Business insurance intends to transfer risks associated to running a business to a company who takes some financial liability.  For example, if a worker slips and hurts themselves on the job, without insurance, the business would absorb the costs of healthcare.  The same way that health insurance is based on gender, family history, and other factors, there are factors which influence business insurance premiums also.

The first factor that influences premium costs are industry related risks.  If a company is in construction, the premium costs will be higher than a clothing store.  The higher likelihood that someone gets hurt means that the insurance costs will go higher to cover cost.

The second factor is the specific history of the company.  The company will build a claims history over time which is akin to preexisting conditions in health insurance.  If every year someone falls and breaks their leg, then the insurance company will consider that the business is a hazardous work environment and price it higher.    Things that are considered in this history include injuries, property damage, law suits and potential workers compensation claims.

The ways to control these costs are to practice safety in all aspects of your business.  The easiest way to be safe is to focus on training your staff in best practices.  That is not enough as it is also important to document these training exercises to stop any possible litigation for not ensuring a safe working environment.

The biggest way to protect your business from safety-related costs is to purchase the correct amount and type of business insurance.  There are penalties for underinsurance which often become more expensive than paying a monthly premium.  To make sure you have the best coverage available, contact a skilled insurance agent at Wise Insurance Agency in San Rafael.