The variables underwriters use to calculate your premium.
Rating factors include your revenue, industry, employee count, claims history, security controls, and the limits/deductibles you choose. Each line of coverage has different primary rating factors.
Insurance premiums are calculated using rating factors including your annual revenue, industry classification, number of employees, claims history, and the coverage limits and deductible you select. Additional factors vary by coverage type—for example, cyber insurance weighs your security controls and technology stack, while general liability emphasizes your operations and customer interactions.
You can reduce premiums by choosing higher deductibles, implementing risk management practices like security controls or safety programs, maintaining a clean claims history, and accurately representing your business operations. Startups should also shop multiple carriers, as rating factors are weighted differently across insurers, and some specialize in specific industries or risk profiles.
No, each line of coverage emphasizes different rating factors. Workers' compensation rates heavily weight payroll and job classification codes, while cyber insurance focuses on revenue, security practices, and data handling. Professional liability prioritizes your service type and claims history. Understanding which factors drive your specific policy helps you optimize coverage and cost.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.