I am often asked by potential clients, especially new business owners, "What will my insurance costs?" This is probably the most difficult question I'm asked because there are so many factors that play into pricing commercial insurance. Unfortunately insurance is not like a Ford pickup where you have a base model and the more accessories you add, the more the final product costs.
To understand pricing, keep in mind that we pay a little bit of money to access a big pile of money in the event of a loss. Insurance companies (underwriters) consider what you do (attorney, manufacturer, drilling contractor, etc.), where you are located, previous claims history, your safety culture, credit history... They use that information to calculate a rate and price. Businesses with a clean claims history, good credit and an excellent safety program are going to pay less premium that one with a lot of claims, poor credit and no safety program.
So, when I meet with clients, can I tell them exactly what their insurance is going to cost? No, but I can tell them how to build an insurance program designed to minimize claims, maximize their existing safety program, how to implement an employee handbook and other human resource tools. The end goal is to make your business more attractive to insurance companies and be offered the lowest price.
For more information, please contact me at (580) 223-7300 or via email at jbramlett@bramlettagency.com
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Jake Bramlett
Complex Risk Advisor
Posted Tuesday, July 29 2014 9:37 AM
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