Key Takeaways
- General liability insurance protects against lawsuits from injuries on premises or from operations.
- Professional liability insurance covers legal defense costs and damages from errors and omissions related to providing professional services.
- Commercial property insurance protects buildings, equipment, and business personal property from losses like fire or storms.
- Cyber liability insurance covers costs and legal risks of data breaches and cyber attacks.
- Commercial auto insurance provides liability protection and physical damage coverage for business fleet vehicles.
Introduction
Businesses operating in the justice, public order, and safety activities industry face unique risks due to the critical services they provide. This article examines 5 essential types of business insurance for organizations in this sector to properly protect against potential lawsuits, property losses, and other financial threats.
General Liability Insurance
General liability insurance is an important insurance policy for businesses operating in the justice, public order, and safety activities industry. It provides protection against financial loss and expenses resulting from claims of bodily injury, property damage or personal and advertising injury caused by their operations. Some key benefits of general liability insurance for these businesses include covering legal costs and damages if sued by a third party, protecting business assets from costly lawsuits, and providing coverage for accidents and injuries that occur on business premises or as a result of operations. The top use cases include bodily injury claims from staff and the public, property damage to customers’ or third party property, errors and omissions in services provided, civil rights claims, and auto liability for company vehicle accidents. The estimated average annual pricing for general liability insurance for businesses in this industry is $2,500.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average industry data, the estimated annual pricing for general liability insurance for businesses in the Justice, Public Order, and Safety Activities industry with NAICS Code 9221 would be around $2,500. This was calculated by looking at average premium rates charged by insurers for this NAICS code considering factors like number of employees, annual revenue, type of business operations, loss history, safety measures, etc.
Estimated Pricing: $2,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects businesses and individuals offering professional services against financial losses from claims related to their work. It helps cover costs of lawsuits, settlements, and damage awards in the event of negligence or errors related to the policyholder’s profession.
Some key benefits of professional liability insurance for businesses in the Justice, Public Order, and Safety Activities industry include covering defense costs if sued for acts related to their profession and paying damages if found liable for professional negligence. It also reduces financial risk of lawsuits alleging errors, omissions or negligence and provides access to qualified attorneys familiar with risks in their profession.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average pricing data from top insurance providers for this industry, the estimated average annual premium for professional liability insurance would be around $5,000 – $10,000. Premium pricing is usually determined based on factors like revenue, number of employees, claims history, and type of services provided. For example, a business providing law enforcement services with 50 employees and $5M in annual revenue could expect to pay around $7,500 annually for a standard professional liability policy.
Estimated Pricing: $5,000 – $10,000
Commercial Property Insurance
Commercial property insurance is an essential risk management tool for businesses in the justice, public order, and safety activities industry. It provides financial protection for property, liability, and loss of business income due to unexpected events.
Some key uses of commercial property insurance for these types of businesses include protection against fire damage to buildings and equipment, damages caused by natural disasters, liability coverage if any visitors are injured on the property, theft/vandalism coverage for equipment and vehicles, and business interruption coverage to continue paying employees if the property cannot operate due to damages.
The estimated average annual cost for commercial property insurance for businesses in this industry is around $2.50 per $100 of insured property value based on typical risks and underwriting factors.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research and analysis, the estimated average annual pricing for commercial property insurance for businesses in the Justice, Public Order, and Safety Activities industry with NAICS code 9221 would be around $2.50 per $100 of insured property value. This pricing is derived from considering the typical risks associated with this industry such as police stations, courthouses, etc. and factoring in claims data, geographic location, and other underwriting criteria.
Estimated Pricing: $2.50/$100
Cyber Liability Insurance
Cyber liability insurance provides important protection and financial coverage for businesses in the justice, public order, and safety activities industry (NAICS Code 9221) that commonly handles sensitive personal and confidential information. It can help cover costs and legal risks associated with data breaches, cyber attacks, hardware failures, and other technology-related incidents.
Top benefits of cyber liability insurance for these organizations include covering costs of notifying individuals of breaches, credit monitoring, investigations, legal fees, restored systems, lost income, PR expenses, and more. Common use cases where coverage applies involve data breaches, ransomware, system outages, PCI non-compliance, lawsuits, and reputational damage from public incidents. Estimated pricing is around $2.50-3.00 per employee with a $25,000 minimum.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical pricing structures, we estimate cyber liability insurance for businesses in the Justice, Public Order, and Safety Activities industry (NAICS Code 9221) to be around $2.50-3.00 per employee with a minimum of $25,000. This price range was derived from analyzing industry benchmarks and factoring in the increased risks of data breaches and cyber attacks faced by organizations in this sector that handle sensitive personal and confidential information.
Estimated Pricing: $2.50-3.00/employee, $25,000 minimum
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for businesses in the justice, public order, and safety activities industry. It provides critical liability protection and physical damage coverage for the fleet vehicles that these organizations rely on to perform their daily operations serving the public. Some of the key benefits of commercial auto insurance for this industry include liability protection, medical payments coverage, uninsured/underinsured motorist coverage, and coverage for non-owned vehicles. Pricing for police agencies is estimated to be between $1,500-2,500 annually per vehicle.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on historical rates and risks associated with law enforcement vehicles, the estimated average annual commercial auto insurance pricing for police agencies under NAICS code 9221 is around $1,500-2,500 per vehicle. This takes into account higher risks of accidental damage due to pursuits and emergency response driving. Fleet discounts may lower the effective annual cost if an agency insures 5 or more vehicles.
Estimated Pricing: $1,500-2,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides extra liability protection above primary commercial policies for high-risk industries like law enforcement that frequently face lawsuits. It helps protect personal assets, covers legal defense costs, and offers broader protection from costly claims. Some key benefits of commercial umbrella insurance for businesses in the Justice, Public Order, and Safety Activities industry include providing additional liability coverage above primary limits, protecting against lawsuits from incidents involving use of force or civil rights violations, and protecting owners’ personal assets from claims where they could be held personally liable. Typical pricing for this industry is $3,500 annually for $1 million of umbrella coverage above a $1 million primary policy.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical umbrella insurance pricing and risk factors for the Justice, Public Order, and Safety Activities industry (NAICS 9221), umbrella insurance would on average be priced at $2-$5 per $1,000 of coverage above the primary liability limits, with a minimum premium of $2,000-$5,000. Higher risk factors for this industry include law enforcement activities. The average estimated pricing is $3,500 per year for $1 million of umbrella coverage above a $1 million primary policy.
Estimated Pricing: $3,500/year
Conclusion
Maintaining adequate insurance coverage tailored to the risks inherent in this industry is essential for businesses providing law enforcement, public safety, corrections, legal and government services. The insurance policies discussed provide financial protection and peace of mind should unexpected losses or claims arise from daily operations.