POWERWASHING LIABILITY CLAIMS CONTINUE TO RISE
posted on 28, Feb, 2018 by turbo-wash
The residential powerwashing industry has continued to have skyrocketing liability claims forcing many insurers to cancel renewals.
Although rates have continued to substantially increase, they are still inadequate. At the same time loss costs are exploding. As a result of the increased loss costs, many insurers are opting out of this market. “With insurers’ returns continuing to fall, it’s been a profitless recovery,” said Gregory McDonald, member of the Crown Insurance Agency.
It seems there are two main reasons this market has spiraled so out of control. The first reason being many powerwashing companies are owned and operated by unskilled, improperly trained individuals who feel as though this business can be started quickly and easily with little initial investment. Currently, there is no mandated training certification or licensing necessary to operate this type of business making it very easy for just about anyone to get started in this surprisingly high liability industry.
The second reason this market has spiraled out of control is that, insurers are still grappling with poor underwriting results of the past, and the current lack of capacity in this line is unlikely to change anytime soon. This predicament was caused primarily by lack of insight on the underwriters’ behalf’s. Being this market is a relatively new one little was previously known as to how high a liability this industry truly held.
Several insurance executives have said that as time passes, insurers are finding out the hard way just how high a liability this industry is. As a result, powerwashing companies may find it increasingly difficult to get proper liability coverage in the future.
Business Insurance Monthly
March 1998 issue