There is a book rating which acts as a guideline as to how much premium has to be paid. The book rating is prepared from a base rate, which contains the insurerís cost and also contains the demand for a particular type of business. If the type of business is favorable to them, then the premium will be lower than if the business is of a type that they do not want. The premium also depends upon the risk factor that an employer attaches to his business. The premium is also affected by the claims history, the size of comprehended risk and the approach to risk management. The premium will be lower based upon the safety measures taken at the place of work and the lower number of claims made. Premiums are also based on the records of other similar businesses by combining good and bad together. Although, this may negatively affect small businesses with a good record, but safety records and good risk management can minimize the same as well.
Public and Product Liability of the Employers
This is totally dependant on the number of employees and the size of the pay roll. There are certain other parameters, which influence the assessment of risk. The turnover of the business and the place from where the work is done are the two main factors upon which the exposure risk of public and product liability is based. There are insurance brokers who can advice the employers regarding the best insurance for their business type.