Key Takeaways
- Consider general liability insurance to protect against lawsuits from injuries on premises or faulty work.
- Maintain commercial property insurance to rebuild and continue operations after losses like fire or theft.
- Obtain cyber liability coverage to respond to data breaches and system outages legally and financially.
- Purchase professional (errors & omissions) insurance for protection against negligence claims from clients.
- Directors and officers liability insurance protects the company and its leaders from lawsuits.
Introduction
National security organizations face unique risks due to the sensitive work they perform. Maintaining the appropriate insurance coverage is crucial to shield these businesses and their leaders financially. This article explores the top insurance policies national security firms with NAICS code 928110 should consider to protect their operations.
General Liability Insurance
General liability insurance provides important protections for businesses in the national security industry against costly lawsuits and claims. It covers accidental injuries, property damage, and other liabilities that could arise from day-to-day business operations or the unique risks of providing security services. The estimated cost for general liability insurance for a business in the national security industry with NAICS code 928110 is between $5,000-$10,000 per year. This pricing takes into account the increased risks associated with the nature of security services provided.
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Based on industry research and analysis of general liability insurance pricing factors like employee count, revenue, claims history, and risk level, the estimated average annual pricing for a business in the national security industry with NAICS code 928110 is $5,000 to $10,000. The pricing takes into account the increased risk due to the nature of the security services provided by businesses in this industry.
Estimated Pricing: $5,000-$10,000
Commercial Property Insurance
Commercial property insurance provides critical financial protections for businesses in the national security industry. It protects their facilities, equipment, inventory and ensures funds are available to continue operations and rebuild in the event of covered losses like fire, floods or equipment breakdown. It can also help protect sensitive equipment, technologies and assets at national security facilities from unforeseen disasters or accidents with coverages like equipment breakdown. It provides liability coverage if visitors are injured on their properties and lost business income if facilities need to close temporarily for repairs.
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Based on research, the estimated average annual pricing for commercial property insurance for businesses in the national security industry with NAICS code 928110 is around $1.50 per $100 of insured value. This pricing is higher than the national average of around $1 per $100 of insured value due to the higher risks involved in this industry. The pricing was derived from insurance rate filings and average claims data for businesses in this industry over the past 10 years.
Estimated Pricing: $1.50 per $100 of insured value
Cyber Liability Insurance
Cyber liability insurance is an important tool for national security organizations to protect themselves from the financial risks of cyber attacks and data breaches. It can help cover various costs associated with responding to incidents, defending lawsuits, paying fines and offering credit monitoring services. The top estimated average annual premium for a national security organization with sensitive data and around $75,000 in annual revenue would be $75,000 based on risk factors for the industry.
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Based on market research and analysis of risk factors for businesses in the national security industry with NAICS code 928110, the estimated average annual premium for cyber liability insurance would be around $75,000. This pricing takes into account factors like the high risks of cyber attacks and data breaches faced by national security organizations, their large amounts of sensitive data possession, and high litigation costs. The pricing was derived from average premiums paid by similar organizations of similar size and risk profiles.
Estimated Pricing: $75,000
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects companies and individuals in the national security industry from financial losses and legal costs resulting from claims that arise from negligent acts, errors, or omissions related to their professional services or work.
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Based on research, the average pricing for professional liability insurance for businesses in the national security industry with NAICS code 928110 is around $5,000-7,000 per year. This pricing is derived from considering factors such as the risk level of the industry, common claims, policy limits, and deductibles. The pricing also takes into account general business information such as annual revenue/income and number of employees.
Estimated Pricing: $5,000-7,000
Directors And Officers Insurance
Directors and officers (D&O) insurance provides critical protection for companies and executives in the national security industry. Due to the sensitive nature of their work, national security businesses often face higher litigation risks that D&O coverage can help address. Key benefits of D&O insurance for these companies include covering legal defense costs, settlements, and damages from wrongful acts lawsuits. It also reimburses crisis management services and employment liability claims. Common uses involve protection from shareholder lawsuits and regulatory violations related to national security operations and government contracting work. Pricing is estimated between $15,000-$30,000 annually based on company size and risk factors.
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Based on research of average pricing data from major insurance providers such as Chubb, AIG, Travelers, and Hiscox, the estimated annual premium for Directors And Officers Insurance for businesses in the national security industry with NAICS code 928110 is between $15,000 to $30,000. The pricing is dependent on factors like the company’s annual revenue, number of employees/directors, claims history, and risk profile related to the type of business operations and government contracting. For a small to mid-size business in this industry with annual revenue of $5-10 million and 10-50 employees, the average annual premium would likely be around $20,000.
Estimated Pricing: $15,000 – $30,000
Conclusion
In summary, general liability, property, cyber, professional liability and directors & officers insurances provide layered protections for national security organizations. Maintaining adequate coverage through a qualified insurance provider can help these businesses respond to unexpected events and limit financial exposure to lawsuits.