Business Insurance Costs Decline

Big U.S.-based businesses reported a significant decline in their insurance costs last year, the second straight annual drop after a decade of consecutive increases, a new survey found.

The 1995 Cost of Risk Survey assesses the cost of insurance for property, liability and workers compensation. It measures the cost against each $1,000 of revenue.

The results, released Sunday, showed the average cost of risk decreased 5 percent between 1993 and 1994 to $7.30 per $1,000 of revenue. Most of the decrease reflected drops in both liability and workers compensation costs that offset a large increase in property insurance costs from a series of natural disasters.

Liability risk financing costs dropped 22 percent in 1994, reversing two years of increases. Workers compensation risk financing costs fell 18 percent in 1994 and have fallen 26 percent over the past two years.