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Why a company with less debts would have cheaper insurance.
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[QUOTE="Etini, post: 333547, member: 90141"] One of the things that really affects the finances of a company is the cost of insurance. Some companies have cheaper insurance plans while other companies are charged a higher premium for the exact same insurance plan and coverage. Why does it happen like that? One of the variables that affects the price insurance plan for a company is it's debts profile. An insurance provider sees a company that has low debts as prudent and less likely to have recurrent claims. A company with high debts looks more risky to an insurance provider. That's why a company must have it's debts profile low as it would affect the cost of insurance for it. [/QUOTE]
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Why a company with less debts would have cheaper insurance.
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