From our Desk: Business Insurance 2025 Recap, 2026 Market Outlook & What it Means for Your Business
- Will Cabistan
- 5 days ago
- 6 min read
Updated: 3 days ago
As we close out 2025, I want to take a moment to reflect on how far Fox Commercial Insurance Services has come and share sincere gratitude for our clients, partners, and community. This has been a year of transition, one where we’ve seen both opportunities and challenges in the commercial insurance marketplace, especially here in California.
We’ve walked alongside business owners across many industries managing rising costs, worked with trucking companies navigating evolving underwriting standards, and helped property owners understand their risk in a dynamic catastrophe environment. Through it all, your trust has been our driving force.
As we look toward 2026, it’s clear that the commercial insurance market will continue to evolve , shaped by shifting pricing trends, claims dynamics, and risk environments. Below is our detailed industry recap and outlook to help you make smarter coverage and risk management decisions in the year ahead.
— Will Cabistan Founder, Insurance-Fox : Fox Commercial Insurance Services
1. 2025 Commercial Insurance Market: Key Trends You Need to Know
Moderation in Commercial Insurance Pricing
After years of aggressive rate increases, commercial insurance pricing moderated significantly through 2025. According to the Willis Towers Watson (WTW) Commercial Lines Insurance Pricing Survey, U.S. commercial insurance rates increased by 3.8 % in Q3 2025, continuing a downward trend from earlier in the year (3.8 % in Q2 and 5.3 % in Q1). This marks a notable shift from the 6.1 % year-over-year increase recorded in Q3 2024, and reflects an easing of pricing pressure across many commercial lines — including commercial property and other casualty segments. GlobeNewswire+1
While the overall figure still shows a modest increase, this moderation is meaningful because it signals carriers are responding to increased market capacity and greater competitive tension, especially for well-underwritten and lower-risk accounts. Lines such as workers’ compensation, directors & officers liability, cyber, and commercial property even recorded price decreases in Q3 2025 according to the same WTW data
This moderation reflects increased competition and capacity in the marketplace — especially for well-underwritten risks with strong loss control practices.
Commercial Auto & Trucking Insurance: Ongoing Pressure from Liability Costs
For trucking operators and fleets, the commercial auto market remained challenging throughout 2025.
Industry analyses - including from CBIZ and Commercial Carrier Journal — continue to highlight the influence of "social inflation and nuclear verdicts" (cases exceeding $10 million) as key drivers of liability cost escalation. Litigation trends, rising jury awards, and higher defense expenses have pushed underwriting discipline tighter, particularly in transportation and trucking classes of business. CBIZ+1
Even in a moderation environment, commercial auto liability and umbrella coverage remain harder to place competitively compared to property or some casualty lines.
2. Commercial Property Insurance in 2025: A Tale of Two Markets
Softening for Standard Accounts, Hardship in High-Risk Zones
While general commercial property pricing eased for many accounts in 2025, the picture on the ground varies widely by geography and risk profile:
In many parts of the U.S., competition and capacity growth brought relative pricing stability or modest decreases in commercial property rates for low-cat exposure accounts. WTW
However, climate volatility and catastrophic losses continue to influence underwriting appetite and terms, especially in wildfire and other high-hazard zones. A recent Insurance Business Magazine report notes that escalating climate risks and rising claim costs kept underwriting pressure intact for high-risk properties, and in some cases, prompted stricter terms or higher premiums. Insurance Business
In California, where wildfire exposure and rebuilding costs remain acute concerns, this duality , cost stability for some, upward pressure for others continues to shape policy availability and pricing.
3. General Liability Insurance: A Growing Focus for Small Businesses
Liability Trends Affecting Small Businesses in 2025
For small businesses — including retailers, restaurants, wholesalers, auto shops, contractors, and service providers — general liability insurance remained a critical and increasingly scrutinized coverage line in 2025.
Key trends: ✔ Increased claim severity, driven by higher medical costs, litigation expenses, and third-party injury claims ✔ Tighter underwriting standards, especially for businesses with foot traffic, customer interaction, or operational hazards ✔ Greater emphasis on risk controls, safety procedures, and contractual risk transfer.
Even businesses with few or no claims saw rate pressure or coverage restrictions if their industry class was impacted by broader liability trends. This makes proper classification, exposure review, and policy structure more important than ever heading into 2026. included:
4. What These Trends Mean for Your Business
Here are the practical implications for trucking businesses and commercial property owners:
For Trucking Companies
✔ Safety and documentation matter more than ever. Insurers are increasingly scrutinizing telematics, driver training programs, and safety metrics when pricing coverage. ✔ Expect ongoing upward pressure on auto liability and umbrella limits if your loss history or fleet profile doesn’t clearly demonstrate strong risk controls. ✔ Premium relief is most likely for fleets that can validate risk management programs and harness data that differentiates their risk profile from industry averages. Commercial Carrier Journal
For Commercial Property Owners
✔ Well-maintained, low-cat exposure properties may benefit from a softer pricing environment. Businesses with strong loss prevention and risk mitigation (e.g., fire suppression, security systems, updated building materials) may see more competitive terms. ✔ Properties in high-risk zones, such as California wildfire areas, may see less pricing relief due to ongoing catastrophe costs and underwriting scrutiny. Insurance Business ✔ Documentation of risk control and replacement cost accuracy remains a critical part of the renewal preparation.
For Small Businesses & General Liability Risks
✔ Businesses with customer interaction should expect continued underwriting scrutiny and moderation in price ✔ Clear safety procedures and claims history matter more than ever ✔ Proper coverage structure helps avoid gaps when claims arise from everyday operations
5. 2026 Market Outlook: What’s Ahead
According to Fitch Ratings and other industry forecasters:
Overall Market Conditions
Commercial insurance pricing is expected to remain relatively stable but not drastically drop, with continued moderation compared to prior hard market years.
Liability-driven coverages, including general liability and auto-related risks, may still face pressure due to claims severity and litigation trends
U.S. property and casualty pricing is shifting into a softer cycle, but with persistent risks from casualty claim severity and liability lines. Beinsure
Premium Growth Forecasts
Industry forecasts indicate moderate yet stabilized premium growth continuing into 2026 as market dynamics balance improved capacity with lingering severity pressures in certain lines. Commercial property, in particular, is expected to remain competitive for lower-risk accounts, while liability-linked coverages could still see upward pressure.
Risk Factors to Watch in 2026
Social inflation and litigation trends remain a catalyst for continued liability cost pressures, especially in trucking and general liability classes.
Climate and catastrophe activity will continue to influence where carriers deploy capacity and how they underwrite high-risk properties.
Economic conditions and construction costs could impact replacement cost estimates and valuation challenges for property underwriting.
6. How Fox Commercial Insurance Services Can Help Your Business in 2026
At Fox Commercial Insurance Services, we specialize in helping businesses navigate California’s evolving commercial insurance landscape with strategic guidance, strong carrier relationships, and carefully structured submissions.
While we are well-versed in commercial trucking insurance and commercial property insurance, we also proudly work with a wide range of small and mid-sized businesses across many industries, including:
Wholesale and distribution businesses
Retail stores and shopping centers
Restaurants, cafés, and food service operations
Auto repair shops, body shops, and dealerships, including garage liability and garagekeepers coverage
Contractors and service-based businesses
Core Commercial Coverages We Place
We regularly help clients secure and optimize coverage such as:
General Liability Insurance
Workers’ Compensation Insurance
Commercial Auto & Fleet Insurance
Trucking Liability & Physical Damage
Commercial Property Insurance
Garage Policies (Garage Liability & Garagekeepers)
Umbrella & Excess Liability
Cyber Liability
Our approach goes beyond simply quoting policies. We focus on risk presentation, underwriting strategy, and long-term planning, ensuring your business is positioned competitively whether the market is softening or tightening.
Why Businesses Choose Fox Commercial Insurance Services
✔ Deep understanding of insurance market challenges
✔ Experience working with both standard and non-standard markets
✔ Hands-on guidance through renewals, coverage changes, and market shifts
✔ A relationship-driven agency that advocates for you with carriers
As we move into 2026, preparation and expertise matter more than ever. Whether you operate a fleet, own commercial property, or run a small business, Fox Commercial Insurance Services is here to help you secure coverage that supports your growth and protects what you’ve built.
👉 Ready to review your coverage or get a quote for 2026? Contact us today and let’s build a smarter insurance strategy together.
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