Your premium is the price of insuring a specific risk over a period of time.
business insurance premiums are determined in a wide variety of ways.
Property insurance premiums are determined by multiplying a rate per $100 times the amount of coverage to be purchased. A $1,000,000 building with a $.30 rate is $3,000 in premium.
General liability insurance premiums are calculated by multiplying the exposure base (payroll, sales, units, acreage, square footage) times a rate.
Workers' compensation premium is calculated by rate per $100 multiplied by payroll.
Comparing premiums from one year to another has limited value. Focus on your rates to tell how aggressive your insurer is being.
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