If your Colorado business is facing a spike in insurance premiums, you’re not alone. Business owners across the state—and the country—are feeling the pressure of a hardening insurance market. But what’s behind these rising costs, and more importantly, what can you do about it?
Let’s break it down.
What’s Driving the Increase in Business Insurance Premiums?
Here are some key factors contributing to higher rates for commercial policies:
1. More Expensive Claims
Inflation is affecting everything—including claim payouts. Property repairs, replacement equipment, and medical costs are all more expensive, and insurers are adjusting premiums accordingly.
2. Weather and Natural Disasters
Colorado has seen a rise in hailstorms, wildfires, and other severe weather events. These losses hit insurance carriers hard, especially in commercial property lines, and that risk is passed along to policyholders.
3. Reinsurance Costs
Reinsurance (insurance for insurers) has also become more expensive and harder to secure. As carriers face higher reinsurance rates, they adjust their underwriting guidelines and premiums to offset the added cost.
4. Litigation and Legal Trends
Lawsuits are on the rise—and they’re getting more expensive. Whether it’s a slip-and-fall, an employment practices claim, or a cyber liability lawsuit, defense costs and settlements are growing fast.
5. Underwriting Caution
In a hard market, insurance carriers tighten their guidelines. That means more scrutiny, fewer coverage options, and higher premiums—especially for industries deemed higher risk.
Tips for Managing Business Insurance Costs in a Hard Market
Premiums may be rising, but you’re not powerless. Here’s how to stay proactive:
✅ Work With an Independent Agency
Partnering with a forward-thinking, independent agency like Conexus gives you access to multiple carriers and options. We help you compare rates, negotiate renewals, and find the best fit for your needs—not just the standard solution.
✅ Audit Your Coverage for Gaps and Opportunities
As your business grows or changes, your insurance should keep pace. Look beyond just limits—make sure your coverage reflects your current operations, assets, and liabilities. A thorough review can uncover overlooked exposures or unnecessary costs, helping you optimize protection and value.
✅ Improve Risk Management
Carriers reward businesses that manage risk well. Implement safety protocols, document procedures, provide employee training, and invest in cybersecurity. Even small improvements can help reduce claims—and your premiums.
✅ Bundle Policies When It Makes Sense
Packaging your property, liability, and auto coverage with one carrier can unlock discounts. But beware—bundling isn’t always best. A strategic approach ensures you get both savings and strong coverage.
✅ Be Transparent with Your Broker
Your insurance advisor is your partner—not just a vendor. If you’re planning to expand, hire, downsize, or make operational changes, share those early. The more we know, the better we can advocate for your business and identify cost-effective solutions.
One Final Thought: Coverage First, Cost Second
We understand the pressure to control expenses—but cutting corners on coverage can be a costly mistake. Gaps in policies (especially liability, cyber, and EPLI) can expose your business to serious financial risk. Our job is to help you balance protection and price—so you’re not just insured, but confidently covered.
Need a second opinion on your current policies?
Let’s chat. We’ll review your existing coverage, identify savings opportunities, and make sure your business is protected in all the right ways.
📍 Based in Westminster and serving businesses across Colorado.