Call Us 818-633-5441 ☰ ˟
Logo
text
  • Home
  • Get A Quote
    • Automobile
    • Business & CommercialImage of right arrow
      • Business Owners (BOP) Quote Form
      • Workers Compensation Quote
      • SBA Loan Insurance
    • Commercial Auto Insurance
    • General Liability Insurance
    • Homeowners
    • Professional Liability Insurance
  • Blog
  • Resources
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • About Roman Empire Insurance Agency, Inc.
    • Our Locations
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Icon Auto & Home Icon Business
Icon Commercial Auto
Icon General Liability
Icon Professional Liability Icon Workers' Comp
Home > Blog > Can Your General Liability Insurance Premium Increase?
THURSDAY, JULY 30, 2020

Can Your General Liability Insurance Premium Increase?

Secure financial planning will help your business succeed in the long run. However, the overhead costs you must pay, such as your insurance premiums, might vary over time. One of the policies you might buy for your business is general liability insurance. However, generalBusiness Insurance Button on a Keyboard liability premiums might go up periodically. The business will have to be able to absorb those costs. Why does this happen? What can you do to help yourself avoid unmanageable liability premiums? 

 

Understanding General Liability Insurance 

 

Businesses usually must buy certain types of insurance, one of which might be general liability coverage. A policy helps an at-fault business compensate third parties for harm caused to them. The business can avoid cost losses even though the mistake was their fault. General liability coverage usually applies to property damage, bodily injuries, product liabilities and other losses common in most businesses.

 

Why Prices Change 

 

Insurance carriers base premiums around the risks a client poses the insurer. A risk is the likelihood a policyholder has of filing a claim on their insurance policy. It therefore represents how likely an insurer is to have to pay out for this customer. The higher the cost risk the client is to the insurer, the more likely the insurer is to have to pay a claim. Therefore, they might have to charge someone more to absorb their cost risk.

 

  • Sometimes, insurers increase liability policy costs to adjust for inflation. They might also have to increase rates due to industry-wide changes that drive up risks. These are often manageable and minimal increases. Some policyholders won’t see a change.   

  • If you increase your policy benefits, then you will likely see your rates go up. 

  • As the business grows or offers more diverse services, its risk levels might rise. The insurer might have to adjust premiums. 

  • If your policy has a deductible, and you decrease that deductible, then you will shift more of a cost burden onto the insurer. Therefore, they might have to charge you more. However, many general liability policies don’t include deductibles at all.  

  • One of the easiest ways to see a premium increase is to make a claim on your general liability policy. When you must make a claim, that claim is an indicator to the insurer that you pose a risk to them. As a result, they might have no choice but to raise your rates. An increased price is not a guarantee after a claim, however.

 

Even if claims might cause your premiums to rise, there are other ways you can keep your general liability insurance costs manageable. Your commercial insurance agent will help you learn about savings techniques that you might be able to use to your benefit. 

 

Posted 6:07 PM

Tags: general liability insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020

  • coverage(3)
  • auto(2)
  • car(2)
  • insurance(2)
  • commercial(1)
  • employers(1)
  • violence(1)
  • compensation(1)
  • home(1)
  • car insurance(1)
  • home insurance(1)
  • liability(1)
  • business insurance(1)
  • protection(1)
  • business(1)
  • auto insurance(1)
  • damage(1)
  • workplace(1)
  • storm(1)
  • general liability insurance(1)
  • workers(1)

View Mobile Version
Insure your needs today!
Social Social Social Social Social
Quick Links
Home
Get A Quote
Customer Service
Payment Options
Report a Claim
About Us
Our Carriers
Partners
Blog
Contact Us
Location Roman Empire Insurance Agency, Inc.
2110 N Glenoaks Blvd
Burbank, CA 91504

P: 818-433-6054 | info@romanempireins.com Thousand Oaks Office
3717 E Thousand Oaks Blvd., Suite 225
Thousand Oaks, CA 91362
P: 818-633-5441 | info@romanempireins.com
Powered by Insurance Website Builder