Key Takeaways
- Invest in general liability, commercial auto and property insurance to cover risks from vehicle rentals and operations.
- Consider commercial umbrella insurance for additional liability protection above primary policies.
- Professional or commercial package policies provide comprehensive protection against a variety of risks.
- Commercial inland marine insurance offers coverage for vehicles and equipment both on and off premises.
- Work with an experienced agent to identify risks and customize coverage options to your business needs.
Introduction
Passenger car leasing companies face several unique risks associated with renting vehicles to customers. Proper insurance is essential to protect the business financially from costs of accidents, lawsuits, vehicle damages and more. This article outlines the top insurance recommendations for businesses in the passenger car leasing industry with NAICS code 532112 based on common exposures and claims data.
General Liability Insurance
General liability insurance provides essential protection for businesses in the passenger car leasing industry against common legal risks they may face. It covers costs of damages and legal defense if they are sued by customers or third parties for incidents related to their business operations, such as property damage claims to leased vehicles, lawsuits over customer injuries, or slip and fall incidents on premises. Pricing for general liability insurance for passenger car leasing businesses is on average about $1,500 annually based on factors like revenue, employees and safety procedures.
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Based on industry data, the average estimated annual pricing for general liability insurance for businesses in the passenger car leasing industry (NAICS 532112) is around $1,500 per year. This pricing is derived from considering factors such as the business’s annual revenue, number of employees, loss history, and compliance with safety procedures. The pricing also takes into account that passenger car leasing businesses generally have moderate risk for injuries and property damage claims as they are providing transportation services but not as high risk as commercial vehicle transport.
Estimated Pricing: $1,500
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for passenger car leasing businesses. It provides crucial liability protection and physical damage coverage tailored to the needs of companies in this industry.
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Based on industry data, the average commercial auto insurance pricing for passenger car leasing businesses with NAICS code 532112 is around $1600 per vehicle per year. This estimate is derived from typical fleet sizes, vehicles on the road, driving records, collision histories of this industry.
Estimated Pricing: $1600
Property Insurance
“Property insurance provides critical protection for businesses in the passenger car leasing industry. It helps protect financial investments in leased vehicles and company assets from unexpected losses. Property insurance protects the fleet of leased vehicles from damages during transport or storage and covers costs when vehicles are damaged. It also reimburses repair and replacement costs to maintain business operations after losses.”
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Based on industry data, the average cost of property insurance for businesses in the passenger car leasing industry with NAICS code 532112 is around $1.50 per $100 of insured property values. This rate is calculated based on the typical risks and claims experience for businesses in this industry, which involves leasing and renting passenger cars and light trucks without operators.
Estimated Pricing: $1.50 per $100 of insured property value
Commercial Umbrella Insurance
Commercial umbrella insurance provides important additional liability protection for passenger car leasing businesses. It protects against lawsuits exceeding primary policy limits that could jeopardize the finances and operations of these companies. Umbrella insurance is especially crucial for passenger car leasing companies due to the risks of multi-million dollar lawsuits arising from accidents or defects involving leased vehicles. It covers liabilities not addressed by standard auto and general liability policies.
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Based on average exposures and loss histories for businesses in the passenger car leasing industry (NAICS 532112), the estimated annual pricing for a $1 million commercial umbrella policy would be approximately $1,500. This price was calculated based on the industry average total exposures and claims data over the past 5 years.
Estimated Pricing: $1,500
Professional Insurance
Professional insurance provides protection for businesses in the passenger car leasing industry against a variety of risks. It covers costs from accidents, vehicle damage, liability claims, legal issues, and protects business property and income.
The top benefits of professional insurance for passenger car leasing businesses include protecting against liability claims from customers or third parties, covering costs from accidents and vehicle damage, providing reimbursement for lost income if cars cannot be leased due to repairs or liability issues, covering legal fees and settlements if a liability lawsuit is filed, and including uninsured/underinsured motorist coverage.
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Based on the industry risk factors and average claims, the estimated annual pricing for professional insurance for businesses in the passenger car leasing industry with NAICS code 532112 would be around $5,000 – $8,000. This pricing takes into account factors like vehicle fleet size, annual revenue, drivers’ records and experience. The pricing was derived from benchmark industry data and customized premium calculation tools from top insurance carriers for this industry.
Estimated Pricing: $5,000 – $8,000
Commercial Inland Marine Insurance
Commercial inland marine insurance provides comprehensive protection for vehicles, mobile equipment, and other property used in business operations of passenger car leasing companies. It covers losses both on and off premises, including while assets are in transit or temporarily stored. Commercial inland marine insurance helps protect passenger car leasing businesses from financial losses due to damage or theft of vehicles and equipment used in daily operations. It provides flexibility to cover assets both on and away from the business premises. This type of insurance is especially important for car leasing companies to protect their inventory of vehicles and business property. Based on industry analytics, the average pricing for commercial inland marine insurance for passenger car leasing businesses is around $1.25 per $100 of insured value. This pricing is derived from considering factors like the insured value of the fleet, number of vehicles, business operations, prior claims experience, safety procedures, and security measures. Commercial inland marine policies for car leasing businesses typically cover physical damage and liability for the leased vehicle fleet.
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Based on industry analytics, the average pricing for commercial inland marine insurance for passenger car leasing businesses is around $1.25 per $100 of insured value. This pricing is derived from considering factors like the insured value of the fleet, number of vehicles, business operations, prior claims experience, safety procedures, and security measures. Commercial inland marine policies for car leasing businesses typically cover physical damage and liability for the leased vehicle fleet.
Estimated Pricing: $1.25 per $100 of insured value
Conclusion
Investing in the right mix of general liability, commercial auto, property, commercial umbrella, professional and commercial inland marine insurance policies provides comprehensive protection for passenger car leasing businesses. Working with an experienced insurance agent can help identify risks and recommend customized coverage options to protect the finances and ongoing operations of these companies.