Top 8 Factors: Private Label Liability Insurace Pricing?

Private Label Liability Insurance Policy Price Factor 1: Size and Condition of Your Business Premises

One of the primary functions of a General Liability policy is to protect your business from the cost of premises liability claims. So it makes sense that the price of your coverage would be influenced by the size and physical condition of your office building or commercial location. For example, larger premises mean more places where slip-and-fall injuries can happen (if your property is open to the public), which can raise your rates. As for the condition of your property, insurers examine the age of the construction and whether the building is up to code. Generally, "newer" construction lowers your liability rates, whereas older construction with a lack of accessibility can raise GL rates.

Private Label Liability Insurance Policy Price Factor 2:
Type of Business Operations / Industry

When it comes to risks, not all businesses are created equal. For instance, construction businesses are usually considered "high risk," whereas consultants are typically categorized as "low risk." But even within these industries, each profession has its own spectrum of hazards and vulnerabilities. Typically, the higher your industry's risk profile, the higher your premium estimates will be.

Private Label Liability Insurance Policy Price Factor 3:
Experience in Your Profession, Field, or Business

Don't be surprised if your insurance application asks about your years of business experience and your company officers' professional expertise. Your business's longevity and financial stability can lower your premiums.

Private Label Liability Insurance Policy Price Factor 4:
Number of Employees

The more employees you have, the more chances that they could accidentally damage someone else's property (which is a liability that GL covers). Say, for example, an employee spills coffee on a client's laptop. That client could sue your company for replacement or repair costs. That's why your premium will typically be higher if you have more employees. Your application will typically request a breakdown of full- and part-time employees, as well as the number of subcontractors or consultants you employ so your provider can asses your risks accurately.

Private Label Liability Insurance Policy Price Factor 5:
Location of Your Business

Your geographic location can affect your rates, too. For instance, urban areas may increase the likelihood of violent crime against customers on your premises. So if your business is in the city, you may pay more for General Liability coverage. However, since the crime rates in suburban areas are lower, businesses located in these areas may have lower liability rates. High traffic areas can also mean higher premiums because more people through your doors means more chances for possible injuries.

Private Label Liability Insurance Policy Price Factor 6:
Limits and Deductibles

The higher your coverage limits, the more your policy will cost. (You can keep your General Liability limits reasonable and draw on extra coverage when you need it by purchasing an Umbrella Liability Insurance policy.) As for your deductible (i.e., the amount you pay before your insurance benefits kick in), remember that higher out-of-pocket spending will lower your monthly premium.

Private Label Liability Insurance Policy Price Factor 7:
Policy Features

Some insurance providers offer products designed specifically for businesses in your industry. These products can save you money because they cut out the frills and extra coverages that your profession doesn't use. But if your policy does have additional features, such as Product Liability Insurance, your quote will usually reflect those additions. (Related post: "What Is Product Liability Insurance?")

Private Label Liability Insurance Policy Price Factor 8:
Claims History

A previous claim doesn't necessarily mean your General Liability premium will be higher, but there is a good chance it will influence your quote in some capacity. Ultimately, your provider and the nature of the loss will determine the extent of the impact. Many carriers evaluate claim histories on a case-by-case basis.

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