The Top Business Insurances for Video Tape and Disc Rental Businesses with NAICS Code 532282

UncategorizedReading Time: 8 minutes

Learn about the key business insurance policies video tape and disc rental businesses should have such as general liability, property, commercial auto, commercial umbrella and more.

Key Takeaways

  • General liability insurance protects the business from lawsuits related to injuries on the premises or damaged rented materials
  • Property insurance covers losses, replaces inventory and equipment, and compensates for lost income in the event of covered damage or disaster
  • Commercial auto insurance provides coverage for vehicles used to deliver rentals and protects from legal costs of accidents
  • Commercial umbrella insurance provides an additional layer of liability protection above primary policies
  • Commercial inland marine specifically covers inventory, equipment and property that is transported
  • Commercial crime insurance protects from losses due to theft, employee dishonesty and fraud

Introduction

Businesses in the video tape and disc rental industry face unique risks compared to other types of businesses. As a retailer that handles physical goods rented to customers, there is always a possibility of accidents occurring on the premises or during transit that could result in property damage or bodily injury. It is therefore important for video tape and disc rental companies to have the proper insurance policies in place to protect their operations and finances.

General Liability Insurance

General liability insurance provides protection for video tape and disc rental businesses from common lawsuits and claims. It covers legal fees if they are sued for issues like injuries on the premises, damaged or defective rented products, data breaches, copyright infringement, or accidents occurring on the property. The average annual cost for general liability insurance for businesses in the NAICS 532282 (Video Tape and Disc Rental) industry is around $1,500 according to industry data.

Category List
Benefits
  • Covers legal fees and costs if someone sues your business for bodily injury or property damage
  • Protects your business assets if you are found legally responsible for an incident
  • Covers medical expenses if a customer is injured on your property
  • Covers damage to customer’s property if it is lost, stolen or damaged while rented from your business
  • Protects you if a customer’s personal information is accidentally exposed due to a data breach on your premises
  • Provides coverage if someone claims copyright infringement against your business
  • Insures your business against claims from the unsafe condition of your premises
  • Protects the financial health of your business from unexpected litigation costs, data privacy issues, claims of copyright infringement, and claims related to unsafe premises conditions.
Use Cases
  • Property damage from customers
  • Bodily injury claims from customers or employees
  • Errors and omissions claims from customers
  • Lawsuits from copyright or data privacy issues
  • Accidents on business premises
  • Product liability claims if rented materials are defective

Based on industry data, the average general liability insurance pricing for businesses in the NAICS 532282 Video Tape and Disc Rental industry is around $1,500 per year. This pricing is derived from considering average revenue and employee count for businesses in this industry, as well as the risk level associated with rental operations involving physical goods.

Estimated Pricing: $1,500

Property Insurance

Property insurance provides essential financial protection and peace of mind for video tape and disc rental businesses by covering losses, replacing inventory and equipment, and compensating for lost income in the event of covered damage or disaster. Property insurance is important for video tape and disc rental businesses to protect their main assets of physical inventory that are rented out to customers, ensuring the business can continue operating and earning revenue if the inventory is damaged or destroyed.

Category List
Benefits
  • Covers losses from fire, wind damage, vandalism or theft of business property
  • Protects equipment like display cases, shelves and furnishings from unexpected damages
  • Replaces inventory like movies, video games and TV shows if they are lost or destroyed
  • Pays for repairs or rebuilding costs if the store suffers property damage
  • Covers loss of business income if the store needs to temporarily close for repairs
Use Cases
  • Protect inventory such as DVDs, Blu-rays, video games from loss or damage
  • Cover business property and equipment like shelves, displays, registers in case of theft or natural disaster
  • Reimburse for lost income if store has to close temporarily for repairs after covered loss

Based on typical averages, property insurance for businesses in the video tape and disc rental industry coded as NAICS 532282 would be estimated around $1,200-$1,500 per year. This pricing is calculated based on factors like average inventory value ($100K-$150K estimated for videotape and disc rentals), property value ($50K-$75K estimated for storefronts and equipment), and risk level determined by underwriters.

Estimated Pricing: $1,200-$1,500

Commercial Auto Insurance

Commercial auto insurance provides key protection and risk management for video rental businesses that rely on vehicles for product delivery and transportation. It covers liability, physical damage to vehicles, and medical payments, ensuring operations face minimal disruption from vehicle accidents. Some top benefits of commercial auto insurance for video rental businesses include liability protection, coverage for vehicle damage or loss, medical payments for injured parties, uninsured/underinsured motorist coverage, rental reimbursement, and roadside assistance. Average annual premiums for businesses in this industry are around $1,500. Commercial auto insurance is particularly important for covering legal and medical costs from accidents during delivery or transportation of video tapes and discs to customers.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for damage or loss to business vehicles
  • Medical payments coverage for injured parties
  • Uninsured/underinsured motorist coverage
  • Rental reimbursement coverage
  • Roadside assistance and towing coverage
  • replacement services if vehicles are disabled
Use Cases
  • Delivery of video tapes and discs to customers
  • Pickup of returned video tapes and discs from customers
  • Transportation of video tapes and discs between store locations

Based on industry analysis, the average commercial auto insurance pricing for businesses in the video tape and disc rental industry with NAICS code 532282 is around $1,500 per year. This estimate is derived from looking at typical fleet sizes, annual mileage, safety records, and other risk factors for businesses in this industry.

Estimated Pricing: $1,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides an additional layer of liability protection above and beyond a business’s general liability and auto insurance. It is especially valuable for video tape and disc rental businesses that face risks of customers or employees getting injured on their premises or damages occurring to rented equipment. Umbrella insurance also covers lawsuits exceeding primary policy limits and provides protection against costly legal fees and settlements. Key risks it addresses for this industry include slip-and-fall accidents, damages to rented property, and liability claims related to media content issues. Estimated annual premiums are $2,000-5,000 for businesses with $1 million in primary coverage, though final pricing depends on individual risk factors.

Category List
Benefits
  • Provides additional liability coverage above your general liability and auto liability limits
  • Protects your personal assets in case of a lawsuit against your business
  • Covers legal fees and other costs in defending your business against liability claims
  • Covers liability claims not included in general liability, such as some types of contractual liability
  • Provides continuous coverage even if your primary policies expire or are cancelled
  • Covers liability claims from higher risk activities such as hosting events
Use Cases
  • Protect against claims exceeding the primary general liability coverage limits
  • Provide additional limits for expensive lawsuits related to slip-and-fall accidents on store premises
  • Cover lawsuits related to damages caused by rented equipment
  • Protect against lawsuits from bodily injuries caused to customers or employees
  • Cover lawsuits related to intellectual property claims such as copyright infringement from rented videos/discs
  • Provide protection against lawsuits involving media content related issues such as privacy violations, defamation, or publication of unauthorized/illegal content

Based on industry risk factors and average claims data, commercial umbrella insurance for video tape and disc rental businesses is typically priced at $2-5 per $1,000 of coverage above the primary general liability limits, such as $1 million. Factors such as number of locations, sales volume, and claims history can impact the final pricing. For a business with average risk profile and $1 million in primary coverage, the estimated annual premium would be $2,000-5,000.

Estimated Pricing: $2,000-5,000 annually

Commercial Inland Marine Policy

A commercial inland marine policy provides businesses in the video tape and disc rental industry with valuable protection for their inventory and equipment. It covers physical media and portable electronic devices both during transit and while stored on premises, replacing lost income from damaged goods and protecting assets from disasters. It also covers specially designed delivery vehicles used to transport rentals and provides liability protection if a rented item causes property damage or injury to others. An inland marine policy is well-suited to the unique risks of this industry as it offers coverage for rented items being delivered between the store and customers’ homes.

Category List
Benefits
  • Covers inventory and equipment while in transit or on premises
  • Protects merchandise from damage or theft
  • Replaces stock and reimburses for lost income if disaster strikes
  • Covers portable electronic equipment like DVD players and video game consoles used for rentals
  • Protects cash in transit from rental returns being deposited at the bank
  • Covers liability if a rented item causes property damage or bodily injury
  • Coverage for specially designed delivery vehicles used to transport rentals to customers
Use Cases
  • Coverage for rented videotapes, DVDs, Blu-ray discs, and other physical media stored both on and off premises during transit
  • Coverage for media lost or damaged while being delivered/returned between customers’ homes and the business location
  • Coverage for media lost or damaged during an on-premises disaster such as fire or water damage
  • Coverage for business personal property including racks, shelves and other storing fixtures inside the physical store location

Based on average ratings factors for businesses in the NAICS 532282 Video Tape and Disc Rental industry, the estimated annual premium for a $100,000 limit Commercial Inland Marine Policy would be around $750. The primary property at risk for this industry is the video and disc inventory. Standard rates for insured property of this type are around 0.75% of the total insured value.

Estimated Pricing: $750

Commercial Crime Insurance

Commercial crime insurance is an important protection for video rental businesses. It provides coverage for losses due to criminal acts like theft, employee dishonesty, and fraud which are common risks for this industry.

Category List
Benefits
  • Protection against employee theft, embezzlement, or fraud
  • Coverage for losses due to computer fraud or funds transfer fraud
  • Reimbursement of legal and forensic accounting expenses needed to investigate and prove a covered loss
  • coverage for losses due to robberies on the business’ premises
  • Coverage for damage or loss of inventory like video tapes and discs due to covered causes
  • Coverage for third party liability in case a customer files a lawsuit against the business due to a theft occurring on the business’ premises
Use Cases
  • Employee theft – theft of cash, merchandise, or equipment by current or former employees
  • Customer theft – theft of merchandise by customers or others with authorized access to the store or inventory
  • Robbery – theft involving confrontations or threats of violence against employees

Based on typical pricing factors like employee count (usually 5-10 employees for small businesses in this industry), annual revenue (usually $250k-500k), and prior claims/loss history, the estimated average annual pricing for commercial crime insurance would be around $1,500. This price provides coverage for employee theft, robbery, computer fraud, and funds transfer fraud. The price was calculated using industry average base rates and adjusted upwards 10-15% due to higher risk of theft in this industry given its inventory of physical media assets.

Estimated Pricing: $1,500

Commercial Cyber Insurance

Commercial cyber insurance is an important risk management tool for video tape and disc rental businesses. It can help protect them from the financial risks of cyber attacks and data breaches by covering expenses related to privacy regulations, forensic investigations, system restoration, lost income, legal costs, and data breach liability. Many video tape and disc rental businesses store customer payment information. Cyber insurance can help protect them if that sensitive data is breached and costs to restore systems if disabled by an attack, while also providing an estimated average annual premium of $1,000.

Category List
Benefits
  • Covers costs of notifying customers of a breach and providing credit monitoring
  • Covers costs of investigating and resolving cyber attacks like ransomware, malware, phishing, and others
  • Covers regulatory fines and penalties from privacy regulations like HIPAA and GDPR
  • Covers costs of restoring corrupted or lost data from a cyber attack
  • Covers lost income from business interruption during a cyber attack or system outage
  • Provides access to legal support and PR advisors in the event of a data breach
  • Covers liability claims and lawsuits in the event customers sue due to a data breach
  • Includes cyber attack prevention training and resources to help strengthen cyber security
  • Provides access to legal support and PR advisors in the event of a data breach
Use Cases
  • Data breach liability coverage: Covers costs associated with a data breach, like credit monitoring, legal services, and notification obligations.
  • Cyber extortion coverage: Covers ransom payments demanded by hackers to prevent data leaks or system attacks.
  • Business interruption coverage: Covers lost income and extra expenses if systems are offline due to a cyber attack.

Based on typical pricing structures for small businesses in low to medium risk industries, the estimated average annual premium for cyber insurance coverage would be around $1,000. This takes into account factors like number of employees, annual revenue, type of data stored, security practices, and claim history. The premium is calculated as a percentage of total assets insured.

Estimated Pricing: $1,000

Conclusion

In summary, key business insurance policies that video tape and disc rental companies should consider include general liability, commercial property, commercial auto, commercial umbrella, commercial inland marine and commercial crime insurance. Having comprehensive coverage tailored to the risks of this industry helps ensure businesses can continue serving customers and generating revenue even after unexpected losses or incidents.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied