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How Much Is Business Insurance?

How Much Is Business Insurance?

How Much Is Business Insurance Coverage?

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Wanting to know how much is business insurance coverage is understandable, especially when doing business budgeting & planning.  ALIGNED Canadian Insurance brokers across the country are available to help you better answer the question “how much is business insurance coverage?” Whether it’s for a business plan, budget or a real business you are launching we are here to help explain how much is business insurance coverage and more importantly how business insurance coverage is calculated by insurers.

How Is Business Insurance Coverage Cost Calculated?

To understand how much is business insurance coverage it’s important to understand to understand the factors and variables that go into calculating business insurance coverage costs as insurance pricing is based on the specifics of each business and differs by insurance product, geography and industry.

Below are two examples of how business insurance coverage costs are calculated by product line:

How are commercial general liability insurance(CGL) costs calculated? –  Typically commercial general liability insurance costs are calculated by multiplying that rate per $1,000 of revenue that the business is projecting for the next annual period.  CGL insurance rates are calculated based on various factors including the industry, geography, payroll, type of product or service being provided, what geography is the revenue being generated in etc. etc.  In addition, it`s important to note that each insurer will have their own views, opinion and experience about what weighting factors they weight more heavily than others.

How are commercial property insurance costs calculated? –  Typically commercial property insurance coverage costs are calculated by multiplying the rate per $100 of total insurance value the business reports on their statement of values.   Commercial property insurance coverage rates are calculated primarily what is commonly know as the COPE details of the building which is more fully explained below:

  • Construction – what materials are used to build the building. Ex.  Is the frame made of wood or steel? Is it exterior stucco, brick, cinder block etc.
  • Occupancy – What is the building being used for? Is it a restaurant, manufacturing plant, storage facility, office space etc.  All have different risk factors and ratings
  • Protection – Is there a sprinkler system installed? Is there a security alarm installed which is monitored by third parties?  Is there water detection equipment installed etc.
  • Exposure – how risky is the location of the property. Is it near a flood plain or water, is it next to a dynamite factory etc.

To learn more about how much is business insurance coverage for your business or for a business insurance coverage quote speak to an ALIGNED Insurance broker today at 1-866-287-0448

ALIGNED Across Canada   100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.

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