Key Takeaways
- General liability insurance protects against third-party lawsuits from incidents on your property or during operations.
- Workers’ compensation insurance covers medical expenses and lost wages if an employee gets injured on the job.
- Proper insurance coverage is needed to comply with regulations and protect the business from financial risk.
Introduction
Businesses in the coastal and Great Lakes freight transportation industry face unique risks due to the nature of their operations. Proper insurance is crucial to protect both the business and its employees from financial losses. This article discusses the top insurance needs for companies in this sector.
General Liability Insurance
General liability insurance protects businesses in the coastal and Great Lakes freight transportation industry from costs arising from accidents and incidents that may occur during daily operations. It covers legal fees, medical expenses, property damage claims and more from incidents on a business’s property or involving vehicles, vessels and equipment. Additionally, this type of insurance is especially important for coastal and Great Lakes freight transportation businesses due to the unique risks involved in maritime transport and dockside operations. It also protects a business’s bottom line if an accident or incident occurs.
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Based on industry data and average claims, the estimated annual pricing for general liability insurance for businesses in the coastal and Great Lakes freight transportation industry with NAICS code 483113 is around $5,000-$7,000 per year. This rate is derived from considering factors such as vessel size and cargo hauled, number of employees, annual revenue, safety record and loss history.
Estimated Pricing: $5,000-$7,000
Workers’ Compensation Insurance
Workers’ compensation insurance is an essential risk management tool for businesses in the coastal and freight transportation industry. It protects employers and employees from financial hardship in the event of a work-related injury or illness. Such injuries can easily occur when operating heavy vehicles, vessels, cranes and other equipment near water or during cargo loading and unloading. Ensuring employees have coverage for medical bills and lost wages helps businesses comply with regulations while retaining talent by providing peace of mind. Premium rates in this industry average $3.50 per $100 of payroll due to the hazardous nature of operations.
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Based on average industry data and risks, the estimated average pricing for workers’ compensation insurance for businesses in the Coastal and Great Lakes Freight Transportation with NAICS Code 483113 is $3.50 per $100 of payroll. This industry has higher risks than average due to factors like long hours operating heavy equipment near water, which can increase injuries. The national average premium rate is around $2 per $100 of payroll as a reference point.
Estimated Pricing: $3.50 per $100 of payroll
Conclusion
By understanding their key exposures and purchasing the right types of coverage, coastal and freight transportation companies can comply with regulations, retain talented employees, and safeguard their business from unplanned costs. With the right protections in place, they can focus on growing their operations.