Every business tries to save money where they can. One thing business owners can do to increase their bottom line is to understand what factors affect the price of commercial property-liability insurance. Although you may not be able to change some of them, you can make better choices about what you can affect.
- Where you’re located has a lot to do with the cost of your insurance. If you’re near a coast, it might cost more than if you’re out of the hurricane zone.
- The size of your building also affects the price of your insurance. Smaller office buildings do not cost as much as larger manufacturing plants and warehouses.
- If your building is newer, it will cost less to insure. An older building is more susceptible to damage, which makes it more hazardous.
- The type of equipment you use. Heavy manufacturing equipment costs more to insure than computers and desks, because of the hazards associated with the use of the item.
The security of your building is another aspect you need to look at. If it’s in a high crime area, the insurance may go up. If you’re trying to manage your insurance costs, talk to your agent about your commercial property liability insurance to find ways to reduce the overall annual costs and keep clients and employees safer on your property.