A presentation that provides a high level look at the factors that help determine your business insurance premium.

1. How is my business insurance premium determined?
By: TruShield Insurance

2. It might seem like insurance companies land on your insurance premium
amount randomly – but the truth is, it’s based on a complex set of
factors, most of which are specific to your unique situation and your
business’ risk potential.
These factors are so complex that there can be trillions of possible
combinations!
It all comes down to statistics,
research and your unique situation.

3. While an insurance company is going to look at every business on an individual
basis, there are some common factors that will influence their pricing decision.
Common factors that influence your
insurance premium amount.

4. Do you run a consulting firm? A home renovation business? Own a small
bakery?
Knowing the nature of your business will help your insurance company
evaluate property risks (for instance, if there’s welding done in an area
where there’s also sawdust – a potential fire risk) as well as liability risks
(e.g. a retail premises where customers could slip and fall on waxed
floors or icy sidewalks).
1The nature of your business.

5. Being located in an earthquake or flood zone is a factor that can affect
your insurance rate. So can having a business that’s in a high-crime
neighbourhood.
What province you’re in is also a factor as each province can have its
own legal standards depending on the liability risk. Likewise, a larger
urban centre might see more lawsuits than a rural location.
2Where your business is located.

6. Next, your insurer is going to want to know more about your business’
physical property.
They’ll look at your building’s construction type – in other words,
whether it’s made of concrete, steel, wood or a combination of
materials. The age of the building, proximity to fire protection (i.e.
location of hydrants, fire stations) are also significant risk factors for
building and contents.
3
The characteristics of your
business property.

7. If you’ve never filed a claim for your business or there’s been a
significant period of time since your last claim, it’s going to work in your
favour when it comes to determining your premium amount.
4Your business’ claims history.

8. Another factor that affects your insurance rate is the amount of
coverage you require. The more you need, the more your premium
amount is going to be.
One way you can lower your insurance costs is to increase your
deductible if you think your business can handle it in the event of a
claim. Decreasing your coverage limits is never a good idea… it would
be a much bigger financial hit (as in devastating) than increasing your
deductible.
5The amount of coverage needed.

9. A good insurance provider will help you determine how much risk you
MUST insure. They can also advise you on the optimal coverage
amounts and where you can save by increasing your deductibles.
As your business grows, be sure to keep your insurer informed of any
key changes (hiring employees, renovating your property or adding new
locations) as your insurance will need to change as well.
Getting the right coverage at the right price.

10. Visit www.trushieldinsurance.ca to learn more.
Make sure your business is protected.