Patent US 7,516,079

A methodology for calculating insurance premium comprising receiving a set of insurance information from a user including a revenue of the organization, a self insured retention (SIR) of the organization, and a loss limit acceptable to the organization to determine a standard premium for the organization. Once the standard premium of the organization is determined, the methodology illustrates how to determine a regular premium based on the standard premium and the SIR of the organization. Finally, using the described methodology one can determine an excess premium based on the loss limit acceptable to the organization, the regular premium and the self insured retention of the organization. The method provides a powerful tool to manage various risks of an organization and at the same time control various factors determining the insurance premium of the organization.