Question going on for business liability insurance?
My original general liability insurance quote be $1100 for the year which was for office/residential general cleaning. I call my agent and told him that I may also bid on restaurant/retail since in my area within is a demand. The quote is now up to $2800 because of the restaurant/retail exposure. The unnatural thing is another insurance company told me that their rate of $1200 remains the same regardless of where on earth I clean. What is the norm in calculating liability insurances rates?
Answers:
That's the beauty of commercial insurance: two underwriters enjoy different opinions and charge different rates.
Make sure to read the quote / application. There is a big difference between an agent and an underwriter. An agent may or may not update your business description/class on the quote request. Source(s): http://www.insuremywork.com
Liability rates own a rating basis. For janitorial services, some companies use payroll, others use gross receipts.
Because of that, unless you ADDED gross receipts to the second quote, it shouldn't change. If the receipts are indistinguishable, so should be the quote.
I'd ask the agent which company quoted that, go to another agent, and get a couple more bids. Source(s): agent, 21+ years
Not really. There are guidelines set forth in underwrite which are used across business types but something so arbitrary as the type of business you are cleaning would not be a guideline. Sounds arbitrary unless you gave some piece of info to the first company that triggered them to jump the allowance. The best thing to do is to ask your agent to contact underwriting and ask specifically why the increase and possibly you can either better explain or make change to your operation to comply with whatever is bothing them.
Your rate will generally be based on how much you make (your receipts) during the policy term. However, each company has their own set of guidelines on how much to charge. You may even bring a better rate if you get a package policy - one that covers your property as economically as the liability exposure. I highly suggest you contact 2 independent agents, and maybe even a couple of detainee agents like a State Farm or Allstate and get diverse options. You want to work with an agent to be exact knowledgeable and trustworthy to protect your business assets. Source(s): Insurance agent 23+ years - also was an underwriter for commercial business contained by the past.
Related Questions:
Answers:
That's the beauty of commercial insurance: two underwriters enjoy different opinions and charge different rates.
Make sure to read the quote / application. There is a big difference between an agent and an underwriter. An agent may or may not update your business description/class on the quote request. Source(s): http://www.insuremywork.com
Liability rates own a rating basis. For janitorial services, some companies use payroll, others use gross receipts.
Because of that, unless you ADDED gross receipts to the second quote, it shouldn't change. If the receipts are indistinguishable, so should be the quote.
I'd ask the agent which company quoted that, go to another agent, and get a couple more bids. Source(s): agent, 21+ years
Not really. There are guidelines set forth in underwrite which are used across business types but something so arbitrary as the type of business you are cleaning would not be a guideline. Sounds arbitrary unless you gave some piece of info to the first company that triggered them to jump the allowance. The best thing to do is to ask your agent to contact underwriting and ask specifically why the increase and possibly you can either better explain or make change to your operation to comply with whatever is bothing them.
Your rate will generally be based on how much you make (your receipts) during the policy term. However, each company has their own set of guidelines on how much to charge. You may even bring a better rate if you get a package policy - one that covers your property as economically as the liability exposure. I highly suggest you contact 2 independent agents, and maybe even a couple of detainee agents like a State Farm or Allstate and get diverse options. You want to work with an agent to be exact knowledgeable and trustworthy to protect your business assets. Source(s): Insurance agent 23+ years - also was an underwriter for commercial business contained by the past.
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