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Affordable Business Insurance Rates in Illinois, How Much Does Business Insurance Cost?

by Edward Snaneh, Expert and Licensed Agent for Business Insurance in Chicago Illinois

Affordable business insurance rates in Illinois is one of the most important aspects facing Illinois business owners. The cost of business insurance is based on several factors. The classification of the business, size of the business, business physical conditions, and coverage types and amounts are the major factors. Several other factors may be affect business insurance rates.
 InsuranceNavy is an Illinois Indepdent Insurance Agency representing several  business insurance companies in the States of Illinois and Indiana, and is offering its services through several locations in the area.
The agency main focus includes:

** Insurance for retail, wholesale, and small manufactuing operations.
** Insurance for Illinois and Indiana used car dealers.
** Insurance for Indiana and Illinois trucking business including long haul, cargo and interchange.
** Insurance for Indiana and Illinois tow truck businesses.
** Garage insurance for repair shops (all mechanic and body shops)
** Indiana and Illinois workers compensation insurance
** Apartment Building Insurance in Chicago Illinois
** Indiana and Illinois contractors

For fast and free consultation, quick quotes please call one of our licensed business insurance agents at:

(708) 233-4848

Business Insurance Classification: Classification of business operations is perhaps the most important factor. Generally speaking the insurance companies will use their own classification codes or  the SIC classification and the General Liability Classification Guide, or their own methods to distinguish between and classify businesses. Example: Not all 'grocery stores' are the same for insurance purposes. A grocery store that is less than 4,000 square feet has different classification than one that is over 4,000 square feet, or over 10,000 square feet.

Business Insurance and Size: Size of the business is second important factor. Insurance companies use different indicators to distinguish between similar businesses. The most common indicators for the size of the business is (1) Sales or receipts of the business, (2) Area of the business expressed in square footage, and (3) Payroll paid to employees on annual basis. For example: A pharmacy that sells $300,000 every year has lower chances of being sued for liability purposes than another pharmacy that sells $500,000 per year. Also, a contractor with annual payroll of $75,000 has lower probability of being sued than another similar contractor with annual payroll of $220,000.

Business Insurance and Physical Condition: Physical conditions of the business refer to the antenatal and external conditions. Relevant factors include age of the building, construction type of the building, number of stories, percentage of vacancies in the same building, dates of most recent updates, burglar and security alarms, etc. Of particular importance is if or not there is a central fire station and if  or not the business is sprinkled automatically or not. Those two can determine if the business can qualify for sizable discount or not.

Business Insurance Coverage Types & Limits: Coverage types and amounts or limits are another pricing factor for business insurance. Main property types include building coverage, business personal property coverage (content of the business). Other insurable property related coverages include business interruption (business income), crime coverage (robberies and burglaries), outdoor signs, properties in transit, property of others, etc. Amounts / limits of coverage will determine the price, as higher limits pay more premiums.

Other important factors may include the business ZIP code & business credit worthiness. Some insurance companies seem to be more sensitive to ZIP codes than others: For example, insurance premium for a building in ZIP code 60642 in Chicago could be significantly different than an identical building with same coverage on the other side of the street with a different ZIP code of 60453 (adjacent village of Oak Lawn). Also, certain companies place more emphasis on credit of business. Credit worthiness of the business (checked by different sources by either business name, phone number etc.)

The key and most important determinant of business insurance premiums is the insurance company itself. Certain companies are more competitive than others in specific market segment. If you are have a super deal on your personal auto insurance with certain company, the same company may not be as lovely and as competitive as you might think when it comes to your business truck, or warehouse insurance.

Shopping for affordable business insurance in Illinois, and other states, does not have to be painful. Discussing your business insurance need with an independent agent can be very productive. Independent insurance agents, normally, have more access to wider range of insurers, hence they offer better chances of finding the right coverage at the right price. There are thousands of agents for business insurance in Chicago and some of them have extensive experience in finding affordable business insurance in Illinois.

This post first appeared on Insurance Navy Brokers | Auto, SR22 Insurance Q, please read the originial post: here

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Affordable Business Insurance Rates in Illinois, How Much Does Business Insurance Cost?


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