 |
|
| When you are determining the Premium pricing of General Liability which
method is better, a rate per one hundred dollars of gross receipts or a
flat rate per room?. The answer depends on how many revenue centers
you have on your property. Do you have restaurants, bars, gift shops,
health facilities and are they generating revenue?. What is your
average daily rate and what is your occupancy rate? The answers to
these questions should give you reasonable insight as to which method is
most beneficial to you.
If your policy is rated on gross receipts your policy is subject to an audit after the policy period. The disadvantage is that you have to be really good at estimating annual receipts if not you could be subject to additional premium. If your operation is a Hotel/Motel with no additional revenue source and your occupancy is cyclical you would consider a premium rate based on gross receipts A flat rate per room greatly simplifies the budgeting process. If your property commands a higher than average daily room rate and you have other revenue centers than a rate per room would be more advantageous. If your sales are greater than expected it goes to your bottom line no policy period audits. If your not sure which rating method is best for your operations, talk to your Agent or Broker. If your insurance professional can not offer you choice you need to talk to us. We will help you get those choices. |
-