The Top 6 Business Insurances for Lessors of Nonfinancial Intangible Assets (NAICS Code 533110)

Key Takeaways

General liability insurance protects your business from costly lawsuits over incidents on your property.
Property insurance reimburses repair or replacement costs if leased equipment suffers damage.
Cyber liability coverage addresses risks from data breaches and network security issues.
Business interruption insurance funds operating costs if interruptions impact lease income.
Directors and officers liability protects executives from shareholder lawsuits.
Commercial auto coverage is needed if vehicles are used for business purposes.

Introduction

Businesses in the lessors of nonfinancial intangible assets industry face unique risks through their operations leasing patents, trademarks and other intellectual property assets to customers. To protect the viability of their operations, certain core insurance coverages are essential.

General Liability Insurance

General liability insurance is an important coverage for businesses in the Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) industry to protect against costly third-party liability claims and lawsuits. General liability insurance offers key benefits like protection from lawsuits over injuries on the property, claims of inadequate security, reimbursement of legal defense costs, coverage for third party property damage, and protection of business assets from liability lawsuits. It also covers legal fees and expenses if the business has to defend itself in a liability suit. Additionally, the coverage is portable so it can move with the business as it grows or relocates locations. General liability insurance provides important protection for these businesses against risks of third-party claims related to injuries or damages caused on their premises or through their business operations and assets. It ensures the business is properly covered and defended if such a liability lawsuit arises. Based on industry data, the average estimated annual cost of general liability insurance for businesses in this industry is around $1,500, but the final pricing may vary based on the individual business’ risk profile and underwriting factors.

Category	List
Benefits	Covers lawsuits from injuries on your property Protects from claims of inadequate security Reimburses defense costs if sued Covers third party property damage Protects business assets from lawsuits Provides coverage for legal fees/expenses Coverage is portable as business grows or moves locations
Use Cases	Protection against third-party claims of bodily injury or property damage Defense against lawsuits from customers, clients, or other third parties Coverage of legal fees and costs involved in defending a third-party liability lawsuit Protection for damage or injury caused by products, goods, property or operations of the business

Based on industry data, the average estimated annual pricing for general liability insurance for businesses in the Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) with NAICS Code 533110 is around $1,500. This estimate takes into account factors such as the business size, number of employees, annual revenue, product/service offerings, number of locations, loss history, etc. The final pricing may vary up or down based on the individual business’ risk profile during the underwriting process.

Estimated Pricing: $1,500

Property Insurance

Property insurance provides crucial protection for businesses in the lessors of nonfinancial intangible assets (NAICS 533110) industry by reimbursing costs from unexpected property damage or losses. It also offers liability and business interruption coverage to shield the business from related expenses. Some of the key benefits of property insurance for this industry include protecting leased equipment, covering property damage from accidents or disasters, and reimbursing for losses from theft or vandalism. The estimated average annual property insurance cost for businesses in this industry is around $1,500 based on average property values and risk factors.

Category	List
Benefits	Protection against property damage or loss Reimbursement for costs to repair or replace damaged property Liability coverage in case someone is injured on your property Covers expenses from business interruption until operations are back to normal Replacement value coverage to fully repair or rebuild damaged property Covers equipment breakdown or failures from mechanical and electrical issues
Use Cases	Protect leased equipment and other business property from loss or damage Cover losses from property damage caused by accidents or natural disasters Provide reimbursement for damaged property in case of theft or vandalism

Based on review of common property insurance pricing factors such as property value, location, loss history, security measures, the estimated average annual property insurance pricing for businesses in the NAICS 533110 industry which leases intangible non-financial assets would be around $1500. This pricing was derived based on an assumed average property value of $300,000 and average property and location risk factors for businesses in this industry.

Estimated Pricing: $1500

Cyber Liability Insurance

Cyber liability insurance provides important protection for businesses in the lessors of nonfinancial intangible assets industry (NAICS 533110) that handle sensitive customer data and digital assets. It covers many costs associated with data breaches, network security issues, and legal liabilities from incidents involving protected information. Some key benefits include covering losses from cyber attacks, service interruption expenses, legal fees and regulatory fines related to a breach, and costs for crisis communication and notification of affected individuals. Common use cases fit for these businesses include data breach liability, privacy liability, digital media content liability, and network security liability coverage. The estimated average annual premium for a cyber insurance policy for businesses in this industry is around $3,000.

Category	List
Benefits	Covers losses from cyber attacks such as ransomware, hacks, and data breaches Pays for service interruption expenses like lost revenue from an outage Covers legal fees and settlements from regulatory fines or lawsuits related to a breach Covers public relations and crisis management costs to minimize reputational damage Covers notification expenses of notifying affected individuals in the event of a breach Provides access to legal and cybersecurity experts in the event of an incident Protects sensitive customer/client/tenant data and builds trust in the protection of information
Use Cases	Data breach liability coverage Privacy liability coverage Digital media content liability coverage Network security liability coverage Cyber extortion coverage

Business Interruption Insurance

Business interruption insurance provides crucial protection for businesses that lease intangible assets like patents, trademarks, and copyrights. Without this coverage, they could lose income if issues disrupt their ability to lease assets to clients.

Some key benefits of business interruption insurance for these types of businesses include helping maintain cash flow during recovery from insured events like fires or storms, covering operating expenses to prevent layoffs, and allowing alternative business arrangements if primary facilities are damaged. Commonly insured interruptions relate to property damage, equipment failures, utility issues, and natural disasters that impact rental/lease revenue streams. Estimated average annual premium costs are around $5,000 based on industry analyses.

Category	List
Benefits	Provides funding to continue paying operating expenses if business is interrupted Covers loss of income resulting from an insured event like fire or natural disaster Helps maintain cash flow so business can restart operations Protects against risks outside of your control like equipment breakdown or property damage Covers expenses for finding alternative locations or ways to conduct business if primary facility is damaged Allows business to avoid laying off employees during period of recovery from loss event
Use Cases	Loss of rental/lease income due to natural disaster damages Loss of rental/lease income due to equipment failure or mechanical breakdown Loss of rental/lease income due to accidental property damage Loss of rental/lease income due to utility/supplier failure

Directors And Officers Insurance

Directors and officers (D&O) insurance provides important liability protections for executives and board members of companies that lease nonfinancial intangible assets such as patents, copyrights, and trademarks. It protects their personal assets from lawsuits resulting from alleged wrongful acts or errors in their duties to the company and is especially critical for businesses in the lessors of nonfinancial intangible assets industry due to risks associated with intellectual property management and transactions. D&O insurance helps shield directors’ and officers’ personal assets from claims related to negligence, errors or omissions in company policies and operations involving nonfinancial intangible assets like patents.

Category	List
Benefits	Protects the personal assets of directors and officers from claims of wrongful acts, errors, or omissions Covers legal costs of defending allegations and lawsuits brought against directors and officers Reimburses companies for indemnification payments and settlements related to D&O claims Significant coverage limits, often in the millions of dollars range Provides employment practices liability insurance to protect against claims of things like wrongful termination, discrimination, harassment Coverage remains even if the company goes bankrupt or is no longer in business Helps businesses attract and retain qualified directors and officers by providing important liability protections
Use Cases	Protection against claims of negligence, errors or omissions Protection against shareholder lawsuits Reimbursement of legal defense costs for claims made against directors and officers Protection in the event of bankruptcy or insolvency claims

Commercial Automobile Insurance

This reference provides an overview of the typical benefits, use cases, and estimated pricing of commercial automobile insurance for businesses in the NAICS Code 533110 industry, which involves leasing nonfinancial intangible assets excluding copyrighted works. It outlines the top benefits such as liability protection, coverage for physical vehicle damage, and medical payments for injured parties. Key use cases are also highlighted like protecting company vehicles, covering employees’ personal vehicle use for work, and reimbursing for repairs after accidents. Finally, estimated average annual pricing of $1200 for this industry is provided based on common rating factors.

Category	List
Benefits	Liability protection in case of accidents Coverage for physical damage to vehicles Medical payments for those injured in covered vehicles Coverage for uninsured/underinsured motorists Covers non-owned vehicles drivers utilize Ensures business remains legally compliant
Use Cases	Protect vehicles used for company business Cover employees’ personal vehicle use for work Provide liability protection for at-fault accidents Replace or repair company vehicles involved in accidents Cover medical payments for injured parties in covered accidents

Based on industry analysis, the average price for commercial automobile insurance for businesses in the Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) industry with NAICS Code 533110 is around $1200 per year. This estimate is derived from typical factors such as number of vehicles, driver qualifications, ages of drivers, driving records, coverages carried, and location.

Estimated Pricing: $1200

Conclusion

Carefully evaluating insurance needs specific to leasing nonfinancial intangible assets can help businesses in this industry protect against potential financial losses and continue serving customers through unexpected events. The top insurance options outlined provide a foundation for addressing many common risks faced in this specialized field.