Renewal Rates are HIGH

Nightclub and Bar owners are scattering last minute because of the rate increases on policy renewals. If you are two months away or less from your insurance renewal, it is time to get on the horn!

Here is what we are observing in the hospitality industry:

Understaffing

It is without question that our industry was hit the hardest through COVID. On the insurance side many larger companies reduced their employee size and now it has created a lag in our renewal process. If you are coming up for renewal soon, then time is of the essence for you. Insureds are reporting to us that they are receiving renewals from their current agents/brokers at the very last minute.

Rates are UP

We have been seeing a large increase in renewal rate with multiple insurance carriers in the industry. Why? The Carrier’s responses, “rates have gone up.”

We suspect two reasons. Some hospitality programs are using new insurance carriers that have higher rates. Another reason we suspect is that some owners received a return premium during COVID because they were underwritten on a higher receipt basis. Now the time has come for the insurance carriers to try and recuperate that money.

Underwriting Guidelines

During COVID, much of indoor dining was completely shut down. Bars were forced to change operations to take out style restaurants in order to stay afloat. Now with everything reopened, policies are being rewritten as bar type establishments which is increasing the premium ratings.

Smaller Market Available

As if Hospitality Insurance was not limited already. We are learning that there are carriers leaving the hospitality industry completely. Others are getting out of particular states such as Texas and South Carolina due to a large increase in reported claims.

What should you do as an owner?

Here is what we recommend. If you are two months away or less from your insurance renewal, it is time to get on the horn! Contact one of our agents at KEL Insurance or fill out one of our online applications so that we may help offer other renewal terms before it is too late.