Insurance policy rating is the process used by insurers to determine the premium you'll pay for coverage. This involves assessing various factors such as the type of business you operate, the level of risk associated with your services, claims history, and the amount of coverage you need. These factors collectively help insurers gauge the likelihood and potential cost of a claim from your business."

For example, if you run a roofing business, the insurer will consider the inherent risks of this trade, like working at heights and using specialized equipment. They'll also look at your past claims history. If you've had few or no claims, it suggests you manage risks well, which could lower your premium. On the other hand, a high level of claims could lead to higher premiums.

Understanding your policy's rating is crucial because:

• It helps you anticipate and budget for insurance costs.
• You can take proactive steps to manage risks and potentially lower premiums.
• It ensures that you're adequately covered without overpaying for insurance.