Example data table
These samples use the same formula as the calculator. Adjust inputs to match your situation.
| Example | Industry | Revenue | Payroll | Property | Limit | Deductible | Claims | Est. Annual |
|---|---|---|---|---|---|---|---|---|
| Small office | Office / Professional Services | $300,000.00 | $180,000.00 | $120,000.00 | $1,000,000 | $1,000.00 | 0 | $2,393.37 |
| Retail shop | Retail Store | $750,000.00 | $260,000.00 | $250,000.00 | $2,000,000 | $2,500.00 | 1 | $5,506.99 |
| Restaurant | Restaurant / Café | $1,200,000.00 | $520,000.00 | $400,000.00 | $2,000,000 | $1,000.00 | 2 | $17,583.67 |
Formula used
Base premium combines three exposure components:
- Property base = Property Value × Property Rate
- Liability base = (Revenue ÷ 1,000) × Liability Rate
- Payroll base = (Payroll ÷ 100) × Payroll Rate
Risk multiplier adjusts the base subtotal:
- Industry factor × Location factor × Liability limit factor
- × Claims factor × Deductible factor
Estimated annual premium = max(Minimum Premium, (Base Subtotal × Multiplier) + Add-ons Total).
Rates and factors are practical planning defaults. Change them in code to align with your market, carrier, or underwriting assumptions.
How to use this calculator
- Pick your industry and location risk category.
- Enter revenue, payroll, and property value you want to insure.
- Select a liability limit, deductible, and your recent claims count.
- Choose add-ons if you need expanded protection options.
- Click Calculate to see annual and monthly estimates.
- Use Download CSV or Download PDF to save results.
Exposure inputs and business scale
Revenue, payroll, and property value act as three exposure drivers. Liability scales with revenue, workforce cost scales with payroll, and physical loss scales with insured property. Using the built‑in rates, $500,000 revenue contributes about $600 to the liability base, $200,000 payroll adds about $2,000, and $300,000 property adds about $900. Enter at least one exposure value for a meaningful estimate.
Baseline rates and minimum premium
The estimator uses planning baselines: $1.20 per $1,000 revenue for liability, $1.00 per $100 payroll for payroll exposure, and 0.30% of property value for property exposure. A $420 annual minimum premium floor avoids unrealistically low totals for very small firms or very high deductibles. Monthly cost equals annual premium divided by 12 for budgeting.
Risk multipliers that move price
A composite multiplier adjusts the base subtotal. Industry factors range from 0.85 for office work to 1.60 for contracting. Location risk ranges from 0.90 to 1.15. Higher liability limits raise price from 1.00 at $1M to 1.45 at $5M. Claims add surcharges (0.98, 1.10, 1.22, 1.35), while deductibles apply a bounded discount factor between 0.78 and 1.25.
Add-ons and coverage completeness
Add-ons use a fixed charge plus a scaled component tied to revenue, payroll, or property. Cyber begins near $140 plus scaling, business interruption and equipment breakdown scale with property value, professional liability scales with revenue, and hired/non‑owned auto scales with payroll. Add-ons inherit partial industry risk, so higher‑risk operations pay more. Use add-ons to compare lean coverage versus broader protection.
Ranges, exports, and scenario review
Quotes often land within a band rather than a single point. The tool shows a typical range of ±15% around the estimate to reflect carrier and underwriting variation. Compare profiles in the example table, then rerun with different limits and deductibles to see tradeoffs. Export CSV for spreadsheet analysis and PDF for sharing with partners, brokers, or internal reviewers. For consistent comparisons, keep exposures constant and change one lever at a time across scenarios only.
FAQs
What does the risk multiplier include?
It combines industry, location, liability limit, claims history, and deductible factors to scale the base subtotal into an estimated premium.
Why can a higher deductible lower the estimate?
Paying more out of pocket reduces expected insurer payments. The model applies a modest discount per deductible doubling, with safeguards so discounts do not become extreme.
Can I use my own currency values?
Yes. Enter all amounts in the same currency unit. The calculator preserves ratios, so the estimate stays consistent for planning and comparison.
How are add-ons calculated?
Each add-on adds a fixed charge plus a scaled amount tied to revenue, payroll, or property. The result is then partially adjusted for industry risk.
Why does the calculator show a range?
Carriers vary by appetite, pricing, and underwriting decisions. The ±15% band reflects common quote dispersion around a planning estimate.
How should I use the CSV and PDF exports?
CSV supports further analysis in spreadsheets, while PDF is useful for sharing scenarios with stakeholders. Recalculate after changing one variable to compare options cleanly.