Bonding companies use qualitative and quantitative factors to determine the credit they will extend to a contractor. They underwrite their book of business with the assumption that there will be no claims. Issuance of a bid or performance bond is a seal of their confidence in you. When a contractor has sufficient capital and liquidity, a reputation for quality, timely work, and capacity to complete the work, a surety will extend adequate credit. Weaknesses in…

Crime insurance is a key component of your business’s risk management strategy. It provides coverage for losses resulting from acts such as theft, fraud, and embezzlement. This article will explore the coverages, enhancement endorsements, limitations, and important considerations. Key Coverages Employee Theft: Covers losses resulting from theft committed by employees. Forgery or Alteration: Protects against losses from forged or altered checks, drafts, or promissory notes. Inside the Premises – Theft of Money and Securities: Covers…

Following years of challenging market conditions and strict underwriting scrutiny, most employment practices liability (EPL) insurance buyers with good claims history enjoyed modest premium increases in 2024. According to Zywave’s Commercial Property & Casualty Insurance Pricing Survey—which surveyed brokers from across the United States—EPL brokers experienced a less challenging pricing environment in 2024. Many respondents reported price increases of 5% or less. Overall, pricing in the EPL market remained stable in 2024, largely due to…

After sustained periods of volatility driven by technological advancements, evolving cyber risks, environmental, social and governance (ESG) developments, and litigation shifts, the directors and officers liability (D&O) insurance market has moderated in recent years. Since 2022, the sector has softened, characterized by abundant capacity, competitive pricing and declining premiums. This trend continued in 2024, and favorable conditions were largely spurred on by new entrants to the D&O market, increasing competition. According to industry sources, the…

Despite an ever-evolving threat landscape, growing attacker sophistication, and frequent and severe cyberattacks, the cyber insurance segment softened in 2024. Most policyholders encountered modest, single-digit rate increases. This market improvement was driven by several factors, including increased competition among carriers, a surplus of capacity and a steadfast focus on cyber hygiene among insureds (i.e., fewer claims mean lower loss ratios). Rate improvement was particularly noticeable among accounts that could demonstrate year-over-year improvement in their cyber…

In 2024, the workers’ compensation insurance segment experienced another year of strong performance, continuing a decade-long profitability trend for insurers. Overall, workers’ compensation insurance has been a bright spot in recent years during an otherwise challenging market across various lines of insurance. New market entrants and fierce competition have led to years of declining rates for insureds. Further, stable loss trends and healthy reserves—around $18 billion—have supported underwriting profitability. However, several emerging trends may indicate…