Business Insurance

How much you pay for insurance depends on what type of business you run. The higher the risk, the more you’ll pay. Janitors, construction workers, and manufacturers have some of the highest rates for liability insurance because they deal with other people’s property. Your liability matters as well. The risk of incurring liability for injury to third parties is likely greater for a business that performs security services than for a business providing accounting services.

There are greater risks for property damage in high-hazard flood or wildfire zones than in places where weather-related incidents are less likely to occur. You can take certain steps to reduce risk for property damage from natural catastrophes, but if your business is located in one of these high-hazard areas, you’ll know that the cost of property insurance is likely going to be higher than it might be in other locations.

Do you run your business out of a rented space, or do you own the building? Each of these situations has its own risks.. If you rent space for a restaurant, you’ll likely pay more for property insurance than if you run a real estate business from a rented space. The risk exposures from restaurant equipment are greater than risk exposures in a general office environment. If you own the space for your restaurant, you’ll likely pay more for premiums than if you rent, because your coverage will typically insure against damage to the building itself, not just the contents inside.

Insurance companies will also look at your past claim history, if you have one. If you’ve been sued a few times for mistakes you’ve made in providing services, an insurer may consider this a trend that will continue and charge a higher premium for the higher risk presented. Or, if one of your delivery drivers has been in a series of accidents, an insurer may charge higher premiums for your auto policy than if all drivers on the policy had a clear driving history.