Is your coverage keeping pace with your commercial property value?

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Ensuring your business is properly insured 

Up 4.8%

Despite fluctuations in the industry during the pandemic, total reconstruction costs in the U.S. climbed from July 2019 to July 2020, including materials and labor. 

Material costs increasing...
Carpet - 5.1%
Paint - 4.5%
Interior trim - 4.3%
Drywall - 2.9%
Roofing - 1.8%
Lumber - 1.4%

What could impact your insurance needs year to year? Property improvements and renovations, process improvements, landscaping, new machinery, inventory changes 

What happens when you business is underinsured?

Total loss Fully insured. Fully rebuilt.  Underinsured

Labor costs on the rise: Drywall installers — up 13.1%, Roofers — up 6.3%, Carpenters — up 4.9%, Electricians and plumbers — up 3.9%

"Businesses should expect the cost to replace or rebuild their business property will go up each year. Every three to five years, the cost could change dramatically due to the overall economy, inflation, labor and material costs and regional trends. If your values aren't keeping up with this, then you run the risk of underinsuring your exposure. An annual review of your business insurance needs is necessary to help ensure the right protection is in place." - Robert Brewer, Vice President Industry Solutions, The Hanover Insurance Group.