A massage therapist does not have the same underlying risks as a manufacturer who sells heavy machinery. Nor are the risks incurred by a plumber the same as those incurred by a real estate agent.
It’s therefore important that you clearly describe the nature of your professional activities to your insurer.
What items do you use for your professional activities? Computer equipment, camera, furniture, books, tools, etc.
List the exact value of your property to help you choose the right coverage – not too high, not too low.
The higher the coverage, the higher the premium. On the flip side. If you opt for lower coverage, the compensation will be smaller in case of loss, but you’ll be paying a lower premium.
Your insurer evaluates certain building features, including its age, location and construction material to establish the coverage required.
If you own or co-own the building, your insurer will also evaluate the cost of rebuilding. Note that the coverage amount for the building does not correspond to your mortgage – which generally factors in the value of the land – but rather how much it would cost the rebuild.
The building’s features taken in account by your insurer:
Your insurer will also evaluate the fire alarm system in the building or in your workplace, using certain analysis criteria.
Your insurer will take into account the number and type of claims you’ve already made. He’ll also factor in the crime rate (theft, vandalism) and fire stats in the sector where your building or place of work is located.
Your premium reflects your choice of coverage:
The deductible is the amount you accept to pay in case of loss. The higher the deductible, the lower the premium.
The deductible can vary significantly, depending on the value of the items covered or the additional protections chosen. Choose the amount of the deducible based on what you would be able to pay in case of loss.
Your credit record may be part of the factors used by your insurer to establish your insurance premium.
For more information on the business insurance market, consult our blog on the subject.