Key Takeaways
- Consider general liability insurance to protect from lawsuits from customer injuries.
- Review commercial auto insurance options to insure company vehicles.
- Research commercial property insurance for coverage of owned vehicles and equipment.
- Evaluate commercial umbrella insurance for additional liability protection.
- Look into commercial inland marine insurance for specialized equipment coverage.
- Ensure workers compensation insurance is in place for employee injury protection.
Introduction
Businesses in the scenic and sightseeing transportation industry face unique risks and liability exposures due to the nature of their operations transporting customers. Having the proper insurance coverage in place is essential to protect the business financially and legally in the event an incident occurs. This guide examines the top business insurance policies these companies should consider, including benefits, pricing and use cases for each type.
General Liability Insurance
General liability insurance is an important coverage for businesses in the scenic and sightseeing transportation industry. It protects them from costly lawsuits and claims if a passenger is injured during transportation or a tour.
Additionally, general liability insurance provides benefits like covering legal defense costs if sued, helping maintain cash flow if claims overwhelm funds, and protecting from slip and fall claims on company property. Common use cases where coverage applies include passenger injuries from vehicle accidents, injuries while boarding/disembarking, and incidents that occur on excursions. Pricing for businesses in this industry is estimated around $2,500-$5,000 annually based on factors like vehicles/passengers.
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Based on industry data, the average estimated pricing for general liability insurance for businesses in the scenic and sightseeing transportation, other industry with NAICS code 4879 is around $2,500 – $5,000 per year. This pricing was derived by looking at average premiums paid by similar businesses that operate vehicles transporting passengers for sightseeing purposes and carry certain risks of passenger injury. The final pricing can vary depending on individual business factors such as number of vehicles/passengers, safety record, driver qualifications.
Estimated Pricing: $2,500 – $5,000
Commercial Auto Insurance
This reference provides an overview of commercial auto insurance for businesses in the scenic and sightseeing transportation industry, including the top benefits, use cases, and an estimated average annual pricing. It discusses how commercial auto insurance protects assets and limits financial liability in accidents, as well as covering costs associated with insuring tour vehicles. The reference outlines the essential liability and physical damage coverage commercial auto insurance provides for operations reliant on vehicles, and how it helps ensure businesses can continue operating in the event of an insured incident.
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Based on typical factors such as number of vehicles, annual mileage, driver qualifications, safety record, liability limits, comprehensive and collision deductibles, the estimated average annual pricing for commercial auto insurance for businesses in the scenic and sightseeing transportation industry with NAICS code 4879 would be around $4,500. This estimate was derived from analyzing commercial auto insurance rates from several top carriers for van and bus fleets commonly used in this industry type with average risk profiles.
Estimated Pricing: $4,500
Commercial Property Insurance
Commercial property insurance offers important protection and peace of mind for businesses in the scenic and sightseeing transportation industry. It covers property, liability and financial losses that can help keep a business operating after accidents or disasters. Common types of coverage include protection for vehicles and equipment, liability if a guest is injured, reimbursement for lost income during repairs, and replacement costs if property is completely destroyed. Having the right insurance customized for their needs helps scenic tour operators manage risks and uncertainties.
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Based on research, the estimated average annual pricing for commercial property insurance for businesses in the Scenic and Sightseeing Transportation, Other industry (NAICS Code: 4879) is around $1,500-$2,500. Pricing is dependent on factors such as location, property value, liability coverage, deductibles, and claims/loss history. For this industry, vehicles used for tours are a major component of property value and risks, so pricing tends to be on the higher side compared to other service industries of similar property values.
Estimated Pricing: $1,500-$2,500
Commercial Umbrella Insurance
Commercial umbrella insurance is a cost-effective way for businesses in the scenic and sightseeing transportation industry to protect their assets and finances from catastrophic losses. It provides additional liability coverage above standard policies to shield against lawsuits and large claims.
Umbrella insurance also helps reduce overall insurance costs while extending protection for incidents not covered by primary policies, such as certain pollution claims. For scenic transportation businesses, it is especially important as a safeguard against the risks of accidents involving tourists during vehicle, boat or other modes of transportation.
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For businesses in the Scenic and Sightseeing Transportation, Other industry (NAICS Code: 4879), the estimated average annual pricing for commercial umbrella insurance is $2,000 – $5,000. This pricing range was derived based on average exposures and risk factors for this industry, which involves transportation of passengers for scenic enjoyment. Key factors that affect pricing include number of vehicles/vessels operated, revenue, number of employees. Larger operations tend toward the higher end of the range.
Estimated Pricing: $2,000 – $5,000
Commercial Inland Marine Insurance
Commercial inland marine insurance provides valuable protection for businesses in the scenic and sightseeing transportation industry. It covers specialized vehicles, equipment, property and liability exposures these companies face in operating tours and transportation services around the world.
This type of insurance also reimburses businesses if their equipment is damaged and they lose income until repairs are made. It protects assets while in transit or temporarily away from the business location. Coverage is available worldwide so protection applies even on international tours and transportation.
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Based on typical pricing for this industry and risk level, the estimated average annual pricing for Commercial Inland Marine Insurance would be around $5,000 – $10,000. This price range was derived considering factors such as maximum property values insured (e.g. vehicles, equipment), number of vehicles/equipment, loss history, safety practices, driver qualifications, etc. Higher property values and/or poor loss history may increase pricing towards the upper end of the range.
Estimated Pricing: $5,000 – $10,000
Workers Compensation Insurance
Workers’ compensation insurance provides essential injury protection benefits for employees and risk management for business owners in the scenic and sightseeing transportation industry. This industry involves inherent hazards that place workers at risk of on-the-job injuries. The top types of claims include slips/falls, struck-by accidents, and repetitive stress injuries. Workers’ comp coverage ensures injured employees receive medical care and lost wages, while also shielding businesses from costly liability lawsuits and fines if workplace safety standards are not properly followed. Estimated annual premium costs for a typical operation are around $3.50 per $100 of payroll.
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Based on typical workers compensation insurance pricing models, the estimated average annual price for a business in the scenic and sightseeing transportation industry with NAICS code 4879 would be around $3.50 per $100 of payroll. This estimate was derived using industry risk factors, average claim frequencies and costs, payroll amounts, and other standard insurance pricing parameters.
Estimated Pricing: $3.50 per $100 of payroll
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects companies in the scenic and sightseeing transportation industry from financial losses due to lawsuits.
This type of insurance offers top benefits for businesses in the NAICS Code 4879 industry such as covering legal fees and settlements from negligence claims, protecting business assets, and providing liability coverage for passenger injuries. It also covers lawsuits arising from the professional services provided like tours and transportation. Pricing is estimated around $3,000 annually depending on business size and activities.
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Based on examining pricing data from major insurance carriers for this industry, the estimated average annual pricing for professional liability insurance would be between $2,000 to $5,000. The pricing takes into account factors like number of employees, annual revenue, types of activities/tours offered, safety record and claims history. For a small to medium sized business in this industry with under 50 employees and $5M or less in annual revenue, the estimated price would be around $3,000/year.
Estimated Pricing: $3,000/year
Conclusion
In summary, general liability, commercial auto, commercial property, commercial umbrella, commercial inland marine and workers compensation insurance provide layered protection tailored to the needs of scenic and sightseeing transportation businesses. Investing in the right combination of these core business insurance policies helps shield assets, maintain operations and give owners peace of mind regarding risks outside of their control.