WELLINGTON COUNTY – If you’re about to renew your business insurance, you may be wondering what factors, other than inflation, influence your premium. Here are some tips to make sure you have the right coverage and amount of insurance.
Factors that influence the price of insurance
Insurance cost is always subject to a number of factors, including the type of business, aspects of the building you occupy and the commercial vehicles you use. The key factor taken into account are:
Business activities
– Products and services
– Annual income
– Area served (deliveries, transporting goods, etc.)
– The value of goods in inventory and equipment
Building
– Features (age, type, materials, etc.)
– Location
Surrounding area (flood zones, proximity to public services, etc.)
– Type of neighbourhood (industrial, commercial, residential)
– Added protection measures (linked alarm system, sprinklers, surveillance system with camera, etc.
Commercial vehicles
– Type of vehicle
– Its use (delivery, transporting goods, etc.)
– Number of drivers and their driving record
– The territory covered
The importance of choosing the right protection
Take the time to list the coverages you need or may need when you’re getting ready to sign or renew your business insurance policy. These questions will help you better identify what you need to consider:
What kinds of occurrences might impact your operations?
How much is your business worth, including commercial property (building and its contents)?
Do you work with your hands or do you provide consulting services?
Do you sell your products online or in a store?
Do clients come and meet with you at your workplace?
Do you require a commercial vehicle for your business?
Tips for getting a fair premium, and even saving
Here are some tips to reduce your business insurance costs while maintaining sufficient coverage.
Review your coverage needs and choices.
Your company changes and so do its needs. It’s useful to regularly review your coverage in light of your company’s current needs.
Note that it is important to be honest about your income when requesting a quote.
That way you’ll avoid unpleasant surprises in the event of a claim.
Also make sure that the cost to rebuild the building is consistent with the insured value in your policy.
Combine your products
Combining coverage can reduce your premium. An entrepreneur who owns several businesses (for example, real estate assets) will benefit from insuring them with a single insurer.
Monitor your financial health
Your personal credit score can affect your business insurance.
Think about your location
Geographic region affects premiums. A less densely populated area can reduce costs.
Avoid cutting costs at any cost.
In times of inflation, it can be very tempting to temporarily remove certain coverages to lighten the budget. But remember that what you sacrifice in prevention, you gain in increased risk and vulnerability.
The goal is to have the right coverage to ensure your company’s long-term viability at the right price.
– Submitted by Steve Lund,
Desjardins Insurance Agent, Fergus