09 Aug 2018
Factors That Affect Your Commercial Insurance Premiums

Here are some of the things that will affect your business’s commercial insurance rates.

As a business owner, you know how important it is to protect your company with the right insurance coverages. However, the insurance industry is confusing and mysterious for many people. One of the most asked questions is how an insurance company calculates a business’s insurance rates. To clear things up, here are some of the factors that can affect your company’s insurance premiums.


Certain industries are naturally higher risk than others. For instance, the risk of employee injury is exponentially higher at a construction company than it would be at a retail company. Understandably, the riskier your business is to insure, the higher your insurance premiums will be. On the plus side, lower risk companies will experience lower rates.


The location of your business’s building will also influence your commercial insurance rates. For instance, if your business is located in an area prone to extreme weather events (such as floods, earthquakes, hurricanes, etc.), then you are at a higher risk for damage. This, in turn, will translate into higher insurance rates. Additionally, if your company is located in an area with high crime rates, then you will also be subject to higher insurance costs. This is because insurance companies view your business as more likely to sustain damage from vandalism and break-ins.

Claim History

Finally, your business’s insurance history can also affect your rates. If your company has filed several claims throughout the years, you should expect your rates to be on the higher side. This is because your extensive claims history has proven your business to be riskier.

These are some of the factors that affect how your commercial insurance rates are calculated.  Do you have further questions regarding your business insurance?  Then don’t hesitate to contact the team at Patterson & Associates in Richardson, Texas.  We are ready to get your business the coverage that it needs today.