Top Business Insurance Options for Other Aquaculture Businesses with NAICS Code 112519

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This article discusses the key business insurance options that other aquaculture businesses with NAICS code 112519 should consider including general liability, property, commercial auto, marine, workers' compensation, business interruption, commercial umbrella, equipment breakdown and cyber insurance.

Key Takeaways

  • General liability insurance protects against claims from third parties for injuries or damages
  • Property insurance covers buildings, equipment, inventory and protects business continuity
  • Commercial auto insurance protects vehicles and covers accidents involving employees vehicles
  • Marine insurance provides coverage for marine operations and assets
  • Workers compensation covers medical costs and lost wages for job injuries
  • Business interruption insurance reimburses lost income during recovery from disruptions
  • Umbrella insurance provides additional liability limits above underlying policies
  • Equipment breakdown covers repairs from mechanical failures
  • Cyber insurance mitigates costs of cyber attacks and data breaches

Introduction

Businesses in the other aquaculture industry face various risks that standard business insurance policies help mitigate. This article outlines the top insurance options these businesses should consider to protect their operations, assets, employees and financial stability.

General Liability Insurance

General liability insurance is an important policy for aquaculture businesses to protect against risks and litigation costs. It covers claims that may be made against the business for bodily injury, property damage or other losses caused to third parties. Some key benefits of general liability insurance for aquaculture businesses include covering legal costs if sued for issues like pollution, copyright infringement or improper waste disposal. It also pays damages if accidents occur on the property or due to faulty equipment and products. Maintaining adequate liability insurance gives owners peace of mind knowing the business and personal assets are protected.

Category List
Benefits
  • Covers legal fees and costs if you’re sued by a third party for bodily injury or property damage
  • Protects your assets if you’re held liable for accidents on your property or during operations
  • Covers liability claims from customers, contractors or visitors to your facilities
  • Covers pollution and environmental damage to surrounding properties from your operations
  • Protects you if an employee is injured on the job and then sues you for further damages
  • Covers you if a customer gets sick from eating contaminated fish/seafood from your business
  • Protects against liability claims from government regulators if your operations pollute waterways or surrounding areas
  • Provides peace of mind knowing you have financial protection if an unexpected incident occurs
  • Pays damages if farm equipment causes an accident and property is damaged
  • Covers legal costs if you’re sued for copyright or trademark issues regarding your business name or logo
  • Includes liability protection for additional locations, events or activities beyond your main farm/facility
  • Covers legal defense if you’re sued for improper waste disposal or runoff from your facilities
  • Includes bodily injury and property damage coverage for volunteers or interns working on your farm
  • Protects you against liability risks that may emerge over time as regulations or standards change
Use Cases
  • Bodily injury or property damage caused to third parties on the business premises
  • Bodily injury or property damage caused to third parties off the business premises
  • Errors and omissions leading to financial losses for third parties
  • Products liability claims for injury or damage caused by products sold
  • Pollution liability for damage or injury caused by dispersal of pollutants from business operations
  • Professional liability for improper advice or negligence by aquaculture consultants/advisors

Based on average pricing data for aquaculture businesses, the estimated annual cost for general liability insurance would be around $1,500. This was calculated based on industry standards of around $1 per $1,000 of gross receipts, assuming an average of $1.5 million in annual gross receipts for businesses in this industry.

Estimated Pricing: $1,500

Property Insurance

Property insurance is an important risk management tool for aquaculture businesses. It can help protect their substantial investments in property, equipment, facilities and protect business continuity in the event of losses or damage due to covered perils like fire, storms or theft. Given the technical nature of aquaculture operations and machinery, equipment breakdown coverage is also especially important for these businesses. Property insurance pricing varies depending on coverage limits and property values but provides vital protection for aquaculture operations against financial losses.

Category List
Benefits
  • Protection against property damage or loss due to fire, lightning, explosions, windstorms, hail, water damage, theft and more
  • Liability protection if a customer gets injured on your property
  • Business income and extra expense coverage to continue operations if property is damaged
  • Replacement cost coverage to repair or rebuild property to its condition prior to the loss
  • Guaranteed replacement cost for structures to cover costs that exceed coverage limits
  • Equipment breakdown coverage for mechanical failures or electrical damage
  • Protection for valuable inventory and stock
Use Cases
  • Coverage for buildings and structures used for aquaculture facilities and operations
  • Coverage for equipment, machinery, and tools used for aquaculture production and operations
  • Coverage for stored inventory and stored products
  • Coverage for property in transit
  • Business interruption or loss of income insurance in case operations are disrupted

Based on typical industry benchmarks, property insurance for businesses in the other aquaculture industry with NAICS code 112519 is usually priced at around $2.50 per $100 of insured value. This works out to an estimated annual premium of $2,500 for $100,000 of insured property. The pricing is derived from analyzing historical loss data specific to similar aquaculture operations and factoring in elements like the geographic location, loss history of the particular business, and security measures in place.

Estimated Pricing: $2,500

Commercial Auto Insurance

“Commercial auto insurance provides important protections for businesses in the other aquaculture industry. It protects against liability claims from accidents, covers repairs to business vehicles, and more as outlined below:

The reference outlines top benefits like liability protection, physical damage coverage, medical payments coverage, and coverage for hired/non-owned vehicles. It also details common use cases like coverage for transport vehicles, liability protection while operating vehicles, and coverage for employees’ personal vehicles used for business. Additionally, the reference estimates typical pricing for a business in this industry would be around $3,500 annually based on fleet size and risk factors.”

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for vehicles
  • Medical payments coverage for those injured in an accident
  • Uninsured/underinsured motorist coverage
  • Coverage for hired and non-owned vehicles
  • Coverage for Transportation of cargo/inventory
Use Cases
  • Coverage for company vehicles like trucks used to transport aquaculture products
  • Liability protection in case of accidents while operating company vehicles
  • Coverage for employee’s personal vehicles if they are used for business purposes
  • Medical payments coverage for individuals injured in a vehicle related incident
  • Uninsured/underinsured motorist bodily injury coverage

Based on industry risk factors and average fleet sizes, the estimated annual pricing for commercial auto insurance for a typical business in the Other Aquaculture industry with NAICS code 112519 would be around $3,500. This estimate is derived from commercial auto insurance rates for aquaculture businesses of similar sizes operating light-duty trucks and vans to transport personnel and equipment. Factors such as number of vehicles, driver qualifications, safety record, and coverage limits would impact the actual rate.

Estimated Pricing: $3,500

Marine Insurance

Marine insurance provides important financial protections for businesses in the other aquaculture industry. As operations in this sector often rely on marine transportation of supplies, inventory and products, various marine insurance policies help mitigate risks from accidents at sea, damage to vessels and equipment, cargo losses and more. This includes coverage for owned or leased boats and ships, legal liabilities, pollution incidents, business interruptions from adverse weather, and cargo transported by sea, road, rail or air. Premiums are estimated at $2.50 per $100 of insured property value based on typical risks and claims in this industry.

Category List
Benefits
  • Covers losses and damages from accidents at sea
  • Protects assets and property involved in marine operations
  • Covers legal liabilities from accidents and injuries
  • Provides coverage for ships, boats, and other watercraft
  • Covers cargo being transported by water
  • Covers infrastructure like docks, nets, and aquaculture facilities
  • Covers losses from adverse weather like storms, hurricanes, or flooding
  • Covers business interruption losses if operations are disrupted
Use Cases
  • Cargo insurance to protect inventory and supplies being transported by sea, road, rail or air
  • Commercial Hull insurance to cover damage to owned or leased vessels from collisions, running aground, sinking or capsizing
  • Freight/cargo legal liability insurance to pay third parties for loss/damage to cargo during transit
  • General liability insurance to cover legal liability from accidents on owned premises or during operations
  • Pollution liability insurance to cover clean up costs and legal damages from accidental pollution during operations

Based on typical marine insurance pricing models, businesses in the other aquaculture industry with NAICS code 112519 can expect to pay around $2.50 per $100 of insured value for marine insurance. This price is estimated based on the average risks and claims in this industry, which involves activities like shellfish farming and aquatic plant harvesting. The premium is calculated as a percentage of the total insured property value to provide coverage for perils like adverse weather events.

Estimated Pricing: $2.50/$100

Workers Compensation Insurance

Workers compensation insurance is an important protection for aquaculture businesses. It provides financial support to cover costs associated with work-related injuries and illnesses, helping both employees and employers when accidents occur on the job.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Legal protection if an employee files a personal injury lawsuit
  • Discounts on insurance rates for businesses with strong safety records
  • Protects the long-term viability of the business by mitigating costs of workplace incidents
  • Reduces turnover by providing assistance to injured workers during their recovery
  • Improves employee morale by demonstrating care for worker safety and well-being
Use Cases
  • Covering costs of injuries or illnesses sustained by employees on the job or during work
  • Paying lost wages for employees unable to work due to a job-related injury or illness
  • Paying medical expenses resulting from job-related injuries or illnesses
  • Covering costs of permanent disability or dismemberment resulting from a job-related injury or illness

Based on national average workers compensation insurance rates for the aquaculture industry and considering risk factors specific to other aquaculture businesses in NAICS code 112519, the estimated annual price per $100 of payroll would be $1.35. This was calculated using an experience modifier of 1.1 and an estimated average claim frequency and severity for this industry.

Estimated Pricing: $1.35/100 of payroll

Business Interruption Insurance

Business interruption insurance provides critical financial protection for businesses in the other aquaculture industry against losses from events that disrupt normal operations. It reimburses losses sustained during the period between when a disruption occurs until full operations are restored. This type of insurance covers lost income and additional expenses needed to continue operating after incidents like equipment failures, natural disasters, accidents or cyber attacks damage facilities or disrupt business systems. It helps ensure businesses in this industry can stay afloat and avoid layoffs until normal operations resume after an unexpected event.

Category List
Benefits
  • Protection from loss of income if your operations are disrupted
  • Coverage if property is damaged and repairs take time
  • Reimbursement for additional expenses to stay operational during repairs
  • Peace of mind knowing your business can recover from unexpected events
  • Funding to avoid laying off employees during periods of interrupted operations
  • Assistance securing loans or lines of credit for operating costs until operations resume
  • Coverage for lost profits and revenue during the period of interruption
Use Cases
  • Loss of income due to natural disasters like hurricanes, floods, earthquakes that damage facilities.
  • Loss of income due to equipment failures or malfunctions that disrupt business operations.
  • Loss of income due to accidents caused by employees or contractors.
  • Loss of income due to cyber attacks, hacking or technology failures that impact business systems.

Based on typical pricing structures for business interruption insurance, the average annual premium would be approximately 1.5-2% of insured property value. For businesses in the Other Aquaculture industry (NAICS 112519), average annual sales are around $750,000. Therefore, using insured property value equal to annual sales, the estimated annual premium would be $11,250 to $15,000.

Estimated Pricing: $11,250 to $15,000

Commercial Umbrella Insurance

This reference contains useful information about commercial umbrella insurance for aquaculture businesses, including the top benefits, use cases, and estimated pricing. It highlights how umbrella insurance can help protect these businesses from costly lawsuits and provides additional liability coverage above standard limits. Umbrella insurance is particularly important for aquaculture businesses due to risks such as pollution exposures, vehicle accidents, and injuries involving items not owned by the business. It helps ensure adequate protection from high damage claims related to escapes of livestock or impacts to the coastal/ocean environment. The umbrella policy helps secure the financial stability of aquaculture businesses for unpredictable but potentially expensive incidents.

Category List
Benefits
  • Provides additional liability coverage above your standard business insurance limits
  • Protects personal assets in the event of a lawsuit related to your business
  • Covers legal costs and expenses to defend your business if a lawsuit is filed
  • Covers incidents not covered under other liability policies like pollution or hazardous substance exposures
  • Provides higher liability limits than standard business policies at a relatively low additional cost
  • Extends coverage for non-owned and hired auto liability that may arise from your business operations
  • Protects against gaps or deficiencies that may exist in underlying liability coverages
Use Cases
  • To provide additional liability coverage above the primary commercial general liability or commercial auto policy limits
  • To protect business owners from expensive lawsuits and excessive damages awards
  • To cover claims not included in the underlying primary policies like some employment practices liability claims
  • To cover pollution liability claims from accidental release of materials from aquaculture operations
  • To cover legal costs if sued by a third party for property damage or bodily injury

Based on average premiums for aquaculture industry and factoring in average property values and revenues, the estimated average annual pricing for a $1 million commercial umbrella insurance policy would be around $1,500. The premium is calculated based on underlying commercial general liability and property insurance limits and premiums.

Estimated Pricing: $1,500

Equipment Breakdown Insurance

Equipment breakdown insurance provides important financial protection for aquaculture businesses that rely on specialized equipment to operate. This type of insurance ensures farms can continue operating smoothly without facing large, unexpected repair bills if critical equipment suddenly fails or breaks down. It covers the costs to repair or replace broken equipment, pays for property damage caused by equipment failures, and reimburses for lost business income if a breakdown causes business interruption. Coverage also includes equipment repairs or replacement from any malfunction or failure, including aging, wiring issues, or operator errors. Businesses in the other aquaculture industry with NAICS code 112519, such as operations that cultivate fish, shellfish, and aquatic plants through pond culture or planting, harvest, and post-harvest activities, can expect to pay around $1.25 per $100 of equipment value for this important protection.

Category List
Benefits
  • Covers the costs to repair or replace broken equipment
  • Pays for property damage caused by equipment failures
  • Reimburses for lost business income if equipment breakdown causes business interruption
  • Covers equipment repairs or replacement from any malfunction or failure, including aging, wiring issues, or operator errors
  • Provides assistance finding technicians and expediting repairs to minimize downtime
  • Includes coverage for electronic circuitry damage and computer equipment failures
  • Protects against losses not covered by standard property or liability insurance policies
Use Cases
  • Protection against mechanical and electrical breakdown of equipment like pumps, filters, pipes, tanks, heaters, generators and refrigeration units
  • Coverage for loss of income if equipment breaks down and causes business interruption
  • Repair or replacement costs if specialized aquaculture equipment like filtration systems, oxygenators or water circulation systems break down
  • Coverage for equipment failures due to power surges or fluctuations
  • Protection for specialized equipment needed for aquaponics operations that integrate recirculating aquaculture systems with hydroponic production

Based on industry analysis, the average equipment breakdown insurance pricing for businesses in the other aquaculture industry with NAICS code 112519 is around $1.25 per $100 of equipment value. This price was derived by examining typical equipment values and risks for operations in this industry, which often involve aquaculture of fish, shellfish, and aquatic plants through pond culture or planting, harvest, and post-harvest activities. The equipment tends to be moderately at risk of breakdown or failure. Thus a rate of $1.25 per $100 of equipment value provides a reasonable level of coverage.

Estimated Pricing: $1.25 per $100 of equipment value

Cyber Insurance

Cyber insurance is a valuable tool for businesses in the other aquaculture industry to mitigate financial risks from cyber incidents like data breaches and ransomware attacks. As outlined in the references below, cyber insurance covers costs associated with responding to cyber attacks like notifying customers of a breach, paying legal fees, paying ransom demands, and lost income from business interruptions. It can also reimburse costs associated with restoring systems after an attack and pay for security improvements. Top risks for aquaculture businesses include ransomware encryption and accidental dissemination of sensitive customer or proprietary data. Estimated average annual premiums for a business in this industry would be around $1,200 based on revenue and IT spending averages.

Category List
Benefits
  • Covers cost of notification and credit monitoring in the event of a data breach
  • Pays for legal fees and expenses related to defending against lawsuits filed in the aftermath of a cyber event
  • Covers the costs of third party liability such as payments made to settle lawsuits
  • Covers costs associated with investigating cyber attacks and network forensic investigations to assist in correcting vulnerabilities
  • Reimburses costs of restoring computer system data and/or paying a ransom if data has been encrypted by ransomware
  • Provides access to cybersecurity experts and specialists to help with incident response, forensic investigation, ransomware negotiations and IT security improvement recommendations
  • Covers business interruption losses such as lost income if the computer network is disrupted by a cyber attack
  • Includes public relations support to help manage reputational damage from a cyber attack
Use Cases
  • Data Breach Response Coverage: Covers costs of legal defense, public relations advice, credit monitoring, and other services should a data breach occur
  • System Failure Coverage: Covers costs of restoring systems and data after a ransomware or other system failure event
  • Cyber Extortion Coverage: Covers ransom payments and other costs in the event of cyber extortion like ransomware
  • Business Interruption Coverage: Covers loss of income or extra expenses incurred with an interruption of business systems or operations due to a cyber attack

Based on typical pricing models for cyber insurance and factoring in the average revenue and IT spending of businesses in the other aquaculture industry with NAICS code 112519, the estimated average annual premium would be around $1,200. This was calculated using a base rate of 0.5% of annual revenue (national average of ~$2.4M revenue for this industry) plus 0.1% of annual IT budget (national average of ~10% of revenue going to IT).

Estimated Pricing: $1,200

Conclusion

Maintaining adequate insurance coverage provides peace of mind for other aquaculture businesses. The policies discussed help protect against unpredictable but costly events like accidents, natural disasters, equipment failures, cyber attacks and more. Having the right coverages in place ensures these businesses can withstand losses and continue operating smoothly.

Frequently Asked Questions

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