Why did my premium change on the business owner policy?
Why did my architecture/engineering firm’s premium change on the business owner policy?
There may be several reasons for a premium change on the business owner policy, here some examples of why it may be the case.
The insurance company had a standard rate increase. This may be nationwide rate increase or it may be by location. From time to time this happens with insurance companies and while they try to keep these to a minimum, rate increases may occur. If it is an admitted insurance company these rate increases must be filed in the state the increase is taking place.
Your firm’s premium may be increasing due to a change of location. If your firm has changed locations in the past policy period term at renewal there may be a rate increase. This may also lower your premium, depending on the location your firm has moved to. Additionally, if your firm added a location this may also cause a premium increase. Having two locations on the policy does add premium to the policy.
If your firm had an increase in limits on the general liability, automobile liability or the umbrella (if it’s part of the business owner policy). This may cause, depending on your firm and the location of your firm, the premium to increase.
Business personal property limits increasing may cause an increase in premium. If your firm has inflation guard on your policy or have increase the limits on business personal property this will likely increase the premium.
Claim experience may also cause an increase in premium. If your firm has suffered multiple or a severe claim this could cause the premium to increase in future years.
If there are any questions with regards to premiums on your business owner policy please call or email your Professional Underwriters agent for assistance.