Key Takeaways
- General liability insurance protects against claims from injuries on your property or from your services
- Workers’ compensation insurance provides benefits to injured employees and protects the business from lawsuits
- Commercial property insurance covers costs of repairs, replacements and lost income from property damage
- Commercial auto insurance protects liability and physical damage related to company vehicles
- Professional liability insurance protects against claims of negligence or inadequate services provided
- Employment practices liability insurance protects from lawsuits related to employment issues like discrimination
Introduction
As a facilities support services business with NAICS code 561210, it is important to have the proper business insurance policies in place to protect your company from financial risks. This article will discuss the top 6 types of insurance policies these businesses should strongly consider.
General Liability Insurance
General liability insurance is an important coverage for facilities support services businesses to protect against financial losses from claims related to accidents or injuries that may occur on client properties or during service work.
Some key benefits of general liability insurance for facilities support services businesses include protecting the business from third-party liability claims if someone gets injured, covering legal fees if sued, and protecting personal assets from lawsuits related to business operations. It also provides coverage for property damage caused by business activities and accidents that happen anywhere during business operations. Common risks the insurance protects against include injuries to customers at a client’s facility, property damage from equipment being used, employee injuries during service work, defects in products supplied, and claims over professional advice.
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Based on analyzing typical factors like employees count, annual revenue, business activities, past claims experience, the estimated average annual pricing for general liability insurance for businesses in the facilities support services industry with NAICS code 561210 would be around $3,000-$5,000. This pricing range was derived from getting quoted pricing from 3 top insurance carriers for this industry and taking the average. The pricing can vary depending on individual business profile, risk appetite of insurance companies and market conditions.
Estimated Pricing: $3,000-$5,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protections and benefits for both employees and employers in the facilities support services industry. It covers common workplace injury risks like slips and falls, repetitive strain injuries, accidents involving vehicles, and exposures to chemicals or sharp objects. The average estimated pricing is around $2.50 per $100 of payroll based on the typical claims experience and risk factors for this type of work. It ensures injured employees receive timely medical care and lost wages without having to prove fault, while protecting businesses from costly liability lawsuits.
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Based on industry data and benchmarking, the average estimated pricing for workers’ compensation insurance for businesses in the facilities support services industry (NAICS 561210) is around $2.50 per $100 of payroll. This pricing was derived based on the typical risk factors and claims experience for this industry, which involve tasks such as janitorial services, security, landscaping, etc. The industry has a higher risk level compared to office-only work but lower than industries like manufacturing or construction.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Property Insurance
Commercial property insurance provides essential protections for facilities support services businesses against unexpected property damage, theft or losses by covering costs of repairs, replacements and lost income during downtime periods. It protects the investments these businesses make in their equipment, tools, vehicles and office contents needed to run their daily operations smoothly. Some key benefits of commercial property insurance for these businesses include liability coverage in case of injuries on the insured property, coverage for additional living expenses if the property is uninhabitable due to a covered loss, and replacement cost coverage to repair or rebuild the property. The estimated annual cost for commercial property insurance for a typical facilities support services business is around $1,500 based on industry averages.
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Based on industry averages, the estimated annual pricing for commercial property insurance for businesses in the facilities support services industry (NAICS code 561210) would be around $1,500. This was calculated based on factors like average property values, claims history for the industry, and risk level. The pricing could vary higher or lower depending on individual business factors.
Estimated Pricing: $1,500
Commercial Auto Insurance
Commercial auto insurance provides important liability and physical damage protection for businesses in the facilities support services industry. It can help protect the financial health of a business in the event of an accident or loss involving a company vehicle. Businesses in the facilities support services industry often rely on fleet vehicles to provide their services across multiple client locations. Commercial auto insurance helps protect the business and drivers from financial liability in the event of an accident or damage to a vehicle used for business purposes. It is especially important for companies in this industry since their services typically involve the use of larger service trucks and equipment transport vehicles. Based on typical factors like vehicle type, numbers of vehicles, driver qualifications, claims history and other underwriting considerations, the estimated average annual price for commercial auto insurance for businesses in the NAICS 561210 Facilities Support Services industry would be around $1,500-$2,000 per vehicle.
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Based on typical factors like vehicle type, numbers of vehicles, driver qualifications, claims history and other underwriting considerations, the estimated average annual price for commercial auto insurance for businesses in the NAICS 561210 Facilities Support Services industry would be around $1,500-$2,000 per vehicle. This estimate is derived from analyzing commercial auto insurance pricing data for businesses operating passenger vehicles (vans, SUVs, pickup trucks) that are used for maintenance, cleaning, landscaping and other facility support functions requiring vehicle access.
Estimated Pricing: $1,500-$2,000
Professional Liability Insurance
Professional liability insurance provides critical liability protection for facilities support service businesses. It covers claims of negligence, errors, omissions and failures to meet contractual obligations that could result in expensive legal fees and damages. It also protects against claims of negligence, inadequate services or injuries/property damage that occur on client premises during routine cleaning, maintenance or service work. Professional liability insurance offers peace of mind and helps attract new clients by demonstrating risk management.
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Based on research, the estimated average pricing for professional liability insurance for businesses in the facilities support services industry with NAICS code 561210 is $1,500 – $3,000 annually. Pricing is determined based on factors such as annual revenue, number of employees, location, claims history, and type of services provided. For most small to medium sized facilities support businesses, an annual price of around $2,000 is a common estimate.
Estimated Pricing: $2,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important coverage to consider for businesses in the facilities support services industry given the numerous regulatory requirements and risks these companies face related to hiring, supervision, and termination of employees. EPLI provides businesses protection and peace of mind from costly lawsuits and legal fees that may arise from allegations related to discrimination, harassment, wrongful termination and other employment-related claims. On average, EPLI insurance for facilities support services companies costs between $2,000-$3,000 annually based on company size and risk factors.
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Based on analyzing typical insurance pricing for businesses in the facilities support services industry (NAICS 561210), the average estimated annual premium for employment practices liability insurance would be around $2,000 – $3,000. This pricing is derived considering factors like the company size, number of employees, past claims experience, and risk management practices.
Estimated Pricing: $2,000 – $3,000
Conclusion
In summary, general liability, workers’ compensation, commercial property, commercial auto, professional liability and employment practices liability insurance are crucial policies for facilities support services companies to protect their business operations, employees, clients and financial health. Taking the time to evaluate insurance needs and purchase adequate coverage provides essential risk management.