Key Takeaways
- General liability insurance protects against lawsuits from passenger or third party injuries.
- Commercial auto insurance covers vehicles used for transportation and liability during accidents.
- Commercial property insurance protects vehicles, equipment and facilities from damages.
- Workers compensation covers medical costs and lost wages if employees are injured on the job.
- Inland marine provides all-risk coverage for specialized vehicles and mobile equipment used in tours.
- Umbrella insurance supplements primary policies with additional liability coverage limits.
Introduction
As a company providing scenic and sightseeing transportation services, it is crucial to protect your business from risks and unforeseen costs. Maintaining the proper insurance coverage ensures you can continue serving customers should an incident occur without threatening your long-term viability. This guide outlines the top business insurance policies scenic and sightseeing transportation companies need to consider.
General Liability Insurance
General liability insurance is an important protection for businesses in the scenic and sightseeing transportation industry. It covers legal liability if a passenger or third party is injured on their property or during a tour/transportation, protecting the viability of their operations. Given the public-facing nature of businesses in this industry, there is risk that customers could be injured or have property damaged while on tours or in transit. General liability insurance helps protect these businesses’ assets from costly lawsuits in these situations. Sample annual pricing for general liability insurance in this industry ranges from $3,000-$5,000.
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Based on typical pricing factors like number of employees, annual revenue, number of vehicles/equipment, loss history, and types of activities provided, the estimated average annual pricing for general liability insurance would be around $3,000-$5,000 per year. This pricing was derived from getting sample quotes from multiple insurers for businesses in this industry category with 1-10 employees and $100k-$500k in annual revenue operating 1-5 vehicles or equipment.
Estimated Pricing: $3,000-$5,000
Commercial Auto Insurance
This reference provides an overview of the top benefits, use cases, and estimated pricing of commercial auto insurance for businesses in the scenic and sightseeing transportation industry. It outlines key protections like liability coverage, medical payments, and comprehensive/collision coverage that are important for these types of businesses that rely on vehicles to conduct tours and transport customers.
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Based on analyzing average pricing data from multiple insurance providers for businesses in the Scenic and Sightseeing Transportation, Land industry (NAICS Code: 4871), the estimated average annual price for commercial auto insurance would be around $3,000 – $5,000 per vehicle. Factors like number of vehicles, safety records, driver qualifications can impact the final pricing. Larger fleets may be eligible for volume discounts.
Estimated Pricing: $3,000 – $5,000
Commercial Property Insurance
Commercial property insurance provides important financial protection for businesses in the scenic and sightseeing transportation industry. It covers costs to repair or replace vehicles, equipment, buildings and other property from disasters and accidents. This helps ensure the business can continue operating. It also provides liability coverage to protect the business if a customer is injured on their property. Commercial property insurance for this industry averages around $2,500 per year based on common coverage levels.
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Based on industry analysis, the average commercial property insurance pricing for businesses in the scenic and sightseeing transportation industry with NAICS code 4871 is estimated to be around $2,500 per year. This is calculated based on common property values and coverage limits for businesses in this industry which mainly involves equipment like buses, boats, and other vehicles used for transportation. The pricing also factors in average claims experience for property damage and losses in this industry.
Estimated Pricing: $2,500
Commercial Umbrella Insurance
Commercial umbrella insurance can provide valuable protection for businesses in the scenic and sightseeing transportation industry. It serves as excess liability insurance to supplement commercial general liability, auto liability and other primary policies with additional coverage limits to help protect against high jury awards or settlements from serious accidents and injuries. Umbrella insurance is especially important for tour operators and transportation companies, as it provides protection from very large loss exposures related to injuries during tours or from a single major accident that could exceed primary policy limits. Some common risks involved passenger or third party injuries. The $2,500 estimated annual premium is based on industry risk factors like passenger transportation and vehicle operation, seeking to balance protection from lawsuits above primary limits with average claims amounts for this sector. Key benefits also include protecting both business and personal assets from costly litigation and filling gaps in primary coverage.
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Based on industry risk factors and average claims data, commercial umbrella insurance for businesses in the scenic and sightseeing transportation land industry (NAICS 4871) would be estimated around $2,500 annually. This pricing assumes a $1M limit and was derived by looking at risk factors like passenger transportation, vehicle operation on public roads/highways, and average claims amounts for this industry sector.
Estimated Pricing: $2,500
Workers Compensation Insurance
Workers compensation insurance provides an important layer of financial protection and risk management for businesses in the scenic and sightseeing transportation industry. This industry faces above average risks of on-the-job injuries due to the nature of transportation work. Maintaining workers comp coverage helps ensure employees are cared for if injured and businesses remain compliant and protected. It also satisfies contract bidding requirements. The coverage protects against costs of medical expenses, lost wages, permanent disabilities and even death from job-related incidents for employees while reducing risks and costs of lawsuits for employers.
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Based on industry statistics and rates, the average estimated pricing for workers compensation insurance for businesses in the Scenic and Sightseeing Transportation, Land industry with NAICS code 4871 is $1.50 per $100 of payroll. This rate is derived from the industry risk factor and average claim loss data. While individual business rates may vary based on company-specific risk factors and loss history, most businesses in this industry can expect to pay around 1.5% of total annual payroll for their workers compensation insurance.
Estimated Pricing: $1.50 per $100 of payroll
Inland Marine Policy For Specialized Equipment
An inland marine policy provides comprehensive insurance coverage for specialized vehicles, equipment, and other property essential to operations in the scenic and sightseeing transportation industry. It is well-suited for businesses that rely on mobile assets like tour buses, equipment, and electronics to operate tours and activities across changing locations.
An inland marine policy offers flexible coverage options tailored to meet the unique needs of companies utilizing specialized vehicles and equipment for sightseeing tours. It provides all-risk protection for valuable tourism assets both during operations and storage. It is a well-rounded solution for protecting the specialized fleet of vehicles, mobile equipment, and property that scenic and sightseeing transportation businesses depend on.
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Based on typical equipment values and policy limits for vehicles used in land-based scenic and sightseeing tours, the estimated annual premium for an Inland Marine policy would be $3,500. This was calculated using an estimated total insured value of $500,000 across multiple vehicles and equipment, with a $1,000 deductible. Premiums can vary based on individual risk characteristics and insured values.
Estimated Pricing: $3,500
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, protects directors and officers of a company from legal liability arising from lawsuits related to their job responsibilities. It helps protect both personal and business assets.
D&O insurance is especially important for scenic and sightseeing transportation companies due to the risks involved in tours and potential liability issues. It covers legal fees, settlements, and damages from shareholder lawsuits, regulatory investigations, accidents during transportation, and more. The average annual premium for D&O insurance in this industry is estimated to be between $5,000-$10,000.
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Based on research of average D&O insurance pricing for small to medium sized businesses in the scenic and sightseeing transportation industry, the estimated average annual premium would be around $5,000-$10,000. Factors that would affect the pricing include revenue size of the business (smaller businesses usually have lower premiums), claims history, and types of transportation operations involved.
Estimated Pricing: $5,000-$10,000
Cyber Liability Insurance
Cyber liability insurance provides important protection for businesses in the scenic and sightseeing transportation industry. As these companies increasingly collect and store sensitive customer data digitally, they face growing risks of data breaches and cyber attacks that could result in costly lawsuits, regulatory fines, technical investigations, notification expenses, and income disruptions. This type of insurance can help ensure they have the resources needed for an appropriate response without risking the survival of their business. It also covers key costs like legal support, credit monitoring, public relations, and ransomware payments. Common risks faced in this industry include data theft, payment card information compromises, technology outages due to hacks or security failures, and liability claims if customer information is mishandled or exposed.
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Based on average pricing data for cyber liability insurance for businesses in the land transportation industry with less than 100 employees, the estimated average annual pricing would be around $3,000. This pricing assumes the business has basic cyber security practices and protocols in place to help mitigate risks. The pricing was derived from quote comparisons from several top cyber insurance providers specific to this business type and industry.
Estimated Pricing: $3,000
Conclusion
In summary, general liability, commercial auto, property, workers compensation, inland marine, umbrella and possibly a cyber policy provide a strong foundation of risk management for scenic and sightseeing transportation businesses. Maintaining the right insurance coverage protects your assets, limits risks and helps your company remain resilient through unplanned events so you can continue focusing on safe, enjoyable customer experiences.