Hi, my name is Elizabeth, and I have been running my own business for years. Over the years, I have had a lot of different businesses. I have had home-based businesses, a catering company and several brick-and-mortar shops. Through all of those financial excursions, I have had to buy different types of insurance policies. I have even had to make a few claims. As a result, I have learned all kinds of unusual things about business insurance. If you want to learn about insurance coverage and what your business needs to be protected, take a look at this insurance blog. Thanks for reading and enjoy!
With business insurance, you have the option of paying for your premiums as a lump sum or instalments spread over some time. How much you pay in premiums will depend on several factors, some of which are as highlighted.
1. Type Of Coverage
There are several covers, including business owner's cover, workers' compensation cover and general liability cover that fall into the business insurance envelope. You will have different options to choose from, depending on the insurance company you select.
That said, the more comprehensive your insurance cover, the higher the premiums. It's, however, very crucial to ensure that you are fully covered and not take any chances.
2. Industry/Niche
Some industries are more high-risk compared to others. It, therefore, should be no surprise that a business in these high-risk industries such as construction will part with more in business insurance premiums compared to low-risk businesses.
3. Business Location
For brick-and-mortar businesses, certain risks are inherent, depending on the location of the business. Think of a business that is located in a high-crime area and compare it with one in a location that is considered secure. The former will pay more in business insurance premiums because the risk is more significant.
Another factor that may drive how much you pay in premiums is the proximity of your business to a fire station and the general ease of access to your location in the event of a fire incident/emergency.
4. Building Features
How old is your building? What material is the structure made from? Is your business equipped with a working alarm system? Do you have an electrical or gas heating system? These are only a few of your building features that an underwriter will take into consideration when calculating your risk and by extension, how much business insurance premium you should pay.
5. Size Of Staff
How big is your workforce? How much you pay for the business insurance covers such as workers' compensation will depend on how many people will be covered under the policy. The bigger your team, the higher your premiums. You may need to review and update your policy to match changes in the size of your team.
Whatever your scale of operation, business insurance is not just another option to consider in today's business world. Getting insurance for your business will cost you money, and as outlined, several factors will affect the amount of premium you pay.
Share16 July 2019
