1. What is General Liability Cost Per 1000?

The General Liability Cost Per 1000 is a financial metric that measures the cost of general liability insurance relative to business revenue. It represents how much a company spends on liability insurance for every 1000 units of currency in revenue generated.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( \text{Premium} \) — Total general liability insurance premium cost
• \( \text{Revenue} \) — Total business revenue

Explanation: This calculation normalizes insurance costs against revenue, allowing for better comparison across different business sizes and industries.

3. Importance of Cost Per 1000 Calculation

Details: This metric helps businesses assess insurance cost efficiency, benchmark against industry standards, and make informed decisions about risk management and insurance coverage optimization.

4. Using the Calculator

Tips: Enter the total annual general liability premium and total annual revenue in the same currency. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good Cost Per 1000 ratio?
A: Industry benchmarks vary, but generally, lower ratios indicate better insurance cost efficiency relative to revenue.

Q2: How often should this calculation be done?
A: Typically calculated annually when renewing insurance policies and reviewing financial performance.

Q3: Does this include all insurance costs?
A: No, this calculation specifically measures general liability insurance costs only.

Q4: Can this metric be used for comparison across industries?
A: Yes, but industry-specific risk factors should be considered when making comparisons.

Q5: What factors influence this ratio?
A: Business risk profile, claims history, industry type, revenue fluctuations, and insurance market conditions.