Shopping for business insurance in Plano, McKinney, Allen, Celina, Prosper, or Richardson? One of the first questions you will hear is simple: How long have you been in business?
If you are new, that can feel unfair. If you are established, you might wonder why it still comes up. Here is the short answer: to a carrier, time on the job is one of the best indicators of risk.
At The Sterling Insurance Group, we help Dallas-area owners understand how tenure shapes pricing and eligibility—and what to do if you are just getting started.
The Core Reason: Experience Lowers Risk
Insurance is a math problem. Experience tilts the math in your favor. Years in business usually mean:
- Processes that actually work
- Safety habits that stick
- Vendors and customers you know and trust
- Proof that you can navigate hard seasons
A two-month startup is untested. A ten-year firm with clean history looks stable. Carriers price those two situations very differently.
1) Experienced Businesses File Fewer Claims
Mature operations tend to have fewer—and smaller—losses. Why? Better training. Fewer shortcuts. More awareness of legal and contractual pitfalls. Whether you are a Richardson roofer or a Plano retailer, practice reduces ugly surprises.
2) Underwriters Reward Stability
Underwriters study patterns. If you have several steady years:
- Revenue trends are clearer
- Operations are easier to evaluate
- Risk can be modeled with real data
A seven-year plumbing company is a known quantity. A brand-new handyman service is not.
3) Tenure Builds Trust
Years in business signal staying power. Lenders see it. Customers see it. Carriers do too. That credibility can unlock preferred pricing and broader coverage options.
4) Tenure Changes What Policies You Can Buy
Some markets limit options for newer firms. Examples:
- General contractors under three years may face declines with certain carriers
- New trucking or delivery operations often start in higher-risk programs
- Startups may see higher deductibles or tighter terms at first
More years usually means more carrier choices—and better terms.
5) Carriers Avoid “Pop-Up” Risks
Every industry has fly-by-night operators. Carriers screen for them. They ask who owns the business, what experience they have, and whether this is a serious operation. Documented background and licenses help newer firms pass that test.
New Business? Here’s How To Strengthen Your File
Everyone starts somewhere. You can still present well:
- Show prior industry experience. If you have ten years as a foreman before opening in McKinney, highlight it.
- List training and certifications. OSHA, trade licenses, manufacturer certs—use them.
- Put procedures in writing. Safety plans, checklists, contracts, COI requirements for subs.
- Work with an independent agent. We know which carriers welcome startups in the Dallas suburbs and which do not.
How Years in Business Affect Premiums: A Simple Look
Established Landscaping Firm (Prosper)
- Years in business: 7
- Revenue: $450,000
- Claims: none in 5 years
- Sample GL premium: ~$1,200/year
New Landscaping Startup (Allen)
- Years in business: < 1
- Revenue: $450,000 (projected)
- Claims: none
- Sample GL premium: ~$2,100/year
Same work. Same dollars. The difference is tenure and proof of consistent operations.
It’s Not Only General Liability
Tenure influences pricing and eligibility across the board:
- Workers’ comp: construction, manufacturing, and trades
- Commercial auto: experience with fleets and drivers
- Professional liability (E&O): consultants, real estate, tech
- Surety/bonds: many programs expect a minimum operating history
A Note of Caution: Tenure Helps, But Losses Hurt
Being in business a long time does not erase a rough loss history. Frequent claims, coverage gaps, or unsafe practices can outweigh your years. Tenure plus good management is the winning combo.
How Carriers Think About Time Benchmarks
- 0–1 year: brand new. Fewer markets. Tougher terms.
- 2–3 years: forming a track record. More options if losses are low.
- 5+ years: established. Preferred carriers open up.
- 10+ years: strong credibility, especially with clean history.
Dallas-Area Context
In the northern suburbs, carriers write a lot of:
- Construction and trades
- Landscaping and outdoor services
- Tech, consulting, and professional firms
- Food and beverage
These sectors lean heavily on tenure when pricing. We match your profile to carriers that know Collin and Dallas counties and understand local risk.
Stay Insurable As You Grow
- Keep good records. Start date, resumes, licenses, COIs, training logs, and claims history.
- Maintain continuous coverage. Avoid lapses.
- Use your deductible wisely. Consider paying very small losses out of pocket to protect long-term pricing.
- Review annually. As your experience and revenue change, adjust limits and endorsements.
Bottom Line
Insurance is a long game. Each year you operate safely adds credibility, expands your market options, and can lower your costs. Our job is to help you get credit for that experience—and to advocate for fair pricing.
Dallas-Area Call to Action
Doing business in Plano, McKinney, Allen, Celina, Prosper, or Richardson? Let’s review your tenure, your coverage, and your rates.
Call The Sterling Insurance Group today.
Phone: (972) 964-4825
Email: info@sterlinginsnow.com
Website: www.sterlinginsnow.com
We will present your experience clearly, target the right carriers, and help you secure the protection your business deserves—at a price that makes sense.