Delaware Business Insurance Update from CNC Insurance Associates, " Small Business Insurance Rates Depend on the Models" 2-8-15

Every small business owner needs to know about insurance modeling.  What you pay for insurance rates will most likely be directly related to it. Insurance models  are algorithms which tell the insurance companies how much to charge you. They base these calculations on data obtained from various sources about your business. A lot of this information may not even seem related to business insurance. Here are some examples,  how do you pay your vendors?,  what is your credit score? , has your company lost money in the last few years? , how does your business compare to other businesses in your peer group?  These are just examples of  data insurance companies may use. There is a lot more but much of it is proprietary.  Understand that everything you do in your business is fair game to the insurance company modelers.  It is a new world !  Until next time be careful out there and know your risks

G. Kevin Nemith,  President CNC Insurance Assoc. & The Small Business Insurance Center
Serving DE, MD, VA, NJ & PA
www.cncinsurance.com
www.bizinsurancetv.org


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