Having the right general liability insurance for your business is critical in ensuring that your coverage makes the most sense for your unique business (and that you’re paying for what you need, minus the bells and whistles).
Here are 5 factors to consider that are driving your insurance premium:
Each industry has an associated level of risk. So if you are engaged in relatively high-risk activities (e.g., high-rise window cleaning) you should expect to pay more than someone that offers resume writing services.
- Revenue and number of employees
The more revenue and employees you have, the greater the chance of something going wrong. So larger businesses, in general, pay more than smaller businesses.
- Types of insurance policies
Each insurance policy covers different types of risks. The ones protecting you from higher risk outcomes would cost more than more basic policies.
- The number and locations of your offices/operations
Some geographic areas are more prone to theft or natural disaster. If you are located in such an area, your insurance cost would be higher. Also, the more locations you have, the more exposed you are to risks, and therefore the higher your insurance cost.
- Your prior claims
Sadly, the more claims you file, the higher your insurance premiums.
By knowing what factors influence your general liability insurance premium, you can make a more informed purchasing decision. Also, by taking the price of insurance as an indicator of risk, you can make changes in your business to manage your risk.
You should consider these 4 steps to buying small business insurance to reassess your current coverage.
Interested in learning more about the risks associated with your business and understand the right protection for it? Call us toll-free at +1-888-654-6030 to speak to one of our brokers or easily request a quote online.