What are the factors that influence the level of the premium I will need to pay?
Insurance premiums are based on a wide variety of factors not all of which are specific to the individual practice. Key factors include the type, size and location of the projects and the claims history is also considered. In addition, the number of insurers willing to write a particular type of business, the overall claims experience and the degree to which insurers are prepared to compete to obtain that business can all affect premiums. On a wider scale, just like any other market in goods or services, the insurance marketplace as a whole, is affected by issues such as the general economic situation (where there is growth then the amount insurers can earn through investing their income is greater); the prevalence of major catastrophes, like hurricanes, which can cost the insurance industry significant sums of money and trends in the type of claims being brought and the cost of settlements (the so-called ‘compensation culture) can all affect overall premium trends.
