Receipts vs payroll
General Liability often rates on gross receipts per $1,000, while Workers’ Comp rates on payroll per $100. Switching exposure type can swing the premium math.
Exposure lens
Business Insurance Cost Estimator Private • Client-side Not a quote
Inputs
Estimated Annual Premium
Estimate
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Range: —
Before tax
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Tax: —
Rating multiplier
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Relative to base
Breakdown
| Item | Value | Multiplier / Cost |
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Model: manual premium = exposure × base rate → apply factors (limits, territory, deductible, class, protection, experience mod, schedule) → apply minimum premium, fees, taxes/assessments. This is for learning/budgeting only.
🏢 5 Fun Facts about Business Insurance Pricing
Minimums bite small firms
Many policies have minimum premiums. A tiny startup with low receipts can still pay a floor rate that eclipses the “raw” exposure-based premium.
Floor effect
Sprinklers are big levers
For property, adding sprinklers and central alarms can cut hazard factors dramatically—often more impact than shaving the insured value or raising the deductible a notch.
Risk controls
Experience mods compound
Workers’ Comp experience modifiers multiply the whole subject premium. A 0.85 mod vs 1.15 can swing cost by 30%+ with no other changes.
History matters
Schedule rating is judgment
Schedule credits/debits adjust for things filings can’t capture (housekeeping, training, maintenance). Two similar firms can diverge based on onsite inspections.
Underwriter art
Business Insurance 101 — How Rating Works (and what this tool shows)
Commercial insurance pricing is usually exposure-based and written for a one-year term. Each line uses a different exposure: General Liability often uses gross receipts per 1,000; Property uses insured limits per 100; Workers’ Compensation uses payroll per 100; Professional/Cyber commonly uses revenue per 1,000 (with qualitative control factors). A carrier’s filed rate or “loss cost × multiplier” is adjusted by rating factors such as territory, industry class, limits (ILFs), deductibles, protection/sprinklers, coinsurance/“agreed amount”, and sometimes experience modifiers and schedule rating.
- Manual premium: exposure × base rate (illustrative in this tool).
- Factors: multipliers for hazard/territory/limits/deductible/controls/etc.
- Subject premium: manual × combined factors (and × experience mod).
- Final premium: max(minimum, subject × (1 + schedule)) + policy fees → then taxes/assessments.
This estimator is transparent on purpose: it doesn’t use proprietary bureau/carrier filings. Treat the result as directional — a starting point for budgeting and “what-if” testing — not a bindable quote.
Business Insurance — How Pricing Works (and what each input means)
Running a business means making smart, early decisions about protection. This calculator is a practical way to explore how common commercial insurance premiums are estimated so you can plan a budget and understand which details move the price. It is not a quote, but it gives a clear, educational view of the pricing logic behind general liability, commercial property, workers’ compensation, and professional liability or cyber insurance.
Most business insurance pricing starts with an exposure base. For example, general liability often uses gross receipts, workers’ comp uses payroll, and property coverage uses insured value or limits. The calculator multiplies that exposure by a base rate, then adjusts the result with common rating factors such as territory, industry class, coverage limits, deductible or retention, building protection, and experience modifiers. Finally, it applies minimum premiums, policy fees, and estimated taxes or assessments to show a realistic annual premium range. This mirrors how many commercial insurance rating models are structured, while keeping the math simple and transparent.
Here is how to use the tool:
- Choose the line of insurance you want to explore, such as general liability or workers’ compensation.
- Enter your exposure details, like revenue, payroll, or insured property values.
- Select limits, deductibles, territory, and any risk controls that match your situation.
- Click calculate to see the premium estimate and the breakdown of factors.
- Adjust inputs to run “what-if” scenarios and export a CSV if you want to compare options.
Real-world uses include budgeting for a new business, comparing higher deductibles versus lower premiums, or estimating how growth in revenue or payroll could affect costs. A retailer might test how a higher liability limit changes the estimate, while a contractor could see how different workers’ comp class levels shift the total. Because calculations run in your browser, you can explore scenarios privately before talking with a broker.
Remember that actual commercial insurance quotes depend on insurer filings, underwriting, eligibility, and claims history. Use this estimator as a learning tool and a starting point for conversations with licensed professionals.