How Insurers Determine Coverage and Premium Costs

Orlando commercial property buildings insurance

An insurer considers several factors, such as location and type of business, to determine the cost of insurance and premiums for your company. These factors are weighed against the possibility of loss and the potential cost to restore or replace the loss. For example, if your business is a car dealership located in an area that sees hailstorms every year, your premiums will be adjusted to account for the potential of needing repairs to vehicles damaged in a storm. Orlando commercial property buildings insurance takes into account your inventory (even if it’s outside) too.

Company location is important in a state that sees several hurricanes every year. If your office, warehouse or other facility is near the Florida coast, or perhaps in a high-crime area, that’s another consideration. The age of your building can affect your premium because older facilities did not have the same wiring standards as today’s buildings and electrical damage is a higher risk. If your facility has one or several safety and security issues, ask your insurer how to mitigate some of these concerns. Perhaps a new security system for businesses in high-crime areas or moving further inland can help lower your premiums. Orlando commercial property buildings insurance is a tool for safeguarding your company; put it to work for you by lowering your risk, and you could enjoy reduced premiums too.