Cost of Commercial Crime Insurance in Texas
A Commercial Crime Insurance policy typically covers forgery, employee theft, robbery, burglary, embezzlement, and frauds like computer fraud and funds transfer fraud. Every business is unique; hence, the cost of Commercial Crime Insurance usually varies from insurer to insurer. Commercial Crime insurers consider various factors when calculating your premium. These factors may include, but are not be limited to:
The type of business you do
The size of your business, including annual revenue and the number of employees that work for you
Claims history
Products produced, owned, or sold by your company
The risk associated with running your business
The security measures in place on the business premises
Interaction of the business with third parties
Coverage amount
Policy deductibles
After your insurer has calculated your premiums, you will pay the same amount throughout the policy term. However, when your Commercial Crime Insurance coverage comes up for renewal, your insurer may opt to increase it. They can also decrease your premiums if you have taken steps to mitigate your risks. Most Commercial Crime Insurance premiums are paid annually at the lowest cost. However, you can opt to pay your premiums upfront as a single or limited premium payment. A single premium payment requires that you make a one-time full payment before the coverage begins. The limited premium payment option requires paying your Commercial Crime Insurance premium within a specific period. For instance, with a limited premium payment option, if your policy term lasts for a year, you may be required to pay your entire insurance premiums within three months. There might be a probability that you might not be able to afford a lump-sum or limited payment. If this happens you can use Premium Finance (read more about the Premium Finance in “How to Pay for Commercial Crime Insurance'') to spread the costs over the course of the year. You can save on your Commercial Crime Insurance by paying your premium upfront but it can attract additional fees.
To save on your Commercial Crime Insurance policy:
Try to compare quotes from multiple insurers
Purchase your policy through an organization
Bundle your Commercial Crime insurance policy with other Business Insurance policies
Pay your premiums upfront to attract discounts from your insurer
Select high deductibles
Purchase your policy through an insurance agent
Invest in workplace safety
Talk to a knowledgeable and experienced Texas insurance agent to guide you on how to get an affordable Commercial Crime Insurance policy that suits your current and future business needs.
How Much Should I Pay for Commercial Crime Insurance in Texas?
The specific amount you should pay for your Commercial Crime Insurance depends on the size of your business, the nature of your business, your payroll, and your business property value. For example, businesses with many employees, which deal with large cash transactions should expect to pay more premiums than a solopreneur who works remotely and has no employees.
Generally, the cost of Commercial Crime Insurance differs by the insurance provider. Still, you can seek the service of a Texas insurance agent who can get you an affordable policy with comprehensive coverage.
How to Understand the Cost of Commercial Crime Insurance?
Insurers in Texas use several factors to determine the cost of Commercial Crime Insurance. Some of these factors are:
The number of employees: Companies with many employees have greater chances of experiencing theft, fraud, embezzlement, and other business-related crimes. Hence, such companies pay higher premiums than businesses with less staff.
Claims history: Insurers might require companies with a history of excessive crime-related losses to pay higher premiums.
Security measures: Businesses with security systems such as cameras, automated bookkeeping, security alarms, and point of sale systems can reduce the risk of crime in their organization. This can lead to a reduction in the premium amount.
Business property value: Businesses with expensive equipment or businesses selling valuable items are usually targets of theft by employees and non-employees. As such, companies that sell expensive goods tend to pay higher premiums than low-end brands.
Policy deductible: This is the amount companies will have to pay before an insurance company pays some or all of their claims. The higher the deductible, the lower the premium.
Coverage limits: The premium cost for businesses with higher coverage limits is more premiums than for businesses with lower coverage limits.
Annual revenue: Companies with higher revenues pay more than companies with low revenues.
Industry: Business-related crimes are more prevalent in companies or industries that handle large cash transactions, low internal checks and balances, and valuable inventory. As such, they pay high premiums.
What is the Average Cost of Commercial Crime Insurance in Texas?
The average cost of Commercial Crime Insurance in Texas differs by the insurance provider. Insurers use various factors like industry, business size, payroll, sales, coverage amount, and deductibles to determine the price of your policy. On average, Commercial Crime Insurance coverage can cost about $659 annually. Getting multiple quotes from several insurers and always inquiring about discounts can help save on a Commercial Crime Insurance policy.
Talk to a knowledgeable Texas-licensed insurance agent to help you compare quotes since they have adequate experience working with multiple insurers.
How Much is Typical Commercial Crime Insurance?
The cost of Commercial Crime insurance in Texas depends on the size and nature of your business, annual revenue, and prior claim history. However, businesses should expect to pay between $240 to $270 yearly on a $25,000 coverage amount for Commercial Crime Insurance. The deductible on this amount can be around $250. Therefore, businesses should consider purchasing lower coverage limits or selecting higher deductibles to reduce premiums. However, higher deductibles or lower coverage may not be the best, particularly if the business is considered high risk. This is because the goal of insurance is to protect from financial loss, but with high deductibles or insufficient coverage, this goal is defeated. If a covered event occurs in this situation, the insured business may have to bear all or most of the loss.
How Much is Commercial Crime Insurance Premium?
Commercial Crime insurance premiums are calculated based on the type of industry, the number of employees working in the company, security measures on the business premises, coverage amount, and business property value. For instance, a business that selects a coverage amount of $1,000,000 will pay higher premiums than another that chooses a $500,000 coverage amount.
How Much is Commercial Crime Insurance Usually?
Insurers are usually the ones that determine the cost of Commercial Crime Insurance coverage. Their decisions are based on several factors like the type of business you run, the number of employees that work for you, your annual revenue, the number of years in business, and claims history. It is advisable to purchase your policy from a Texas insurance agent to get an affordable Commercial Crime Insurance quote. They will help you compare quotes from multiple insurers and ensure you settle for an affordable policy that will suit your business needs.
How Much is Commercial Crime Insurance Per Month?
The average cost of Commercial Crime Insurance in Texas is between $20 and $22.50 per month on a $25,000 policy. However, this price varies by the insurance provider for the same policy type and coverage.
How Much Does Commercial Crime Insurance Cost for Small Businesses?
The average cost of Commercial Crime Insurance for small businesses in Texas, with revenue under $500,000 is about $659 annually for a $500,000 coverage. This price varies due to several factors like annual sales, industry, business size, business property, coverage limit, and claims history. Small businesses that want to get an accurate estimate on pricing should contact a knowledgeable Texas commercial insurance agent. This agent will help the business to assess the needs and to get quotes from multiple insurers to see how those can be covered at the most reasonable price.
How Much Does a $25,000 Commercial Crime Insurance Policy Cost?
Depending on your business size, property value, and annual revenue, a Texas business may pay between $240 and $270 yearly as a Commercial Crime Insurance premium for a $25,000 coverage.
How Much Does a $500,000 Commercial Crime Insurance Policy Cost?
Businesses that need to purchase a Commercial Crime Policy with a $500,000 coverage amount may expect to pay between $600 and $750 annually.
How Much Does a $1,000,000 Commercial Crime Insurance Policy Cost?
Most insurers in Texas charge around $2,000 to $4,000 annually for a $1,000,000 policy. However, several factors like business size, business property value, and annual revenue can drastically influence the price of the Commercial Crime insurance policy.
Speak to a knowledgeable state-licensed insurance agent who can access your business needs and give you personalized quotes that will cover all the risks your business is exposed to.
Does Commercial Crime Insurance Have High Deductibles?
Most Texas Commercial Crime Insurance policies come with deductibles stating that at the time of business-related loss, a part of the claim would be paid by the business. Insured businesses determine how much deductible they want to choose. Choosing to go for high deductibles can lower the cost of an insured business’s premium. Higher deductibles or lower coverage may not be the best, particularly if the business is high risk. This is because the goal of insurance is to protect from financial loss, but with high deductibles or insufficient coverage, this goal is defeated. If a covered event occurs in this type of situation, the insured business may have to bear all or most of the loss out-of-pocket.
Does the Amount of Chosen Deductible Matter for the Cost of Commercial Crime Insurance?
Yes. The higher the deductible, the lower the cost of Commercial Crime Insurance. In the event of a peril, an insured with a higher deductible would have to bear most of the loss, and the insurance company will ultimately pay less.
Why is Commercial Crime Insurance so Expensive?
Texas businesses that are exposed to higher levels of risks tend to have expensive Commercial Crime Insurance policies. For instance, businesses that engage in money transfers, credit, cash, or electronic transactions are usually prone to business-related crimes. Hence, they pay higher premiums than low-risk organizations. Other factors that make Commercial Crime Insurance so expensive are:
Business size: If you have many employees working for you, your Commercial Crime Insurance will be expensive. This is because the risk of large businesses experiencing greater crime-related problems is relatively high.
Security measures: Businesses that do not take security measures should expect to pay higher premiums.
Stand-alone policy: Purchasing a Commercial Crime Insurance policy as a stand-alone policy will make it more expensive. It is better to add Commercial Crime Insurance coverage as an endorsement to other policies like Business Owner Policy (BOP) to save cost.
What Raises and Lowers your Commercial Crime Insurance?
Before purchasing your Commercial Crime Insurance, what raises or lowers the cost is based on the amount of your coverage and deductibles. However, nothing increases or decreases your premium rates once you purchase the policy. Your premium will remain the same for the entire policy term. However, when your Commercial Crime Insurance coverage comes up for renewal, your insurer may opt to increase it. This is because the insurer would have to consider various factors (like the current number of employees working for you and your business property value) before issuing the policy.
For instance, if the number of employees that work for you increases or your revenue increases before renewing your policy, you will likely be required to pay higher premiums. Also, your Commercial Crime Insurance policy can decrease at the point of renewal if you have mitigated certain risks that reduce your chances of filing a claim. For instance, if you take security measures like purchasing burglar alarms, installing anti-spyware software, and securing valuable documents before renewing your policy, this can lead to a reduction in the premium amount.
Insureds select deductibles before Commercial Crime Insurance coverage begins and this deductible stays in effect for the duration of the policy. However, insureds can decide to increase or decrease their deductibles after the policy term when they want to renew their policy. Also, insureds cannot reduce their deductibles below what the insurance company has set. Insureds should check for more information regarding their Commercial Crime Insurance deductible in the terms and conditions of their policy or speak to their trusted commercial insurance agent.
Does Commercial Crime Insurance Go Up after a Claim?
Most times, Commercial Crime Insurance goes up after a claim. However, the level of increment varies by the insurance provider. Generally, businesses prone to crime-related losses and have an excessive claim history might be required to pay more premiums. Also, premiums can go up if you want to renew your Commercial Crime Insurance policy after a claim.
How Much Will a Claim Increase Commercial Crime Insurance?
After you make a claim, your Commercial Crime Insurance policy premiums will remain the same throughout the policy term. However, your premiums might increase when you want to renew your policy because most insurers will consider your claim history when determining how much you will pay for your Commercial Crime insurance policy. Companies that have a history of excessive crime-related losses tend to pay higher premiums. However, your premiums might decrease if you have mitigated certain risks that reduce your chances of filing a claim in the future.
Speak to a Texas-licensed business insurance agent to clarify if making claims will affect your Commercial Crime Insurance premiums.
Will Commercial Crime Insurance Go Up if my Annual Revenue Increases?
Yes, there is a significant probability that your Commercial Crime Insurance will go up if your annual revenue increases. This usually happens during policy renewal.
What Happens if a Commercial Crime Insurer Changes the Premium?
Commercial Crime Insurance premium remains the same throughout the policy period. However, if the premium is set to change for whatever reason, your Texas insurer will provide you with a mailed notice outlining the current cost, the new cost, and the date when the change will occur.
Talk to a knowledgeable Texas Insurance agent who can go over premium changes and how it relates to you and your particular business.
Does the Cost of Commercial Crime Insurance Go Down Over Time?
The cost of Commercial Crime Insurance does not go down over time except if your business risk reduces at the point of policy renewal. You will have to pay the same amount of premium throughout the policy tenure, depending on various factors considered by the insurer before the policy was purchased. However, your Commercial Crime Insurance policy can either increase or decrease if you want to renew your policy after the policy tenure. For instance, if you have more employees at the time of renewal than you did at the initial subscription, your premium will increase. However, your premiums will decrease if you have mitigated certain risks that reduce your chances of filing a claim.
To save on your Commercial Crime Insurance policy, you can seek the service of an insurance agent who can help you compare quotes from multiple insurers. Insurance agents will ensure that you settle for a policy that is customized to suit your business needs at a competitive price.
An alternative way to save on your Commercial Crime Insurance policy is to go for single or limited premium payment options. With a single premium payment option, you will have to pay for all your premiums upfront before the policy is issued. In contrast, a limited premium payment option allows you to pay your premium within a specific period of time. An upfront premium payment allows your insurer to give you a discount on your policy. Insureds who bundle their Commercial Crime Insurance policies with other Business Insurance policies may also be eligible for discounts. Lastly, taking security measures and selecting higher deductibles might attract reduced premiums.
How Much Commercial Crime Insurance Do I Need in Texas?
The amount of Commercial Crime Insurance coverage you need to purchase depends on your business needs. If you own a business prone to crime-related losses, you should consider getting comprehensive coverage. Consider your business size, the type and nature of your business, and your business interaction with third parties before determining the amount of coverage to purchase. Generally, the amount of coverage you purchase should be able to restore your business to the state it was before the event that led to certain damages.
Speak to a Texas-licensed commercial insurance agent to get an answer tailored to your specific business needs.
How Much Commercial Crime Coverage Do I Need?
The amount of Commercial Crime Coverage you need is generally based on the type of business you run. Insurers consider several factors to determine the price of Commercial Crime Insurance, including:
Coverage limits: Insureds with higher coverage limits may have to pay more premiums.
Annual revenue: Businesses with higher revenues pay higher premiums because they are more exposed to many risks.
Industry: High-risk businesses like convenience stores and supermarkets that deal with cash transactions will pay higher premium rates than low-risk industries.
Business property: Businesses that store or sell valuable goods are usually at a greater risk for crime. Hence, insurers might require that they pay higher premium rates.
Security measures: Insurers might lower premium amounts for businesses with safety precautions like security systems and CCTV cameras.
Business size: Businesses with many employees may be prone to business-related crimes like employee theft or fraud. Hence, they tend to pay higher premiums than businesses with less staff.
Speak to a knowledgeable Texas-licensed insurance agent who can help you identify your business needs and match them with the most comprehensive and cost-effective commercial crime coverage.
How to Save on Commercial Crime Insurance in Texas?
Commercial Crime Insurance coverage can be quite expensive if you have many employees working for you or you deal with huge cash transactions daily on your business premises. However, there are several ways you can save on your policy, such as:
Shopping around: Comparing quotes from multiple insurers can help you get affordable Commercial Crime Insurance that suits your business needs. It is better to seek the service of an insurance agent when doing this.
Taking security measures: Insurers can reduce your premiums if you take security measures like purchasing burglar alarms, installing anti-spyware software, and securing valuable documents to reduce criminal activities on the business premises.
Coverages and deductibles: Buying lower coverages and higher deductibles can lower premium rates. However, having high deductibles and low coverage puts your business at risk and exposes it to financial loss if a peril occurs.
Discounts: Some insurers offer discounts to insureds who bundle Commercial Crime Insurance with other business insurance policies or pay their premiums upfront. Ask your insurer if you are eligible for discounts and take advantage of them to reduce your premiums.
Talk to a Texas-licensed Insurance agent who can guide you through the process of Commercial Crime Insurance premiums reductions.
Can you Negotiate the Price of Commercial Crime Insurance?
The Texas Department of Insurance regulates the insurance premium rates in the state. Hence, it is impossible to negotiate the price of Commercial Crime Insurance. However, you might have to compare quotes from multiple insurers to reduce your premiums because premium rates can vary drastically from one company to another. The price should not be the only reason for opting for a policy as you shop around. Rather focus on ensuring that the coverage suits your business needs. Purchase Commercial Crime Insurance coverage from a state-licensed insurance agent who has access to multiple insurers and can leverage that to help you get the best possible Commercial Crime Insurance options to suit your business needs.
Can you Get Better Coverage Using Multiple Commercial Crime Policies?
It might be difficult to get an umbrella policy that you can use as an additional layer of protection against business-related crimes perpetrated by full-time or part-time employees and third parties. However, you can get better coverage if you purchase your Commercial Crime Insurance as part of an industrial package policy called Special Multi-Peril (SMP) insurance. SMP insurance provides coverage under one policy that otherwise would be covered by multiple insurance policies, thereby reducing costs.
Speak to a licensed Texas insurance agent who can assess your business, design the most optimal version, and explain to you the pros and cons of each option.
What is the Best Way to Save on Commercial Crime Insurance in Texas?
A good way to save on Commercial Crime Insurance is to take security measures. The size of your business and the number of valuable goods you have on your business premises increase your risk of theft and fraud. Hence, taking security measures like purchasing burglar alarms, installing anti-spyware software, and securing valuable documents help reduce risks and can lower your premium.
An alternative way to save on Commercial Crime Insurance in Texas is to purchase a lower coverage limit or select a higher deductible. However, this would mean you may not have sufficient insurance coverage, and in the event of a peril, you may have to pay most or all of the incurred costs out of pocket. Additionally, adding Commercial Crime Insurance coverage to an existing policy makes it more affordable. However, the best way to save on this policy is to speak with a licensed commercial insurance agent. A licensed insurance agent will help you shop around for an affordable Commercial Crime Insurance policy that offers proper coverage for your business.
What Can I Do if I Can’t Afford Commercial Crime Insurance?
Speak to a Texas insurance agent if you cannot afford Commercial Crime Insurance. They assess your needs and help you shop around for less expensive insurance options where your businesses can be protected from business-related crimes like employee theft, forgery, embezzlement, robbery, burglary, and frauds like computer fraud and funds transfer fraud.
How Do I Get Commercial Crime Insurance if I Have no Money?
Getting Commercial Crime Insurance when you don't have money might be quite challenging. This is because you are expected to pay your premiums on time, and if you don't, your policy might lapse. In addition, you will need money to keep your policy active, so you don't lose coverage for criminal activities perpetrated by employees or non-employees. However, business owners can get loans from premium finance companies or their insurance providers to alleviate their financial burden.
Discuss with a Texas-licensed insurance agent to find out whether there are possibilities of getting a Commercial Crime Insurance policy or any other Business Insurance policy that you can afford. Speak with them about possible ways to spread the payment over a longer period of time, making it more affordable for you.
How Much Do you Save by Paying Commercial Crime Insurance Upfront?
Most businesses prefer to pay their premiums using the regular premium payment option, which could be monthly, quarterly, or yearly. However, most insurers prefer upfront payment, and as such, they might offer a discount rate of 6% and 14% or other incentives to insureds who pay their premiums upfront.
If you want to pay your premiums upfront, you can consider a single premium payment option or a limited premium payment option. The single premium payment option requires that you make a single (lump sum) payment. This is a default method of payment for all commercial insurance In contrast, the limited premium payment option involves paying premiums within a specific duration of the policy tenure, and requires financing the premium using a 3rd party financier through Premium Financing (read more about the Premium Finance in “How to Pay for Commercial Crime Insurance”
Speak to a Texas-licensed insurance agent when considering which premium payment option is best for you. Also, ask the agent if discounts are available if you pay premiums upfront.
What Discounts are Available for Commercial Crime Insurance?
The discounts available for Commercial Crime Insurance in Texas vary from one insurance provider to another. Most times, insurers with discounts usually subject it to certain eligibility requirements, and some do not even provide discounts at all. However, after your premium is calculated, your insurance provider can help you work out any discounts you may be eligible for. Consider the following tips to earn discounts on your Commercial Crime Insurance policy:
Bundle your coverage: Your insurer may offer a discount if you combine your Commercial Crime Insurance policy with other business insurance policies.
Upfront premium payment: Your insurer may offer a discount if you pay your premiums up front.
Investing in workplace safety: Insurers can give you discounts when you minimize business risks by taking security measures.
You can talk to a Texas-licensed insurance agent to determine if your insurer offers discounts for Commercial Crime Insurance and confirm if you are eligible for it. Also, speak to an insurance agent to guide you through ways to save on Commercial Crime Insurance costs since they are familiar with the current market, the best Commercial Crime Insurance products, and pricing. They can also help you get an affordable customized quote and provide comprehensive Commercial Crime Insurance coverage.
