One of my clients that is involved in food distribution recently received a major shock when they received their renewal premium for their Industrial Special Risk Policy.
The premium nearly doubled from $88,000 to $150,000.
Admittedly they have cool rooms that have walls made from old technology that are now a source of concern of insurance companies. In fact, their broker could only get three companies to quote.
On top of this, the company has been given a long list of tasks they have to attend to so as to ensure they can continue to receive insurance coverage.
Further enquiry into industrial special risk premiums is that they are increasing right across the board (maybe not to the extend of the above) but all clients should not be surprised when they come to their next renewal.
This article appeared in our November 2018 newsletter. Author: Stephen Mason