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Common Factors That Impact Commercial Insurance Policies

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Commercial Insurance by Reata Insurance Group

Commercial insurance helps protect your business from various risks. It’s important to remember that insurance costs vary according to the type of business. Factors such as the size of your business, the industry that you operate your business in, and other circumstances can impact the cost of your coverage. Here is an overview of different factors that impact business insurance costs.

  • Commercial Insurance Types

    The type of commercial insurance policy that you have may impact your insurance costs. General liability coverage is not as expensive as purchasing umbrella insurance. You also have the option to bundle your coverage through a Business Owner’s Policy (BOP). A BOP allows you to cover any damage to your property, as well as protect you in liability disputes for one price. Purchasing a BOP is an efficient way to help you save money while still enjoying full coverage.

  • Policy Limits

    If you opt for a policy with higher limits, you’ll have an added layer of protection if something happens. The only downside is that choosing a policy with a higher coverage limit is expensive. If your business is considered risky, you may need extra coverage. The important thing is finding that balance. You do not want to overpay for coverage, but you don’t want to leave a gap either.

  • Business Size

    When researching commercial insurance policies, remember that the size of your business is an important factor. The size and location of your business have an impact on business insurance costs. If you have a large business, you’ll need more coverage to fully protect your property and inventory. Your liability coverage is also impacted, as you have a higher risk of accidental injuries.

  • Deductible

    Your commercial insurance deductible is the amount that you must pay out of pocket before your insurance coverage takes over a claim. If you have a high deductible, your business insurance costs will be lower. If you have a lower deductible, your premium costs are higher. If you opt for a higher deductible to reduce your premium costs, you’ll have to deal with significant out-of-pocket expenses if an accident happens.

  • Business Location

    Business insurance costs vary greatly based on the conditions in which you are working. If you are operating in an area prone to severe weather, you may need extra coverage such as flood insurance to fully cover your business. You can also choose to move locations to save money on your policy.

  • The Industry

    If you are operating your business in an industry with a lot of potential hazards, you’ll have more expensive business insurance costs.

  • Your Employees

    Your employees are the foundation of your business. That’s why you need workers’ compensation insurance. Workers’ compensation helps you support your employees by providing medical coverage if they are injured on the job. It also prevents potential litigation over a workplace injury. You can add professional liability insurance to cover your business if one of your employees causes property damage. The more employees you have, the higher the risk of something going wrong. You need enough coverage to be prepared for any situation.

  • Number of Claims

    The number of claims you have had impacts your commercial insurance coverage. The claims that you process, as well as the claims made against you, can impact your insurance costs. The more claims, the higher the risk you are perceived to have by the insurer. As such, your coverage may be expensive.

Do not forget to look for discounts while researching commercial insurance policies. For all of your commercial insurance needs, contact your local team at Reata Insurance Group today. We can help you secure reliable coverage in Texas that suits your needs and budget.

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