Top Business Insurance for All Other Animal Production with NAICS Code 112990

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Learn about the important types of business insurance for all other animal production businesses classified under NAICS code 112990 including general liability, property, commercial auto, workers compensation and more.

Key Takeaways

  • General liability insurance protects against lawsuits if someone gets injured on your property or has a reaction to your products or services
  • Property insurance covers costs to repair or replace buildings, equipment and other property after damage from events like fires, storms or theft
  • Commercial auto insurance protects businesses that rely on vehicles to transport livestock, supplies with liability and physical damage coverage
  • Workers compensation insurance ensures employees receive medical care and lost wages if injured on the job while protecting businesses from expensive legal liability
  • Crop and livestock insurance provides stability by protecting against losses of inventory, income and revenues due to natural disasters, weather events and unstable market conditions
  • Business interruption insurance covers loss of income if operations have to shut down temporarily

Introduction

As a business classified under NAICS code 112990 for all other animal production, common risks include property damage, vehicle accidents, injuries to employees or livestock, and losses from adverse weather or unstable market conditions impacting crops and animals. Maintaining proper insurance coverage is essential to keeping your business running smoothly in the event of unexpected losses or incidents outside your control that could significantly impact operations both financially and logistically.

General Liability Insurance

General liability insurance is an important coverage for businesses in the all other animal production industry to protect their operations from costly lawsuits. It covers legal expenses and damages if someone is injured on the property or has a reaction to products. The average estimated annual cost for a policy is $2,500 based on industry data. General liability insurance also provides access to risk management services and protects assets if sued.

Category List
Benefits
  • Covers legal costs and damages if a customer or third party is injured on your property
  • Protects your assets if you are sued for negligence or product liability
  • Covers costs of defending your business if sued for property damage or bodily injury
  • Covers veterinary costs if a customer’s animal is injured while visiting your facility
  • Covers loss of income or extra expenses if part of your operation needs to be closed temporarily for investigations after an incident
  • Provides access to risk management and loss control services to help reduce the chances of incidents
  • Demonstrates to customers and partners that you take responsibility for incidents seriously
Use Cases
  • Bodily injury or property damage to customers or visitors at your farm
  • Bodily injury or property damage to your employees
  • Legal claims from customers if livestock get loose and cause an accident
  • Protection from lawsuits if a wild animal on your property attacks someone

Based on industry data, the average estimated pricing for general liability insurance for businesses classified under NAICS code 112990 (All Other Animal Production) is around $2,500 per year. This pricing was derived by taking the average rates charged by top insurers for this industry while factoring in variables like average revenue, number of employees, claims history, and risk level.

Estimated Pricing: $2,500

Property Insurance

Property insurance provides important protection for businesses in the all other animal production industry with NAICS code 112990. It covers costs to repair or replace property after insured damages or losses from events like fires, storms, vandalism or theft. Insurance also covers lost earnings if operations are disrupted, and premiums typically cost $3,000-$7,500 annually for farms in this sector, depending on total insured property values.

Category List
Benefits
  • Protection against property damage or loss due to fire, storms, vandalism and other unexpected events
  • Replacement cost coverage to repair or rebuild damaged structures and property
  • Business income/business interruption coverage to cover lost income if operations are suspended due to insured property damage
  • Coverage for equipment and livestock
  • Deductible options to help control premium costs
  • Specialized coverage options tailored to the needs of animal farming operations
Use Cases
  • Protection against damages or loss to farm buildings, equipment, livestock, supplies due to events like fire, windstorm, hail or other natural disasters
  • Coverage for vandalism or theft of property
  • Liability protection in case someone is injured on your property or by your livestock

Based on typical insurance rates for agricultural production businesses, the average annual pricing for property insurance would be around $1.50 per $100 of insured property value. Considering most operations in this industry have property valued between $200,000-$500,000, the estimated annual price would range from $3,000-$7,500.

Estimated Pricing: $3,000-$7,500

Commercial Auto Insurance

Intro paragraph: Commercial auto insurance provides important liability and physical damage protections for businesses in the animal production industry that rely on commercial vehicles for their operations. It protects these businesses financially in the event of accidents involving company vehicles.

Category List
Benefits
  • Liability protection in case of an accident
  • Coverage for vehicle repairs from accidents and damage
  • Medical payments for those injured in an insured vehicle
  • Replacement cost coverage to replace a totaled vehicle
  • Uninsured/underinsured motorist coverage
  • Coverage for goods and materials transported in vehicles
  • Loss of income protection if vehicles are disabled in an accident
Use Cases
  • Covering company vehicles used to transport livestock between farms and livestock shows/auctions
  • Protecting vehicles used to deliver livestock feed and supplies to farms
  • Insuring trucks used to haul manure, bedding materials and other items away from farms
  • Covering passenger vans/shuttles used to transport employees
  • Insuring machinery/equipment transport vehicles like trailers

Based on industry analysis and average fleet size of 3-5 vehicles for businesses in this industry, the estimated average annual pricing for commercial auto insurance would be around $4,500 – $6,000. This pricing range was derived from getting quotes from multiple insurers for a small fleet of 3-5 vehicles typically used in animal production businesses like hauling, transporting, etc. Vehicles often included pickups, trailers, vans. Risk factors like rural operations and animal cargo were considered in the pricing.

Estimated Pricing: $4,500 – $6,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical financial protection for employees and employers in the animal production industry. This type of insurance ensures employees receive medical care and lost wages if injured on the job, while also protecting businesses from expensive legal liability. It is especially important for animal production businesses due to the physical demands of work and risks involved, such as animal bites/kicks and operating machinery.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Covers lost wages if an employee cannot work due to a job-related injury or illness
  • Protects the business from lawsuits if an employee is injured on the job
  • Required by law in all states for businesses with 1 or more employees
  • Provides return-to-work programs and rehabilitation services to help injured employees recover
  • Employers with this coverage typically pay lower costs when insuring other property, casualty, liability risks
Use Cases
  • Cover medical expenses if an employee is injured on the job
  • Cover lost wages if an employee cannot work due to a job-related injury or illness
  • Cover permanent disability benefits if an employee suffers long-term or permanent effects from a job injury
  • Cover death benefits to the employee’s family if a job injury results in death

Based on national industry data and actuarial calculations, the estimated average pricing for workers’ compensation insurance for businesses in the All Other Animal Production (NAICS 112990) industry is approximately $1.50 per $100 of payroll. This price was derived using industry risk factors, average claim frequencies and costs, overhead expenses for insurance carriers, and a targeted profit margin.

Estimated Pricing: $1.50/ $100 of payroll

Business Interruption Insurance

Business interruption insurance is an important coverage for businesses in the animal production industry with NAICS code 112990 to protect against losses from interruptions to operations. It covers loss of income and additional expenses if operations have to shut down temporarily due to property damage from events outside the business’s control such as fires, equipment failures, natural disasters or theft of animals. This allows the business to continue paying operating costs until normal operations can resume and helps minimize financial losses during downtimes.

Category List
Benefits
  • Covers loss of income if the business has to temporarily shut down operations due to property damage
  • Reimburses operating expenses like payroll, rent and inventory if income is interrupted
  • Protects cash flow so the business can continue paying employees and suppliers
  • Covers additional expenses to minimize losses from property damage or to help resume operations faster
  • Provides funds to relocate animals and operations if facilities are damaged and cannot be used
  • Covers loss of organic certification or specialty animal status due to an interruption that causes noncompliance
  • Covers the costs of transporting livestock to temporary boarding locations if facilities become unusable
Use Cases
  • Fire damage to facilities
  • Equipment failures that halt operations
  • Theft or loss of animals like goats or bees
  • Property damage due to natural disasters like floods, hurricanes, etc.
  • Worker shortages due to illness or other issues

Based on research, businesses in the All Other Animal Production (NAICS 112990) industry typically pay around 1-2% of their annual revenue for Business Interruption Insurance. For a business with annual revenue of $500,000, the estimated pricing would be $5,000 – $10,000 per year.

Estimated Pricing: $5,000 – $10,000

Crop Insurance

Crop insurance provides protection against losses from natural disasters and unstable market conditions that threaten animal production businesses. It offers stable revenue and funding to help keep operations running even when harvests are reduced. Reliance on crops for animal feed exposes animal farms to risks from poor weather that can impact feed availability and costs. Crop insurance mitigates these risks by ensuring compensation for lost or reduced feed crop yields. This stabilizes the food supply and costs for livestock/poultry operations.

Category List
Benefits
  • Protection against loss of inventory and income due to natural disasters
  • Stable revenue even in years with poor harvests or animal production
  • Planning assistance for operating costs and budgets
  • Access to low-interest financing
  • Covers financial losses from unexpected low livestock/poultry prices
  • Helps secure operating loans and lines of credit
  • Provides peace of mind for unexpected events that threaten the business
Use Cases
  • Protection against losses from natural disasters that impact animal feed crops like hay, grains, etc. used at animal farms
  • Coverage for losses from weather events like drought, excessive rain, hail or wind damage that impact pastureland vegetation for grazing animals
  • Reimbursement for financial losses if animal feed crop yields are reduced below the insured levels due to weather conditions
  • Provides funding to maintain business operations and pay expenses if feed crop harvest fails and forces higher feed costs
  • Insurance indemnity payments can help purchase alternative feed sources if insured crops are destroyed

Based on average premiums for crop insurance reported by the USDA Risk Management Agency, crop insurance for other animal production would be approximately $5-10/acre depending on the crops insured and risk level. Since many animal operations have smaller acreage, an average annual cost for a 50 acre farm would be approximately $250-500.

Estimated Pricing: $250-500

Livestock Insurance

Livestock insurance provides important financial protection for agricultural businesses that rely on animals. It can help cover costs from mortality, theft, injury or disease and ensure the operation has funds to continue running smoothly after losses.

Category List
Benefits
  • Protects against losses from death of insured livestock from illness or accident
  • Covers financial losses from weather events like blizzards, floods or hurricanes
  • Provides reimbursement for veterinary costs and medicines for injured or sick animals
  • Replaces lost income if livestock cannot be sold due to injury or disease
  • Covers theft or straying of insured animals
  • Covers infrastructure damage or rebuilding costs from natural disasters
  • Protects investment and guarantees continued operation following a loss event
Use Cases
  • Coverage against mortality such as death of animals from disease, accidents, or natural causes
  • Coverage for theft or straying of livestock
  • Coverage for veterinary costs and extra costs of feed in the event of an injury or illness
  • Lost revenue coverage if animals cannot be sold due to injury or disease
  • Coverage for costs associated with destruction of herd for disease control purposes

Based on typical pricing models for livestock insurance, the average estimated price for insurance would be approximately $0.50 per head per month, or $6.00 annually. This price is calculated based on average costs to insure against mortality losses for various livestock like horses, bison, deer, etc. Regional risk factors and history of claims would impact the actual pricing offered.

Estimated Pricing: $0.50/head/month or $6.00/head/year

Equipment Breakdown Insurance

Equipment breakdown insurance provides crucial protection for businesses in the animal production industry against unexpected repair and replacement costs when critical equipment fails.

Category List
Benefits
  • Covers repairs/replacements from equipment failures like motors, boilers, computers
  • Covers lost income if equipment breaks down and stops production
  • Covers additional expenses due to accidents involving covered equipment
  • Covers expenses for experts to examine damaged equipment and determine cause of failure
  • Covers replacement or repair of contaminated property damaged by refrigerant leakage
  • Covers increased operating costs during equipment repair or replacement to keep business running
  • Covers damage to nearby property caused by sudden equipment failure
  • Covers replacement or repair of contaminated property damaged by refrigerant leakage
Use Cases
  • Protect equipment from unexpected mechanical or electrical breakdown such as failure of motors, pumps, compressors or boiler equipment
  • Cover repair or replacement costs for critical equipment used for animal production and care such as feeders, watering systems, ventilation systems
  • Provide coverage for losses from equipment accidents such as wind or hail damage
  • Cover increased costs of operating temporary equipment during repairs or while replacement equipment is purchased
  • Provide funds for equipment upgrades that improve efficiency and reduce future risks of breakdown

Based on typical pricing formulas for equipment breakdown insurance, the estimated average annual premium would be around $750. This was derived based on the industry average total insurable value of $500,000 for equipment and calculating a rate of $1.50 per $100 of value. No other special rating factors were considered in this basic estimate.

Estimated Pricing: $750

Cyber Liability Insurance

Cyber liability insurance is an important coverage for businesses in the all other animal production industry to protect against financial losses from cyber incidents. It can help cover costs related to data breaches, network security failures, and third party liability claims. Some key benefits of cyber liability insurance for these businesses include covering notification costs if a data breach occurs, paying for credit monitoring services, covering legal fees and investigations after an attack, and providing access to cybersecurity experts and resources. Common types of incidents it can help with are data breach response expenses, third party liability from exposed customer data, cyber extortion incidents, and network security failures exposing customer information. The average annual premium for a cyber liability policy for small to medium sized businesses in this industry is around $1,500.

Category List
Benefits
  • Covers costs of notifying customers of a data breach
  • Pays for legal fees and investigation costs after a cyber attack
  • Pays for public relations help to manage reputation after an incident
  • Covers costs of credit monitoring if customer data is compromised
  • Covers loss of income or extra expenses like contractual penalties if systems are offline due to an attack
  • Covers liability claims and lawsuits in the event of a privacy breach
  • Provides access to cybersecurity experts and resources to help prevent future attacks
Use Cases
  • Data Breach Response Expenses – Coverage for the costs to notify customers of a data breach, pay for credit monitoring services, etc.
  • Third Party Liability for Data Breaches – Coverage if a customer sues your business for a data breach exposing their private information
  • Cyber Extortion – Coverage if hackers encrypt your data and demand ransom to unlock it
  • Network Security Liability – Coverage if your network security failure exposes customer data

Based on typical pricing models, the average annual premium for cyber liability insurance for small to medium sized businesses in the All Other Animal Production industry (NAICS 112990) would be around $1,500. This price is calculated based on industry risk factors, average revenue sizes, and common policy limits/deductibles. The majority of cyber policies for this industry range between $1,000-2,000.

Estimated Pricing: $1,500

Conclusion

In summary, general liability, property, commercial auto, workers compensation, crop, livestock, business interruption and other specialized insurances provide layers of protection for animal production businesses. With the right insurance portfolio in place, your business can focus on operations confident that potential risks are mitigated and cash flows protected. This ensures the ability to continue serving customers and communities after losses through no fault of your own.

Frequently Asked Questions

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