Insurance companies in Alabama consider several factors when determining your commercial insurance rate. The location of your business can impact your insurance costs, but it depends on specific circumstances.
Higher Insurance Rates
Businesses located in high-crime areas are more likely to file claims due to theft or vandalism. Additionally, they may face liability lawsuits from individuals seeking to profit from their actions. These risks can lead to higher insurance rates, including increased premiums and deductibles, even if you’ve never filed a claim before.
Consider contacting an agent at The Mitchell Agency LLC before selecting the location for your business to better understand how the location may affect your insurance costs.
Type of Business
The type of business you operate also plays a role in determining your insurance rates. For example, a store or business with expensive tech equipment is more likely to experience theft compared to a legal office. Insurance companies will request details about your business to assess your risk accurately. Always provide honest and detailed information to ensure proper coverage.
Not Getting Coverage for Everything
You may be able to reduce insurance rates by excluding coverage for certain risks. For instance, you could lower your monthly premium by excluding theft or vandalism from your policy. However, this means you would need to pay out of pocket for these events if they occur.
Whether exclusions are allowed depends on the agency. Some agencies may let you customize your policy by excluding certain risks, while others may offer blanket policies that cover everything without customization options.
Agents at The Mitchell Agency LLC can help you explore your options and find the right coverage for your business. Contact us today to learn more. We proudly serve the Alabama area.
