Insurance is essential, be it any business type or size. Protection against third party claims, injuries or errors helps ease out business operations on an everyday basis. Peace of mind, financial assurance, and smooth functioning are the obvious results of a great business liability insurance plan.
Let us start by understanding what business liability insurance is and then move on to identifying factors that determine the costs associated with a business liability insurance plan.
What Is Business Liability Insurance?
A business liability insurance plan helps protect a business from claims of bodily injury, property damage or third party claims. This can be a result of your daily business operations but can have an impact on a third party, employees, stakeholders, etc.
Allegations that involve lawsuits can cost deftly for businesses. In addition, it must be realised that the set of challenges, risks and hazards faced by every business is different.
This implies that the insurance policies that one’s own business requires can be significantly different than what another industry is suited for. The associated cost of insurance policies required for complete protection also varies accordingly.
Understanding critical factors that affect the cost is quite beneficial in making informed business decisions.
Here is a list of 7 factors that determine the actual cost of a business liability insurance plan for your business –
1. Business Industry
Every industry is exposed to a whole range of risks and hazards. The industry your business belongs to is an important factor that helps determine the exposure, and thereby the actual costs involved.
2. Current Insurance And Claims History
Getting complete details about the set of insurances held by a business in addition to the history of its claims in the past, gives the insurance provider a better idea of the costs to be charged.
3. Business Location
To much surprise, the location of your business is a critical factor that can determine the insurance plan costs. Businesses with their setups in slightly risky or prone zones (to natural disasters, etc.) are often faced with higher quotes.
4. Number Of Employees In Your Business
The more the number of employees at your business site, the greater the insurance costs. This is because the chances of injuries increase, and so are the associated medical costs.
5. Age Of Business And Revenue
Factors such as revenue size of the business, its number of years of existence are all important determinants of the quote you get from the insurance company.
Getting hold of an all-encompassing business liability insurance plan is essential. This will help you assess your business risks, identify them and get them sufficiently covered against you.
Beneficial Insurance Solutions is the perfect partner for tailor-made business liability insurance solutions that match your business needs. Top-notch risk management solutions in the form of customised, business industry-specific and affordable business insurance is what the company has to offer. With a rich experience, the company stands to be the right one stop shop for everything insurance!