The Cost of Business Insurance in Florida
Business insurance is essential; every business owner knows this. However, it is also important to understand that many different factors go into calculating the cost of your business insurance in Florida. Learn more about this below.
7 Factors That Affect the Cost of Insuring Your Business
Today we are going to take a look at seven different factors that affect the cost of your business insurance.
- The Size of Your Business – The physical size and structure of your business impact the cost of your insurance policy because you need enough property insurance to cover your physical location. The bigger your building, the more coverage you need. The size and amount of land your business is on also plays a role in the cost of insurance in terms of general liability and property insurance.
- How Many Employees You Have – The number of employees you have affects the cost of insuring your business in a few different ways. For example, workers’ compensation insurance is related to the number of people that are employed. Additionally, the number of employees influences things like general liability insurance.
- The Industry – The particular industry your business is can increase the cost of insurance. Certain industries are considered more high-risk than others, and therefore require additional insurance coverage. For example, insurance companies may consider a business in the pharmaceutical industry as a higher risk because of the chance that medication can get mixed up and cause health problems and damage to customers.
- Location – Location is another factor that impacts the cost of small business insurance. The specific location of your business is important because different state and local laws can affect you. There may also be geographical risks, such as flooding, when you put your business in certain areas. All of these elements impact your insurance rates.
- How Much Money You Make – The amount of money you make is also a factor in insuring your business. The more money your company makes, the more money you can potentially lose in a lawsuit. Your insurance coverage has to reflect that in order to keep you and your business safe.
- Your Claim History – Your claims history will have an impact on the cost of insuring your business, as insurance companies generally believe when you have had several claims in the past, that indicates you will have claims in the future. As a result, your insurance premiums might be a little higher to ensure full coverage. However, the opposite is also true; when you have had fewer claims, your insurance company may charge you less.
- The Amount of Coverage You Want – The last element that comes into play when calculating the cost of your policy is in your hands. How much coverage do you want? Yes, there are certain types of insurance required for businesses, but there are also additional coverage options that can benefit you and others that you may wish to turn down. While these additional coverage options will cost you some money upfront, they can save you money in the long run. Be sure to consult an insurance expert to talk specifically about the insurance needs for your business.
As you can see, there are a lot of factors that affect your business insurance costs. That is why you must shop around for the right coverage for your business in Florida. When you are looking for commercial insurance companies in Florida, you will find a lot of options. However, you don’t always want to pick the first commercial insurance company you see. Make sure to research different business insurance options in Florida to guarantee you get the best one for your particular business. At Moran Financial Solutions, we can answer any questions you may have about business insurance in Florida. Reach out to us to learn more about how we can help you and your business.