Why Your Business Insurance Premiums Increase - Even Without Claims
One of the most common questions we hear at Brass Tacks Insurance is:
“Why did my insurance premiums go up? I didn’t have any losses.”
It’s a fair question. And the honest answer is this:
insurance pricing isn’t based only on you.
In Colorado especially, premiums are being pushed up by things happening around your business — auto accidents, lawsuits, fires, hailstorms, and rising claim costs across the state.
Let’s break it down in simple terms.
Insurance Is Based on Shared Risk, Not Just Your History
Insurance works by spreading risk across thousands of businesses. Even if you run a tight operation and never file a claim, your premium is still influenced by:
What’s happening in your industry
Loss trends across Colorado
How expensive claims have become to settle
Court decisions and lawsuit payouts
Weather events like hail and wildfire
When losses increase statewide, rates follow.
Auto Losses Are Driving Big Increases in Colorado
Commercial Auto is one of the fastest-rising lines of insurance right now.
Why?
Distracted driving is up
Accidents are more severe
Vehicle repairs cost more than ever
Modern vehicles are packed with expensive sensors and cameras
Injury claims are larger and take longer to settle
Even if your drivers have clean records, insurers are paying out more on auto losses across Colorado highways and metro areas — and that affects pricing for everyone.
Lawsuits Are Bigger, More Frequent, and More Expensive
This impacts General Liability and Umbrella policies directly.
What we’re seeing:
More slip-and-fall and third-party injury claims
Lawsuits that used to settle quietly now go to court
Jury awards are larger
Defense costs alone can be massive
In short: it costs more to defend and settle claims, even when businesses did nothing wrong. That increased cost gets baked into premiums.
Colorado Property Insurance: Fire and Hail Matter
Property insurance in Colorado is under pressure for one main reason:
fire and hail risk.
Wildfire Risk
Fires are larger, faster, and more destructive
Smoke and ember damage spreads losses beyond burn areas
Rebuild costs are significantly higher than they were even a few years ago
Hail Risk
Colorado is one of the most hail-exposed states in the country
Roof claims, siding damage, HVAC losses — all frequent
Repeated hail events strain insurers year after year
Even if your building hasn’t been hit, insurers price property based on future risk, not past luck.
Why Umbrella Insurance Costs More
Umbrella insurance sits on top of your General Liability, Auto, and Workers Compensation coverage.
Umbrella premiums rise because:
Auto accidents are more severe
Lawsuits reach higher limits more often
Claims pierce underlying policies more frequently
When base losses get larger, umbrellas get used more — and pricing adjusts accordingly.
Reinsurance Affects Your Premium (Even If You’ve Never Heard of It)
Insurance companies buy insurance themselves — called reinsurance.
When reinsurers raise prices due to:
Natural disasters
Large verdicts
Catastrophic losses,
Those costs flow downhill to policyholders.
You don’t see it on your policy, but you feel it at renewal.
What Colorado Business Owners Can Control
You can’t stop hailstorms or lawsuits — but you can control how your account is positioned.
At Brass Tacks, we focus on:
Making sure revenue, payroll, and vehicle counts are accurate
Reviewing limits instead of blindly increasing them
Adjusting deductibles strategically
Cleaning up coverage overlaps
Shopping multiple carriers when it makes sense
Sometimes premiums go up because the market is tough.
Other times, they go up because no one’s actually reviewed the policy in years.
The Brass Tacks Takeaway
Your insurance premium isn’t just about your loss history.
It reflects:
Auto accidents across Colorado roads
Lawsuits and legal trends
Fire and hail exposure
Rising repair and construction costs
Insurance market cycles
Understanding why rates increase helps you avoid overreacting — and overpaying.
If you want a straightforward review of your General Liability, Worker’s Compensation, Commercial Auto, Property, or Umbrella coverage, we’re happy to take a look and tell you exactly what’s driving your numbers.
No pressure. Just the brass tacks.
