Our photographers policies are offered on a program basis that is renewed annually with the insurance company Chubb Canada. During this year’s renewal, Chubb has required revised terms in order to continue offering the program. The increase in premiums is largely due to the high number and cost of claims paid out under this program.
Premiums are collected and kept in reserve in order to pay out claims as they arise. The insurance company must anticipate how much premium they will need to collect in order to have the funds available to pay out losses when they occur. In layman’s terms, they have to make an educated guess. The changes in premiums this year are a reflection of the loss ratio on the photographers program (total losses : total premiums). In order for an insurance program to remain viable, the amount paid out in losses cannot exceed the amount collected in premiums.
Our job as insurance brokers is to make sure that the insurance company does not increase their rates arbitrarily or in excess of what another company might offer for similar coverage. We are still confident that our photographers program has the best rates available in the marketplace, and these rate changes will ensure that we can continue to offer a photographers program for years to come.
If you would like to discuss the changes to your renewal premium further, please do not hesitate to contact our office.