Surviving the Tariff Turf Wars: How Agents Can Provide Insurance Solutions for Uncertain Times

We're halfway through the year, and one word has dominated the news and economic cycle—tariffs. Tariff hikes, ranging from 10% to a whopping 50%, impact the price of goods and services from our international neighbors on everything from our cars to our avocado toast. Everyone is feeling the pinch, especially our small businesses. For many of your clients, higher input costs mean slimmer margins or closures. As their trusted insurance advisor, you need coverage solutions that turn this turbulence into a competitive edge.

Tariffs raise the cost of imported goods and materials, disrupt supply chains, and cause delays for these industries:

• Retailers: These merchants are heavily impacted due to their reliance on imported goods, particularly apparel, shoes, electronics, and toys, from China, Vietnam, and Bangladesh. Retailers are experiencing mid-teens percentage hikes on shoes and clothing, forcing overall price increases of 15–20%. (Budget Lab, 2025) This leads to higher limits on stock and increased warehouse units that put pressure on business personal property and inland marine coverages.
• Food & Beverage Industries: Tariffs affect a wide range of products, including fresh fruits, vegetables, meats, grains, and dairy, leading to higher input costs and reduced export opportunities for American farmers. Tariffs on imported wine, spirits, coffee, and chocolate lead to higher consumer prices for storefronts, dining, and sellers. (National Business Capital, 2025)
• Construction & Building: Pressured by higher costs for imported steel, aluminum, lumber, and other building materials, those in the construction industry are battling tariffs on steel and aluminum at a rate of 25%, pushing Total Insured Value (TIV) limits beyond standard markets. (Tax Foundation, 2025)
• Manufacturing: Many manufacturers reliant on imported components face higher costs and supply chain disruptions, leading to increased costs for the consumer and business interruptions. (Tax Foundation, 2025)

As an agent, you're seeing firsthand how clients struggle with lost revenue and tighter margins. Admitted or standard carriers are reacting by raising premiums and shrinking capacity. That's where you adapt and do your best—by providing better insurance through Excess & Surplus (E&S) markets.

Why E&S Insurance Shines in Tough Markets

E&S insurance was designed for challenging times. E&S underwrites harder-to-place accounts in construction, coastal, and CAT properties, manufacturing, and benefits small businesses in these ways:

• Custom Policy Design: Tariff-driven delays and shortages can lead to potential business interruption claims for contractors, stores, and manufacturers. E&S carriers can craft endorsements, such as 'supply chain disruption' coverage for contractors or inland marine extensions for delayed shipments, so your clients stay protected even when suppliers stall.
• Higher Coverage Limits: As tariffs inflate inventory costs, retailers and restaurants now carry 20–30% higher stock values. E&S markets underwrite at replacement cost, so your clients won't face coverage gaps and will remain adequately insured.
• Flexibility for High-Risk or Unusual Exposures: Projects with skyrocketing material costs often exceed the admitted appetite. E&S underwriters fill the void for large-scale construction or niche operations (e.g., coastal CAT zones)

E&S Insurance Made Effortless with Pathpoint

Placing accounts with the E&S market may seem overwhelming, with numerous hurdles, paperwork, and additional steps. But Pathpoint makes it simple, easy, and faster. Pathpoint helps agents insure all kinds of businesses, from high-value properties to small manufacturers. Find custom, competitive coverage without the hassle. Pathpoint offers truly bespoke policies that directly address the increased risks associated with tariffs, including higher TIV limits of up to $10 million, inland marine coverage of up to $50,000, and other coverages such as theft, vandalism, and spoilage. Liz Dresher, Sales Director, shares, "We see everything from contractors with high payroll/revenues, diverse nature of operations to buildings with unique characteristics such as pawn shops or those building with a large number of units." Across eight verticals, Pathpoint offers custom coverage that directly addresses the increased risks from tariffs.

Agents looking for seamless solutions will find Pathpoint indispensable. With instant, intuitive quotes available on a single user-friendly website, agents can easily secure competitive, flexible premiums from multiple AM Best A-rated carriers in minutes. Pathpoint's built-in compliance and automation make binding efficient, error-free, and effortless. Additionally, Pathpoint's automated renewals include remarketing capabilities, ensuring policy limits align with current asset values influenced by tariffs, and conveniently adjusting deductibles or adding endorsements as needed. To ease financial burdens further, Pathpoint also offers flexible premium payment plans along with direct billing through PathPay.

Tariffs are Uncertain—Coverage Doesn’t Have to Be

While we can't control tariffs, we certainly can control how we counteract their economic impacts—with robust, flexible, and tailor-made insurance solutions through Pathpoint. Because when the going gets tough, the tough get smart and faster with their coverage placements. Ready to protect your clients in this tariff-challenged market? Visit www.pathpoint.com for instant, reliable quotes in uncertain times.

(2025, May 1). The Top 5 Industries Most Likely To Be Affected by Tariffs. National Business Capital. Retrieved June 2, 2025, from website

(2025, May 12). State of U.S. Tariffs. The Budget Lab. Retrieved June 2, 2025, from website

(2025, June 2). Trump Tariffs: Tracking the Economic Impact of the Trump Trade War. Tax Foundation. Retrieved June 6, 2025, from website