Key Takeaways
- General liability insurance protects against costly lawsuits from injuries on your premises or during operations.
- Commercial property insurance covers costs to repair or rebuild structures and equipment if damaged.
- Commercial auto insurance covers liabilities and costs from vehicle accidents.
- Workers’ compensation insurance provides relief for on-the-job injuries as required by law.
- Business interruption insurance covers lost income if the business must temporarily shut down.
- Hangarkeepers liability covers damage to aircraft under your care and custody.
- Professional liability protects against lawsuits over errors in services.
- Cyber liability insurance covers growing risks from data breaches and cyber attacks
Introduction
Businesses in the Other Airport Operations industry face unique risks associated with airport environments and activities. Proper insurance coverage tailored to this industry is critical to protecting operations from unexpected costs and ensuring business continuity. This article outlines the top types of business insurance these companies should carry. The references provided give detailed descriptions of each insurance type including benefits, uses cases and pricing estimates.
General Liability Insurance
General liability insurance provides important protection for businesses in airport operations and other industries. It helps cover costs from litigation and claims caused by negligent or accidental actions that result in injury, property damage, or other losses to third parties. Some key uses of general liability insurance for airport operations businesses include covering liability from aircraft services like refueling or maintenance, as well as accidents that occur on airport property involving passengers, vehicles, or aircraft. An estimated average annual cost for general liability insurance for airport operations businesses is $2,500 – $5,000 based on factors like the number of employees, annual revenues, and types of operations.
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Based on research of average pricing data from multiple insurance providers, the estimated average annual pricing for General Liability insurance for businesses in the Other Airport Operations industry with NAICS code 488119 is $2,500 – $5,000. This pricing range was derived by looking at factors like number of employees, annual revenues, types of operations and services provided by businesses in this industry which generally involves airport or flying field operations.
Estimated Pricing: $2,500 – $5,000
Commercial Property Insurance
Commercial property insurance is an important coverage for businesses in the other airport operations industry. It can provide financial protection for buildings, equipment, inventory and lost income due to covered perils like fire, storms or other hazards that airports may face. Commercial property insurance also provides liability protection if a third party visitor or customer is injured on the business’s premises at the airport location. This is especially important given the public nature of airport facilities.
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Based on typical pricing models for commercial property insurance, businesses in the Other Airport Operations industry with NAICS code 488119 can expect to pay on average $3.50 – $5.00 per $100 of insured value. Pricing is calculated based on factors like location, claim history, security measures, value of property, etc. For a typical business in this industry with $5 million of insured property, the estimated annual premium would be $17,500 – $25,000.
Estimated Pricing: $17,500 – $25,000
Commercial Auto Insurance
“Commercial auto insurance provides important liability and physical damage coverage options for businesses in the airport operations industry that use vehicles as part of their daily operations. It protects against costs from accidents and legal claims involving company vehicles.”
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Based on research and analysis of industry factors like risks, claims, regulatory requirements, the average estimated pricing for commercial auto insurance for businesses in the NAICS 488119 industry is around $2,000 – $3,000 annually per vehicle. This price range was calculated based on national average rates for businesses operating vehicles at airports, which tend to be higher risk due to airport operations and traffic. The final price would depend on individual business factors like location, fleet size, years of experience, safety record, etc.
Estimated Pricing: $2,000-$3,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protection for employers in the other airport operations industry. It covers medical expenses and lost wages for employees injured on the job, protects businesses from costly lawsuits, helps attract quality candidates, and is required by law in most states. Given the manual labor nature of jobs in this sector such as baggage handling and aircraft loading/unloading, workers’ comp is especially important as there is a higher risk of on-the-job injuries. It also gives employers peace of mind in ensuring proper care for injured employees. On average, businesses in NAICS 488119 can expect to pay around $2.50 per $100 of payroll annually for workers’ compensation coverage based on national rates.
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Based on national average rates, the estimated average annual workers’ compensation insurance pricing for businesses in the NAICS 488119 Other Airport Operations industry would be around $2.50 per $100 of payroll. This rate is derived from analysing published industry rate tables from major workers’ compensation insurers and taking into account the risk level associated with airport ground support services and cargo handling activities typical of this industry sector.
Estimated Pricing: $2.50 per $100 of payroll
Business Interruption Insurance
Business interruption insurance provides vital financial protection for businesses like those in the NAICS industry code 488119 (Other Airport Operations) that rely on airport operations to function normally. It covers lost income and ongoing expenses if their business must shut down or relocate temporarily due to unforeseen disruptions at the airport beyond their control like weather events, construction projects, outbreaks, and equipment failures. Some key benefits of business interruption insurance for NAICS 488119 businesses include continued cash flow to pay employees and suppliers, reimbursement for temporary relocation costs, and peace of mind knowing the business is protected from financial losses. Annual premiums are estimated around 1-2% of revenues, or $20,000-$40,000 for the average NAICS 488119 business with $2 million in annual revenues.
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Based on typical insurance pricing models, businesses in the NAICS 488119 industry can expect to pay around 1-2% of annual revenues for 1 year of business interruption insurance coverage. Given the average annual revenue for NAICS 488119 businesses is around $2 million, the estimated pricing would be $20,000-$40,000 per year.
Estimated Pricing: $20,000-$40,000
Hangarkeepers Liability Insurance
Hangarkeepers liability insurance provides protection for businesses that store, maintain or operate aircraft. It covers legal liability and repair costs if an aircraft is damaged while under the care of the business. This type of insurance is essential for companies in the NAICS code 488119 industry (Other Airport Operations) as it helps protect them from costly repairs or lawsuits if an aircraft is damaged on their property or during routine maintenance activities. Pricing for hangarkeepers liability insurance averages around $1,500 annually for a $1 million policy limit and $2,500 deductible.
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After researching pricing data from top aviation insurance carriers, the estimated average annual pricing for hangarkeepers liability insurance for businesses in the NAICS code 488119 (Other Airport Operations) industry is around $1,500. This pricing is based on a typical policy with $1,000,000 limit and $2,500 deductible. The pricing can vary depending on business size, aircraft values stored, loss history, and other risk factors.
Estimated Pricing: $1,500
Professional Liability Insurance
Professional liability insurance provides important protection for businesses in the other airport operations industry (NAICS 488119) from lawsuits arising from errors, omissions or negligence during service delivery. It covers legal fees and damages awarded in a lawsuit, and provides access to experienced legal support. Typical uses include claims from errors in airport services, accidents, allegations of poor quality work, improper handling of goods, and liability from equipment used. Pricing is estimated at $3,000-$5,000 annually based on company size and risk factors in airport operations.
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Based on industry research, the estimated average annual pricing for professional liability insurance for businesses in the Other Airport Operations industry (NAICS 488119) is $3,000-$5,000. This pricing is derived considering the typical revenue sizes of businesses in this industry and the risk factors involved in airport operations services. Professional liability insurance protects against lawsuits arising from errors and omissions in services provided to customers.
Estimated Pricing: $3,000-$5,000
Cyber Liability Insurance
Cyber liability insurance is an important coverage for businesses in the airport operations industry to consider. As outlined in the reference, these businesses handle large amounts of sensitive customer data and rely on technology systems to operate. Without the proper protections, a cyber attack or security breach could result in high costs and legal risks that standard business insurance would not cover. The reference provides details on the top benefits of cyber liability insurance, common use cases it covers, estimated annual pricing for a typical business in this industry, and outlines why this type of specialized coverage is particularly important for companies that store and transmit sensitive customer information.
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Based on average pricing for cyber liability insurance for businesses in similar industries that store and transmit sensitive customer data like personal IDs and financial information, the estimated average annual pricing would be between $2,500 to $5,000. This pricing assumes average levels of IT security protections and no prior cyber liability claims. The pricing was estimated by looking at actual pricing data from top cyber liability insurance providers for industries of similar risk level and scale.
Estimated Pricing: $3,750
Conclusion
Choosing the right portfolio of insurance policies is an important part of risk management for any business. The coverage options discussed provide financial protection for common exposures faced by the Other Airport Operations sector. Maintaining adequate liability, property and income protections helps safeguard operations from risks outside a company’s control.