Scheduled rating

A change in your insurance premium based on certain risk factors.


What is a scheduled rating?

Scheduled rating is a process some insurers use to personalize business insurance premiums based on specific risk factors. Insurance companies and underwriters can grant insured credits or debits based on schedule rating.

Why have a schedule rating?

Scheduled rating in insurance offers several benefits to customers. It allows for more accurate and customized premium pricing based on individual risk factors. This means that policyholders with lower risk profiles can enjoy lower premiums, while those with higher risks can receive appropriate coverage.

For insurance, instead of relying on broad industry averages, a scheduled rating offers a more precise and equitable approach for certain industries:

  • Construction and contracting: The nature of projects, safety record, workforce skills, and project size all impact risk. A roofer faces different risks than a home improvement contractor.
  • Restaurants and food services: Food safety concerns, customer injuries and kitchen fire hazards vary greatly. A bustling high-end restaurant has different risks than a neighborhood delicatessen.
  • Retail businesses: Location (crime rates), product type, customer foot traffic and store structure affect risk. A downtown boutique with high foot traffic has different considerations than a small rural store.

A scheduled rating also promotes transparency, as customers can better understand how their premiums are calculated. It also allows customers to adjust their coverage and premiums as their circumstances change, ensuring that their insurance remains relevant and cost-effective over time.

How a premium is calculated with a scheduled rating

Scheduled rating calculates your premium by considering your unique business’s risk profile through several factors (these aren’t all the factors, just a few of them):

  • Business nature: A general contractor may have a higher risk profile than a business consultant.
  • Location: Insurers would consider factors such as crime rates, the possibility of natural disasters and local municipal rules.
  • Safety measures and protocols: Fire safety systems, security measures, and employee safety training programs are examples of such protocols.
  • Claims history: A claim-free history may result in a lower premium, while a claim-rich history may result in a higher premium.
  • Physical condition of the business premises: Well-maintained facilities generally have a lower chance of accidents and damage.
  • Size and scale of operations: Larger companies or those with more employees may face more risks and, as a result, higher premiums.
  • Employee training and experience: Employees who are well-trained in safety protocols and experienced typically contribute to a lower risk profile.

Policies should adapt to your small business’s specific risks, helping you avoid overpaying for unnecessary coverage. It also rewards you for sound risk management. Investments in security measures and employee training can directly lower premiums.

Protecting your business with NEXT Insurance

NEXT makes it simple and fast to get the business insurance coverage you need. Our policies are designed to be affordable, customizable, and easy to manage.

You can start a quote, customize your options and access your certificate of insurance online — all quickly and online.

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The information provided on this page is meant for informational purposes only, is general in nature, and is not intended to and should not be relied upon or construed as a legal opinion or legal advice regarding any specific issue or factual circumstance.

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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
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Cover medical bills and lost wages if your employees have an accident at work.
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Commercial Auto
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Tools & Equipment
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Keep your building, inventory and equipment protected from fire or water damage.
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Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.