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Marshall Said:

Where can I get a low-amount business liability insurance policy?

We Answered:

Call some local insurance agents. If you have a policy that low and have a claim filed legal fees could eat up most of the policy.

Have you considered getting a Pre Paid Legal plan?

Deborah Said:

Small Business General Liability Insurance rates for premiums and audits?

We Answered:

Each company is allowed to base premiums on whatever they want. So yes, one company might use payrolls, one might use gross sales. Square footage is possible, and "unit" is possible, and there's also a thing called an "a" rate, where the underwriter makes it up.

When comparing quotes, you have to know several things: 1. what is the actual RATE, and 2. what is it based on. You also need to know the "minimum premium". Then before you pick one, you need to run through several scenarios, doing the numbers yourself, to see what the actual cost is at 1. projected figures for this coming year 2. If your projection is high, and the actual figures are half, or 3/4 of projection, and 3. if your projections are low, and the actual figures are double.

THEN you know which deal is the best.

There is no standard audit dollar. I'm not sure what you're really asking - audits can close EVEN, with no changes, if YOUR initial figures are accurate enough.

But if you go in with lowball numbers, the audit will be high. If you go in with high numbers, the audit will be low. It's all about how accurate YOUR intial information is. The audit, simply takes the ACTUAL rating basis - sales or payroll - and multiplies it by the rate, which you agreed on at the beginning of the policy term, and then compares the REAL number to your projected number, and adjusts the premium retroactively, accordingly.

Keep in mind, any subs that don't have a certificate of insurance on file with you, that's effective for YOUR entire policy year, will be charged as if they are employees.