Business Liability Insurance Quotes
business liability insurance quotes
Business Insurance-Covering Your Business with Business Liability Insurance Is Essential
Pretty much no matter what we do, we are told we should have insurance to coincide with it. This is very true for our health, homes, cars, life, and businesses.
Business insurance will only be needed if you own your own business or an entrepreneur working out of your home. This is a very important type of insurance and can break or ruin a business in the space of a minute when disaster strikes. Insurance is meant to protect us from devastating financial disasters that without the insurance would cause detrimental effects to our lives or businesses, or both.
Business insurance is different from other types of insurance as usually you are only required to cover yourself and/or your family members. When dealing with business insurance, it is meant to protect you and your business partners from dealings with others and with loss associated from fire, theft, or natural disasters.
The first and probably most important type of coverage you should have on your business is Liability. This will help protect you and your company from loss associated with accidents that occur in company cars or accidents that might happen on your property.
You will need to figure out what risks are associated with your type of business to make sure you receive adequate coverage. Other coverage is available for your business on top of liability, but you will need to figure out with your insurance broker what is the right type for you business so you are completely covered.
You will, or course, have to carry workers compensation insurance if you have any employees and if you offer health benefits to them, this is also considered a type of business insurance.
Many CEO’s have started taking out life insurance policies on themselves, so in the event of their death, the benefits would be given to the company in order for the company to switch hands within the family or to make it free and clear from debt. In some instances, larger corporations will have life insurance policies against their successors so that if something happens to any of them, the company will not falter from the loss of one of the prime contributors.
Your business is your investment into your future and your loved ones futures. Protecting it with adequate insurance is one way to ensure it stays in business to provide the security you started it for.
Small Business General Liability Insurance rates for premiums and audits?
The small business that I work for is currently shopping for a GL carrier and in getting quotes, questions are coming up that I just cannot find the answers for. Our current GL company basis our premium on our policy year payroll. However, one company that we are getting a quote from is basing the quote on the policy year gross income. Now, these two numbers are VASTLY different and I don’t know why one is basing my premium on one item and another company on another item.
Another question is Audit Rates. The audit rates between these two companies, (again based on different item dollar amounts,) differs also and I was wondering what a standard audit dollar amount would be, or maybe an average?
If it makes a difference, my company does subcontract low voltage work.
Thanks!
Each company is allowed to base premiums on whatever they want. So yes, one company might use payrolls, one might use gross sales. Square footage is possible, and “unit” is possible, and there’s also a thing called an “a” rate, where the underwriter makes it up.
When comparing quotes, you have to know several things: 1. what is the actual RATE, and 2. what is it based on. You also need to know the “minimum premium”. Then before you pick one, you need to run through several scenarios, doing the numbers yourself, to see what the actual cost is at 1. projected figures for this coming year 2. If your projection is high, and the actual figures are half, or 3/4 of projection, and 3. if your projections are low, and the actual figures are double.
THEN you know which deal is the best.
There is no standard audit dollar. I’m not sure what you’re really asking – audits can close EVEN, with no changes, if YOUR initial figures are accurate enough.
But if you go in with lowball numbers, the audit will be high. If you go in with high numbers, the audit will be low. It’s all about how accurate YOUR intial information is. The audit, simply takes the ACTUAL rating basis – sales or payroll – and multiplies it by the rate, which you agreed on at the beginning of the policy term, and then compares the REAL number to your projected number, and adjusts the premium retroactively, accordingly.
Keep in mind, any subs that don’t have a certificate of insurance on file with you, that’s effective for YOUR entire policy year, will be charged as if they are employees.
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