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The general term “business insurance” has to do with protecting a business against operational losses. The exact type of loss covered by a business insurance policy depends on the insurance company, the policy wording, as well as local limitations. Basically, insurance companies use actuarial tables that pull data from similar businesses using historical information and projected risks who have suffered covered losses plus the costs incurred and based on that information, they then quote an applicable rate per unit of coverage. The number of insurance companies who issue business insurance can also influence business insurance rates as well as the size and type of business.