Our News2023-03-07T11:12:24-05:00

3/1/2023 Insurance Market Update

Owner/Operator Business Education On The Changing Insurance Landscape


Macro Impacts on Rising Premium



  • 5 years of losses in the insurance industry – even before Hurricane Ian

Global Catastrophes

  • Learn more here – last year was 76 percent above the 21st century average
  • Hurricane Ian in 2022, even when adjusted for inflation, is forecasted to be 2+ times the cost of Hurricane Andrew
  • Turkey/Syria Earthquake
  • Much more…Top 10 Here


  • property values have increased and most claim values have increased too
  • social inflation has also added to costs

Supply Change and Labor Shortages

  • it takes longer to rebuild and open after events increasing losses

Interest Rates

  • capital/money leaving insurance and going to alternative places of higher yield
  • premium finance rates follow interest rates which have nearly doubled this year
  • US currency appreciation / exchange rates


  • climate changes have created a new normal of higher cost events


  • areas continue to grow in density so when events happen, they cost more


Judicial/Liability Hot Spots

Litigation/Attorney Fees

Nuclear Verdicts

“Insurance Capacity”

  • This is a very important term you will hear in 2023 as the availability of property insurance (especially after 1/1) tightened dramatically due to multiple unprecedented events above happening in parallel.
  • The “capacity” is indicated to be down by perhaps 50% in Coastal States and less in other States. Capacity is like availability. Meaning, if 50% of homes, gas, eggs, milk, etc. are not available, then people would either pay very high prices for what is available (supply/demand) OR they would go without these items. In insurance, those that can self-insure could consider choosing this option. For example, if you have a home with no loans, you could choose to not carry certain insurance. However, your restaurants require insurance and at certain coverage limits determined by others. As a result, you will fight for what insurance is in the market at a higher price.
  • The way insurance companies will navigate this first is to simply non-renew policies most at risk for claims or that have had claims. After this, then they will determine higher pricing for remaining accounts knowing that some will then not renew due to cost.
  • The current market conditions have not been seen since after 9/11 and in the 1980’s, but obviously we have much more to insure now than we did back then.

US Weather Events and Data Tools

Most Costly US Hurricanes

  • Ian in 2022, even when adjusted for inflation, is 2 times the cost of Hurricane Andrew

Billion Dollar Events

Hurricane Events

Wildfire Events

Severe Storms/Tornado/Hail/etc.

Climate Reanalyzer

  • visualizing climate and weather datasets

Historical Hurricane Tracks

Hurricane Statistics


Earthquake and More

Other News

Frequently Asked Questions (FAQ)

Importance of Licensed Insurance Agents (Approved Brokers)2023-03-06T16:06:32-05:00

The below activities always require an appropriate license. These activities include:

· comparing insurance products

· advising customers about their insurance needs or other insurance matters

· interpreting policies or coverages

· binding new, additional, or replacement coverage for new or existing customers

· binding coverage on or recording additional property under existing policies

· soliciting the sale of insurance by telephone, in person, or by other communication methods

The degree of Felony and penalty varies by the State in which the above happens.

What are the biggest changes I should be aware of for 2023?2023-03-06T16:06:54-05:00

The Property Insurance market has changed dramatically and will impact all US Owner/Operators renewal premiums. As an example, only 2 of the 5 property insurance options offered to you in 2022 will be back in the system in 2023.

Why do premiums on 3/1 generally always go up every year?2023-03-06T16:07:39-05:00

Besides your claims/losses, premium are also driven by your Property Values and Sales. Even if rates were flat/same in a given year, if your Restaurants Building/Contents are worth more vs. last year and/or your Sales have risen, then you should expect that minimum % increase in your premium.

For example, lets’ use your homeowners insurance as many understand this best. If your homes value goes up 10% in a given year and thus you increased the value of your home with your insurance company by 10%, your homeowners premium would rise at least 10%.

Besides price/premium, what else should I factor into my decision?2023-03-06T16:07:57-05:00

Longevity of the broker and their respective insurance companies/markets is important. Leaving a long-term partner has left many over the years in tough positions. How long a Property insurance company has been supporting Owner/Operators is a great indicator of a programs abilities within the insurance marketplace and their long-term value to Owner/Operators. Remember, more than half of the brokers will be presenting a brand new insurance company/market this year.

What Optional Coverages should I consider and how do I learn about them?2023-03-06T16:08:45-05:00
What Are Some Key Differences Among Options This Year?2023-03-06T16:09:27-05:00

Number of years that a Property insurer has been supporting O/O

  • some have never paid a O/O claim, new to the system


“Aggregate” programs

  • Most will have an annual aggregated/combined limit for Earthquake/Flood
  • However, some also aggregate/combine Named Storm Wind (hurricane, tropical storms, etc.), Fires, Hail, and everyday Property Claims eating away at annual program limits available to those in the program.  2 hurricane occurrences, as an example, could quickly erode such insurance options.
  • Some also share risk/claims with numerous insurance companies/markets while some have only 1 insurance company/market


Terrorism (excluding Umbrella/Excess) is only included with a couple of options

  • Other options charge extra for base Terrorism causing some confusion when comparing options


Wind/Hail deductibles

  • Not just Named Storm Wind, but rather these high deductibles apply in some programs to all Wind/Hail


Food Spoilage limits of coverage

Off-Premise Service (loss of power) limits of coverage – Business Interruption section

Availability of Optional Coverage Offerings

And Much More

Contact a Locally Licensed Insurance Agent To Learn More

Glossary of Terms2023-03-06T16:09:49-05:00

NOIT Glossary:

Click Here or visit https://noit.com/resources/glossary/

Other Terms:

ALS:  Actual Loss Sustained

BI:  Bodily Injury  Read More

BI Coverage:  Business Interruption Coverage  Read More

BINDER:  A legal agreement issued by either an agent or an insurer to provide temporary evidence of insurance until a policy can be issued.  Read Full Definition

CAPACITY (insurance):  The largest amount of insurance/reinsurance available from a given insurance company/market.  Learn More

D&O:  Directors and Officers

EPLI:  Employment Practices Liability Insurance

EMP:   Electromagnetic Pulse

EPRMA:  Employment Practices Risk Management Association

FIP:  Florida Insurance Program

GL:  General Liability

NOIT:  National Operators Insurance Team

ORMA:  Owners Risk Management Association

PML:  Probable Maximum Loss  Read Full Definition

PUBLIC ADJUSTER:  https://noit.com/resources/report-a-claim/#PublicAdjustersFAQ

TIV:  Total Insured Value (which usually includes Building, Contents, and Business Interruption)

TLPG:  Tort Litigation Practice Group

2023 Annual Insurance Timeline


Loss Prevention Review

  • mid-year reviews, making your business a lower risk

Review Claims/Losses (at least monthly)

  • managing claims is important as those with the lowest claims, usually get the best rates

Plan/Budget for 2023

Submit Insurance Application

  • 2/1 thru 2/21

Receives Insurance Proposal(s)

Reviews Proposal With Agent

Renews with Approved Broker

Approved Broker

Begin Working on the 2023 Renewal

  • 4/1/2022 thru 2/1/2023

Partner With Clients Throughout the Year

Corp. Approval Process (Property/General Liability Only)

  • Required Corp. Meetings (In-Person Chicago) with all Brokers and Insurers
  • Corp. Provides New Broker and Insurer Agreements (Early-October) – 11/18
  • Brokers Finalize Insurance Markets

Solutions must meet or exceed draft insurer agreement requirement

  • Brokers Submit To Corp. Required Approval Items (Mid-October) – 12/2
  • Corp. Approval of Broker/Insurers (Early-November) – 12/24 (est.)
  • Execute/sign of all Annual Agreements (Mid-November) – 12/24 (est.)
  • Brokers provided high-level email on the renewal (November) 12/21

National programs (Umbrella, EPLI/D&O, Cyber) rates up 58% per restaurant

  • Brokers provided full renewal terms for: – 12/22

Umbrella, D&O, EPLI, Cyber, and Earthquake

  • Brokers provide other required items to Corp. by January 1

Email Sent to all US Owner/Operators – 1/5

  • Solicitation of Package and Workers Compensation Insurance Applications

Final Negotiation of Terms, Options, Other Coverages, and Premiums

Clients Updated On Renewal, Expectations, etc.

Update Internal Broker Systems

  • Application Processing, Rate, Quote with the latest information, taxes, etc.

Send Insurance Proposals

  • 2/15-2/17 Final Underwriting/Pricing Meetings with Markets
  • revise/correct proposals as needed via direction of Owner/Operators
  • continued premium negotiations with insurance markets/companies

Bind Coverages / Send Confirmations of Coverage to Owner/Operators

  • O/O signing/binding ASAP
  • ….before some worldwide event further disrupts the insurance market

3/1 Package Policy Effective Start Date

Collect Deposits/Premiums and Remaining Paperwork <- System Is Here

Brokers Receive Policies <- System Is Here

Broker Reviews Policies <- System Is Here

Broker Sends Policies to Owner/Operators

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