Excess and Surplus Insurance Solutions for Business Properties in High-Crime Neighborhoods

excess and surplus insurance

It would be nice if all neighborhoods were as sunny and enjoyable as the ones our cities like to put forth in tourism ads, wouldn’t it? But in the real world, crime rates make it challenging for businesses to operate in certain areas. In these neighborhoods, smash-and-grab crimes and shoplifting losses mean that store owners face an uncomfortable level of risk and uncertainty. Businesses in these neighborhoods need protection, including extra security measures and excess and surplus insurance solutions that can help them navigate risk and potential loss.

Risks Faced by Businesses in High-Crime Neighborhoods

Businesses operating in high-crime neighborhoods are susceptible to numerous criminal activities. In addition to theft, vandalism and arson can cause direct property damage to multiple businesses at once. Even if a business isn’t the primary target, these crimes can disrupt its operations, leading to both financial losses and reduced consumer trust. 

Many states have responded to the rise in smash-and-grab robberies; California launched a $267 million campaign to help local law enforcement deal with retail theft. Fourteen states recently passed legislation that addresses retail crime. 

While increased penalties may act as a deterrent, it is often little comfort to a business that has been recently victimized. That’s where excess and surplus property insurance can help.

Excess and Surplus Insurance Coverage Options

In response to the heightened risks faced by businesses in high-crime areas, excess and surplus (E&S) insurance coverage provides a protective umbrella. Unlike standard commercial property insurance, E&S coverage provides specialized protection tailored to the unique needs of businesses operating in high-risk environments. 

This type of coverage helps businesses recover and resume operations quickly. It provides the funds to protect employees and repair establishments so that there is minimal disruption to a business’s operations — and, by extension, its financial bottom line.

Factors Influencing Excess and Surplus Insurance Premiums

E&S insurance protects businesses that incur higher levels of risk than is acceptable for typical liability insurance. For businesses in high-crime areas, the risk of crime impacts their premiums and available coverage. These factors include:

  • The business’s location
  • Crime statistics and trends in the surrounding areas
  • Security measures, like cameras, alarms, and other deterrents
  • The business’s prior insurance claim history

Assessing these factors lets businesses understand their insurance needs and secure comprehensive coverage.

Importance of Risk Mitigation Strategies

As the saying goes, an ounce of prevention is worth a pound of cure — meaning it’s important to prepare, not just react. For businesses in high-crime areas, taking proactive security measures to reduce the risk of crime is essential. 

Implementing robust security measures, such as alarms and surveillance cameras, enhances deterrence and improves response capabilities in the event of an emergency. Regular risk assessments and updates to insurance coverage ensure that businesses remain agile and adaptive in addressing evolving threats. 

Businesses play key roles in their community, and leading by example also helps reduce risk. Collaboration with law enforcement agencies and community organizations further strengthens crime prevention efforts. An active business that takes part in its community creates a safer working environment. 

Working With Experienced Insurance Providers

Businesses that need excess and surplus property coverage must understand the significant nature of the risks they incur, and that means choosing an insurance provider that takes this risk just as seriously. 

Experienced insurance professionals such as Cochrane & Company possess in-depth knowledge of the unique challenges faced by businesses in these areas. We create tailored coverage solutions that address businesses’ unique needs and concerns. Partnering with insurance experts allows brokers to assess coverage options comprehensively, ensuring policy terms and conditions align with their clients’ risk profiles and operational requirements.

Help Your Clients Find the Excess and Surplus Coverage They Need

Companies that operate in high-crime neighborhoods shouldn’t be punished; every community needs businesses to function. E&S insurance offers a path forward to balancing the risks of a high-crime neighborhood and the rewards of running a business. 

Adequate coverage doesn’t just protect assets; it offers invaluable peace of mind. Contact us today to learn more.

About Cochrane & Company 

For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.


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