Various factors determine the cost of your general liability policy. Insurance companies tend to group into high-risk and low-risk classes. The latter enjoy multiple benefits like discounts and subsidized rates, while the former may be charged significantly higher.
Here are some of the factors that are considered before determining your premium:
Type of Industry (a construction company is a high-risk business and will be charged more than a consulting firm)
Years of experience (if you’ve had several successful years in business with minimal damages, you may be seen as low-risk)
Location (high-risk areas e.g., flood zones might result in increased insurance premiums for policyholders)
Size (it’s obvious that the larger the company, the higher the risks)
Building condition (an old building may attract higher rates compared to a fairly recent one)
Policy details, like coverage limits and deductible costs (the higher your deductible, the lower your premium)
Insurance claims history (keep your claims low for affordable rates)
Yearly income (if your business has a larger annual income, it reduces your risk profile and insurance costs as well because then, you are better financially equipped to handle a crisis)