Creativity holds the key to placing risks in the difficult market for dealer open lot coverage. Capacity remains very tight as some markets have exited altogether while the remaining ones are generally willing to offer only smaller limits. Few excess and surplus carriers are showing an appetite for the risk. Out of necessity, many auto dealers are taking lower limits and higher deductibles to fit coverage within their budgets. It’s a market where experienced brokers really make a difference.

The severe hurricanes and record-breaking wildfires that have caused widespread damage in recent years have heightened concerns that a changing global climate may be leading to more frequent and extreme natural catastrophes. Among the possible effects of climate change, stronger and slower-moving hurricanes may bring more devastating winds, higher storm surge and greater inland flooding; hotter temperatures can dry out vegetation and raise the risk of wildfires, particularly as people move into formerly wild areas. Those changes may lead to greater risks for property owners and higher-than-expected claims for insurers.