Understand Your Commercial Insurance Rates

7/5/2020 (Permalink)

It's important to understand what factors are involved in determining your commercial insurance rates before a disaster strikes

Damages from a fire can be devastating to your commercial property in Crest Hill, IL. A fire damage assessment is critical in getting your business up and running again. It's also important to understand what factors are involved in determining your commercial insurance rates before a disaster strikes.

How Are Insurance Costs Determined?

There are a few considerations involved in deciding your insurance costs.

Type of business - If your business has a high risk of being unsuccessful, your insurance rate will be higher than for a business with lower risks.
Location - If your property is located in a high crime area, your rates may be high. In addition, if your business is near a large body of water or in an area prone to natural disasters, this will increase your insurance costs.
Revenue - The money that your business brings in each year impacts your insurance premiums.
Length of time - The longer you've been in business, and your business is successful, the lower your commercial insurance rates will be.
Building construction - Buildings that are constructed with materials that are potentially combustible can expect higher premiums than those made with fire-resistant materials.

If you are considering adding to your existing building, talk with your insurance agent before you begin the remodeling project. Any additions or changes may affect your fire rating. Make sure to use walls and flooring that reduce the risk of fire damage.

What Factors Should You Consider When Choosing a Location?
Check how far the closest fire hydrant is located to your potential property. Determine how far away the fire station is situated as well. Other important considerations that reduce your insurance premiums include the installation of fire alarms and sprinkler systems. A good security system will also reduce your insurance rates.
Speak with your insurance agent about the circumstances involved in determining your commercial insurance rates. It will help you keep costs down.