When you’re buying Atlanta business insurance, there are a lot of different factors to consider. Insurance will help you protect your business, and it’s a big part of your risk management plan – your keep-the-doors-open-and-don’t-go-bankrupt plan. But the question in your mind might be how much does business insurance cost. The answer to that is a bit complicated. One business is not the same as the other, so each business will pay a different rate for their insurance. We’ll explain the factors that affect the cost of business insurance.
1. The size of your business.
Of course, the size of your business affects the price you’ll pay for your business insurance. The money your business makes, the number of employees you have, and the size of your physical premises all play a part in determining the cost of your insurance.
2. Your industry or type of work.
The type of work that your business does shows what kind of risk you face. Now, insurance companies really don’t care for risk. The riskier your line of work (in other words, the higher the chances of having a claim or someone getting hurt) the more you’ll probably have to pay for your insurance.
3. How many employees does your business have?
If you employ three or more employees, you’re required by Georgia law to hold workers’ compensation insurance. The amount of payroll that you have impacts the cost of that workers’ comp insurance. So do the claims that your business has (claims tend to make your insurance rates go up.) Again, the risks that your business faces impact your workers’ comp rates. The more risk your employees face, the more you’ll pay for your insurance.
4. The type of insurance that you need.
We mentioned before that each business is unique and will pay different rates for insurance. That’s partly because every business needs different types of coverage based on the type of work they do and other details specific to your business. Your business, for example, may need cyber insurance where other businesses do not. So, the different types of business insurance that you might need can influence your insurance cost.
5. Your past claims.
If your business has had claims in the past, you may have to pay a higher rate for your insurance. You’re more of a risk if you’ve had claims, so insurance companies will probably charge you more. That’s why it’s so crucial to prevent claims at your business by improving safety.
6. Your deductible.
Your deductible has an influence on your insurance rates. Your deductible is the amount you agree to pay if you have a claim before your insurance company will step in to cover the rest of the loss. Now, the higher your deductible, the lower your premium – you’re accepting more risk and you’re less likely to file a claim. So, raising your deductible is a way to save money on business insurance. The lower your deductible, the higher your premium. When you set your business insurance deductible, you have to consider how much you can comfortably afford to pay for a claim.
7. The location of your business.
Insurance companies will also take a look at your business’s location when determining your business insurance rates. Things like the area’s crime rate and your risk of natural disaster can have an impact on your premium.
8. Whether you qualify for a BOP.
A BOP, or business owner’s policy, is a package policy for small businesses. (A package policy is one that combines several coverages into one convenient policy.) BOPs usually include general liability, property, and business interruption insurance. If your business qualifies for a BOP, you could save on your insurance – it’s usually less expensive to buy these policies together rather than separately. So, your BOP-ability can be a factor in how much your business insurance costs.
As you can see, the cost of business insurance depends on many factors. Your business’s size, the number of employees, your deductible, and the type of work you do influence how much you’ll pay for your business insurance. The best way to really figure out how much your insurance will cost and to save money on your rates is to get business insurance quotes from a trustworthy insurance broker or agent. Shopping for your insurance rates will give you an idea of how much your business insurance will cost.
Speaking of getting quotes for your business insurance, we can help with that. We can shop for your rates and help you find the best price for the coverage you need. All you need to do to get quotes for your business insurance is fill out our online form or give us a call today.