There is no single pricing formula for all businesses.
Depending on the type of coverage, insurers may consider:
- Annual sales
- Payroll
- Number of employees
- Square footage
- Property values
- Equipment values
- Type of business
- Years in business
- Claims history
- Location
- Building construction
- Fire protection
- Security systems
- Customer traffic
- Products sold
- Services performed
- Subcontractors
- Professional services
- Business vehicles
- Cyber exposure
This is why two businesses with similar revenue may have very different insurance premiums.