Billboard Insider has heard that digital billboard insurance is getting more expensive, especially in coastal states in the Southeast US.    We talked with Chris Bassler of Bassler  & Co.

Why is it so expensive to write digital billboard replacement insurance in Florida?

Yes, this has become a major issue.  Due to recent storm history in FL or really any Boards near the coastal areas Insurance Pricing has dramatically increased.  This is NOT just a FL issue, but rather the entire Insurance Industry.  We’re in one of the hardest markets within the industry since the 80’s.  The reason for this market is due to Inflation (usually lags a bit behind due to 1 renewal a year), catastrophic losses (hurricanes, Wild-Fires and other storms) have increased at an extreme rate.  The last item playing a part is that all insurance companies purchase their own insurance (Re-Insurance).  These Reinsurance companies have lowered their own capacity and have also increased rates for all Insurance Carriers.  This is now finally reaching the consumers and therefore placing business insurance (Particularly Property Coverage) has become very difficult and very expensive.

Is it just Florida or has it gotten difficult in other states as well?

I wish it was just FL.  Any coastal Boards are going to be looking at increased pricing and many more underwriting questions.  FL is very much a difficult state due to the hurricanes.  Many insurance carriers have left the state for homeowners’ insurance due to the large losses they have paid out in recent years.

What can an out of home company do?

If there is any possible way to self-insure this could be an option, but a large risk of course.  If any investors or lenders are involved, they will demand insurance is in place for the Property of the Board.  We’re in a very tough spot right now and we’re all trying to get through this.  It’s NOT just Billboard’s that are seeing Property premiums increase.  It’s all Property coverages across the United States.

Have you experienced difficulty insuring your digital billboards? Email davewestburg@billboardinsider.com.  We’ll run a followup post.

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