Berkshire Hathaway Direct is seeking an average rate increase of approximately 15% for its THREE small business insurance program in Kansas.

The filing, submitted on September 8, would affect 184 policyholders representing approximately $1.7 million in written premium. The changes are proposed to take effect on October 1, 2026, for new and renewal business.

Business liability rates would increase by 22.8%, including a 30.7% increase for general liability. Property rates would rise by 9.6%, while commercial auto rates would increase by 4.9%.

The largest percentage change applies to garage keepers liability, where the filing shows an increase of roughly 400%, although the coverage accounts for less than $4,000 in current premium.

Berkshire Hathaway said the ultimate loss and ALAE ratio for the business liability line exceeded its 62.5% target on a weighted basis from 2023 through 2026, reaching 110% in 2024. The insurer calculated an indicated increase of 32.6% for the line but selected a lower increase.

“We are prepared to lose policies rather than continue writing business we expect to run at a significant underwriting loss.”

Individual policy changes could range from a 20% decrease to an increase of approximately 179%. The program’s rules would cap renewal premium at 200% of the expiring premium unless the increase results from a change in exposure or insured value.

THREE packages property, liability, workers’ compensation and commercial auto coverage into a three-page policy. It entered Kansas in May 2019.