Rates for all coverage classifications other than workers’ compensation are increasing at a controlled, slow pace. Workers Compensation is seeing a slight decrease in rate. Only transportation and commercial auto exposures are suffering large rate increases.

Following is a summary from a trusted insurance company in Utah of what to expect as far as rate changes per coverage class:

By Coverage Class

Commercial property: Flat to 10%

Business interruption: +3%

Inland marine: Flat to 5%

General liability: Flat to 4%

Umbrella/excess: Flat to 2%

Commercial auto +6 – 12%

Cargo: Flat to 15%

Workers’ compensation: 4% to Flat

Professional liability: Flat to 5%

D&O liability: Flat to 5%

EPLI: Flat to 5%

Crime: Flat to 1%

Surety: Flat to 1%


According to a trusted insurance company in Utah, auto insurance rates are increasing because:


  • Increase in distracted driving.
  • Natural disasters can hurt insurers (for example flooded cars).
  • Vehicles are more expensive. Vehicles often come with back up cameras, sensors, and another expensive add ons. A small fender bender can cost thousands to repair.
  • Claims are increasing. The number of vehicles on the road has increased due to a stronger economy and more miles driven. The more people drive, the more likely they are to experience a claim.


What can be done to help with rate increases? According to a trusted insurance company in Utah, some things that can help with rate increases include:

  • Help drivers avoid drowsy driving by promoting healthy lifestyles.
  • Eliminate distractions. Written “no texting and driving” policies need to be included in driver training, monitoring and enforcement.
  • Encourage “Do Not Disturb” notice on phones while driving.
  • Education on safe driving. Often carriers will offer safe driving webinars and courses for employers to present to their drivers (courses cover various topics; being prepared for weather conditions, not following too closely, not speeding, etc.)
  • Tracking devices that offer discounts. Many carriers offer GPS or tracking devices that track safe driving. (Can track location, speed, stopping to quickly, etc. Often carriers offer a discount to employers willing include these devices.
  • Annual MVR reviews for all drivers and on every new hire.
  • Ask the public to be your eyes and ears with a “How am I driving?” sign on company fleets.
  • Defensive driving courses required for employees with violations.
  • Increased deductible. For best results, keep your deductibles about $1,000. This keeps the fender benders off the claim history. Take the savings and put them aside to pay for fender benders and small claims out of pocket or purchase more liability or umbrella coverage.
  • Safe driving programs to reward drivers who are accident/incident free.
  • Consider liability only on older vehicles when it makes sense.
  • Don’t spend more on vehicles than necessary. Expensive vehicles can increase premiums.
  • Review of policy with an experience trusted insurance company in Utah to make sure all available discounts are being applied and all markets are being checked. Often carriers offer discounts for things like multi-policy, auto pay, association discounts, BNI discounts, etc. It’s important to make sure you have an agent that is making sure to add these to your policy. It is also important to have an agent that is familiar with what markets are the most competitive.

Other tips to make sure to discuss with your commercial risk manager

  • Be sure to ask about your rental reimbursement and towing coverage to make sure you have a good understanding of what is covered and what your limitations are. Often this can be customized to fit your company needs.
  • Be sure to let your agent in a trusted insurance company in Utah know about the use or radius of your vehicles so they can accurately classify and rate your vehicles.
  • Talk to your agent if your company rents vehicles often for business use.
  • Be sure to inform your agent in a trusted insurance company in Utah of any equipment or vehicle alternations to make sure they are properly insured.

Tiffani John, CIC (8010)674-8481 tjohnson@riskamn1.com

Commercial Risk Manager/Business Insurance Producer

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