Learn About Insurance Commercial Quotes

Introduction

Understanding commercial insurance quotes can be difficult for somebody who does not know anything about insurance.  Commercial insurance is basically insurance coverage for your business assets and liabilities. These include things like buildings insurance, electronic equipment, public liability and fidelity guarantee, just to mention a few. All these insurance policies are structured and priced differently. This is where insurance commercial quotes come in.

History

Insurance companies use different mechanisms and factors to rate different commercial policies. The insurance commercial quotes for a buildings insurance policy for example are based on things like the type of building, the purpose of the building, location and the value. These factors are used to quote the premium of the buildings insurance policy. These factors will vary according to the type of policy that you will be taking for your business. Other factors that will determine insurance commercial quotes include the gross annual sales of your business, your gross annual payroll, number of employees and the size of your office space. All these are used to determine the amount of coverage you need for your general liability policy and employers liability policy. Once the insurer gets all this information, it becomes easy for them to do insurance commercial quotes.

Features

When doing insurance commercial quotes insurers will look at your claims history. This is a very important aspect also known as the loss ratio. They use this to calculate the rate that is applicable on your policy. You must therefore keep a record of your claims history as this is required when you shop around for insurance. There is usually a specific period that they need you to look at; in most cases a three to five year loss ratio is enough. If you do not have such information, your insurance company will have it in their records. When insurance commercial quotes are done insurers also look at the risk measures that you have put in place to avoid the different types of risks. Having loss control measures can greatly reduce your commercial insurance quote. A good example is having a security guard and security alarm systems on your property. This is a risk control mechanism that reduces your business insurance premium by up to 20%.

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