What Factors Increase Commercial Insurance?

Commercial insurance is imperative for businesses. You could still pay more even after you find and settle on a policy that works for you and others involved. Several factors can increase commercial insurance premiums, including:

1. Business type and operations: Certain industries and types of businesses may be considered higher risk than others. For example, a construction company may have higher premiums due to the risk of property damage or liability claims. Similarly, a business with a high employee turnover rate may have higher premiums due to the increased risk of workers' compensation claims.
2. Location: The location of a business can also impact insurance premiums. Areas prone to natural disasters, such as hurricanes or earthquakes, may have higher premiums due to the increased risk of property damage. Urban areas may also have higher premiums due to increased crime rates and other risk factors.
3. Business size and revenue: Larger businesses may have higher insurance premiums due to the increased exposure to risk. Additionally, businesses with higher revenues may have higher premiums due to the potential for larger liability claims.
4. Claims history: A business's claims history can also impact insurance premiums. Businesses with a history of frequent or large claims may be viewed as higher risk and may have higher premiums.
5. Coverage limits: The amount of coverage a business chooses can impact premiums. Businesses that opt for higher coverage limits may pay higher premiums than those that choose lower coverage limits.
6. Deductibles: The deductible is the amount that the business must pay out-of-pocket before insurance coverage kicks in. Businesses that choose lower deductibles may pay higher premiums than those that choose higher deductibles.
7. Safety and risk management: Businesses that take proactive steps to manage risk and promote safety may be eligible for lower insurance premiums. This may include implementing safety protocols, training employees, and regularly maintaining equipment and property.

Commercial insurance premiums are determined by a combination of factors related to the business, its operations, and its risk profile. Business owners should work with an experienced insurance professional to assess their needs and determine the best coverage options.