Ep. 653 Insurance Costs Are Rising. So Are The Costs Behind Every Claim

Rancho Mesa’s Marketing & Media Communications Specialist, Megan Lockhart sits down with Account Executive Kyle Dunlap to talk about how the rising cost of insurance is affected by the rising cost of doing business.

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Director/Host: Megan Lockhart

Guest: Kyle Dunlap

Producer/Editor: Vanessa Hanna

Music: "Home" by JHS Pedals, “Breaking News Intro” by nem0production

© Copyright 2026. Rancho Mesa Insurance Services, Inc. All rights reserved.

Transcript

Megan Lockhart: You’re listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive.

I’m your host, Megan Lockhart, and I’m joined by Kyle Dunlap, Account Executive with Rancho Mesa.

Today, we’re going to talk about how the rising cost of insurance is affected by the rising cost of doing business.

Kyle, welcome to the show.

Kyle Dunlap: Thanks Megan appreciate it.

ML: So this topic you recently wrote an article about. And you mention that many business owners view insurance premiums as a standalone expense. Why is it important to look beyond the premium itself and understand the underlying costs that drive insurance claims?

KD: Great question. I think business owners already understand the concept within their own operations, right? If fuel goes up, other labor prices go up, equipment costs can go up, and their pricing really has to reflect those changes or those increases. The same thing happens with claims, right? So if five years ago, a claim cost you $10,000 because of medical rates, right? Today's day, it's not going to be the same. Just like gas prices, just like labor prices, those claim costs go up. and they're affected across the board. Another great example, if a truck is involved in an accident, right, parts, labors, repair times, they're all more expensive today than they were five years ago. Replacing it costs more than it did once upon a time.

ML: Yeah that makes sense, so when executives ask, "Why did my insurance go up?", what's the more valuable question they should be asking, and how does that change the conversation around risk management?

KD: I think the better question is what factors are increasing the overall cost for the risk of my business? That changes the conversation from something that is actually happening that you can control. For example, a company that has fewer injuries, vehicle accidents, and fewer overall costs for those accidents, they're generally going to have a much stronger position over time than a similar company that's struggling with claims. Even when market conditions are challenging for everyone, businesses that manage those risks that they can control effectively tend to have more options and better outcomes come renewal time. It shifts the discussion away from blaming the insurance market and more towards asking what can we do operationally to put ourselves in a better position, right? When fuel costs are increased, maybe you don't have as many stops. Maybe you have the supply house, drop ship things to your site, right? You make those operational changes to be able to, you know what I mean? combat those and have a healthy bottom line, right?

ML: Yeah, that makes sense. So as you mentioned, given the rising cost for fuel, repairs,, repairs, medical care, labor, and equipment, what are the most effective actions companies can take to manage insurance costs when many of the economic factors are outside their control?

KD: That's really where companies should focus their energy on things that they can control, not necessarily things they can't control, right? Healthcare costs, supply chain issues, no one can control that. But what business owners can control is the organizational pieces to stay committed to safety, just become a better business, right? Invest in training, maintain their equipment, hold people accountable, and create a culture where employees are looking out for one another. I always tell my clients that the best claim is the one that never happens. Every injury prevented, every accident avoided, and every near miss that gets corrected before it becomes a loss really helps protect both the employee and the company's bottom line. That's where businesses can have the greatest influence regardless of what's happening in the economy.

ML: Great advice. Great advice. So Kyle, if listeners have questions about their commercial insurance, what’s the best way to get in touch with you?

KD: Best way to reach me is my office phone,  (619) 798-2822 or by email kdunlap@ranchomesa.com

ML: All right. Well, Kyle, thanks for joining me in StudioOne™.

KD: Thanks, Megan. Really appreciate you having me.

ML: Thank you for tuning in to our latest episode produced by StudioOne™. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter.