How Do I Avoid an Insurance Surcharge?

The abnormal risk premium is a component of the premium. Refers to the amount of money paid by the policyholder to cover changes in annual claims. Of the insurance premiums collected, risk premiums only bear the average compensation expenses expected to occur during the year. The actual payment of compensation in any year cannot be an average. In some years, the payment of compensation may be particularly large, while in other years the payment of compensation may be particularly small. ^[1]