Oakland small businesses chafe as insurance rates spike
Bay Area businesses are becoming increasingly frustrated by skyrocketing insurance rates.
Tina Johnson has owned and operated Mama T's in Oakland for 16 years.
Every month, she calls to pay her insurance. Usually she pays extra, to reduce her bill the next month, but recently she was stunned by what she heard on the phone.
"When I asked he how much credit I had and she told me none," said Johnson. "She said it was $210, in the past I had been paying $150."
That's about a 40% increase to her monthly bill, making her tight budget even tighter.
"People say they live paycheck to paycheck, I'm living month to month, hoping I bring in enough money to pay the bills," said Johnson.
Johnson is not the only one seeing her bill go up - it's happening across the Bay Area.
The Golden Gate Restaurant Association told KPIX that insurance has become a huge cost issue; some businesses have even been dropped from their insurance plan entirely.
Janet Ruiz, with the Insurance Information Institute, advises business to be shopping annually for the best option.
"Every year they should be looking at their renewal when it comes through, do I have the right coverages? Is it getting more expensive? Sometimes, you get a non-renewal letter because the insurance company isn't insuring as many bars or restaurants," said Ruiz.
In general, Ruiz said California is seeing an increase in insurance rates because historically it's been lower than some states. Additionally, insurers are seeing potential issues from local issues like wildfires and property crime.
"We are seeing higher crime rates, more theft, those type of things," said Ruiz.
Just a block away from Mama T's, World of Braids owner Sheron Campbell says her insurance hasn't gone up yet. Nevertheless, she's concerned it will happen - especially after someone broke the business's front window.
"These two big old rocks were thrown through my front window and my front door," said Campbell.
Johnson has only used her insurance once in the 16 years that she's been in business, but she's going to continue to pay for it. And as for relocating, she doesn't have plans for it any time soon
