5 Factors that Help Determine Insurance Rates

Every business is unique, with its own set of challenges and advantages. Commercial property insurance policies can be as individual as the businesses they protect. Time and attention to detail are needed to ensure you get the product that will work best for your organization. Tailored coverage can prevent gaps and provide maximum protection without breaking the budget.

Here are a few of the factors that contribute to the insurance rates.

  • Location. Businesses in low-lying areas and those located on or near the coast may be at a higher risk from high winds and hurricanes.
  • Age. Older buildings can be more susceptible to some types of damage than newer buildings.
  • Probable Maximum Loss. This is especially meaningful if there are several structures on the same plot of land. What is the most that could be lost?
  • Replacement Value. This coverage is typically more than a policy for actual cash value as the damaged items need to be replaced with newer models.
  • Security and Security. Businesses located in high-crime areas or whose business involves daily risk, such as mining, roofing or farming, may pay higher premiums.

Many factors help determine the price of commercial property insurance. There are other products can be bundled with it to prevent coverage gaps, such as flood insurance and Business Owner’s policies. Organizations that specialize in insurance products for businesses can help you balance the coverage you need with the premium cost.