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Shield Your Sanctuary

By May 19, 2023Insurance
My sincere apologies for the challenges you will be facing in the current property insurance market environment.  
I understand that these challenges will cause frustration and concern. I wanted to provide you with some insights to help make your procurement process less painful and to help you put yourself out to the marketplace as a “best in class” opportunity.  
  1. Start Early 
  2. Review your current program 
  3. Share historical and planned CapEx  
  4. Implement loss prevention 
  5. Encourage on-site inspections from insurance companies 
  6. Manage Your Expectations 


Start Early 

Starting early in the property insurance renewal process is essential for businesses seeking to secure the best possible coverage at competitive rates. With the current hard market conditions, beginning the renewal process well in advance of your policy’s expiration date is even more crucial. 

By starting the renewal process early, you give yourself and your insurance broker ample time to assess your property’s risk exposure thoroughly. A comprehensive risk assessment allows you to identify any changes in your property or business operations that may impact your coverage requirements, enabling you to make informed decisions when updating your policy.

Review Your Current Program 

Review your existing property insurance policy to understand the coverage limits, deductibles, and any endorsements or exclusions. Having a conversation about what it is and what the renewal should look like earlier than later can help alleviate your frustrations.  

Ensure that your property valuations are current and accurate. Accurate property valuations will help you avoid underinsurance, which could leave your business financially exposed in the event of a loss. Ask your insurance broker how they determined the limits, and to review the replacement cost estimator they used for accuracy.  

Business interruption coverage compensates you for lost income and operating expenses if your business is temporarily unable to operate due to a covered property loss. Assess whether your current policy includes adequate business interruption coverage and consider any adjustments based on your business’s projected growth or changes in operations. 

Provide CapEx 

Historical CapEx  

When it comes to property insurance, providing accurate and up-to-date information about your CapEx can help ensure you have the right coverage for your business assets, while also providing better insights to the marketplace about your physical controls.  

  • Upgrades or renovations: Upgraded building systems (HVAC, electrical, plumbing), roof replacements, or building expansions can impact your property’s value and risk exposure.  
  • New equipment or machinery: If you’ve invested in new equipment or machinery, provide the details, including purchase costs, installation costs, and a brief description of the equipment’s purpose and function.  


Planned or Ongoing CapEx Projects 

In addition to completed projects, it’s essential to share information about any planned or ongoing CapEx projects. This will help your insurance broker or carrier assess potential changes in risk exposure and make any necessary adjustments to your policy. Provide the following information for planned or ongoing projects: 

  • Project description: Outline the scope of the project, including the purpose and objectives.  
  • Estimated cost: Provide the estimated costs for the project, including materials, labor, and any other associated expenses.  
  • Project timeline: Share the expected start and completion dates for the project.  
  • Potential impact on operations: Discuss any potential impacts the project might have on your business operations, such as temporary closures or disruptions. 


Loss Prevention  

Various tech tools that can be implemented for water detection and other significant property claim drivers to help minimize risks and potential losses. 

Now, more than ever, is the time to invest in these tools. With deductibles going up, insurance companies are asking for you to take on more risk of your own. It makes all of the sense to use funds to help mitigate paying out those larger deductibles.  

Water Detection and Monitoring Systems 

  • Several advanced water detection and monitoring systems can help businesses identify leaks and potential water damage early, preventing costly property claims. Some of these tools include: 
  • Smart water sensors: These sensors can be installed near appliances, pipes, or other areas prone to water damage. They detect moisture and send alerts to your smartphone or a centralized monitoring system when a leak is detected.  
  • Flow-based water monitoring devices: These devices monitor water flow in real-time and can automatically shut off the water supply if an unusual spike in water usage is detected, indicating a potential leak.  
  • IoT-enabled water monitoring: Internet of Things (IoT) technology allows for continuous, remote monitoring of water usage and potential leaks through connected sensors and devices. 


Fire and Smoke Detection Systems 

Fire is another leading cause of property claims, and advanced fire detection systems can help prevent significant losses. Consider implementing: 

  • Smart smoke detectors: These devices not only sound an alarm but can also send alerts to your smartphone, allowing for faster response times in case of a fire.  
  • IoT-enabled fire detection: By connecting fire alarms, smoke detectors, and sprinkler systems to a centralized monitoring system, businesses can more effectively manage and respond to potential fire incidents. c. Remote monitoring services: Professional monitoring services can monitor your property for fire incidents around the clock, ensuring a rapid response in case of an emergency. 


Security Systems  

Advanced security systems can help deter theft and vandalism, which are also common property claim drivers. Some tech tools to consider include: 

  • Video surveillance: High-resolution security cameras with remote monitoring capabilities can deter potential thieves and vandals while providing valuable evidence in case of an incident.  
  • Intrusion detection systems: Smart door and window sensors, glass break detectors, and motion detectors can alert you of unauthorized entry, allowing for a swift response.  
  • Access control systems: Implementing a keycard can help restrict unauthorized access to sensitive areas of your property. 


On-Site Inspections 

Carrier on-site inspections play a vital role in the property insurance underwriting process. They allow insurance carriers to accurately assess your property’s risk exposure and can positively impact your coverage options and premium rates. Encouraging carrier on-site inspections is beneficial for both policyholders and insurers, as it fosters a better understanding of the property’s unique risks and the measures in place to mitigate them. 

On-site inspections foster better communication and trust between businesses and insurance carriers. By allowing carriers to inspect your property, you demonstrate your commitment to transparency and risk management. This openness can strengthen your relationship with your insurance carrier, resulting in improved cooperation and support throughout the policy period. 

Manage Your Expectations 

A hard market in the property insurance industry is characterized by rising premiums, limited coverage options, and stricter underwriting criteria. During such periods, it becomes increasingly important for businesses and insurance brokers to manage expectations effectively. 

Your insurance broker should be guiding you and providing you with insights on what to expect. I can promise you that they want these placements to go smoothly and do the best job they can for you. There are a lot of things they cannot control, on pricing and terms, but they can guide you on positioning yourself.  


We understand that navigating the hard market can be challenging and frustrating for businesses seeking to secure appropriate property insurance coverage at competitive rates. 

Preparation and time are key factors in overcoming these obstacles. Starting the renewal process early, reviewing your current insurance program, and implementing risk management and loss prevention measures will help you secure the most suitable coverage for your property. 

Interested in learning more? Please email us at or call 773-945-9000. 


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