How Has COVID Changed The Insurance Landscape For Apartments And Nightclubs?

Three years after Covid first touched down in the United States, things have finally begun to settle down enough for a coherent analysis of the long-term ramifications on the economic landscape to be made. While normalcy has returned to a number of different aspects of life, quite a few industries have experienced radical changes to the way they do business that show no sign of reverting to how they were pre-Covid.

Some of the primary victims of the changes caused by Covid have been multi-family homeowners and the entertainment industry. These ostensibly unrelated industries are being affected by similar forces: an increase in insurance prices and a tightening of compliance measures.

The Real Highrise: Premium Increases For Apartment Buildings

Many pieces have been written over the last couple of years lamenting the skyrocketing rent prices, most of which have indicted landlords and their greed as the primary culprit. While much of that increase has been motivated by profit, a stunning statistic that few may know has also contributed to those price increases: insurance premiums on rental housing have increased on average by 40-50% since 2020.

The precipitous rise in premiums has a number of causes, including the increasing incidence of natural disasters due to extreme weather and a considerable surge in the amount of claims industry-wide. Lax maintenance standards, in conjunction with rising maintenance costs, has undoubtedly played a part in the inflated statistic.

These increases dampen investment, but there are ways multifamily homeowners can bypass some of the extra costs. By working closely with a solid insurance underwriter, apartment owners can analyze what items can be added or removed to limit the effect of the premium increases in their industry.

Changing Tides For Nightclubs

The Covid years were a very painful time for much of the service industry. While some restaurants were able to dampen the blow by shifting focus to takeout, bars and nightclubs were forced to either close up shop or whether the frequent storms of intermittent lockdowns.

Covid was, unfortunately, not the only societal force affecting the industry. Mass shootings have increased in frequency over the past few years, and bars and nightclubs have become a common target for both crimes of passion and hate.

While it is morbid to consider, many of these businesses can be held liable for having inadequate security or emergency escape options for patrons during an active shooter situation. Businesses that should never have to consider the possibility of a mass casualty event need to be aware that, if one were to occur, they could be held financially accountable for it.

Just like any other tragic accident might occur on their premises, insurance companies have extended their policies to include active shooter situations to help protect businesses from the chaotic world we now live in. Just like your business should be protected with everything from liquor liability to assault and battery coverage, active shooter insurance may prove the difference between your financial survival from a tragedy and complete ruin.