There are numerous factors that can impact your business insurance costs, including the policy types you are considering and your business operations. Here are some of the most common factors that can affect the price of your policies:
Type of business or Industry: Different professions carry different levels of relative risk.
Number of employees: The cost of your insurance will depend on whether you are a sole proprietor or have numerous employees. Workers’ compensation insurance, in particular, is affected by your payroll, the number of employees, and the type of work or business.
Claim history: Insurance companies use certain metrics to determine a company’s level of risk, and an agency will likely ask for your insurance loss runs if you are applying for a new policy. One way to keep your claims to a minimum is to make sure that employees are properly and continually trained on safety protocols specific to your workplace.
Risk: While the type of business that you are in is the biggest determinant of risk, there might be other factors besides the level of risk for your employees. For example, if your company has a location that is frequented by the public, there might be risks associated with walkways, parking lots, or other issues with the physical premises that you might not have if your business isn’t frequented much by the public.