Businesses struggling with rising insurance premiums due to pandemic
It's been a year of struggles for many business owners, as the pandemic has caused a significant surge in operating costs, including those associated with new safety measures.
Another rising cost business owners are struggling with is rising insurance premiums.
A recent survey from the Canadian Federation of Independent Businesses (CFIB), found that 16 per cent of business owners are reporting their insurance premiums have increased 25 per cent or more during the last 12 months.
“Businesses can’t legally operate without insurance, but many have been priced out or are unable to find an insurer willing to cover them,” Corinne Pohlmann, senior vice-president of National Affairs for CFIB, said in a news release.
“It would be in everyone’s interest--business owners and insurance providers--to maintain those relationships and work together rather than shutting out a large sector of the economy from this essential service. We are pleased that the industry has tried to step up to find solutions but the situation remains dire for too many small businesses," she continued.
According to the findings, hospitality, transportation, and agriculture were the most affected by premium increases--25 per cent of respondents who reported an increase work in the hospitality sector, while 23 per cent work in transportation, and 22 per cent in agriculture.
Additionally, nine per cent of all business owners said they have been unable to find an insurer willing to offer coverage for their business during the last 12 months--this number increases to 14 per cent for hospitality businesses and 12 per cent for transportation.
Further, 40 per cent of owners said their general liability has increased due to the pandemic.
“The insurance industry is willing to listen to small business owners’ concerns and are trying to provide solutions with some providers proactively offering relief measures to their clients,” Pohlmann said.
“I encourage businesses to call their insurance broker and see if there is anything available for them. At the same time, CFIB will continue working to ensure fairness for those still struggling to access coverage," she added.
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