Business insurance may seem cut and dry, so why the variance in rates from provider to provider? There are many factors that contribute to insurance rates, including coverage and limit options, claim frequency and more.
Factors that Cause Business Insurance Rates to Vary
Insurance policies and their rates vary from company to company. While you may be tempted to go with the cheapest option, there are many factors that impact insurance rates. Look beyond premium prices and consider these factors to ensure you are fully covered at an affordable rate:
- Breadth of coverage—Some providers may offer standalone policies for coverage like Workers’ Compensation, General Liability and Property Liability. Others may offer a package policy that combines multiple important coverages into one convenient bundle.
Whichever route you go, it is critical to ensure you have the level of coverage you need to fully protect your business. If the policy you purchase does not offer coverage to meet your needs, you may pay more than a higher insurance rate in the end.
- Limit options—The limit you select directly impacts your insurance rate. The higher the limit, the more coverage available to your franchise in the event of a claim and the higher your rate. The lower the limit, the less coverage available to your franchise in the event of a claim and the lower your rate.
- Your risks—If you have experienced a substantial claim in the past, your insurance carrier may request detailed information on the matter and may increase your premium rate.
- Amount of claims and claim costs— If an insurance company sees a high frequency of claims for your franchise, they may increase your premium rates at the next renewal. Similarly, if the cost to defend and settle the claims against your franchise is unusually expensive, it may also necessitate an increase in premium.
Franchise insurance from Lockton Affinity
While all franchise insurance policies are different in coverage and cost, finding a trusted insurance company can make all the difference.
At Lockton Affinity, we have decades of experience providing customized insurance programs for franchise businesses. In fact, we are the preferred insurance provider for Dickey’s franchisees.
Designed with your specific business risks in mind, the Elevanta Insurance Program, administered by Lockton Affinity, offers coverage to meet your exact needs, including:
- Workers’ Compensation
- General Liability
Plus, we offer additional products that may be required to fully protect your franchise, including Umbrella Liability, Cyber Liability and Employment Practices Liability.
Request a price indication to see what coverage from Lockton Affinity will look like for your business. It takes 5 minutes or less!