What affects my business insurance costs? A good New Year’s resolution can be to open your own business. Start walking the path of financial freedom, using your professional skills. When starting a business, one of the doubts that comes to light is the cost of commercial insurance. What factors influence your costs?
- The type of industry
Business risk is associated with the type of industry in which it is carried out. If you have a roofing company with several employees working at heights, near power lines, and moving from one place to another, it is not the same risk as if you have a telemarketing company.
- Number of employees
The cost of your business insurance policies will depend on whether you are a sole proprietor or have employees. In particular, workers’ compensation insurance depends on the number of employees in the company. The more employees, the more you pay.
- Claims history
If your company has made few insurance claims, it is likely to be perceived as low risk. But if you’ve had multiple claims, that could increase your premium costs. One way to keep your claims to a minimum is to make sure employees are properly trained on the specific safety protocols for your workplace.
The risk depends on the type of activity carried out by the business. A kitchen is not the same as an office. But other factors influence such as the influx of the public if it uses the business facilities, elevator, parking, stairs, or corridors. All of this is analyzed to determine the risk.
- The amount of coverage
The amount of coverage has a direct impact on the commercial premium. A million dollar policy will surely cost less than a two million dollar policy. In some businesses, operating licenses require a certain minimum coverage.
Finally, when it comes to making commercial insurance for your business, seek the help of a specialized Univista Insurance agent who knows the type of coverage you would need to protect your business. That way, you won’t overpay, but you won’t leave any important area of your business unprotected either. What affects my business insurance costs?