Your general liability insurance premiums are determined by multiple factors — some of which are under your control, and some of which you really have no say over. Insurance companies keep much of the math a secret, and each insurer has their own way of calculating the risk that they are covering. However, there are several factors that are universal. And these can make a big difference in your premiums.
- A Busy Location. As a general rule, a higher population = higher general liability insurance premiums. Even if you're not doing as much business as you'd like, if you're stationed on Main Street, there's always the possibility of hundreds or thousands of people walking through your store on a single day. With each one of them, the possibility of injury or damages goes up. Your control over your location is limited, of course. You can move to a quieter neighborhood, but you might be sacrificing business by doing so.
- A Low Deductible. In almost every area of insurance, the more you're willing to pay for your deductible, the less you're going to pay for your premiums. Fortunately, this is something that is in your control. You can simply call your insurer and let them know you'd like to raise your deductible and knock your premium down a bit. Generally, it is advisable to go with a higher deductible and lower premiums. A deductible is something you might have to pay someday, but the premium is something that you will certainly be paying.
- Safety and Security Measures. Even if you've determined there's very little possibility that you're going to be robbed, a burglar alarm and a surveillance setup are an easy way to reduce your liability and your premium.
- Making Claims. Your insurance provider expects you to make a claim about once a decade. Even so, doing that will bump your rates. It's a good idea to save your insurance claims for the big expenses. If you can find a way to settle with someone without going through your insurance, that's usually going to be your best bet.
If you'd like to get your rates as low as possible, contact your DJW Insurance agent and ask about any specific discounts that may apply to your state or your industry. You may find several ways to lower your rates.
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