Here’s how your business’s specific characteristics can affect its commercial insurance rates.
As a business owner, you know how important it is to secure the right insurance coverages. However, this might be the extent of your insurance knowledge. This means that you probably have a lot of questions regarding your business’s insurance. One of the most common questions that business owners have is how their insurance rates are determined. To clear things up for you, here are some of the factors that influence your commercial insurance premiums.
Certain industries are simply more inherently risky than others. For instances, businesses involved in the construction industry are generally considered higher-risk than businesses in the retail industry. Businesses that are involved in riskier enterprises will generally experience higher insurance rates due to their increased chances for injury, property damage, and liability issues.
The location of your company’s building or storefront will also influence your commercial insurance rates. For instance, if your business is located in an area prone to certain weather events (flood, earthquake, hurricane, etc.), it is considered at higher risk for sustaining property damage. This increased risk will translate into higher insurance costs. Additionally, if your business is located in an area with high crime rates, you should also expect your insurance rates to be higher due to the increased risk for vandalism and break-in.
Finally, your business’s claims history can also influence your commercial insurance rates. For instance, if you have filed multiple claims in the past few years, this indicates that your business is involved in risky business practices or operations. This, in turn, will drive up your insurance premiums. However, if your business’s claims history is very sparse, then you will likely have access to cheaper rates.
These are some of the factors that can affect your company’s insurance rates. Do you have further questions regarding your business insurance? Then direct them to the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. Contact us today for the insurance assistance that you need today.