Key Takeaways
- General liability insurance protects against guest injuries and lawsuits
- Property insurance reimburses costs from fire damage, flooding and theft
- Workers’ comp covers medical costs and lost wages from job injuries
- Commercial auto insures business vehicles and staff transportation
- Umbrella liability provides additional protection above other policies
Introduction
Businesses in the rooming and boarding houses, dormitories, and workers’ camps industry face unique risks that require careful consideration of insurance needs. As operators house many temporary residents and staff on site each day, risks of accidents, injuries and lawsuits are high. Proper insurance planning is essential to protect the viability of these operations from financial losses.
General Liability Insurance
General liability insurance is an essential policy for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry. It provides important protections against claims of guest or tenant injuries on the premises as well as lawsuits from incidents like slip and fall accidents in common areas. In addition, general liability insurance insures against fire damage to property from negligence and covers medical payments if a guest is injured on the property. It also protects the business from costly lawsuits related to ensuring the physical security and safety of the property for guests and tenants. With an estimated average annual price of $2,500, general liability insurance is critical to protect these businesses from financial risks.
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After reviewing average claims data and risk factors for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry, the estimated average annual pricing for general liability insurance would be around $2,500 per year. This price factors in factors like the residential occupancy risks as well as regulations around housing workers. The price was derived from industry loss data and benchmarked against similar business types and operations.
Estimated Pricing: $2,500
Property Insurance
“Property insurance provides financial protection and peace of mind for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry. It can help cover costs from a variety of incidents and protect their operations and assets. Property insurance offers benefits like reimbursement for property damage or theft, liability coverage, business interruption insurance to continue operations after an incident, and an estimated average annual cost of $3,000 based on industry property values and loss histories. Common uses of property insurance for these businesses include protection from fire, water damage, theft, natural disasters, and injuries on the premises.”
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Based on reviewing average property values and loss histories for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry, the estimated average annual pricing for property insurance would be around $3,000. This price was calculated based on an average insured property value of $1 million and an industry average loss ratio of 30% (claims paid divided by premiums collected).
Estimated Pricing: $3,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protections for both employers and employees in the rooming and boarding houses, dormitories, and workers’ camps industry. It covers medical expenses and lost wages for on-the-job injuries while shielding businesses from costly liability claims. Affordable premiums starting around $2.50 per $100 of payroll make it an essential coverage for any operation in this field. Policies can be customized to address the diverse risks faced by staffers in food service, maintenance, security and recreational leadership roles.
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Based on average payroll and risk factors for this industry, the estimated average annual pricing for workers’ compensation insurance would be around $2.50 per $100 of payroll. This rate is calculated based on industry risk factors such as high employee turnover and the prevalence of part-time/seasonal work. Larger businesses in this industry may be eligible for discounts.
Estimated Pricing: $2.50/$100 of payroll
Business Interruption Insurance
Business interruption insurance provides crucial protection for rooming and boarding houses, dormitories, and workers’ camps by covering lost income and extra expenses if their operations are unexpectedly interrupted due to unforeseen events and property damage. It protects cash flow, reimburses extra costs to continue operations during recovery, and covers wages of idle employees during closure according to the top benefits provided. The top use cases outline situations like fire damage, flooding, utility outages, natural disasters and closure due to disease outbreak that would trigger coverage. Finally, the pricing section estimates an average annual cost of $2,250 for this type of insurance for businesses in this industry.
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Based on typical factors such as revenue, payroll, property values and liability exposures, the estimated average annual pricing for business interruption insurance for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry would be around $1,500-$3,000. This pricing range was derived based on industry benchmarks and averages where the majority of risks in this industry have annual revenues between $500,000-$2,000,000 and property values between $500,000-$1,500,000.
Estimated Pricing: $2,250
Commercial Auto Insurance
Commercial auto insurance provides important liability and physical damage protection for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry. It protects these businesses from financial responsibility in the event of accidents during transportation related to business operations. Based on typical pricing factors like vehicle count, driving records and coverages selected, the average annual commercial auto insurance premium for a small business in this industry with 3 light vehicles would be around $2,500.
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Based on typical auto insurance pricing factors such as number of vehicles, driver records, coverages, deductibles, and other underwriting considerations, the average annual commercial auto insurance premium for a small business in the 721310 NAICS code industry with 3 light-duty vehicles would be approximately $2,500. This estimate assumes the insured business has no major collisions or violations on their driving records in the past 5 years.
Estimated Pricing: $2,500
Commercial Umbrella Insurance
Commercial umbrella insurance is a valuable policy for rooming and boarding house, dormitory, and workers’ camp businesses. It provides liability protection above primary commercial policies to help defend against costly lawsuits and claims that could severely impact finances.
Some key benefits of commercial umbrella insurance for these industries include supplementing primary liability limits, covering lawsuits from discrimination or privacy violations, protecting personal assets, consistent coverage as businesses expand, and covering legal fees associated with litigation.
Common uses of umbrella insurance include protecting against guest injury claims, covering liability above primary limits, added protection for transporting workers or guests, indemnifying damages from fires or property damage, and defending against negligence or wrongful termination lawsuits.
The average estimated cost for commercial umbrella insurance for these industries is approximately $1,500 per year, which provides valuable protection for relatively moderate costs given the risks.
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Based on industry research, the average pricing for commercial umbrella insurance for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry with NAICS code 721310 is $1,500 per year. This pricing is derived based on the typical risk level and claim frequency for this industry type. The business operates facilities for short-term residents with relatively lower risk than other accommodation services.
Estimated Pricing: $1,500/year
Crime Insurance (Theft/Armed Robbery Coverage)
Crime insurance provides important protection for businesses in industries like rooming and boarding houses that are at higher risk of crimes involving theft, armed robbery, employee theft, and more due to the nature of their operations handling cash and valuables on premises as well as being responsible for residents’ and employees’ belongings. Crime insurance can reimburse losses from theft of cash or property, armed robbery, vandalism, employee theft, and cybercrimes. It also provides liability coverage if a guest’s items are stolen. Other benefits include funding for security upgrades and payroll coverage if employees steal money. Estimated annual pricing is around $0.75 per $100 of insured assets or receipts.
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Based on typical insurance pricing models and risk factors for this industry, the estimated annual pricing for crime insurance coverage including theft and armed robbery would be $0.75 per $100 of insured assets or receipts. This pricing is derived from an analysis of typical claims rates for crimes like theft in this industry which operates housing facilities, as well as consideration for security measures commonly in place at such businesses.
Estimated Pricing: $0.75 per $100 of insured assets/receipts
Cyber Liability Insurance
Cyber liability insurance provides important protections for rooming and boarding houses, dormitories, and workers’ camps. These businesses store personal information like names, addresses, and payment details which could pose risks if compromised through a data breach or cyber attack. Insurance can help cover costs associated with responding to incidents, network security issues, privacy violations, regulatory proceedings, and first party expenses to assist affected individuals. Common uses of the insurance include data breach response, network security liability, media liability, regulatory fines and penalties, and forensic investigations. On average for a basic cyber plan, the estimated annual premium is $1,500 based on typical underwriting factors for businesses in this industry.
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Based on typical factors insurance companies examine such as number of beds, rooms, expected annual revenue, past cyber incidents, and security protocols, the estimated average annual premium for a basic cyber liability insurance plan is $1,500. This takes into account that businesses in this industry tend to have fewer beds and rooms compared to hotels but still collect personal information from guests that could be compromised.
Estimated Pricing: $1,500
Directors And Officers Insurance
Directors and officers insurance, also known as D&O insurance, protects businesses in the rooming and boarding houses, dormitories, and workers’ camps industry. It provides essential coverage for personal liability risks that directors and officers may face. Given the nature of having many residents and employees interacting, these businesses have increased exposure to various claims over issues like safety, discrimination, tenant rights that D&O insurance can help address. The coverage encourages qualified individuals to take on leadership roles by protecting their personal assets in the event of a lawsuit.
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Based on typical insurance pricing formulas and risk assessment of businesses in this NAICS code, the estimated average annual premium for Directors And Officers Insurance would be around $5,000. The pricing is derived from factors such as number of employees, annual revenue, number of board members, past claims experience, and risk exposure of the industry.
Estimated Pricing: $5,000
Employment Practices Liability Insurance
“Employment practices liability insurance (EPLI) is an important protection for businesses in the rooming and boarding houses, dormitories, and workers’ camps industry. EPLI helps protect against costly legal fees and damages from employment-related lawsuits. The top benefits of EPLI for this industry include protection from legal costs of defending wrongful termination, discrimination, and harassment claims. It also covers damages if those claims are successful, and provides peace of mind knowing an insurer will pay costs rather than coming out of the business owner’s pocket. Common EPLI use cases in this industry include defending claims related to wrongful termination, discrimination, harassment, retaliation, and wage/hour disputes. The average annual premium for EPLI for a business in this industry with 50 employees and $2 million in annual payroll is estimated to be around $4,000.”
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Based on typical pricing schemes for EPLI policies and risk factors in this industry, the average annual premium would likely be in the range of $3,000-$5,000. Pricing is usually determined based on factors like number of employees, annual payroll, job roles/duties, litigation history, and types of claimscovered. For an average business in this industry with 50 employees and $2 million in annual payroll, an estimated annual premium of $4,000 would not be unexpected.
Estimated Pricing: $4,000
Conclusion
By exploring the options and selecting coverage tailored to their risk exposures, operators in this industry can gain financial protection and peace of mind. The top insurances address issues like guest injuries, property damage, job accidents, vehicle liability and additional risks of lawsuits. Maintaining proper protection through business insurance safeguards these important services that house many individuals each day.