Having the right insurance is critical to ensuring that your coverage makes the most sense for your 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 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.
To learn more about the risks in your business, reach out to us at www.zensurance.ca
Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business. You