Cost Factors for General Liability Insurance
- Premises Size and Condition
The larger your business location, the more opportunities there are for claims to be made. This can increase your general liability premium costs. The condition of your property also plays an important role in determining the cost of your general liability policy. Newer buildings will often draw lower costs. This is because updated facilities are often safer and generally in better shape.
- Business Industry
Insurance policy premiums are affected by the risk profile for your industry and your specific business operations. Typically, the more hazardous the industry, the higher the premium costs. Similarly, businesses that involve operating heavy machinery have a higher risk profile than that of an office.
Cost Factors for Workers’ Compensation Insurance
- Business Industry
As with general liability, your business industry greatly determines the cost of your workers’ comp premium. Businesses that are in more dangerous industries will often pay more.
- Payroll Size
Workers’ compensation pays benefits to employees based on a percentage of their salary. Because of this, payroll size greatly influences the cost of workers’ compensation insurance.
- Claims History
The claims history for a business may impact their WC premium. Businesses with few claims will often get a discount and those with more claims than are typical will have higher premiums. The logic being that if a business has few workers’ comp claims made against it, it is likely that the business operates more safely than similar businesses.
Cost Factors for Professional Liability Insurance
- Employment Status and Number of Employees
Usually, businesses with more employees pay higher premiums for professional liability insurance. Also, full-time employees cost more to insure. This is because they spend more time in the office and are therefore more likely to be a factor in a work related accident.
- Severity Potential
Businesses that offer expensive services or handle high value assets or sensitive information, typically pay more for professional liability. This is because of the greater potential for expensive claims. For example, financial institutions that handle million-dollar accounts will most likely pay more for professional liability coverage than a wedding photographer might.
Cost Factors for Commercial Auto Insurance
- How and Where You Drive
In a nutshell, the more time you or your employees spend on the road, and the more hazards present on the roads that you’re traveling, the more you pay for commercial auto. Cities usually have more claims than rural areas. This is because there are more drivers, traffic, thefts and vandalism in cities. Businesses that do a lot of driving in urban areas typically pay more for commercial auto insurance.
- Driver Demographics
Demographics play a large part in determining commercial auto premiums. For example, young male drivers are the most likely to be involved in a claim and can drive up premiums. Although demographics do contribute to cost, they have less of an impact when drivers are over the age of 25.
- Type of Driving and Vehicle
Insurance rates differ depending on the type, make and model of the vehicle and this can affect your commercial auto premium. Typically, more expensive vehicles draw higher premium rates. Also, the type of cargo you transport can affect your commercial auto insurance costs. Transporting hazardous waste and other materials can also increase costs.
- Driving Record
As with personal auto insurance, driving records can impact the cost of your premiums significantly. Insurance companies will consider the experience of the drivers covered under your commercial auto policy. A clean driving record is often a sign of good driving habits. The better your driving habits, the lower your commercial auto premiums may be.
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About Fairway Insurance Advisors
Fairway Insurance Advisors provides auto and homeowners and other personal insurance coverages, as well as business or commercial insurance to all of Georgia including: Roswell, Atlanta, Alpharetta, Johns Creek, Cumming, and Suwanee. We work with consumers, business owners and mortgage professionals to craft fair, reasonable programs of insurance.
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Fairway Insurance Advisors is licensed in Georgia, North Carolina, South Carolina, Alabama, Virginia, Florida, and Tennessee. www.fairwayinsuranceadvisors.com