Do you own a successful company? Have you got it insured?
Similar to other types of insurance, business insurance is crucial for the smooth running of your company. It can rescue you out in emergencies and give you peace of mind that you are covered at all times. If you already have one and the business insurance rates are higher, you need to know ways to lower them.
Here are some factors that govern insurance rates. Let’s analyze them so that you know how to decrease your costs.
Factors that Influence Business Insurance Rates
- Your Property
One of the key factors influencing your business coverage is your property. As per the thumb rule, the more property you own, the higher your insurance will be. Even an insurance agent will have a look at the location of your business and the properties you own. If we talk about location, the neighborhood and business activities are evaluated.
Moreover, the agent will also have a deep look at the physical building you work at and examine its condition. For example, your premium will be on the higher side if your roof is in subpar condition, or your area is prone to stormy weather.
So, if you wish to lower your premium or costs, you may need to switch locations, carry out repairs, or outsource the risky tasks with another company. You cannot change your work, but you can certainly change where to work.
The liability of your business relies on the kind of work you are doing and how much you are doing. An insurance agent will determine how much you are doing by having a close look at your payroll and sales. Higher sales imply a higher liability. Carpenters, computer programmers, and hotels may have varying liability classifications for their policies.
Of course, you cannot control your sales, but you can control your premium by putting safety policies in check. Also, hiring experienced and trained employees can help to prevent putting your customers at risk.
- Workers’ Compensation
Workers’ compensation is mandatory in all states, except Texas. The premium depends on the job of your employees and how much you pay them. Similar to liability, your insurance agent will evaluate your payroll for this purpose.
If you wish to lower your costs, make sure to prevent accidents from happening. Also, you will need to train your employees thoroughly and set some ground safety rules to perform their job efficiently.
Make sure your employees wear protective gear. Keep a check on their activities. Replace faulty equipment or property that carries any chance of a mishap. Screen all potential employees by doing proper educational and employment background checks.
Business insurance rates are usually higher, but if you know the business insurance rate factors well, you can lower them down. We at Duane Weber can help you in focusing on your premium rates and finding you a way so that you don’t have to pay much. Get to know us here for more information.