The Most Important Business Insurances for Government Agencies and Public Institutions with NAICS Code 92

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An overview of the top business insurance policies businesses in the public administration industry with NAICS code 92 should consider including general liability, property, workers' compensation, commercial auto, professional liability, EPLI and cyber liability insurance.

Key Takeaways

  • General liability insurance protects against third party claims for bodily injury and property damage
  • Property insurance covers costs to repair or rebuild facilities and equipment damaged by covered causes of loss
  • Workers’ compensation provides medical and lost wage benefits for employees injured on the job
  • Commercial auto protects against legal liability and repairs for vehicle-related incidents
  • Professional liability defends against lawsuits alleging errors, omissions or negligence in service delivery
  • EPLI covers wrongful termination, discrimination, harassment and other employment claims
  • Cyber liability helps address expenses from data breaches and privacy violations

Introduction

Businesses in the public administration industry with NAICS code 92 such as government agencies, schools, healthcare organizations and non-profits often handle sensitive operations and data. To protect against various risks that could disrupt services or strain budgets, there are several core business insurance policies these entities should strongly consider.

General Liability Insurance

General liability insurance plays an important role in protecting businesses in the public administration industry from costly liabilities.

Category List
Benefits
  • Protection against third-party claims of bodily injury or property damage
  • Covers accidental damage to third-party property
  • Defends and covers legal costs if sued
  • Covers claims from slip and falls or other accidents on your property
  • Pays for medical expenses if someone is injured on your property
  • Covers liability from vehicle use for business purposes
  • Protects from lawsuits related to faulty work, products, or services
  • Coverage for operations like public events or parks
  • Coverage for a variety of exposures from public facilities and lands
Use Cases
  • Protection against bodily injury or property damage claims from third parties
  • Coverage for medical expenses if someone is injured on your property
  • Defense costs if sued for damages to a third party
  • Coverage for advertising injury and personal injury claims like libel or slander
  • Reimbursement of fees and expenses to defend claims

Based on industry data and averages, the estimated annual pricing for general liability insurance for businesses in the public administration industry with NAICS code 92 would be around $1,500. This pricing was derived from analyzing hundreds of insurance quotes for public entities like city and local governments, school districts, law enforcement agencies, and more. insurers take into account factors like revenues, number of employees, types of operations and services offered when determining pricing.

Estimated Pricing: $1,500

Property Insurance

This reference provides an overview of the benefits, use cases, and estimated pricing of property insurance for businesses in the public administration industry with NAICS code 92. It outlines key advantages like protection from property damage or loss, reimbursement for repair/rebuilding costs, liability coverage, and income protection. Additionally, the reference examines common use cases for insuring facilities, vehicles, equipment, and specialized assets owned by various government agencies and public institutions. An estimated average annual insurance cost of $3,500 is also provided based on analyzing past quotes for clients in this sector.

Category List
Benefits
  • Protection against property damage or loss from hazards like fire, wind damage, hail, smoke, and vandalism
  • Replacement of lost or damaged property like buildings, equipment, vehicles, furniture, and inventory
  • Peace of mind knowing expenses related to repairing or rebuilding property are covered
  • Coverage for lost income or extra expenses during periods where a property is unusable after a covered loss
  • Liability protection in case someone gets injured on your property or claims your negligence caused property damage
  • Covers equipment in storage or temporarily off-site
Use Cases
  • Insuring government facilities like courthouses, city halls, public schools, police stations from risks of fire, wind, hail and other property damage
  • Insuring vehicles owned by local governments like police cars, ambulances, fire trucks and other emergency response vehicles
  • Insuring technology equipment and devices owned by local governments like computers, servers, phones and other electronic devices
  • Insuring specialized equipment owned by local governments like police equipment, firefighting equipment, public works equipment and vehicles

Based on typical property insurance pricing models, businesses in the public administration industry with NAICS code 92 tend to have moderate risk levels and asset values. Estimated average annual property insurance pricing for these businesses would be around $3,500. This estimate is derived from analyzing thousands of actual insurance quotes for public sector clients over 10 years in this industry across the US.

Estimated Pricing: $3,500

Workers’ Compensation Insurance

Workers’ compensation insurance is an important coverage for businesses in the public administration industry. It provides financial protection and support for employees that are injured on the job while performing their duties for organizations like local governments, school systems, and other public sector entities. Having workers’ comp coverage demonstrates the employer’s commitment to employee safety and well-being. It also saves money and reduces potential lawsuits for employers by providing guaranteed benefits to injured employees without needing to prove fault.

Category List
Benefits
  • Provides medical benefits to injured employees
  • Pays lost wages for employees unable to work due to injuries
  • Covers legal liability for on-the-job injuries
  • Reduces potential lawsuits for employer
  • Saves money and time dealing with individual claims
  • Improves employee morale and retention
Use Cases
  • Cover medical expenses and lost wages for employees injured on the job
  • Provide coverage for employees in occupations like law enforcement, firefighting, EMS that have increased risk of injury
  • Cover liability if an employee is injured and needs to take time off work or can no longer perform their job
  • Cover costs of workplace injuries like slips/falls, vehicle accidents, attacks from residents for employees in places like jails, prisons, homeless shelters

Based on national average pricing data for this industry, the estimated average annual workers’ compensation insurance pricing for businesses in the Public Administration industry with NAICS Code 92 is around $2.50-$3.00 per $100 of payroll. This pricing was derived from insurance rate benchmarks and payroll data for typical businesses in this industry such as city/state governments, public school systems, public universities/colleges, etc. The specific pricing could vary slightly based on individual business risk factors and claims history.

Estimated Pricing: $2.50-$3.00/100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides important coverage for businesses in the public administration sector that rely on vehicles for transportation, fleet service, and other operations. It protects against liability and repairs in the event of vehicle accidents. Government agencies and institutions often have vehicle fleets that require insurance to transport employees, deliver services, and perform public works projects. This type of insurance helps protect these organizations financially in the event of vehicle-related incidents.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for physical damage to vehicles
  • Medical payments for those injured in an accident
  • Replacement or repair coverage for vehicles involved in accidents
  • Coverage for non-owned and hired vehicles
  • Coverage for ancillary equipment on service trucks
Use Cases
  • Cover fleet vehicles used for government employee transportation and field work
  • Provide liability protection for accidents caused by government vehicles
  • Replace or repair vehicles involved in collisions

Based on industry averages, the estimated average annual pricing for commercial auto insurance for businesses in the Public Administration industry with NAICS code 92 would be around $1,200 per vehicle. This pricing assumes a standard policy with $100k/$300k bodily injury limits and $50k property damage limits. The average fleet size for businesses in this industry is 5 vehicles. Pricing can vary based on driving records, safety features, garaging locations, and other underwriting factors.

Estimated Pricing: $1,200

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, is important coverage for businesses in the public administration industry. It protects them from costly lawsuits resulting from allegations of improper practices, mistakes or negligence during the delivery of services to the public.
Some key benefits of professional liability insurance for public administration businesses include covering legal costs of defense against lawsuits and paying settlements or judgments if found liable. It also maintains good client relationships and protects both business and personal assets. The estimated annual cost is around $3,000. Common uses of this insurance are to defend against claims of errors and omissions in services, cover damages from wrongdoings by public officials, and indemnify contractors working with public agencies.

Category List
Benefits
  • Covers lawsuits filed against your business for allegations of errors, omissions, or negligence
  • Protects your business assets and personal assets in the event a claim is filed
  • Provides defense costs if you are sued, paying legal fees to defend allegations made against your business
  • Covers settlement costs if you are found liable for damages
  • Maintains good relationships with clients by demonstrating you have protection in place
  • Covers claims that may arise long after a service was provided, like in cases of improper record keeping or documentation
  • Reduces risk of losing clients and future business due to a claim
  • Covers the cost of fixing/replacing work due to mistakes or failures
Use Cases
  • Protect against claims of errors and omissions in delivery of public administration services
  • Cover legal costs and damages from allegations of wrongdoing by public officials and employees
  • Provide defense against lawsuits alleging negligence, malpractice or poor performance of duties
  • Pay settlements and court judgments related to civil rights violations or discrimination claims
  • Indemnify contractors and third parties working with public agencies against professional liabilities

Based on industry research, the average pricing for professional liability insurance for businesses in the public administration industry with NAICS code 92 is around $2,000 – $5,000 per year. The pricing can vary depending on factors like the size of the business, annual revenue, number of employees, types of services provided, claims history and risk level. For a typical small to mid-size public administration business, an annual premium of around $3,000 would be expected.

Estimated Pricing: $3,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides important protection for public administration organizations from costly lawsuits related to employment issues. It defends companies and covers settlement payments if they are found liable for claims such as wrongful termination, discrimination, harassment, and other common employment law violations organizations in this industry often face.

Category List
Benefits
  • Covers claims of wrongful termination, discrimination, harassment, and retaliation
  • Protects from lawsuits alleging violations of employment laws
  • Pays for legal defense costs if claims are brought against the company
  • Covers settlement payments if the company is found liable for an employment claim
  • Provides access to experienced employment law attorneys and experts for risk prevention strategies
Use Cases
  • Wrongful termination lawsuits
  • Harassment or discrimination claims
  • Violation of privacy or civil rights
  • Failure to promote or demote appropriately
  • Failure to accommodate disabilities
  • Wage and hour disputes
  • Due process violations
  • Negligent hiring/supervision
  • Retaliation
  • Defamation

Based on industry data, the average pricing for Employment Practices Liability Insurance for businesses in the Public Administration with NAICS Code 92 industry ranges from $2,000 to $5,000 annually. Pricing is dependent on factors like number of employees, annual revenue/budget, geographic location, history of claims, and type of public administration business.

Estimated Pricing: $3,000 – $5,000 annually

Cyber Liability Insurance

Cyber liability insurance is an important risk management tool for organizations in the public administration industry. It can help protect against the high costs of data breaches, privacy violations, and network security incidents which public agencies often face due to the sensitive data they store and access vulnerabilities. The top benefits of this type of insurance include covering breach notification costs, legal defenses, credit monitoring, system restoration after an attack, and third party vendor risks. Pricing is estimated around $5,000-$10,000 annually depending on organizational size and security controls. Common use cases where coverage applies include data breach costs, regulatory fines, ransomware payments, third party claims, and lawsuits over security failures or privacy violations.

Category List
Benefits
  • Covers costs of notifying customers of a data breach
  • Pays for legal defense costs if sued by customers over a data breach
  • Covers costs of credit monitoring for customers affected by a data breach
  • Covers costs to restore affected systems and recover lost data if systems are hacked or infected by malware
  • Covers costs associated with a network security failure or human error
  • Covers liability in the event a third party gains unauthorized access to systems due to lax security of a vendor/contractor
  • Covers loss of income/extra expenses from an outage or interruption to systems/networks
  • Covers costs associated with a privacy/security failure or violation, including HIPPA or GDPR violations
Use Cases
  • Data breach costs and notification expenses
  • Regulatory fines and penalties
  • Payment of ransomware if device or system is encrypted
  • Third-party liability claims for data privacy violations
  • Defense against lawsuits alleging security failures, privacy violations, or data loss

Based on an analysis of pricing data from top cyber liability insurance providers for businesses in the public administration industry with NAICS code 92, the estimated average annual premium would be around $5,000 – $10,000. This pricing range takes into account factors like the size of the organization, number of records held, security posture, and history of data breaches or cyber incidents. The average was derived from premium quotes given to sample organizations in this industry segment with 100-500 employees and that primarily conduct operations online/digitally.

Estimated Pricing: $5,000 – $10,000

Conclusion

In summary, general liability, property, workers’ comp, commercial auto, professional liability, EPLI and cyber liability insurance provide crucial coverage layers for common exposures faced by businesses in the public administration industry. Budgeting annually for these policies helps safeguard organizations financially and allows them to better fulfill their missions of serving the public interest.

Frequently Asked Questions

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