenever you take a few minutes to consider the weeks, months, and quarters ahead for your company, it’s crucial to think about your business insurance.
“Business insurance? Why is that important?” That’s a great question. To answer it, let’s roll back the clock to when you first bought business insurance policies. (Or, for some readers, that might be rolling the clock forward.)
When you checked out business insurance providers, you realized (if you didn’t already know) just how valuable coverage is. Frankly, for some small businesses, having financial protection can be the difference between moving past a lawsuit or accident without missing a beat and being buried under an enormous expense that effectively puts the company out of business. That’s shocking but true.
You learned that a very affordable policy can provide outstanding coverage and—just as importantly—the peace of mind you need to focus on operating your business successfully. But the challenges you face are continually evolving, so insurance isn’t a “set it and forget it” kind of thing. You’ve got to adapt your coverage strategy to changing conditions and insurance trends to stay fully protected from the risks you face.
“Business owners purchase insurance policies based on several factors within and outside of their companies,” says Berkshire Hathaway Direct Insurance Company President Peter Shelley. “Any of those factors can change, which is why keeping an eye on insurance-related trends is essential. Staying engaged even after you buy insurance helps you avoid coverage gaps and ensures that your policies continue to protect your business and employees as intended.”
Trends in the Insurance industry: What to Watch in 2024
As important as it is to follow small business trends and changes in your insurance needs, it doesn’t have to be a burden—especially with biBerk providing insights on what we see as the most important happenings in our industry.
There are usually just a small number of them to keep an eye on, and 2024 is no exception. We’ve identified three trends that every business owner should be aware of:
- Property cost increases. You don’t need us to tell you that inflation was painful last year. Add that to extreme weather conditions and storms around the country, and 2023 was tough for many companies. Will property insurance prices continue to rise in 2024 or level off? The answer may impact how you insure your business.
- Rising cybercrime. It seems like every time you check the news, there’s a story about a major network hack or security breach. And for each big incident there are many smaller cybercrimes that don’t make the news but are just as devastating to businesses. If your company doesn’t currently have cyber insurance, it would be a good idea to check out the upward trend in cybercrime statistics and consider whether it’s time to get covered.
- Increasing lawsuits and jury awards. If there’s a statement business owners dread more than any other, it might be, “We’re being sued.” And unfortunately, the amounts awarded to plaintiffs have increased in recent years. In addition, the “creativity” of plaintiffs and their attorneys seems to be endless. You can’t prevent your company from being targeted, but you can (and should) carry liability insurance that can cover jury awards, settlements, and your legal defense expenses. And as the cost of lawsuits rises, you should think about whether your liability limits are keeping pace. Bumping them up is easy and cost-effective compared to paying an award out of your company’s revenues or savings.
Partnering With Your Business Insurance Provider
If you think of your business insurer as just “the company we buy insurance from,” you aren’t alone. That's a common attitude for business owners, especially with the mediocre customer service of many insurance companies.
Unfortunately, having that point of view means you aren't getting all the benefits you should from that relationship. Your insurance company should be more than a policy provider—it should be a protection partner that’s eager to assist you and see you succeed.
This article is one example of that. We’re drawing your attention to insurance industry trends to help protect your business from dangerous coverage gaps. Plus, the article reminds you that staying current is the best way to maintain the value of an important company asset: your insurance portfolio.
And this is just one item available at no cost in our Resource Center. We develop and maintain these materials to help business owners like you make well-informed decisions about everything from insurance coverage to business best practices.
“One of the comments we get frequently from our customers is that they’re relieved to have support from biBerk, and it’s easy to understand why,” adds Shelley. “Small business owners typically wear many hats and have to be experts in several areas simultaneously. When they buy insurance from us and experience our attentive support and clear commitment to their success, they start to see protecting their company’s financial future as a collaboration, not an intimidating obligation. We're here for them and happy to discuss their insurance coverage and strategy in response to current business trends. That takes a huge weight off their shoulders.”
Solid Advice From a Trusted Industry Leader
Whether you need guidance on a policy purchase today or insights on insurance industry trends, you can trust biBerk. We’re part of the Berkshire Hathaway Insurance Group—a company with decades of insurance experience, deep financial resources for paying claims, and a track record of helping businesses thrive.
We’re also an excellent choice for cost-effective business insurance solutions. We don’t use brokers or other intermediaries that can raise the cost of policies, which means you can enjoy up to 20% savings over other companies.
biBerk: Think big. Insure small.