INSURANCE COSTS affects future rates . Whether they are frivolous or genuine , business insurance claims can be very damaging for any type of business over a long period of time . One of the first things your insurer will request when you submit your application for business insurance is a background check , including claims history . If you have open claims against your company , you can still get approved for business insurance , but you should expect to be offered a higher premium . This is because the more claims you file , the riskier your business is perceived . Insurance companies view a high-claims history as a risk to them , which is why it is more expensive for certain businesses to obtain affordable coverage rates .
NUMBER OF EMPLOYEES
Professional Liability Insurance and General Liability Insurance are most commonly affected by the number of employees at a business . Some insurers will use the number of employees you have as a measure of how big your business is and , therefore , the amount of risk involved .
ANNUAL INCOME
One of the largest contributors to the cost of commercial insurance is annual income . The more lucrative and successful a business is , the more it will have to protect in the event that something threatens the company . High sales also means you likely have more customers and more risk exposure . For this reason , the higher the yearly income of the business , the higher the insurance premiums will likely be .
BUSINESS LOCATION
The location of your commercial business plays a significant role in your business insurance rates . For instance , if your company is located somewhere that is more prone to extreme weather conditions such as tornadoes , floods , or severe snowstorms , then your business is potentially at a higher risk of structural damage . As a result , insurance companies may only be able to offer higher insurance rates . Additionally , a business that is located in a high-crime area will be subject to more expensive insurance premiums because of the greater risk of theft or vandalism .
FACTORS TO CONSIDER TO REDUCE COSTS Your Deductible
A deductible is the amount of money that you are responsible for paying toward an insured loss . One way to reduce the cost of insurance is to go with a higher deductible because it allows your insurer to reduce the cost of their policy . However , this can be a mistake if you have a high potential for risk . If an accident does occur , it means that you are going to be required to pay a lot more money out of pocket . Be sure you speak with one of our brokers to thoroughly weigh your options and risk factors before deciding on what type of deductible you want to go with .
Type Of Services Offered
To minimize their risks , insurance companies always take the types of services you perform into consideration when determining your premium . Electricians , stunt professionals , firefighters , and security guards ( to name a few ) are all classified as “ dangerous jobs .” If you employ these types of workers , you should expect to see a higher premium because insurers are not going to take these risks lightly . Chat with your broker to see if it makes sense to take on certain contracts if they contain higher-risk jobs . For example , snow removal is an expensive insurance coverage because of the amount of slip-and-fall lawsuits . If the revenue generated from snow removal is minor , it may not make sense to offer that type of service .
Miller Insurance Brokers will find business insurance policies that are designed to ensure the protection of business owners as well as their business . We are customer-solution based and committed to understanding your business to find coverage solutions that work for your needs . Contact us for a no-obligation , free commercial business insurance quote . +
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