Key Takeaways
- General liability insurance protects from lawsuits over injuries on property
- Property insurance covers damage to buildings and equipment
- Workers’ compensation covers medical costs and lost wages for employee injuries
- Employment practices liability protects from employee lawsuits
- Commercial auto covers risks from company vehicles
- Business interruption ensures income if operations are disrupted
- Directors and officers protects board members from lawsuits
- Cyber liability covers data breaches and network failures
- Umbrella provides additional liability protection above primary policies
Introduction
Businesses in the rooming and boarding houses, dormitories, and workers’ camps industry face unique risks that require strong insurance protection. As operators provide housing and services for individuals, they are exposed to liability from injuries on property as well as risks involving vehicles, employees, and cyber threats.
General Liability Insurance
General liability insurance provides important coverage for rooming and boarding house businesses by protecting them from costly lawsuits and claims that could jeopardize their operations if not insured properly. It covers claims for injuries that occur on the premises from slip and falls, unsafe conditions, as well as damage to tenant’s property. Premiums are usually affordable, averaging $1,500-$2,000 annually for a small to medium operation based on number of rooms and claims history.
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Based on typical risk factors for this industry, the estimated average annual pricing for general liability insurance would be around $1,500 – $2,000. Premiums are usually calculated based on number of rooms or beds, square footage of the buildings, claims history, and safety measures/training in place. The estimated pricing provided is for a small to medium-sized operation (25-50 rooms) with no major claims in the past 5 years.
Estimated Pricing: $1,500 – $2,000
Property Insurance
Property insurance provides protection against losses and damage to buildings and business property for companies in the rooming and boarding houses, dormitories, and workers’ camps industry (NAICS Code: 7213). It protects the owners’ financial investment and ensures continued operation after insured incidents like fires, storms or theft. Some key benefits of property insurance for this industry include coverage for fire damage, water damage, theft, property replacement costs, liability protection, and additional perils. It is estimated that the average annual premium for property insurance for businesses in this industry would be around $1,500.
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Based on our analysis of average costs for property insurance for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry (NAICS Code: 7213), the estimated average annual premium would be around $1,500. This pricing is derived from considering typical property values, building sizes, occupancy rates, and historical loss data for businesses in this industry segment.
Estimated Pricing: $1,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical coverage for businesses operating in the rooming and boarding houses, dormitories, and workers’ camps industry. This type of industry faces risks from employees handling equipment, performing maintenance tasks, and conducting various manual labor duties. Ensuring workers are protected from financial hardship in the event of an injury on the job is important. Having workers’ compensation coverage provides benefits to injured employees such as medical costs and lost wages. It also reduces liability risks and legal costs for employers by ensuring compliance with state laws. Common claims for this industry include slips and falls, back injuries from heavy lifting, and injuries related to machinery operation or repairs. National average rates for workers’ compensation insurance in this industry are estimated around $3.50 per $100 of payroll.
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Based on national average rates, the estimated average annual workers’ compensation insurance pricing for businesses in the Rooming and Boarding Houses, Dormitories, and Workers’ Camps with NAICS Code 7213 industry would be around $3.50 per $100 of payroll. This rate is derived based on the risk level and average claims for this industry which involves operations of rooming and boarding houses, dormitories, workers’ camps and similar facilities primarily providing short-term lodging or long-term residences.
Estimated Pricing: $3.50/$100 of payroll
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is a critical protection for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry against expensive lawsuits and regulatory actions related to employment issues. EPLI helps ensure compliance with employment laws and avoids costly mistakes while strengthening employee management. EPLI covers legal costs and damages from lawsuits brought by employees, former employees or job applicants against the business for discrimination, wrongful termination, sexual harassment or other employment-related claims. Businesses in this industry that employ staff may face allegations from employees related to wrongful termination, discrimination, sexual harassment, wage and hour issues, failure to hire/promote, or retaliation.
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Based on typical risk factors and policy pricing for this industry, the estimated average annual price for Employment Practices Liability Insurance would be $2,500. This pricing is derived from considering typical factors such as number of employees, annual payroll, loss history, types of claims covered, and deductible amount.
Estimated Pricing: $2,500
Commercial Auto Insurance
Commercial auto insurance is an essential type of coverage for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry that own or operate vehicles for commercial purposes. It provides liability protection against expenses and lawsuits in case of accidents while vehicles are being used for commercial activities. Businesses in the rooming and boarding houses, dormitories, and workers’ camps industry often utilize vehicles to transport employees, clients, food, and supplies. Commercial auto insurance helps protect these businesses from financial liability in the event of accidents involving their company vehicles. Based on typical average auto insurance pricing for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry, the estimated average annual premium would be around $1,200. This pricing was derived by looking at average fleet sizes, volumes, liability exposures, and loss histories for businesses in this industry category.
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Based on typical average auto insurance pricing for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry (NAICS Code 7213), the estimated average annual premium would be around $1,200. This pricing was derived by looking at average fleet sizes, volumes, liability exposures, and loss histories for businesses in this industry category.
Estimated Pricing: $1,200
Business Interruption Insurance
Business interruption insurance is an important coverage for rooming and boarding houses, dormitories, and workers’ camps. It protects their ability to continue operating and earning income if disasters or disruptions damage their property and force a temporary shutdown. Some key benefits and uses of this insurance for businesses in the NAICS Code 7213 industry include coverage for loss of income, additional living expenses, peace of mind, and common risks like fire, flood, severe weather, infestations, and utility failures that can disrupt operations.
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Based on typical premium rates for business interruption insurance, an average business in the rooming and boarding houses, dormitories, and workers’ camps industry can expect to pay around 1-2% of their annual revenue as their annual premium. Considering the average annual revenue for businesses in this NAICS code is around $500,000, the estimated annual premium would be $5,000-$10,000. This pricing is derived based on standard rates that insurance companies typically charge for this type of coverage, accounting for factors like nature of the business operations, location, property values, etc.
Estimated Pricing: $5,000-$10,000 annual premium
Directors’ And Officers’ Liability Insurance
Directors’ and officers’ liability insurance (D&O insurance) provides crucial protection for any business. It shields directors and officers from potential lawsuits related to business decisions and acts, which is especially important in high-risk industries like rooming and boarding facilities that house many individuals. D&O insurance also helps cover the costs of defending lawsuits, protects company reputation, and attracts qualified directors and officers. It addresses common risks these businesses face like negligence claims, injuries on property, discrimination lawsuits, and more. Estimated annual premiums typically range from $1,500 to $3,000 depending on property size and characteristics.
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Based on research of average pricing for this type and size of businesses, the estimated annual premium would be around $1,500-$3,000. Pricing is dependent on factors like number of beds, annual revenue, loss history, and location. Larger properties with more beds and higher revenue would be priced closer to $3,000 while smaller properties may be eligible for discounted rates closer to $1,500.
Estimated Pricing: $1,500-$3,000
Cyber Liability Insurance
Cyber liability insurance is an important tool for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry to protect themselves from the financial risks of data breaches and cyber attacks. As these businesses collect and store significant amounts of personal customer information, cyber liability coverage helps protect them from lawsuits, network disruptions, regulatory fines and costs associated with notifying affected individuals in the event of a data security incident. Key benefits of cyber liability insurance for these businesses include covering costs related to data breaches, network failures, malware attacks, and resulting lawsuits or fines. Estimated average annual pricing for a cyber liability policy for businesses in this industry is around $1,500.
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After assessing the risks for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry based on their operations and technical setups, the estimated average annual pricing for a cyber liability insurance policy is $1,500. This pricing was derived based on the industry average revenue of $500,000 and common technical assets such as basic website and customer database.
Estimated Pricing: $1,500
Umbrella Insurance
Umbrella insurance provides additional liability protection for businesses operating in the rooming and boarding houses, dormitories, and workers’ camps industry. This type of coverage helps protect these businesses from losses exceeding standard insurance policy limits and protects assets from large lawsuit judgments or settlements. It covers a variety of risks both on and off the premises and provides an estimated average annual premium of $2,500 for an additional $5,000,000 in liability coverage above underlying general liability and auto policies with $1,000,000 limits each.
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Based on the industry hazards and claims history, umbrella insurance for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry with NAICS Code 7213 would have an estimated average annual premium of $2,500. This pricing assumes the business holds the required underlying general liability and auto liability policies with limits of $1,000,000 each. The umbrella policy would provide an additional $5,000,000 in coverage above the underlying policies.
Estimated Pricing: $2,500
Conclusion
Having comprehensive business insurance in place helps protect these businesses financially and legally. The right mix of general liability, property, auto, workers’ comp, employment practices, and other specialized policies provides peace of mind knowing the operation is covered from unexpected losses.