How to optimize your business insurance premium
If you’re about to renew your business insurance, you may be wondering what factors—other than inflation—affect your premium. Here are some tips to make sure you have the right coverage and insurance amount.
Factors that affect the price of insurance
The amount that you pay for insurance depends on a number of factors, including the type of business you operate, the activities you conduct, and the type of building that you operate from.
If you have commercial vehicles, your premium can vary depending on the type of vehicles and the use of the vehicles.
Key factors that impact the cost of insurance include:
Business activities
Products sold, services offered, or activities conducted
Annual revenue
Location
Value of assets, including building, equipment and merchandise
Building
- Features (age, construction, type of materials, square footage, number of floors, etc.).
- What’s nearby (body of water, fire station, etc.)
- Other occupants in the building
- Type of neighbourhood (industrial, commercial, residential)
- Protective measures (alarm linked to a surveillance central station, sprinklers, surveillance system with camera, etc.)
Commercial vehicles
Type of vehicles
Use of vehicles (delivery, transporting merchandise, etc.)
Number of drivers and their driving records
Geographic area that vehicles are driven
The importance of choosing the right coverage
Take the time to list the coverages and insurance amounts you need or may need when you're getting ready to take out or renew your business insurance. These questions will help you better identify what to consider:
- What kinds of losses could affect your operations?
- How much is your business property worth, including equipment and merchandise? How much would it cost to reconstruct the building?
- Do you do manual labour or provide consultation services? Do you have any tools or laptops?
- Do you sell your products online or in a store?
- Do your customers visit your offices?
- Do you use any commercial vehicles for your business?
Tips for getting a fair premium, and even saving
Here are some tips that could help to reduce your business insurance costs while maintaining a coverage adapted to your needs.
- Review your coverage needs and choices. As your company changes, so do its needs. It’s a good idea to regularly review your coverage based on your company’s current needs.
Note that it is important to be honest about your income when requesting a quote. That way, you'll avoid unpleasant surprises in the event of a claim. Make sure that the building limit you select for your policy reflects the true cost to reconstruct the building. - Bundle your products. Bundling coverage can reduce your premium. An entrepreneur who owns several businesses (for example, real estate assets) will benefit from having them covered by a single insurer.
Avoid getting rid of coverage just to save money. When inflation is high, it can be very tempting to temporarily remove some coverage to ease the pressure on your budget. But the goal is to have the right coverage at the right price to support your company over the long term.
Call us to discuss your insurance needs
Up for renewal or made changes to your business? Call us at 1-866-740-4765 to make sure you’ve got the right business insurance External link. at the right price.
Automobile, property and business insurance products are underwritten by Certas Home and Auto Insurance Company. These tips are provided for information and prevention purposes only. They are general in nature, and Desjardins Insurance cannot be held liable for them. Always use caution and consult with a property and casualty insurance agent for comprehensive, tailored advice.