General Liability Codes And How They Affect Your Business Insurance

Businesses are always looking for ways to streamline their processes and save money. You might believe you can do this by cutting back on your business insurance premiums. However, you may not have as much control over your rates as you believe.

Regardless of the company, there are many elements underwriters will consider when developing a policy for your business. Many of these are based on industry-standard actuarial principles.

So, the cost of your business insurance is going to depend on many factors.
These factors include:

• The type of business you have
• The types of insurance you are required to have by law
• The amount of coverage you want from each policy
• What kinds of insurance are needed by business partners or affiliated companies
• Your company's location
• How the insurance company rates your business regarding safety and risk

So, you do have control over some of the variables that affect your rate. However, there are some you don't control. For instance, how insurance underwriters classify your business.

General Liability Class Codes And Their Impact On Your Business Insurance Rates
When an insurance company agrees to write you a policy they are promising to do three things:

• They agree to protect your company from unwarranted claims and lawsuits.
• They agree to pay on legitimate and legal claims
• They agree to indemnify you and your company

All companies are not the same, and different types of industries have different levels and types of risks. An attorney is more likely to have an errors and omissions claim filed against her than a security guard company. However, the security guard company is more likely to face personal injury or liability risks.

To honestly and fairly address the differences, the insurance industry created general liability class codes to differentiate between industries. The codes are simply a way for them to categorize and group similar types of companies for determining the levels of risk.

There are several different types of liability class codes. A commonly used set is the Insurance Services Office's class codes. However, there are several other insurance industry class codes as well as codes developed within insurance companies.

If your business covers a variety of different industries, your company could be assigned different codes for each business.

The codes aren't an industry secret, you can go here to see how your business might be classified.

At Culture Insurance we work with many companies in a wide variety of industries.  All of our staff are seasoned experts at recommending the correct types and amounts of insurance. We also understand working within your company's budget, and we will provide quality insurance policies that cover all of a company's liabilities.

If you are in the market for a new line of business insurance or looking to expand your coverage, we invite you to contact us.