• MAX Insurance Agency

Commercial Lines Insurance – Opportunities in a Hard Market

By Brad Shrum


Is the hard market here for commercial lines? I believe it is and this blog will explore some of the crucial reasons.


First, what is a hard market? A hard market has a high demand for insurance coverage with a reduced supply. This type of market means higher insurance premiums for consumers.


Commercial lines has not seen much of a hardening of the market for some time but the trends in the last quarter of 2020 and the start of 2021 are indicators that commercial lines is moving in this direction.


Here is a preview of what we see 2021 bringing to this all important industry and economic product.


Higher reinsurance costs:

Reinsurance is the insurance companies purchase from other insurers to limit their risk – insurance for insurance companies. Due to poor loss experience among the top reinsurers worldwide, carriers are having to pay more for reinsurance. These costs are being passed on to the consumers in the form of rate increases.


Storm losses:

Storms are now occurring in new areas of the country where in the past they may not have hit. An example of this is the increase in storms east of the Mississippi, combined with the ever plains and southern plains states.


An increase in larger fires within the commercial industry:

These losses have been a result of natural occurrences, such as the wildfires out west, unnatural occurrences, the summer civil unrest, random incidents due to insured negligence, along with the normal laws of average within the industry.


Cost of construction materials are driving the cost per square footage higher.

Some of this is attributed to the virus, some to other factors since there is a shortage of building contractors for various reasons.


Here at MAX Insurance Agency, Inc., we have the privilege of working with several strong financially sound carriers that offer a variety of competitive products.


Opportunities exist for our commercial lines clients to purchase a product that provides the best protection for a fair price, despite a hard market.


Below is a list of packages available from one of the strongest commercial lines carriers in the country – Travelers Insurance. Our agency can help you with your insurance needs in several different fields:


  • Office Pak

  • Garage Pak Coverage

  • Retail Pak

  • Wholesaler Pak

  • Manufacturing Pak

  • Restaurant Pak

  • Condominium Pak

  • Contractors Pak

  • Service Industry



Have a question? Would you like to discuss any of these commercial lines products?


Contact me at 800-832-4689 or complete our Check Coverage Form.




Brad Shrum, CPCU

Goose Hunter, Father of Two Sons, and Insurance Agent Direct Phone - 913-754-3823 bshrum@maxinsurance.com LinkedIn Facebook

Brad has worked at MAX for the past 18 years and has over 30 years of experience in the insurance industry doing underwriting, field management work, and sales. Outside of the office, Brad is an ordained Southern Baptist Deacon and a Sunday School teacher of 30 years. In addition, Brad is a long-time Vacation Bible School teacher and has an ongoing 20+ year Nursing Home Ministry. Since he was a young teenager, Brad has been an avid goose hunter, traveling across North America while pursuing this noble bird and enjoying the outdoor world.

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