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.
Now that the Photographer’s program is three years old (launched September 2015), Chubb has more information about the photographers program, and it can base its predictions for future anticipated losses on the existing claims record. 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.
Please see below a summary of changes that may explain some of the difference seen on renewal terms. If you would like to discuss the changes to your renewal premium further, please do not hesitate to contact our office.
Summary of changes
There is now a minimum premium of $100 on equipment within Canada/USA ($125 for Out of Country). For many policies, this would not result in a premium increase as the equipment premium was already +$100.
The basic rate has increased by approximately 10%, with different rates for high value equipment and selected coverage territory.
There are new deductibles for Theft From an Unattended Vehicle ($2,500 deductible) and claims Out of Country ($750 deductible).
Rates for liability have increased between $10-20 per year, depending on the selected limit, and the enhanced coverage has increased by $15 per year.
To offset these changes, we have lowered our agency fee to $90.