How Claims Frequency Affects Your Commercial Insurance Rates—And What You Can Do About It

When it comes to commercial insurance, claims frequency is a big deal. Even if your claims are small, filing them often can cause your premiums to spike, trigger stricter policy terms, or, in the worst cases, lead to non-renewals. Insurance carriers see frequent claims as a red flag—it signals operational risks that make you a higher liability to insure.

At Haughn & Associates, we don’t just place coverage; we help businesses like yours take control of claims frequency and implement proactive risk management strategies that keep premiums in check.

How Claims Frequency Impacts Your Business

A high number of claims—whether they result in payouts or not—can have serious consequences:

  • Higher Premiums – More claims mean higher risk, and higher risk means higher costs. Even small claims add up in an underwriter’s eyes.
  • Stricter Policy Terms – You might see increased deductibles, added exclusions, or restrictions on coverage.
  • Non-Renewals & Limited Market Options – If your claims history is too frequent, carriers may decline to renew your policy. This can leave you scrambling for new coverage—often at much higher rates.
  • Operational & Reputational Impact – Insurers aren’t the only ones paying attention to claims history. High claims frequency can raise red flags with clients, vendors, and investors.

How to Prevent Claims Frequency Issues

Insurance is there to protect your business, but using it too often can work against you. The good news? You can take control.

  • Risk Management & Safety Protocols – Prevent accidents before they happen. Implement company-wide safety policies and conduct regular risk assessments.
  • Employee Training – Well-trained employees make fewer mistakes, reducing the likelihood of claims. Invest in safety and compliance training.
  • Routine Maintenance & Inspections – Regular upkeep on equipment, vehicles, and property can prevent costly failures and accidents.
  • Fraud Prevention – Fraudulent claims inflate frequency numbers. Strong internal controls and surveillance can help deter bad actors.
  • Claims Review & Strategy – Not every incident should turn into an insurance claim. Sometimes, paying out of pocket for small losses is a smarter long-term move.
  • Work With a Risk Advisor – A strong broker doesn’t just place your policy; they help you reduce risk, lower claims, and keep costs manageable.

How Haughn & Associates Can Help

At Haughn & Associates, we specialize in helping businesses control risk and manage claims strategically. Here’s what we bring to the table:

  • Claims Analysis & Prevention Strategies – We review your claims history and identify patterns, helping you implement changes that lower frequency.
  • Customized Risk Management Plans – We work with your business to create tailored safety programs and loss prevention strategies.
  • Broker Advocacy & Carrier Negotiation – We present your business in the best possible light to insurance carriers, helping to secure better rates and coverage terms.
  • Ongoing Support & Monitoring – We don’t just set policies and walk away. We provide continuous guidance to help you stay ahead of potential risks.

If claims frequency is driving up your premiums, it’s time to take back control. Let’s talk about how we can help you protect your business, manage risks smarter, and keep insurance costs in check.

Call us today to start the conversation.