Inflation and Your Business Insurance Premiums

FRANKFURT, GERMANY - NOVEMBER 14: Jean-Claude...Image by Getty Images via Daylife


Many of the economic articles you will come across today are starting to talk about inflation. With the billions and billions of new printed money placed into our economy this year, sooner or later inflation will follow. The Federal Reserve Chariman, Bernanke assures us that the Fed can contract the money supply rapidly enough to thwart a heafty rise in inflation. Though this may or may not be the case, a rise in inflation is almost certain over the next 24 months or so. This means rising insurance premiums for business owners. Insurance companies have bottomed rates significantly during the last three years, and there is no where to go but up. As inflation rises over the next few years, costs of claims, medical, and property replacement will all go up. Insurance carriers still realing over the financial market collaspe will see rising claim costs with suppresses premiums and weak investment returns. Attention business owners, plan for premium increase sometime over the next 24-36 months if not sooner. I am concerned the cost of business insurance will go up as inflation starts to rise. Until next time, be careful out there and know your risks ! Kevin

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