American Westbrook Insurance Services

American Westbrook Insurance Services


The easiest definition to give when asked the question ‘What is risk?’ (in terms of insurance) is: Risk is the uncertainty regarding financial loss. No matter what type of business you have, there is always some type of risk involved. Even a business that is strictly clerical contains a slight risk.

When purchasing a business insurance policy, the type of business you have is taken into account in the rating process. The insurance industry has made up a set of rates that coincide directly with the risk at hand. Each employee is given a classification code depending on what his or her job duties entail. That rate also has a dollar value attached to it. Depending on how many employees you have in each classification, your base premium is determined from there.

Once the rates and employee count are applied to your policy, your business will then be evaluated for any possible policy adjustments or discounts that should apply. For example, precautions that are taken to reduce possible risk are always taken into account. If you have a good loss history with no significant claims in the past three years, your policy premium could be lower than a business that has had a bad claim history.

Keeping your business’s risk as low as possible can be very beneficial all around. Not only are you protecting your workers, your products, and your clients, but you can save your business money on insurance premiums. If you have any questions about risk, classification ratings, how to prevent claims in the future, or how to reduce your business insurance premiums, please call us. We can explain the premium rating process and get you the rate your business deserves. And never hesitate to ask about any possible premium reductions that may be available for your business!

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