Commercial insurance quotes can be a daunting task if one does not know how the process works. There are a few basic items that need to be described in full in order to obtain the best pricing possible. Let’s look at each of these items.

To correctly classify your small business is the foundational element in obtaining the most competitive small business insurance quote. Describing in great detail how your products are sold and used and the extent of your services that are provided is of the utmost importance in this classification process. There are several thousand different combinations that can be used in classifying general liability insurance. Each classification carries with it its unique rates and pricing structure.

The rating basis is the next step in this process of getting competitive commercial insurance quotes. There are several factors that go into determining the final premiums for business insurance rates. Below are for the most common rating factors:

  • the square-footage of your office space

  • gross annual payroll

  • gross annual sales

  • the number of part-time employees and the number of full-time employees

The third step in this process of getting commercial general liability insurance quotes is to be able to provide your historical claims reports and analysis. Having accurate claims data on your small business insurance portfolio is a key factor in obtaining the most competitive pricing.

The fourth step in this process is to be able to show how you are addressing your exposures to risk. Having safety and loss control programs in place can pay big dividends in the pricing of your insurance policy. Having programs that address safety issues that will focus on reducing the frequency and severity of claims can provide up to 25% credits in the pricing of your small business liability insurance policy.

Commercial insurance quotes can have pricing ranges from 50% off the standard price to a surcharge of 50% off the standard price. As a small business owner, taking the time to be detailed and specific in presenting your company in the best light to the insurance underwriters will go a long way in helping you to receive the best and cheapest insurance price.

Doing your homework in these four areas will put you ahead of your competitors with regards to liability insurance pricing. Although, if you present all of this information to a broker and/or carrier that is not a specialist in your industry you may find out that all of your work might not have the results you are looking for. It is important to remember that after all of your work is done that you choose your insurance broker and your insurance company carefully. The criteria for selecting an insurance company and an insurance broker are very similar. You are primarily looking for them to have the education, experience, and expertise in your industry. There are several hundred thousand insurance brokers in the United States and over 5000 insurance companies in the United States from which to choose from. Choosing the wrong carrier and/or wrong broker will affect your commercial insurance quote.

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