Much like the price hikes you see at the grocery store and in personal home and auto pricing, similar trends affect all commercial insurance forms – especially child care insurance.
We’re currently experiencing a hard market, which means insurance premiums rise, coverage terms tighten, and the capacity for various types of insurance decreases.
Here’s what that means for your business.
A typical annual increase was 6-9% a few years ago. Fast forward to today, and 15-25% increases are often the norm. If you have specialized circumstances, the increases could be as high as 70%-90%+.
Some insurance companies are leaving the child care market entirely, so it’s more important than ever to be proactive and prepared for your insurance renewal.
A combination of factors are impacting the market, including:
These numbers aren’t meant to scare you – we just want to share a realistic picture of the market. CCIG is working diligently to support our child care and early education clients by leveraging our longstanding underwriter relationships and niche expertise.
We know it’s overwhelming to navigate a shifting insurance landscape, so let’s work together to protect your investment and your business with forward-thinking risk management options.
CCIG is well-versed in the specialized child care insurance market. With almost four decades of experience in the industry, our established underwriter connections and extensive background knowledge empower us to deliver solutions for our child care and early education clients in a challenging market.
Our team can review your risk management profile and create a personalized approach designed to position you favorably with carriers.
Insurance underwriters (the big decision-makers) rely on inspection reports as one of many tools they use to assess risks, and they can draw a possible correlation between a higher number of licensing violations and higher claims.
Underwriters commonly review at least three years of inspections and look for patterns of behavior or indications of overall management practices, quality of care, and condition of facilities.
Depending on your state, the inspection, injury, and other reports are often available to the public. In Colorado, you can find these reports on Colorado Shines.
This means everyone, from potential families to insurance underwriters, can read and review these documents.
Remember, staying proactive in managing your risk profile isn’t just a smart move – it’s a strategic way to stay ahead in a constantly shifting market.
We understand how frustrating a non-renewal notice can be, and our team can provide additional information and context if this happens to you. We can walk through the reasons for non-renewal and create a plan to move forward.
If you receive a non-renewal notice from your current insurance carrier, please note that they must mail the notice within a certain minimum number of days before the renewal date per state insurance laws (30 days in Colorado). Again, CCIG will partner with you to identify additional options to protect your business.
At CCIG, we’ve supported childcare and early education businesses for more than 38 years. Child care providers are the heart of a strong community and a thriving economy.
Your contributions matter, which is why we’re putting in the work to make sure you’ve got the specialty insurance coverage needed to safeguard your business. Please don’t hesitate to reach out to info@thinkccig.com if you have any questions or concerns about your program.
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