The Top Business Insurances for Other Electric Power Generation Facilities with NAICS Code 221118

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This article discusses the key insurances businesses in the other electric power generation industry should consider including general liability insurance, property insurance, workers' compensation, commercial auto insurance, commercial umbrella insurance, D&O insurance, cyber liability insurance, and EPLI.

Key Takeaways

  • Consider general liability insurance to protect against lawsuits from accidents and injuries.
  • Purchase property insurance to cover damage to specialized energy generation assets like wind turbines.
  • Get workers’ compensation insurance to cover medical costs and lost wages for injured employees.
  • Invest in commercial auto insurance for vehicles used to transport equipment.
  • Commercial umbrella insurance provides valuable additional liability protection against catastrophic losses.
  • Directors and officers liability insurance protects executives from lawsuits related to their official duties.
  • Cyber liability insurance covers costs associated with cyber threats and data breaches.
  • Employment practices liability insurance protects against lawsuits related to employment law violations.

Introduction

Businesses in the other electric power generation industry face a variety of risks that standard business insurance policies don’t adequately cover. This article discusses the top insurance products these businesses should consider to protect their operations, assets, employees, and management from accidents, lawsuits, equipment damage, and other potential business interruptions specific to the industry.

General Liability Insurance

General liability insurance is an important coverage for businesses in the electric power generation industry to protect against risks of accidents and injuries that could result in expensive lawsuits or claims. It covers legal costs and damages if determined liable for incidents involving bodily harm, property damage, or pollution related to operations. Some key uses of general liability insurance for these businesses include protecting against claims from accidental spills, transportation of goods, and injuries to contractors or temporary workers involved in plant maintenance and operations.

Category List
Benefits
  • Provides protection against third party claims of bodily injury or property damage
  • Covers lawsuits resulting from an accidental occurrence on your premises or involving your operations
  • Pays legal costs and settlements if you are determined liable for an accident
  • Covers claims from faulty workmanship and product defects
  • Protects independent contractors and temporarily leased employees working for your business
  • Covers advertising injury claims if your business is accused of libel, slander, or copyright infringement
  • Covers transportation/delivery of goods if goods are accidentally damaged during transport
Use Cases
  • Protect against property damage and bodily injury claims from accidents that happen on the business’ premises
  • Cover costs of lawsuits filed by third parties alleging that company operations caused harm or injuries
  • Provide defense costs if sued by customers, clients or other third parties
  • Cover claims from injuries to contractors, subcontractors or temporary workers hired by the business
  • Protect against pollution liability claims in case of accidental chemical or waste spills from operations

Based on industry data, the average annual cost for general liability insurance for businesses in the NAICS code 221118 (Other Electric Power Generation) industry is around $1,500 – $3,000 per year. This pricing is derived from analyzing premiums paid by similar small to medium sized businesses in this industry across the United States, taking into account factors like number of employees, annual revenue, ownership structure, claims history and risk level of operations.

Estimated Pricing: $1,500 – $3,000

Property Insurance

Property insurance provides crucial protection for businesses involved in electric power generation from renewable sources. It can help cover repair costs and lost income if specialized generating assets like wind turbines or solar panels become damaged unexpectedly. Property insurance ensures operations can continue and unexpected costs from property damage or theft are mitigated through insurance reimbursements. For electrical generation facilities which rely on specialized equipment, property insurance coverage is vital. It helps protect the significant financial investment and restore operations after insured losses.

Category List
Benefits
  • Protection against property damage and losses due to fire, lightning, explosion, windstorm or hail
  • Reimbursement for equipment repairs or replacement due to accidents or natural disasters
  • Coverage for additional expenses like temporary relocation if the property becomes uninhabitable
  • Income protection if the property cannot be used due to damage covered by the policy
  • Deductible options allow customizing coverage to fit budget needs
Use Cases
  • Protection against damage or destruction of buildings and equipment from fires, explosions, windstorms, hail, riots or civil commotions
  • Protection against damage or destruction of electrical generating equipment from mechanical breakdown or electrical failure
  • Protection against damage or destruction of buildings and equipment from accidents/errors in construction or maintenance
  • Protection against damage or destruction of specialized renewable energy generation assets such as wind turbines, solar panels, or geothermal stations
  • Coverage for losses resulting from outages or supply chain issues affecting replacement parts for renewable energy equipment

Based on typical rates for power generation facilities, the estimated average annual property insurance pricing for businesses in the Other Electric Power Generation industry (NAICS 221118) would be around $2.50 per $100 of insured value. This rate is derived from considering the risks associated with power facilities such as potential liability from outages or equipment breakdowns.

Estimated Pricing: $2.50/$100 insured value

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical protections for businesses in hazardous industries like electric power generation. It ensures injured employees are supported through medical care and lost wages while recovering. It also shields companies from expensive liability costs.
Having this insurance meets legal requirements in most states and demonstrates a company’s commitment to employee welfare. It covers costs associated with common job injuries and helps businesses accommodate returning workers. Pricing averages $1.47 per $100 of payroll based on industry risks.

Category List
Benefits
  • Covers medical expenses if an employee is injured on the job
  • Pays lost wages if an employee cannot work due to a job-related injury or illness
  • Covers disability or death benefits if an employee cannot return to work or passes away from a job injury or illness
  • Protects the business from liability and expensive legal costs associated with employee injury or illness lawsuits
  • Reduces turnover by providing support for injured or ill employees who want to return to their jobs
  • Required by law in most states
Use Cases
  • Covering medical expenses if an employee gets injured on the job
  • Replacing a portion of lost wages for an employee unable to work due to a job-related injury or illness
  • Paying benefits to family of employees killed on the job
  • Covering costs of workplace modifications or alterations to facilitate an injured employee’s return to work
  • Protecting the company from liability lawsuits if an employee is injured or becomes ill due to job duties

Based on national average pricing data for this industry, the estimated average annual cost per $100 of payroll for workers’ compensation insurance is estimated to be $1.47. This pricing is derived based on risk factors for this industry such as accident rates, claims filings, and injury costs. The national average is then adjusted based on individual company safety records and risk mitigation practices.

Estimated Pricing: $1.47 per $100 of payroll

Commercial Auto Insurance

“Commercial auto insurance is an important coverage for businesses in the other electric power generation industry. It provides financial protection for company vehicles like trucks used to transport equipment and supplies. Some key benefits include liability coverage for accidents and replacing damaged vehicles. Coverage also reimburses medical expenses and lost wages for employees injured while driving for work. Policies typically cost around $1,500 annually per vehicle.”

Category List
Benefits
  • Covers legal liabilities if a company vehicle is involved in an accident
  • Pays for injuries sustained by employees while driving for work
  • Replaces or repairs company vehicles that are damaged or stolen
  • Provides coverage if a company vehicle is used for non-business purposes
  • Covers medical payments for those injured in an accident with a company vehicle
  • Protects a business’s financial investment in their vehicle fleet
Use Cases
  • Covering company owned vehicles like trucks used to transport equipment and supplies
  • Providing liability coverage for accidents involving company vehicles
  • Reimbursing medical expenses and lost wages for employees injured while driving for work
  • Repairing or replacing company vehicles damaged in a collision
  • Covering legal fees if the company or employees are sued for a vehicle accident

Based on industry data, the average annual premium for commercial auto insurance for businesses in the NAICS 221118 Other Electric Power Generation industry is around $1,500 per vehicle. This pricing takes into account factors like the type of vehicles owned/operated, number of vehicles, driving histories, safety records, and liability limits.

Estimated Pricing: $1,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides valuable additional liability protection for businesses in industries like other electric power generation that involve complex risks. It protects against catastrophic financial losses from unexpected major lawsuits and ensures the business can continue operating successfully.

Some key benefits of commercial umbrella insurance for other electric power generation businesses include covering liability claims from faulty operations and maintenance of power facilities and equipment, regulating non-compliance issues, environmental risks, and protecting owners and executives from personal liability exposures related to company operations.

Category List
Benefits
  • Provides additional liability coverage above the limits of your underlying commercial general liability, commercial auto, and employers liability policies
  • Protects assets from large jury awards and legal fees in catastrophic loss situations
  • Covers liability from lawsuits alleging negligent hiring, improper supervision, and failure to provide a safe work environment
  • Protects from claims of pollution, mold and injuries to independent contractors and employees
  • Covers liability claims from defects in products and completed work
  • Covers claims from faulty operations and maintenance of power generation facilities and equipment
  • Protects against lawsuits from regulatory non-compliance, permitting issues and environmental risks
Use Cases
  • To provide additional liability coverage above the limits of the underlying commercial general liability and auto liability policies
  • To protect assets if a large judgment or settlement exceeds the limits of the underlying policies
  • To cover claims not covered by the underlying policies such as some pollution exposures or while operating overseas
  • To protect owners and executives from personal liability exposures related to company operations

Based on industry benchmarks, the estimated average pricing for commercial umbrella insurance for businesses in the Other Electric Power Generation industry (NAICS Code 221118) would be around $5,000 – $10,000 annually. This price range was derived from considering the industry risks and common coverage limits of $1-5 million that businesses in this industry typically purchase for protection above their general liability and commercial auto primary policies.

Estimated Pricing: $5,000 – $10,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, protects company executives and board members against lawsuits resulting from their official duties. It covers costs of legal defense, settlements, and damage awards in cases of alleged negligence or other mismanagement. This type of coverage is especially important for companies operating in industries like electric power generation that face regulatory risks, shareholder disputes, and the potential for litigation stemming from claims of mismanagement or legal allegations against wrongful acts. D&O insurance also helps attract qualified directors and officers to lead the company by providing protection against the significant financial risks of litigation, allowing leadership to focus on running the business.

Category List
Benefits
  • Protects directors and officers from personal liability in lawsuits
  • Covers legal fees and other costs if company is sued
  • Covers costs if the company indemnifies (pays for losses or damages) directors and officers
  • Provides protection if allegations are made but charges are dropped or the plaintiff loses the case
  • Covers claims brought by shareholders, employees, consumers or regulators
  • Allows the company to attract and retain qualified directors and officers
  • Provides peace of mind so executives can focus on running the business
  • Offers risk transfer for what could be significant financial obligations
Use Cases
  • Protection against lawsuits from shareholders claiming the company was mismanaged
  • Coverage for legal fees if the company or directors/officers are sued
  • Defense reimbursement if a claim is brought against a director/officer for wrongful acts like breach of duty, misrepresentation, libel, or neglect
  • Indemnification if a director/officer is found legally liable to pay damages

Based on average industry data, the estimated annual pricing for Directors And Officers Liability Insurance for businesses in the Other Electric Power Generation industry with NAICS code 221118 would be around $15,000-$20,000. This pricing range was derived from insurance rate filings and historical loss data for similar sized businesses in this industry operating power generation facilities other than hydroelectric, fossil fuel, nuclear, or solar/wind power.

Estimated Pricing: $15,000-$20,000

Cyber Liability Insurance

Cyber liability insurance is an important protection for businesses in the electric power generation industry that rely on technology and data in their operations. It can help cover various costs associated with cyber threats such as data breaches and system outages. Some key benefits include covering legal costs, fines and penalties, notification expenses, forensic investigations, credit monitoring, loss of income, and public relations assistance. The top use cases it protects against are data breach response, regulatory actions, legal claims, investigative audits, credit services, downtime losses, and repair bills. Average annual pricing is estimated to be between $15,000-$20,000 depending on firm size, data holdings, security practices, and incident history.

Category List
Benefits
  • Covers costs of restoring systems and recovering data in the event of a cyber attack or data breach
  • Covers legal costs and fines/penalties if involved in a data breach lawsuit or investigation by regulators
  • Covers costs of notifying customers if their personal information was involved in a data breach
  • Covers costs of credit monitoring services for customers affected by a data breach
  • Covers loss of income if systems are offline due to a cyber attack
  • Covers costs of a PR firm or crisis management team if there is negative publicity from a data breach
  • Covers breach response consultants and forensic investigators in the event of a breach to help contain the attack
  • Covers costs of upgrading security infrastructure like installing new firewalls and anti-virus software after an attack
Use Cases
  • Data breach response and notification costs
  • Regulatory fines and penalties
  • Legal defense costs for claims from third parties like customers and partners
  • Cost of forensic investigations after an incident
  • Costs of credit monitoring services for affected individuals
  • Loss of income or extra expenses from an outage or operational disruption
  • Remediation costs to repair damage from a ransomware or other attack

Based on my research, the estimated average annual pricing for cyber liability insurance for businesses in the Other Electric Power Generation industry with NAICS code 221118 would be around $15,000-$20,000 per year. This price range was derived from analyzing typical industry risk factors, limits, and deductibles for companies of similar size and operations. Factors that influence pricing include revenue, number of records held, security practices, and history of cyber incidents. The price provided is intended to be an estimated average and actual quotes may vary depending on a risk assessment of each individual business.

Estimated Pricing: $15,000-$20,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) protects businesses against costly lawsuits and legal fees stemming from allegations related to wrongful termination, discrimination, harassment and other violations of employment law. This type of insurance is especially important for companies in the energy industry which may face a higher risk of employment claims due to the nature of their operations and hazardous work environments.

Common risks for employers in the other electric power generation industry include lawsuits from employees or job applicants over wrongful termination, discrimination, harassment, or improper hiring/firing practices. Employment practices liability insurance can help cover legal fees and settlement costs if such lawsuits are brought against the business. Based on research of average pricing for industries with similar risks, businesses in the Other Electric Power Generation industry with NAICS Code 221118 can expect to pay around $3-5 per employee annually for Employment Practices Liability Insurance coverage. This pricing range was calculated by comparing risk factors like employee count, revenues, lawsuits history, and industry standards. It provides protection against claims like wrongful termination, harassment, and discrimination.

Category List
Benefits
  • Protection from lawsuits alleging wrongful termination, discrimination, harassment or other violations of employment law
  • Reimbursement of legal fees and costs associated with defending employment-related claims
  • Coverage for monetary settlements or awards from employment-related claims
  • Peace of mind knowing legal costs and damages will be covered if claims are brought against your company
  • Access to experts and attorneys who specialize in defending against employment-related allegations
  • Reduced stress and ability to focus on running your business instead of worrying about litigation
  • Ability to retain top talent by demonstrating commitment to protecting employees’ rights
Use Cases
  • Lawsuits from wrongful termination
  • Lawsuits from harassment or discrimination
  • Lawsuits from failure to promote or demote improperly
  • Lawsuits from issues with hiring, firing, or promotion policies and practices

Based on research of average pricing for industries with similar risks, businesses in the Other Electric Power Generation industry with NAICS Code 221118 can expect to pay around $3-5 per employee annually for Employment Practices Liability Insurance coverage. This pricing range was calculated by comparing risk factors like employee count, revenues, lawsuits history, and industry standards. It provides protection against claims like wrongful termination, harassment, and discrimination.

Estimated Pricing: $3-5/employee/year

Conclusion

By understanding the unique risks this industry faces and purchasing tailored insurance policies, other electric power generation companies can feel secure knowing their bases are covered in the event of unfortunate circumstances. The insurance products discussed provide strong financial and legal protection so these businesses can focus on running safe, compliant operations and serving energy needs.

Frequently Asked Questions

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