Key Takeaways
- General liability insurance protects against third-party claims and lawsuits related to operations.
- Professional liability coverage is critical for errors, omissions and negligence related to advice or services provided.
- Cyber insurance reimburses costs of data breaches and cyber attacks and helps maintain operations.
- Employment practices liability covers lawsuits involving employees and labor issues.
- Property insurance protects physical assets from losses like fire or natural disasters.
- Workers compensation fulfills legal requirements for work-related injuries.
Introduction
Businesses that support government functions through executive, legislative, and general administrative services often handle sensitive information and interact with the public and employees. This exposes them to various legal and financial risks that could severely impact operations if not properly insured. The key types of insurance policies these organizations should prioritize are general liability, professional liability, cyber liability, employment practices liability, property coverage, and workers compensation.
General Liability Insurance
General liability insurance provides critical protection for businesses in the executive, legislative, and other general government support industry against costly third-party claims and lawsuits. It covers bodily injury, property damage, errors and omissions resulting from operations. Based on typical pricing models for businesses in this industry, the estimated average annual cost for general liability insurance is $2,250. General liability insurance shields businesses from expenses related to legal fees, slip and fall accidents, vehicular incidents, and discrimination claims while allowing them to focus on providing core government support services.
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Based on typical pricing models for businesses in the executive, legislative, and other general government support industry (NAICS code 9211), the estimated average annual pricing for general liability insurance would be between $1,500 to $3,000. This pricing was derived based on considering factors like employee headcount, annual revenue, types of business activities, loss histories, and risk profiles that are common for businesses in this industry.
Estimated Pricing: $2,250
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, is an important coverage for businesses in the executive, legislative, and other general government support industry with NAICS code 9211. This type of insurance can help protect them from costly lawsuits in cases of providing erroneous advice, making mistakes, or facing allegations of negligence from clients which causes financial harm. It covers legal fees and claim settlements, reduces stress from unexpected lawsuits, provides defense costs coverage, and minimizes potential financial losses. Common uses include protection against claims of errors and omissions, negligence, and accusations of poor advice from clients.
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Based on typical factors such as revenue, number of employees, claims history and risk level, the estimated average annual pricing for professional liability insurance for businesses in this industry with NAICS Code 9211 would be around $5,000-$10,000. Pricing is often derived from 1%-3% of annual revenue with minimum premiums starting around $5,000.
Estimated Pricing: $5,000-$10,000
Cyber Insurance
Cyber insurance offers protection for organizations in the executive, legislative, and other general government support industry (NAICS 9211) from financial losses due to cyber attacks and data breaches. It provides coverage for costs related to responding to incidents, restoring systems and operations, legal liabilities, fines and penalties. Benefits include coverage for notification, credit monitoring, ransomware, crisis communications, breach response services, and business interruption. Common uses cases involve data breaches, system failures, cybercrime, and regulatory non-compliance. The average annual premium for a policy is estimated to be $5,000.
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Based on analyzing typical pricing factors such as industry risk level, average revenue size, and historical claims for this industry, the estimated average annual premium for a cyber insurance policy would be around $5,000. Factors such as number of employees, security protocols, remote work policy, and claims history could impact the actual price higher or lower.
Estimated Pricing: $5,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important insurance policy for businesses in the executive, legislative, and other general government support industry to protect them from costly lawsuits and claims related to employment issues. EPLI provides coverage for legal fees, settlements, and judgments if businesses face allegations of wrongful termination, discrimination, harassment, privacy violations, wage and hour disputes, and other employee-related claims. It typically costs businesses in this industry between $3,000-5,000 annually to obtain $1-2 million in coverage limits. EPLI allows these businesses to avoid financial ruin from an employment lawsuit and keep focusing on their overall mission and operations.
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Based on typical pricing models for EPLI coverage, businesses in the executive, legislative, and other general government support industry can expect to pay on average around $3,000-5,000 annually for $1m/$2m in coverage limits. Factors like number of employees, geographic location, and risk profile are considered when determining final pricing. Larger companies with more employees will tend to pay more due to increased exposure to potential employment claims.
Estimated Pricing: $3,000-5,000 annually
Property Insurance
Property insurance provides important financial protection and peace of mind for businesses in the executive, legislative, and other general government support industry. It ensures these types of organizations can continue operating and recover quickly from unexpected losses to buildings, equipment, and other property assets critical to their daily activities and services. Based on the reference information provided, property insurance for businesses in this industry typically costs around $2.50 per $100 of insured property value. For a business with $500,000 in insured property, the estimated annual premium would be $12,500. Property insurance can help protect against financial losses and damages from events like fire, water damage, equipment failure, and liability claims that may arise from visitor injuries on the premises. This allows organizations in this industry to minimize disruptions and continue providing important government support functions.
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Based on industry analysis and averages, the estimated annual pricing for property insurance for businesses in this industry would be around $2.50 per $100 of insured property value. This was calculated by looking at common property values for businesses in this industry, typical coverage amounts needed, loss history data, and adjusting for factors like security systems. For a business with $500,000 in insured property values, the estimated annual premium would be $12,500.
Estimated Pricing: $12,500
Workers Compensation Insurance
Workers compensation insurance is an important protection for businesses in the Executive, Legislative, and Other General Government Support industry. It provides medical expenses, lost wages, and liability coverage for on-the-job injuries while ensuring employees receive support for recovery. Based on references, some common risks for this industry include slips and falls, repetitive strain injuries, or eye strain from extensive computer/paperwork use. Coverage also applies to incidents occurring off-site but during work activities like business trips. Estimated annual pricing for a business in this industry with $500k payroll would be $5,000.
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Based on national averages, businesses in the Executive, Legislative, and Other General Government Support industry tend to have moderate risk levels for workers compensation claims. The estimated average annual pricing is calculated based on industry loss data, payroll amounts, and expected claim frequencies. For an organization in this industry with an annual payroll of $500,000, the estimated annual workers compensation insurance pricing would be $5,000.
Estimated Pricing: $5,000
Conclusion
By obtaining comprehensive insurance policies tailored to their industry needs, companies in the executive, legislative, and general government support field can protect against unexpected costs of lawsuits, data breaches, property damage, and injuries. This allows them to focus on delivering important services to government agencies and the public without risks of financial ruin disrupting their mission-critical work.