what factors affect your business insurance rates

How Is My Commercial Insurance Premium Determined?

Here are some of the factors that will affect your commercial insurance premiums.

As with any type of insurance, there are many different factors that are taken into consideration when determining your business insurance premiums. If you are a business owner, it’s natural to want to understand everything about your business insurance in Plano, Texas. Here’s what you need to know about how your commercial insurance rates are determined.

Risk

One of the major things an insurance company will take into account when determining your insurance rates is the amount of risk that your company faces. If you are involved in an industry that carries more inherent risk, such as construction, you should expect your rates to be on the higher side.

Location

If you operate out of a physical building, then the location of your workplace will also affect your business insurance premiums. For instance, if you live in an area prone to extreme weather conditions, this increased risk for damage will translate into higher insurance rates. Additionally, if your business is located in an area with high crime rates, your insurer will institute higher rates to compensate for your business’s increased risk for vandalism and break-ins.

Claim History

Your insurer will also look at your business’s claim history when determining your insurance premiums. If your company has filed several claims throughout the years, you should expect your rates to be on the higher side. This is because your extensive claims history has revealed your business or business practices to be on the riskier side.

These are some of the factors what will affect your commercial insurance premiums.  Do you have further questions regarding your business insurance in Plano, Texas?  Then don’t hesitate to contact the experts at Tri-Star Insurance/HUB International.  We are ready to assist you with all your insurance needs today.