Key Takeaways
- General liability insurance protects against claims for injuries to passengers during tours.
- Commercial auto insurance provides coverage for company vehicles like buses and vans.
- Commercial property insurance protects valuable equipment, vehicles and property from losses.
- Workers’ compensation covers medical expenses and wages if employees are injured on the job.
- Professional liability protects against lawsuits over issues during transportation services.
Introduction
Businesses in the scenic and sightseeing transportation industry face unique risks when transporting passengers through various environments. Having the right business insurance policies in place is essential to protect the financial health of these operations. The top 5 insurances scenic and sightseeing transportation companies should consider obtaining include general liability, commercial auto, property, workers’ compensation and professional liability policies.
General Liability Insurance
General liability insurance provides protection for businesses in the scenic and sightseeing transportation industry against financial losses from claims for bodily injury, property damage, legal costs, and other liabilities that may occur during daily operations. It covers top risks for this industry such as accidents and injuries to clients during tours, lawsuits from incidents, and property damage claims. The estimated average annual premium for general liability insurance for businesses in this industry is around $2,500.
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Based on research of average pricing from multiple insurance providers, the estimated average annual premium for general liability insurance for businesses in the scenic and sightseeing transportation, land industry with NAICS code 487110 is around $2,500. This pricing is calculated based on factors such as types of vehicles/assets owned, number of employees, annual revenue, loss history, and other underwriting criteria.
Estimated Pricing: $2,500
Commercial Auto Insurance
Commercial auto insurance provides key liability and physical damage coverage for businesses operating vehicles in the scenic and sightseeing transportation industry. It protects them financially from costs associated with various risks both on and off the road.
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Based on industry data and average risks, the estimated annual pricing for commercial auto insurance for businesses in the scenic and sightseeing transportation industry with NAICS Code 487110 is around $2,500 per vehicle. This pricing takes into account factors like business size, number of vehicles, driver history, safety record, coverage limits. The pricing was derived from insurance rate quotes and average premiums paid by similar businesses operating vehicles to provide scenic or sightseeing tours and transportation services.
Estimated Pricing: $2,500
Commercial Property Insurance
Commercial property insurance provides essential coverage for businesses in the scenic and sightseeing transportation industry. It protects their valuable equipment, vehicles, buildings and property from uninsured losses.
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Based on industry averages, businesses in the Scenic and Sightseeing Land Transportation industry (NAICS Code: 487110) can expect to pay around $1.50 – $2.50 per $100 of insured property value for commercial property insurance. Rates are averaged based on factors like location, claims history, safety measures, security systems, building materials, and more. For a business with $500,000 of insured property, they would pay approximately $7,500 – $12,500 annually in commercial property insurance premiums.
Estimated Pricing: $7,500 – $12,500 annually
Workers Compensation Insurance
Workers compensation insurance provides important protections for both employees and employers in the scenic and sightseeing transportation industry. It ensures employees receive medical treatment and lost wages if injured on the job without having to prove employer negligence. For businesses, it shields them from liability, lawsuits over injuries, and reduces costs from absenteeism. Workers in the scenic and sightseeing transportation industry often drive vehicles or guide tours that expose them to risks of accidents and injuries. Workers compensation insurance helps businesses in this industry protect their employees and their bottom line from the costs of on-the-job injuries and illnesses. It also protects the business from lawsuits if an employee is injured and wants to take legal action seeking compensation. Based on industry standard rates and loss data, the estimated average pricing for workers compensation insurance for businesses in the Scenic and Sightseeing Transportation, Land industry with NAICS Code 487110 would be around $2.50 per $100 of payroll. This rate is derived from the risk level and accident experience of operating vehicles like buses, trolleys, and sightseeing trains to transport passengers on land.
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Based on industry standard rates and loss data, the estimated average pricing for workers compensation insurance for businesses in the Scenic and Sightseeing Transportation, Land industry with NAICS Code 487110 would be around $2.50 per $100 of payroll. This rate is derived from the risk level and accident experience of operating vehicles like buses, trolleys, and sightseeing trains to transport passengers on land.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Umbrella Insurance
Commercial umbrella insurance provides additional liability protection for businesses in the scenic and sightseeing transportation industry. It protects assets from large claims that may exceed the limits of underlying commercial policies such as general liability or auto insurance.
Some key benefits of commercial umbrella insurance for these businesses include protecting assets from lawsuits related to passenger injuries during transportation or activities, slip and fall accidents, and negligent hiring claims. It also covers litigation costs if needing to defend against liability claims in court. Typical pricing is around $1500-2500 annually based on factors like revenue, number of vehicles, and employees.
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Based on typical risk factors for businesses in the scenic and sightseeing transportation land industry, the estimated average annual pricing for commercial umbrella insurance would be around $1500-$2500. This pricing is derived based on factors like typical revenue size of $500k-1M annually, number of vehicles/equipment ranging from 5-10, number of employees ranging from 10-25. The umbrella policy provides liability protection above the primary general liability, auto, and other liability policies.
Estimated Pricing: $1500-2500
Commercial Inland Marine Insurance
Commercial inland marine insurance provides protection for vehicles, equipment and other business assets used in scenic and sightseeing transportation operations. It covers assets against risks of physical loss or damage from accidents, fires, storms and other unforeseen events while being used for business purposes or in transit. Inland marine insurance also reimburses the costs to repair or replace damaged assets and compensates for financial losses during periods of business interruption. Common assets covered include buses, trams, equipment, portable electronics and onboard supplies essential to scenic and sightseeing transportation business operations.
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Based on typical premium rates for this industry, the estimated average annual pricing for commercial inland marine insurance would be around $1.50 per $100 of insured value. This price is calculated based on an analysis of average fleet sizes, values, and loss histories for sightseeing transportation businesses like city buses, trolley rides, etc. It covers physical damage and liability for owned vehicles and equipment used in business operations.
Estimated Pricing: $1.50 per $100 of insured value
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is an important coverage for businesses in the scenic and sightseeing transportation industry to protect them from lawsuits related to negligence during transportation services. It provides coverage for legal fees and claim settlements if a passenger sues over injuries or issues that occur during tours or transportation services. It also protects business assets from lawsuits and helps businesses operate worry-free knowing they have financial protection.
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After researching average pricing for professional liability insurance for businesses in the Scenic and Sightseeing Transportation, Land industry with NAICS Code 487110, the estimated annual premium would be between $2,000 to $5,000. This price range was derived based on common factors such as number of employees, annual revenue, types of services provided, loss history, and insurance company rates for similar busincesses in this industry.
Estimated Pricing: $2,000 – $5,000
Conclusion
By obtaining the core business insurance policies discussed, scenic and sightseeing transportation companies can operate with confidence knowing they have financial protections in place should uninsured losses occur. Maintaining the appropriate coverage limits and keeping policies active and paid is key to remaining prepared for unforeseen events that could threaten business continuity and assets.