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Insurance Premium For Business Calculator

Work out insurance premium for business instantly with clear inputs, formula shown and shareable results.

About Insurance Premium For Business Calculator

Commercial property and liability premiums are rated per mille of sum insured, then adjusted for hazard loading and credited for risk controls and a clean claims record. The effective rate per mille is the number to benchmark year on year, since sums insured change with indexation.

Formulas

Base premium

Base = Sum insured x Rate per mille / 1,000

Net premium

Premium = Base x (1 + Risk loading %) x (1 - Discount %)

Worked example

With the default values below, Insurance Premium For Business Calculator returns Annual premium of $19,872.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Sum insured
8,000,000
Base rate per 1,000 of sum insured
2.4
Risk loading
15
Discount for controls and claims history
10

Results

Annual premium
$19,872.00
Premium at base rate
$19,200.00
Risk loading applied
$2,880.00
Effective rate per 1,000 insured
2.4840

Step by step

  1. 1Values used
  2. 2Base premium
  3. 3Net premium
  4. 4Annual premium= 19,872.00
  5. 5Premium at base rate= 19,200.00
  6. 6Risk loading applied= 2,880.00
  7. 7Effective rate per 1,000 insured= 2.4840

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative premium illustration only. Actual pricing depends on underwriting, policy wording, deductibles, jurisdiction and taxes or levies. Not insurance advice — obtain a quotation from an authorised insurer or broker.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative premium illustration only. Actual pricing depends on underwriting, policy wording, deductibles, jurisdiction and taxes or levies. Not insurance advice — obtain a quotation from an authorised insurer or broker.

Frequently Asked Questions

What drives the risk loading?

Occupancy hazard, construction type, protections such as sprinklers and alarms, exposure to flood or storm, and claims experience.

Does a higher deductible reduce the premium?

Yes, usually materially. Retaining attritional losses removes the insurer's handling cost as well as the claims cost.

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