How much does business insurance cost?

The amount you will pay to insure your business will vary dependent on several different factors:

1. Type and size of business. Small businesses can be insured for much less than a large company with many employees and a wide range of risks.
2. Your building. Typically, the newer your building, the more likely it has been built to meet current codes and safety requirements, which can help lower your rates. Fire resistive structures such as masonry will generally have a lower insurance premium than a wood frame structure.
3. Your location. Your proximity to public fire protection, as well as the incidences of theft in your neighborhood both factor into your insurance premiums. If you are located in a coastal area or an area prone to flooding, this will all affect the amount of premium you pay.
4. The way you operate. What is your attitude towards fire prevention and employee training? The best property risks are those that have pride of ownership.
5. Your history. The fewer claims you’ve filed, the lower your premium.
6. Your employees. Do your employees drive on the job? Do they use dangerous equipment?
7. Lease requirements. Depending on your lease, it could require that you carry higher liability limits, which means a higher premium.
8. Neighboring businesses. The construction of the buildings, occupancies, outdoor exposures, and distance between the buildings all affect your insurance rates.
9. Type and amount of coverages. When you add endorsements to your policy you receive more protection, but you must also pay for that protection. The more coverage, the more it will cost to insure your business.

With so many factors affecting the cost of insurance, it may seem like you have no control over what you pay. However, there are several things you can do to help control and even reduce your insurance premium.

• Increase your deductible. Some companies provide significant cost savings on your premium if you are willing to take a higher deductible.
• Package your policies. It is usually much easier and economical to place all your policies with one carrier. Most carriers offer discounts for bundling coverages.
• Review your coverage annually to make sure you’re not paying for coverages you no longer need and you have the correct coverage for your operations.
• Develop a risk management plan to help prevent and reduce the impact of an accident that may lead to a loss to your business.
• Implement safety measures such as a security system, sprinkler system, inspections, and safety training.

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The policy coverages described above are in the most general terms and are subject to the actual policy exclusions and conditions. For specific coverage details and policy exclusions, refer to the policy itself or contact a Central Agent.