Business liability insurance is the best form of risk management. Several policies are set to address the different risks a business can suffer from. All these policies are set to manage things like employees or customers insurance, fire damages, theft or insecurities among others.
This is one of the factors most businesses need to consider when it comes to charging premium rates. The location is crucially important because it involves things like security. Urban areas are often prone to high crime rates than the suburban locations. Urban areas are prone to theft cases, vandalism and even violent crimes against the business personnel and even customers. Businesses in urban areas often pay high insurance rates because they are vulnerable to more risks than those in small towns.
High traffic areas
Traffic areas are a must for most businesses. High traffic areas raise the cost of business insurance. This is because they increase the possibility of injuries like accidents involving employees of the company or business vehicles.
This is also another factor that determines the rate of premium charged. If your business is situated around risk prone business then you will have to pay a high premium rate. Businesses like liquor stores, high fire risk businesses, and fume producer are prone to risks and thus high insurance rates.
Type of structures and surrounding structures
New constructions built with modern design have lower liability rates. This is because they consider accessibility and risks that can be associated with the building. Unlike new premises, older premises which are prone to risks of the building collapsing causing injuries to employees and customers or even fire breakouts often have high liability rates.
Type of insurance
There are different packages of business insurances. They are those that affordable and those that cost much more; in other words expensive. The cost of premium rate will only depend on the kind of insurance you choose for your business.
Type of business you run
Small businesses do not cost much to be insured unlike large businesses. This is because large businesses have more employees, assets that are prone to risks hence their liability rates are high. The vice versa applies to small businesses.
Accessibility to emergency services
It answers questions like: Is the emergency dial reachable from your business premises? How long does it take for your emergency to be responded to? If there is ease of accessing medical facilities in your business premises then you do not have to pay highly for your business insurance. Lack of accessibility to medical services raises the liability rate.
Things like floods, earthquake, landslides and tsunamis often increase the rate of premium to be paid. If your businesses are situated in areas prone to such risks then you will incur high business insurance costs.
The properties you lease or that have been leased to your business have higher requirements to be met and thus require coverage for risk in case any damage has been caused to them. The higher the number of lease requirements the higher the insurance cost.
This post was sponsored by Miles Wiseman