Essential Business Insurance for Professional Organizations with NAICS Code 813920

UncategorizedReading Time: 10 minutes

A guide to key business insurance policies professional organizations in civic or social groups should consider including general liability, professional liability, workers' compensation, and more.

Key Takeaways

  • General liability protects against third party claims for bodily injury and property damage.
  • Professional liability covers costs and damages from errors and omissions in services provided.
  • Property insurance reimburses repair/replacement costs if facilities or equipment are damaged.
  • Workers’ compensation provides medical care and wage replacement for injured employees.
  • Directors and officers protects leadership from liability lawsuits.
  • Umbrella insurance supplements primary liability limits.
  • Cyber liability reimburses costs of data breaches and privacy violations.

Introduction

Professional organizations in the civic and social groups industry face a variety of risks in their operations and activities. Maintaining adequate insurance is crucial to protect the financial health and longevity of these businesses. This guide outlines the key types of business insurance policies professional organizations with NAICS code 813920 should strongly consider.

General Liability Insurance

General liability insurance is an important coverage for professional organizations like trade unions and civic associations. It protects these organizations from lawsuits stemming from operations and activities that could potentially harm third parties or their property. General liability insurance provides protection in key areas like bodily injury, property damage, legal defense costs and other liabilities that could impact a business’ finances and longevity. Choosing the appropriate coverage limits is also crucial to ensuring adequate protection based on an organization’s size and risk exposure.

Category List
Benefits
  • Protects your business from third party property damage and bodily injury claims
  • Covers legal costs if you’re sued by a third party for negligence or errors and omissions
  • Covers lawsuits from clients, customers or other third parties for injury or property damage at your business or place of work
  • Provides liability protection if an employee injures someone or damages property while performing job duties
  • Covers liability claims that may arise from contracted work or services provided by your business
  • Provides coverage for damage/loss of clients’ property while in your custody
  • Covers liability for slip and fall accidents and other injuries that occur on your premises
  • Covers liability claims that may arise from contracted work or services provided by your business
Use Cases
  • Bodily injury or property damage claims from customers or clients
  • Protection against lawsuits from accidents or injuries occurring at your business premises
  • Legal costs if you are sued
  • Contractual liability if you damage someone else’s property or neglect contractual obligations
  • Errors and omissions liability in case of negligent advice to members or clients

Based on typical pricing factors such as number of employees, annual revenue, and type of business, the estimated average annual pricing for general liability insurance for professional organizations in NAICS code 813920 is around $1,500. This was calculated based on organizations in this industry having 5-10 employees on average and $500,000-$1M in annual revenue.

Estimated Pricing: $1,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses and organizations in the professional services industry from costly lawsuits stemming from errors or negligence in the work they perform. It can help cover both legal defense fees and damages awarded in a lawsuit.

Some key benefits of professional liability insurance for trade associations and professional organizations include protecting against claims of professional negligence, covering defense costs if sued, and payments for monetary awards if found liable. It also helps mitigate potential financial ruin from significant lawsuits, protects business reputation, and provides peace of mind knowing the business is protected from liability from mistakes.

Category List
Benefits
  • Protects against claims of professional negligence or errors and omissions
  • Covers defense costs if sued for a covered error or omission
  • Covers monetary awards or settlements if found liable for a covered error or omission
  • Mitigates potential financial ruin from a significant lawsuit award or settlement
  • Protects business reputation and future earnings potential after a claim
  • Provides peace of mind in knowing you are protected from liability from mistakes
  • Required by many clients or contracts to demonstrate financial responsibility
  • Includes access to risk management and loss prevention services
  • Lowers risk profile and makes business more appealing to customers and partners
  • Available occurrence or claims-made policies to fit various needs
Use Cases
  • Protection against lawsuits from clients claiming negligence, errors or omissions
  • Defense costs in the event of a lawsuit
  • Coverage for compensatory damages awarded to the plaintiff in a lawsuit
  • Coverage for claims alleging failure to meet contractual obligations
  • Coverage for infringement of copyright or trademark
  • Coverage for libel or slander claims made against the insured

Based on research on typical pricing for professional liability insurance for trade associations and professional organizations, the average annual premium is around $2,500. This pricing is derived based on factors like annual revenue, number of employees/members, types of services offered. Trade associations and professional organizations in this industry tend to have 1-50 employees and $100k-$5m in annual revenue.

Estimated Pricing: $2,500

Property Insurance

Property insurance provides an essential layer of protection for professional organizations in the NAICS Code 813920 industry to safeguard their physical assets and enable continued business operations even after unexpected losses or damages.

Based on the details provided in the REFERENCES section, property insurance for professional organizations in this industry typically costs around $2,500 annually and covers things like repair/replacement of damaged property, liability claims if someone is injured on the property, lost income if the office must close temporarily for repairs, and equipment/inventory inside the building against damage/theft.

Category List
Benefits
  • Covers repair or replacement costs if property is damaged
  • Protects against liability claims if someone is injured on your property
  • Reimburses lost income if office must close temporarily for repairs
  • Covers equipment and inventory inside the building against any damage or theft
  • Protects the financial value of buildings and property
  • Covers additional living expenses if property is uninhabitable
  • Covers debris removal after a loss like fire or natural disaster
Use Cases
  • Protection against damage or loss to the organization’s property from common risks like fire, lighting, theft, vandalism etc.
  • Coverage for equipment inside the facility including computers, printers, furniture etc.
  • Reimbursement for losses due to business interruption caused by insured property damage.
  • Protection for valuable items and collections displayed inside the facility.

Based on industry data and average pricing models, the estimated annual property insurance price for professional organizations with NAICS code 813920 is around $2,500 per year. This was calculated based on average property values, building size, location, and prior claims for similar organizations.

Estimated Pricing: $2,500

Worker’S Compensation Insurance

“Worker’s compensation insurance provides important protections and benefits for both employees and employers in professional organizations. It ensures medical care and wage replacement for injured employees while protecting businesses from costly lawsuits. Maintaining this coverage demonstrates your commitment to staff safety and wellbeing. Key uses of this insurance include covering medical expenses and lost wages from work injuries, complying with state law requirements, and protecting the business from financial losses due to injury claims.”

Category List
Benefits
  • It provides coverage for medical expenses if an employee is injured on the job.
  • It provides a guaranteed source of income replacement if an employee misses work due to a work-related injury or illness.
  • It protects the business from lawsuits by employees if they’re injured while working.
  • It promotes a safe work environment and helps prevent injuries by encouraging safety training and protocols.
  • It’s often required by law in many states for businesses with employees.
  • It maintains a positive company culture and morale by showing you care about employees’ well-being.
Use Cases
  • Cover medical expenses and lost wages for employees injured on the job
  • Protect the business from financial losses and lawsuits due to work-related injuries or illnesses
  • Comply with state laws requiring businesses to carry worker’s compensation insurance

Based on industry data, the average price for worker’s compensation insurance for businesses categorized under NAICS 813920 (Professional Organizations) is around $1.50 per $100 of payroll. This rate is derived from considering factors such as the organization’s payroll amount, number of employees, type of work/industry, injury history, safety practices, and other insurance-related criteria.

Estimated Pricing: $1.50/100 of payroll

Directors And Officers Insurance

Directors and officers insurance, also known as D&O insurance, provides crucial protection for professional organizations and their leadership against lawsuits arising from wrongful acts committed while performing their official duties. It shields directors and key executives from personal liability if they are sued, covers legal defense costs, and helps companies attract and retain qualified directors and officers. D&O insurance is commonly used by organizations in the civic and social organization industry to protect against claims of breach of fiduciary duty, shareholder derivative lawsuits, and errors/omissions by leadership. The estimated average annual premium for a D&O policy for organizations in this industry is $3,500, but can range from $2,000-5,000 depending on factors like the number of insured parties and the organization’s assets/revenues.

Category List
Benefits
  • Protects the personal assets of directors and officers from lawsuits and legal claims
  • Protects the company from financial losses in the event a lawsuit is filed against a director or officer
  • Covers legal defense costs if a director or officer is sued
  • Reimburses companies that indemnify directors and officers for legal costs and damages
  • Provides access to experienced legal defense attorneys and counsel
  • Helps companies attract and retain qualified directors and officers
Use Cases
  • Protection against claims of breach of fiduciary duty by directors and officers
  • Protection against shareholder derivative lawsuits
  • Protection for claims of errors, omissions, and negligent acts by directors and officers
  • Reimbursement for legal fees incurred in defending claims

Based on research, the estimated average annual pricing for Directors And Officers Insurance for businesses in the NAICS Code 813920 Industry, which is Civic and Social Organizations, is around $3,500. This pricing was derived from average premium data from top insurance carriers for this industry and organization size (typically smaller organizations). The premium typically ranges from $2,000 to $5,000 depending on factors like number of directors/officers, assets of the organization, revenues, claims history etc.

Estimated Pricing: $3,500

Cyber Liability Insurance

Cyber liability insurance, also known as cyber risk insurance or data breach insurance, is an important coverage for professional organizations like political groups to protect against risks and costs associated with cyber attacks, data breaches, network security failures, and privacy violations. Without proper coverage, a major incident could potentially put an organization out of business due to high costs of response, lawsuits, lost income, and damage to reputation. Cyber liability policies help reimburse costs related to notifying impacted individuals, investigating incidents, restoring systems, paying legal fees, covering fines or penalties, responding to cyber extortion demands, and lost income from network outages. Professional organizations that handle sensitive personal and financial data are at high risk of a breach, so insurance provides peace of mind should a cyber event occur.

Category List
Benefits
  • Covers financial losses from a data breach including costs for notification, credit monitoring, investigations and more
  • Protects from lawsuits in the event customers sue over a data breach
  • Covers liability and damages if a third party’s data is compromised while in your care
  • Reimburses for costs to restore systems and data after an attack
  • Covers loss of income and extra expenses if systems are offline after an incident
  • Covers damages and legal costs if sued for failing to properly secure client data
  • Provides access to legal support, PR consultants, and breach response services in the event of an incident
  • Includes coverage for loss or damage of hardware and electronic data
  • Covers litigation costs for claims such as failure to disclose a breach in a timely manner
Use Cases
  • Data breach response costs
  • Third-party liability coverage for lawsuits following a data breach
  • Regulatory action defense costs
  • Crisis management/notification costs
  • PCI DSS compliance costs
  • Legal defense costs for lawsuits alleging privacy violations or data misuse
  • Cyber extortion payment and response costs
  • Business interruption loss from a network security incident

Based on research of typical pricing for cyber liability insurance for professional organizations in NAICS industry 813920 (Political Organizations), the estimated average annual premium would be around $2,500. This is calculated based on factors such as number of employees, annual revenue, security practices/controls, claims history and risk level. Businesses in NAICS 813920 tend to have lower risks than industries like healthcare or finance so premiums are lower. Policies for NAICS 813920 also usually have limits of $1-5 million.

Estimated Pricing: $2,500

Umbrella Insurance

Umbrella insurance provides additional liability protection above a business’ primary insurance policies. It can help shield assets and cover gaps for a variety of risks faced by professional organizations. The top benefits of umbrella insurance for professional organizations include protecting personal assets from claims exceeding primary limits, covering liabilities like libel/slander not included in other policies, and providing crisis management resources in lawsuits. The top use cases are protecting against higher liability limits if damages exceed primary limits, covering gaps between commercial auto and watercraft policies, and offsetting defense costs of lawsuits between primary and umbrella limits. Estimated annual pricing for a professional organization is $1,000-$2,000 for $1-5 million in additional coverage above primary general liability and auto policies.

Category List
Benefits
  • Provides additional liability coverage above your other business insurance policies
  • Protects personal assets from claims that exceed your primary insurance’s limits
  • Covers liabilities not included in other business policies like libel, slander and invasion of privacy
  • Offers protection from claims of errors and omissions
  • Provides crisis management resources in case of a lawsuit
  • Covers legal fees and court settlements if a lawsuit proceeds to trial
  • Protects against negligence claims from clients, customers or other parties
  • Covers liabilities not included in other business policies like libel, slander and invasion of privacy
Use Cases
  • Protect against higher liability limits if a lawsuit damages exceed the primary liability limits
  • Protect personal assets if a lawsuit alleges negligence that led to bodily injury or property damage
  • Provide additional liability limits above the primary policies like general liability, auto liability, watercraft liability
  • Cover gaps in primary insurance policies like between commercial auto and watercraft
  • Offset defense costs of lawsuits that are between the primary and umbrella limits

Based on typical umbrella insurance pricing models and risk factors for professional organizations in NAICS code 813920 (Civic and Social Organizations), the estimated average annual pricing would be around $1,000-$2,000. This takes into account factors like number of employees, annual revenue, claims history, and types of professional services offered. The pricing also provides an additional $1-5 million in coverage above the primary general liability and auto insurance policies.

Estimated Pricing: $1,000-$2,000

Conclusion

By choosing the right mix of business insurance policies, professional organizations can effectively mitigate risks and ensure they can withstand unexpected losses while continuing to serve members and communities. Consult an experienced insurance agent to evaluate your organization’s unique exposures and determine the optimal insurance portfolio.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied