What Affects Liability Insurance Rates?

When you're shopping around for good business insurance rates, it can help to know the factors that affect your insurance rates. The averages that you find online may not match up to your actual rates since it's not a one size fits all experience. Here are some things that go into determining your rates. 

Your Location

Your business' location will affect your liability insurance rates. State laws affect the amount of money that a plaintiff is awarded for certain types of complaints in each state, so the insurer will decrease or increase your rates accordingly. This is why it's important to include your state in any rate quotes you receive. 

Your Business Type

Business liability isn't standard across industries. For instance, if you have a product that could affect users' health or safety, then you will be classified as a higher risk business than someone who sells textbooks. Industries like construction or health care will have their own standards for insurance, and you may require some professional liability insurance to operate under your trade license. 

How Fully You're Covered

Your basic general liability insurance may do in a pinch, but consider that you may want or need additional types of liability insurance to be fully protected. For instance, you might opt for product liability insurance that provides full coverage to claims against your business product. Commercial property insurance will help to protect your real estate investments and office equipment, leaving you less liable for damage caused on or to your business property. In order to get a great all-around business insurance package, it's important to speak with an experienced broker to discover the types of risks faced by your peers— these will point you in the right direction for getting good coverage. 

Your Plan Benefits

Plan benefits aren't standard across plans, either. Most general liability insurance will cover your costs if you are successfully sued, but other types of business insurance will require varying deductibles and contributions on your part. If you're looking to save money, finding insurance plans with higher out-of-pocket costs is one way to lower your monthly premiums. 

As you can see, the process of getting accurate insurance quotes can take a lot of research. Getting adequate and affordable business insurance can save you a lot of money in the long run, so be sure to speak with several experienced agents—like those at Western Reserve Group and other locations—and shop around to find the best rates.