Aspects that influence cost

The price of insurance can vary due to a range of factors. According to insurers, since all things are not equal, some aspects will weigh more heavily when evaluating the risks to be insured. 

The following factors can have an influence on the cost of property insurance :

Business activities

• Type of product or service offered
• Value of assets (goods, inventory, equipment, etc.)
• Business territory
• Annual earnings

Building

• Features (age, type, building materials, etc.)
• Site (proximity to fire department, flood zone, etc.)
• Location
• Surroundings (the type of businesses nearby can impact the premium)
• Added protective measures (sprinklers, alarm system, etc.)

The following factors may be considered when determining the cost of insurance for commercial vehicles 

• Vehicle type
• Use (deliveries, service, transporting goods, etc.)
• Area of use
• Drivers (number, age, violations, etc.)

Examples that illustrate insurance costs

Here are 2 examples—a chiropractor and an accountant—to illustrate how much business insurance can cost depending on the nature of the business and the coverage chosen.

Example 1: Chiropractic clinic

For 8 years, Stephanie has been renting space for her chiropractic clinic in Old Longueuil. Her business's annual earnings are $110,000 and her contents and equipment are worth $50,000.

As a member of the Ordre des chiropraticiens du Québec, she pays the group rate the Ordre negotiated with The Personal.

Her insurance coverage includes:

• All-risk property insurance covering fire, theft, vandalism and water damage
• Equipment breakdown
• Sewer back-up
• CyberOne – Computer attack
• $2 million in business liability insurance

Stephanie's insurance will cost about $74 a month with a $1,000 deductible in the event of a covered loss.

Example 2: Accounting firm

Benoît has a small accounting firm in Vanier in Quebec City. He has been leasing the premises for 11 years. The business's annual earnings are $150,000 and the contents and equipment are worth $80,000.

As a member of the Ordre des comptables professionnels agréés du Québec, he pays the group rate the Ordre negotiated with The Personal.

His insurance coverage includes:

• All-risk property insurance covering fire, theft, vandalism and water damage
• Equipment breakdown
• Sewer back-up
• CyberOne – Computer attack
• $2 million in business liability insurance

Benoît's commercial insurance costs about $73 a month with a $1,000 deductible in the event of a covered loss.

Choosing the right insurance protection

Comparing prices is great when you want to get an overall idea of insurance costs. But you're not just shopping for price when it comes to renewing or purchasing business insurance—you're also looking for coverage. That's why you should always be sure to ask yourself questions like:

• How much is your business worth, including buildings, inventory, equipment, etc.?
• What kinds of losses might impact your operations?
• Do clients come and meet with you at your workplace?
• Do you offer consultation services or do you work with your hands?
• Do you require a vehicle for your business?
• Do you sell your products online or in a store?

The answers to these questions will help you understand what kind of coverage your business may need. What matters is that you choose the right coverage, at a fair price, to ensure that your business is sustainable.

Lowering your business insurance costs

You already know you need to protect your business with the right kind of coverage. But once you've found it, how do you save money on insurance? Without further ado, here are our best tips for reducing your business insurance price tag without losing any vital coverage for your company and employees.

1- Do some rate shopping: Every insurer has their own area of expertise and method to calculate risk, which explains why you might receive varying quotes. Shop around! Insurance companies are known to offer discounts to new clients. Before you decide on an insurer, ask your current insurance company if they provide discounts or reward loyalty.

2- Know what you're looking for: Your insurance requirements are based on your company's operations and risk profile. Buying insurance for risks that don't apply to your business is pointless. You need coverage for the things that matter most. Have you considered insuring your vehicles, personal information and employees? What about getting liability coverage?

3- Take advantage of multi-policy rates: Insurers sometimes offer discounts if you sign up for more than one policy with them. For example, by getting commercial liability, vehicle and property insurance with your insurer, you may qualify for a lower rate.

4- Assess your current policy: Maybe your business operations recently changed. Maybe you stopped offering deliveries or you have fewer employees than you used to. Consider asking your insurance company to suggest coverages that might be a better fit for you today.

5- Pay a higher deductible: A higher deductible translates to a reduced price tag on your premiums, since your insurer would need to pay you less for each claim. But don't forget: Only go as high as you can afford.

6- Secure your business: Stronger security measures could reduce your company's insurance costs. Plus, the more coverage you have, the less risky your business may appear to insurers. Think about it: Sprinklers and a central alarm system could thwart or reduce damages.

And it's not all about cost. Saving a few bucks shouldn't be your top priority with business insurance. To get the right coverage for your company, a slightly more expensive policy may be your best bet. Assess your needs and decide wisely.

Get informed and speak with one of our damage insurance agents at The Personal to determine the best coverage for your business's needs. If you'd like more information about your line of business, visit our site.