The Hard Insurance Market Continues

Insurance industry analysts have predicted market hardening since 2019, and, so far, those forecasts have been accurate. Reinsurance rate increases in 2020 led to significant increases in premiums for property and casualty insurance as well as other lines of business including cyber insurance. Last month, the publication Business Insurance reported analyst predictions that insurance buyers will see price increases up to 15 percent on accounts with favorable claim activity while more challenging properties can expect even higher increases.

Owners of self-storage businesses and other types of commercial property may see evidence of market hardening at their next insurance renewal in the form of changes to pricing, deductibles, limits, and coverage. The probability that properties located in high-risk areas and those with negative claim histories may experience premium increases and potentially nonrenewal is much higher because of the present market conditions.

The hardening market conditions are generally attributed to the fact that catastrophic events resulting in billion-dollar insured losses are occurring more frequently and with increasing severity. The report U.S. Billion-Dollar Weather and Climate Disasters (2021), published by NOAA National Centers for Environmental Information (NCEI), indicates that in 2020, there were 22 billion-dollar climate-related events, far surpassing the previous record of 16 events in 2011 and 2017. Historical data from the report makes clear the problem insurance carriers are facing. During the five-year period 1996 to 2000, the U.S. experienced 26 billion-dollar events with estimated losses of $94.9 billion. During the most recent five years, 2016 to 2020, there were 81 such events with losses over $618 billion.

Carriers are working to return their programs to profitability after several years of increasing catastrophic losses. For some carriers, this may mean completely exiting a class of business. While self-storage as a class may not be particularly challenging for insurance carriers, there are aspects of the property market that may affect insurance rates and terms for self-storage operations in certain areas. These include wildfires in California and other western states, flood, and convective storms such as tornadoes, hail, straight-line winds, and lightning.

The first step is to work with your clients well in advance of policy renewal. Because insurance carriers have various risk appetites, MiniCo has elected to work with A.M. Best "A" rated carriers to provide agents and self-storage business owners a wide range of coverage options, limits, and deductibles.

For more information about MiniCo's specialty insurance programs, visit www.minico.com or contact an underwriter at 800-528-1056 or customercare@minico.com.

Cyber Insurance for Self-Storage Risks

Self-storage facilities, along with other small and medium-sized businesses, are increasingly vulnerable to the risk of cyberattacks and data breaches. While many business owners underestimate the threat, the reality is that cybercrime is one of the fastest-growing risks to businesses of any size. Business owners would be wise to develop a risk management plan that includes cyber insurance.

MiniCo's specialty BOP for self-storage risks includes optional cyber and data compromise coverage with a limit of up to $50,000. Many businesses, however, need additional coverage to address this exposure. Our monoline cyber insurance product for small and medium-sized businesses addresses a range of exposures including breach response, business interruption loss, cyber extortion loss, data recovery costs, data and network liability, and eCrime.

For more information or to get a quote, contact Michael Attanasio at 518-782-3300 or michael.attanasio@minico.com. No supporting MiniCo accounts are required.

Collectibles Insurance Notice of Cancellation

If you have a client with a collectibles insurance policy from MiniCo, please be aware of recent notifications. Orders regarding moratoriums on cancellation due to the coronavirus pandemic have been lifted. As a result, MiniCo is now sending out current notices of cancellation as well as those that were previously suspended due to COVID restrictions.

Please be aware of this activity and keep an eye out for notices of cancellation. Many rules have changed since last year, and a follow-up with your client is highly recommended. For more information or to learn more about MiniCo's collectibles insurance program, contact a collectibles insurance representative at 888-873-6931 or collectibles@minico.com.

Workers Comp for Self-Storage Businesses

Self-storage businesses face many unique exposures, and MiniCo Insurance is dedicated to providing insurance solutions to address these risks. MiniCo offers a specialized workers compensation insurance program that provides coverage to self storage facilities for lost wages and medical treatment resulting from an employee's work-related injury or illness as well as services needed to help an employee recover and return to work. The program is underwritten by Liberty Mutual Insurance, which has been rated "A" (Excellent) by A.M. Best. Liberty Mutual Insurance is one of the nation's leading carriers of workers compensation.

The workers comp program is offered on a monoline basis, and agents may obtain a premium quotation by submitting an ACORD workers compensation insurance application. No appointment or supporting MiniCo accounts are required to get a quote.

The program provides a wide range of coverage benefits including assisting injured workers in obtaining necessary medications for work-related injuries with out-of-pocket expenses, delivering top claims services with consistently superior outcomes, and providing quality, affordable treatment for injured workers from Liberty Mutual's network of local medical providers.

For more information, contact Angela Cozzo at angela.cozzo@minico.com or 800-528-1056, ext. 3008.

Claims Spotlight: Riot Coverage

Although a key characteristic of self-storage facilities is limited foot traffic, the industry has not been immune to the exposure associated with the coronavirus pandemic. In response to the COVID-19 risk, self-storage owners have been required to place greater emphasis on the importance of maintaining a safe environment for customers and employees in terms of sanitation and social distancing.

In addition to pandemic concerns, the past year has seen an increase in incidents of civil unrest in some areas, which has resulted in property damage. Self-storage operations generally are not specific targets of these actions, but the risk is always present. As a benefit to your self-storage clients, it is wise to review policies for riot coverage to ensure that this exposure is adequately addressed.

Report Claims Online
MiniCo's streamlined online claim forms make it easier and faster to report a claim. Our responsive claim professionals also are available by phone, fax, and email.

When reporting a claim to MiniCo, please provide all the information you have available about the loss, damage, or incident. Providing detailed information gives our adjusters a head start on processing and resolving the claim, which can translate into a quicker and more productive resolution for your client. If you are unsure whether coverage is included in the policy, report the claim and let us review it.

REMINDER: Please notify MiniCo immediately upon receipt of a notice of possible litigation or retention of an attorney involving any policyholder. Giving our claim professionals the maximum time available to respond is crucial to the effective resolution of the situation.