By asking a few key questions about General Liability Insurance, you can reduce your total cost of risk and eliminate any nasty surprises at the end of the policy term. You see, the up-front General Liability premiums indicated on a quote are typically estimated premiums, not the final premium. The final premium is a function of the actual premium basis (gross sales, payroll, area, etc.) multiplied by a rate less applicable discounts and credits.
The actual premium basis is determined at the end of the policy year when an audit is typically conducted. If the estimated premium basis on the front end turns out to be less than the actual premium basis, then you will get an invoice for additional premium due. Surprise!
This is just one of the situations that can end up costing you more than you bargained for. Find out what else you need to know by checking out our General Liability Insurance Buyers Guide, or get in touch with us at General Liability Insurance Austin.
