Just like every small business is unique, every business insurance policy is one-of-a-kind. Your policy is catered to your specific needs, which means your agent considers many different factors when building it. Learn some of the most common factors that affect the cost of your insurance, so you know what to expect.

What Factors Affect the Cost of Your Business Insurance?

1. Type and Size of Business

Some types of small businesses cost much more to insure than others because they involve more dangerous procedures and equipment.  Your insurance agent will be interested in how likely it is that your employees or customers may injure themselves while on your business’s premises. They will also consider the size of your business. Larger corporations typically have more to insure than small businesses and require costlier policies.

2. Location

The physical location of your business, as well as the sizes of your building and property, affects the cost of your insurance. Larger storefronts, offices, and warehouses require more coverage, and newer construction costs less to insure than older buildings. Areas that are prone to flooding and other natural disasters will also be costlier when it comes to business insurance.

3. Number of Employees

The more people that work for you, the more coverage you’ll need. Hiring more employees means you’ll need more workers comp, professional liability, and general liability insurance.

4. Type of Policy, Insurance Limits, & Deductibles

Sometimes the cost of your business insurance comes down to the type of policy you want. You can add different features and modify the policy based on the insurance limits and deductibles. Keep in mind that a higher limit will result in more coverage at a greater cost while a higher deductible will give you a lower insurance cost and leave you accountable for a larger out-of-pocket expense should an accident occur.

Have an insurance policy custom-tailored for your small business by contacting the Kelley Agency in Lorain, OH. Insurance agent Dan Kelley has been serving Lorain County and the Greater Cleveland area since 1960 and is well-versed in handling the insurance needs of local businesses. Speak to him directly to find out which business insurance will best suit your company. Schedule an appointment today by calling (440) 282-8898.