Here is an overview of a few factors insurance providers consider:

• Amount of insurance coverage depends upon what you need to protect.
• Various industries are faced with different levels and types of risk.
• Management practices will assist in controlling those risks.
• The cost is influenced by location, industry, as well as the value of your property.

Q: My business will be launching in a couple of weeks — so I have started to shop for insurance. I am uncertain what to expect as far as cost is concerned or even how I can compare quotes. What are business premiums based upon?

Steely & Smith’s agents in Doylestown, PA discuss what impacts the price of business insurance:

A:The first thing the majority of insurance providers look into is what kind of business you have. Is it a retail store or restaurant? Are you a trucker or an independent contractor? Every industry will carry a special set of risks. If you have an establishment that is open to the public, you are likely going to need more liability coverage than IT consultants who work over the internet and phone.

Also, they look into your management practices, such as employee safety training, closing procedures, as well as how money is deposited and handled. Insurance companies need to know what steps you take to limit risk.

In addition, your physical location matters. Some regions have more traffic accidents than other areas. Some areas are more prone to specific types of weather. The closest fire station might be 20 miles away or around the corner.

Your business property’s value is one other big factor. The amount of insurance coverage you will want is based on what you need to protect — vehicles, equipment, inventory, and buildings. Your insurance coverage ought to reflect the price to replace those assets, in order for your business to recover from a loss.

Business insurance is critical. At Steely & Smith, we’ve created a high level of experience in business insurance in order for us to help businesses make certain that they have the proper coverage. We’ll do our very best to make it easy to understand.

If you need a credible company that offers business insurance, call Steely & Smith Insurance at (215) 345-9410.