As you know, commercial property insurance in Georgia is considered a defensive aspect that will safeguard your business and/or building. It will offer you ultimate financial protection against certain unplanned or unexpected events that might disrupt or damage the business assets and premises.
As important as it is, the cost of commercial property insurance differs throughout the country on down to the local city, county and sometimes zip code area. The variation in cost can also be due to several other factors as well, and this article is all about making you aware of some of them.
So, before you decide on buying commercial property insurance in Atlanta, Georgia, do read this article till the end to be more knowledgeable about the factors that influence the cost.
One of the major factors that affect the price that independent insurance agents in Georgia will quote you is the size of your business space (ie square footage etc.). When you own a larger property for your business, the estimated insurance replacement value will be higher. Thus, the potential amount payable by the insurance company in case of any mishap will also be higher.
Considering this fact, the bigger the space, the more that this can translate to higher premium cost for your commercial property insurance.
The next crucial factor that will affect the overall cost of your commercial property insurance is the geographic location of your business. If your office building is situated in an area that’s more prone to natural disasters on record, such as earthquakes, floods, hurricanes, or even crime your commercial property might be subject to higher premium costs.
And that’s mostly because the risk of your office building experiencing damage is higher based on historical claims experience within the insurance industry for your particular area! Apart from natural disasters, the crime rate in the city or area will also be taken into consideration when factoring insurance premiums charged. If your business is located in a safer neighborhood, the insurance costs on average might be lower.
Undoubtedly, the current condition or age of the building will also be taken into consideration while determining the commercial property insurance rates charged. If your office is in an older structure with outdated plumbing, structural elements, and electrical systems, the insurance companies will presume it is at higher risk for the property to experience water damage, collapses, or fires.
Therefore, independent insurance agents of Georgia might quote you a higher rate for the commercial insurance premium cost. When your business is established in a newer building with updated safety features, you might just qualify for additional premium discounts.
The total coverage amount that you will be needing to replace your office contents in the event of a covered loss such as fire for example will also be taken into account for the rate that is charged. Typically the higher the coverage limit that’s needed, the higher the rate that will be charged for the property portion of coverage. Of course by choosing higher deductibles you’ll be able to bring your cost back down a bit.
The insurance companies will assess the overall security measures that your business premises has to prevent any kind of theft or vandalism. For instance, certain installations such as a sprinkler system, an active central burglar/fire alarm when present in a property can also help in lowering your overall insurance premium cost.
Without these security and safety measures in place your property will be considered more vulnerable to security and safety hazards, which will be a risk factor for insurance companies. Thus, considering the increased likelihood of accidents in such facilities, the insurance cost will be higher.
The final factor that will impact the overall commercial insurance cost is your selected extent of coverage. If you go with the basic or standard coverage, the insurance premium cost might be affordable, but you might be leaving some gaps in protecting your business.
But, when you go with comprehensive or extended coverage plans, you will have to pay a higher premium, but your financial security factors will be ensured. You can talk to your insurance agent and get customized coverage to suit the specific needs of your business, providing you with an efficient balance of cost and protection.
We hope this has provided you with a better understanding of some of the factors that play a vital role in how insurance carriers determine the rate that is ultimately charged as well as ways to help bring down your cost when looking to purchase GA commercial property insurance through a local independent insurance agent such as J&A Insurance Agency which is a local independent insurance agent located in the Kennesaw, GA area. If you are in a dilemma about what insurance plan would go well with your business protection needs, you can always connect with our staff at J&A Insurance Agency in Kennesaw, Georgia and let them curate a coverage plan that meets your business insurance needs.