Factors Affecting Commercial Insurance Policies

Factors Affecting Commercial Insurance Policies

If you have a business, then you know that having the right insurance policy in place is essential. However, you might also be worried about finding affordable premiums that offer the right coverage for your business. This is when a commercial insurance agent can step in and help you find the best policy for your current needs.

Your Commercial Insurance Premiums

Regular premiums are paid monthly for most insurance policies. Those premiums will vary depending on a number of factors, including which insurance company you choose to work with. Sometimes, you can find all the coverage you need in one policy and for one premium payment. However, there are some instances where you may need several coverage options that will require that you pay separate premiums.

Looking at your risk rating is just one way for an insurance company to determine pricing. The risk rating they give you is based on the likelihood of you filing a claim on your policy. The higher your risk of filing a business claim, the more you may have to pay out of pocket for your premiums.

Factors Affecting Rates

Another factor that affects how much you pay for insurance is the amount of coverage you decide to purchase. The more coverage you opt for, the higher the premium will be. In addition, you will have to keep the following factors in mind:

Claim History

If you make frequent claims on your commercial insurance, then the insurance company will assume you will continue to do so. If that is the case, you will end up paying higher premiums for a renewed policy after a claim.


Deductibles are typically paid for policies regarding property damage insurance. Your insurance company subtracts the deductible from the total cost of the settlement. The higher the deductible, the lower the premiums will be. When choosing a higher deductible, however, you want to make sure you can cover it without causing any unnecessary financial strain for your business.


The cost of your commercial insurance policy may also vary depending on how many employees you have. The more employees you have on staff, the higher your liability risk and the higher coverage you will need. More people may cause your premiums to rise.


If your business is located in an area that is exposed to adverse weather conditions and other risks such as vandalism, then you might end up paying more for commercial insurance coverage because the liability is going to be greater.

When it comes to your commercial insurance policy, you have to understand that several factors and risks will be weighed when determining how much you will pay for your premiums and how much coverage you will receive.

To help you navigate the process and find the best commercial insurance, contact the experts at Panorama Insurance Agency today. We can send you in the right direction when it comes to the most affordable and suitable commercial insurance policy for your business.

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