Key Takeaways
- General liability insurance protects from lawsuits over injuries on premises or from operations.
- Professional liability covers lawsuits from errors, omissions, civil rights violations and use of force incidents.
- Commercial auto insures police vehicles and provides coverage for officers on duty regardless of vehicle used.
- Property insurance protects buildings, equipment and vehicles from losses like fire, theft and storms.
- Workers’ comp covers medical costs and lost wages for officers injured on the job.
- EPLI protects from wrongful termination, discrimination, harassment and other employment lawsuits.
- Cyber liability addresses risks and costs of data breaches, ransomware, network failures and privacy violations.
- Directors and officers liability insurance protects personal assets of directors and executives if sued over duties/decisions
- Pollution liability covers costs of cleaning up spills/releases of hazardous materials from vehicles/evidence processing
- Employment practices liability insurance protects from wrongful termination, discrimination, harassment and other HR lawsuits
Introduction
As a business in the police protection industry, there are unique risks and liabilities associated with law enforcement, security and public safety operations. Having the proper insurance coverage in place is essential to protecting the financial health and continuity of operations. This article outlines the top business insurance policies all police protection organizations should strongly consider.
General Liability Insurance
General liability insurance provides important protections for businesses in the police protection industry. It covers financial risks from lawsuits related to on-premises injuries, property damage, and certain incidents that occur off-premises but are related to business operations.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average general liability insurance pricing for businesses in the police protection industry (NAICS Code 922120) is around $1,500 – $2,000 annually. This pricing was derived based on the industry’s risk level as well as average claims history.
Estimated Pricing: $1,750
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is crucial protection for police departments, private security forces, and individual officers. It covers liability from civil lawsuits alleging harm from negligence or wrongdoing during official duties.
Some key benefits of professional liability insurance for businesses in the police protection industry include covering lawsuits from errors and omissions, paying legal defense costs if sued, covering bodily injury or property damage claims from accidents on duty, and protecting personal assets of officers and managers from awards or settlements. It also provides risk management support and loss prevention services to help reduce future claims.
Common uses of professional liability insurance for these types of organizations include coverage for lawsuits from wrongful acts or errors and omissions made while on duty, protection if sued for damages from alleged civil rights violations, protection if sued for damages from use of force incidents, and coverage for legal defense costs if allegations are made against officers or departments.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on analysis of industry trends and average claims, the estimated annual pricing for professional liability insurance for private police forces and security agencies falls between $1.50 to $3.00 per employee. This pricing is derived using a risk factor analysis that takes into account the frequency and severity of claims against these types of businesses, their revenues, and number of employees they oversee. The average estimated price per employee is $2.25.
Estimated Pricing: $2.25/employee
Commercial Auto Insurance
Commercial auto insurance is an essential coverage for police departments to protect their fleet vehicles and equipment used for daily police work. It provides liability protection and covers repairs in case of accidents while officers are on duty responding to calls or performing patrols. The coverage also includes medical payments for injured parties, uninsured/underinsured motorist coverage, and replacement costs if vehicles are totaled. Rates are estimated on average to be about $2,500 annually per vehicle due to risks involved with police work.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical rates for commercial auto insurance policies covering police vehicles such as police cruisers, the estimated average annual premium would be around $2,500 per vehicle. This is calculated based on factors like collision and comprehensive coverage, high risk driving profiles, high mileage use, and liability limits of $1,000,000. The vehicles are also equipped with specialized emergency equipment that further increases the risk exposure and pricing.
Estimated Pricing: $2,500
Property Insurance
Property insurance is an important risk management tool for police protection businesses. It protects valuable assets like buildings, equipment and vehicles from losses due to events like fires, storms and theft. Businesses in the police protection industry rely on specialized equipment, vehicles and facilities to perform their critical work, so it’s essential to have insurance coverage in place to fund repairs or replacement costs should damages occur. Property insurance also provides liability protection if someone is injured on the business premises. The average annual property insurance cost for a police protection business is approximately $3,500 according to industry data.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and typical coverage amounts, the estimated average annual property insurance pricing for police protection businesses with NAICS code 922120 is around $3,500. This pricing takes into account factors like average property values, building construction, security systems, claims history for the industry, and policy deductibles of usually $1,000. The price covers property damage and equipment loss due to events like fire, wind, hail, and more.
Estimated Pricing: $3,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protection for police departments and other law enforcement organizations against costs from officer injuries sustained while on duty. It covers medical expenses and lost wages to help with recovery and protect the organization’s finances. Some key use cases it covers include work injuries like sprains, strains and fractures from responding to emergency calls or incidents, and on-duty injuries from collisions or accidents while driving a police vehicle. It also covers exposures to potentially hazardous materials or situations that officers face on a daily basis. On average, the estimated pricing for workers’ compensation insurance for police protection businesses is around $2.50 per $100 of payroll.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on national averages, the estimated average pricing for workers’ compensation insurance for police protection businesses with NAICS code 922120 is around $2.50 per $100 of payroll. This rate is derived from workers’ compensation insurance class codes related to law enforcement activities, which have higher than average risk given the hazardous nature of police work. The rate may vary slightly up or down depending on individual business factors like claim history, safety programs, etc.
Estimated Pricing: $2.50 per $100 of payroll
Employment Practices Liability Insurance
Employment Practices Liability Insurance (EPLI) is a form of liability insurance that provides coverage for employment-related claims made by employees, former employees or applicants for employment against an employer. EPLI protects companies from lawsuits involving allegations related to issues like wrongful termination, discrimination, harassment and privacy violations.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on research and analysis of typical pricing for EPLI insurance in the police protection industry (NAICS 922120), the estimated average annual premium would be around $6,000 – $8,000. Factors that influence pricing include number of employees, annual payroll, prior claims history, types of benefits offered, and geographical location. For a typical police department with 50 employees and $5 million in annual payroll, located in a mid-sized city, the estimated price would be around $7,000 per year.
Estimated Pricing: $7,000
Cyber Liability Insurance
Cyber liability insurance provides essential financial protection and risk management services for police departments and law enforcement agencies. As organizations that frequently handle sensitive personal data and critical systems, cyber attacks and data breaches pose severe operational and financial risks. Some key benefits of this insurance for police departments include covering costs of responding to data breaches, network security failures, ransomware attacks, and privacy violations. It also helps to ensure continuity of critical police services in the event of a cyber incident, while protecting the organization from liability and reputational damage.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical pricing structures for cyber liability insurance and risk factors unique to police protection industry (NAICS 922120), the estimated average annual premium is around $2,500. Factors like employee count, annual revenue, security protocols, history of data breaches were considered to derive this price.
Estimated Pricing: $2,500
Pollution Liability Insurance
Intro paragraph: Pollution liability insurance provides crucial coverage for police departments and law enforcement agencies to protect against unexpected costs from pollution incidents related to their daily operations and facilities maintenance.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on research, the average annual pricing for pollution liability insurance for businesses in the police protection industry (NAICS Code 922120) would be around $500-$1000. This pricing is estimated based on factors such as the typical risks and hazards involved for this industry, which mainly deals with police stations and related facilities. The pricing also takes into account compliance with environmental regulations as well as past claims experience for similar businesses.
Estimated Pricing: $750
Directors And Officers Liability Insurance
D&O insurance provides critical protection for directors and officers of police protection businesses against lawsuits arising from their duties by covering legal costs and potential damages. It helps retain qualified leadership and demonstrates commitment to employees. Key benefits also include protecting personal assets, covering discrimination claims, supporting regulatory compliance, and having typical annual premiums estimated between $5,000-$10,000.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical industry pricing data, the estimated average annual premium for Directors and Officers Liability Insurance for businesses in the police protection industry (NAICS 922120) would be around $5,000 – $10,000. Premiums are calculated based on factors like the size of the organization’s annual revenue, number of employees/officers, prior claims history, and other risk assessment factors.
Estimated Pricing: $5,000-$10,000
Conclusion
In summary, general liability, professional liability, commercial auto, property, workers’ compensation, EPLI, cyber liability and other specialized coverage forms provide layered protection against an array of risks facing police protection businesses. Implementing a comprehensive insurance program tailored to your organization’s needs ensures financial protection and peace of mind.