Our actuaries have determined our rates based on the type of business being insured, and the coverage being provided, as well as other factors which affect the risk. Examples of such additional factors for property coverage include whether the business property has a fire or burglar alarm system; the type of construction of the building insured; and the distance between the building insured and the nearest fire hydrant or fire station. Consideration of factors like these gets us to our final rates. We then apply the rates to limits being purchased to arrive at your property premium. A similar process is done to determine the rates for liability, which are applied to the square feet your business occupies, payroll, or gross sales depending on the class of business you operate to arrive at your liability premium. These property and liability premiums are then combined to determine the BOP premium quote.