Insurance companies drop SODO businesses over crime rates

Crime causing insurance problems for SODO businesses

Businesses in Seattle’s SODO neighborhood report insurance providers are increasing rates, and in some cases, even refusing to issue policies altogether.

SEATTLE - Businesses in Seattle’s SODO neighborhood report insurance providers are increasing rates, and in some cases, even refusing to issue policies altogether.

Erin Goodman, Executive Director of the SoDo Business Improvement Area received these complaints. Goodman acknowledges that insurance companies calculate rates by considering several factors among them like the local police shortage, upticks in claims made, and a rise in crime.

"If you’re looking at Seattle right now as an insurer, we are a high risk," remarked Goodman. "Where we see [it] the most is related to businesses that have vehicles, that have trucks."

SODO is the city's industrial heart, a logistics hub right beside the port. Delivery drivers, auto retailers and trucking fleets line the streets. According to Goodman, gas theft from these trucks is astronomical. Criminals puncture exterior gas tanks to steal roughly $100 worth of fuel, a small sum, but the ripple effects are costly.

The repair fees range between $3,000–$5,000.

"Because this is so prevalent, and so common, the wait to get your truck fixed at some of the truck repair places is long," explained Goodman. "What I’m hearing from my businesses, they're not reporting these, because they don't want their insurance to go up."

According to Goodman, one small business told her they won't report anything under $30,000.

Pervasive catalytic converter theft is another issue. Lawmakers in Olympia passed a law recently intended to crack down on the illegal resale. It's Goodman's understanding that criminals have found a workaround.

"The metals inside of catalytic converters are so valuable, that we understand that stolen catalytic converters are out of the state [on] the same day," said Goodman.

Goodman tells FOX 13 News that her nonprofit organization lacks the resources to conduct a comprehensive study on the issue, so at this point, all they can rely on is word of mouth and anecdotal evidence. She is calling on the city to quantify the problem by conducting a survey.

"I think we will see action, but it takes time, and I’m not sure all of our businesses have that time," said Goodman.