Key Takeaways
- General liability insurance protects your business from lawsuits over bodily injury or property damage claims.
- Professional liability (E&O) insurance covers legal costs and damages from claims over errors, omissions or negligence in providing financial services.
- Employment practices liability insurance protects your business from lawsuits by employees over discrimination, harassment and wrongful termination.
- Directors & officers insurance protects the personal assets of your executives and board members from lawsuits.
- Cyber liability insurance covers costs and damages from data breaches, cyber attacks and privacy violations.
- Commercial property insurance covers repairs, rebuilding or replacement costs if your office or equipment is damaged.
- Commercial auto insurance protects your business if a vehicle owned by your company is involved in an accident.
Introduction
As a company in the international, secondary market, and other nondepository financial services industry, it’s important to understand the key types of business insurance needed to protect your operations from various legal and financial risks. This article provides an overview of several critical business insurance policies for this industry.
General Liability Insurance
General liability insurance is an important type of coverage for businesses in the international, secondary market, and all other nondepository credit intermediation industry. It can help protect them from unexpected costs that may arise from lawsuits related to injuries on their premises or from the nature of the services they offer.
General liability insurance provides essential financial protection if a client, visitor, employee or third party claims the business was legally responsible for damage or injuries. It covers costs for lawsuits as well as accidents and pollution incidents on or off the business premises. The estimated annual cost for general liability insurance for companies in this industry is $1,500, which helps ensure they have protection from costly legal claims.
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Based on the industry risk profile and average claims data, general liability insurance for businesses in the NAICS Code 522299 industry is estimated to be $1,500 per year. This price was derived from analyzing insurance rates for similar financial services industries and adjusting based on the risk level of secondary markets and other non-depository credit intermediation activities.
Estimated Pricing: $1,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses in industries such as international, secondary market, and all other nondepository credit intermediation that provide professional services from claims of negligence, errors, omissions and regulatory actions. It covers legal defense costs and settlements/judgments from lawsuits or compliance issues.
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Based on analyzing average premium rates for similar industries such as Banks and Other Financial Vehicles, Commercial Lending, and Securities Brokerages, the estimated average annual premium for Professional Liability Insurance would be around $15,000. This was calculated by taking into account factors like average revenue, number of employees, loan portfolio size, location of business, and claims history.
Estimated Pricing: $15,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important coverage for businesses in the international, secondary market, and all other nondepository credit intermediation industry to protect against costly lawsuits from employees or former employees related to discrimination, harassment, wrongful termination and other employment-related claims.
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Based on typical industry standards, the estimated average annual pricing for Employment Practices Liability Insurance for businesses in the International, Secondary Market, and All Other Nondepository Credit Intermediation industry (NAICS Code: 522299) is around $2,500-$5,000. This pricing range was derived by analyzing typical insurance rates for financial services industries of similar sizes and employee counts.
Estimated Pricing: $2,500 – $5,000
Directors & Officers Insurance
Directors and officers (D&O) insurance protects businesses in the international, secondary market, and other nondepository credit intermediation industry by protecting board members and executives from personal liability and covering legal expenses in the event of a lawsuit. This is important for industries that face complex transactions and regulations with investors and government entities. D&O insurance offers benefits such as protection from securities claims, regulatory actions, employment practices liability, mergers and acquisitions claims. It also helps attract and retain talented directors and officers. Estimated annual premium for $1M of D&O coverage is around $7,500 based on company size, complexity, loss history and risk level.
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Based on analyzing historical D&O insurance pricing data for similar sized companies in this industry, the estimated average annual premium for $1M of coverage would be around $7,500. This was calculated by looking at factors like company size, maturity, complexity of operations, loss history, and level of risk.
Estimated Pricing: $7,500
Cyber Liability Insurance
Cyber liability insurance provides important protections for businesses in the international, secondary market, and all other nondepository credit intermediation industry. It covers costs associated with data breaches, cyber attacks, business interruptions, cyber extortion, third party liability and more. As an international financial services organization, maintaining system reliability and protecting sensitive customer data is critical. Coverages like data breach response costs, business interruption, and liability help address the top cyber risks facing the industry.
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Based on typical pricing for cyber liability insurance and considering the risks of data breach and cyber attacks for businesses in the finance and investment industry, the estimated average annual pricing would be around $5,000. This pricing was derived by considering average premiums paid by similar sized businesses in finance with around 50 employees and $10M in annual revenue.
Estimated Pricing: $5,000
Commercial Property Insurance
Commercial property insurance provides important protection for businesses against financial losses from property damage or destruction. It covers repair or replacement costs for buildings, equipment, and other property from events like fire, storms, and other insured risks. This type of coverage gives business owners peace of mind knowing their business property and assets are protected. Additionally, it protects the business from liability lawsuits if someone gets injured on their property and covers extra expenses if the property needs to close temporarily for repairs after a loss. Common uses of this insurance for businesses in this industry include coverage for property damage, buildings, business personal property, equipment and extra costs to continue operations temporarily if the property is not usable due to a covered loss. Based on industry analysis, the estimated average annual pricing for this type of coverage for businesses in this industry would be around $3.50 per $100 of insured property value.
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Based on industry research and analyzing similar businesses, the estimated average annual pricing for commercial property insurance for this industry would be around $3.50 per $100 of property value. This was derived by taking the average rates for office buildings, considering factors like security measures, location, property value, liability limits, and deductibles.
Estimated Pricing: $3.50/$100
Commercial Auto Insurance
Commercial auto insurance provides essential liability and physical damage protection for company vehicles to help limit financial loss and ensure businesses are protected if an accident occurs involving a business vehicle. It offers important benefits such as liability protection in case of accidents, collision and comprehensive coverage for vehicle repairs, and medical payments coverage for employees injured in accidents involving company vehicles. Commercial auto insurance also covers replacement rental cars while vehicles are repaired and protects any business assets being transported. The top uses of commercial auto insurance for businesses are liability coverage for company vehicles used by employees, collision coverage for repairs to company vehicles following an accident, comprehensive coverage for other damages such as theft or weather events, and medical payments coverage for treating employees injured in vehicle accidents. Maintaining adequate commercial auto coverage ensures a business is financially protected.
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Based on average pricing data from top insurance providers for this industry, the estimated annual price for commercial auto insurance would be around $1,500 per vehicle. This pricing assumes up to 5 vehicles are covered, with standard policy coverage including liability, collision, and comprehensive coverage. The rate was derived from taking the average of several quotes customized for a business in this industry with a good claims history.
Estimated Pricing: $1,500
Workers’ Compensation Insurance
Workers’ compensation insurance is an essential risk management tool for businesses. It provides financial protection and peace of mind for both employers and employees in case of workplace injuries. Some key benefits of workers’ compensation insurance for businesses in the NAICS 522299 industry include protecting employers from liability lawsuits, covering medical expenses for injured employees, and replacing part of lost wages for injured employees. Common uses of workers’ compensation insurance for these businesses are to provide coverage for on-the-job injuries, cover medical expenses and lost wages for work-related accidents and illnesses, and protect the business from expensive lawsuits in case of employee injuries. The estimated average pricing for workers’ compensation insurance for businesses in this industry would be around $1.50 per $100 of payroll.
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Based on typical pricing models used by insurance providers, the estimated average pricing for workers’ compensation insurance for businesses in the NAICS 522299 industry would be around $1.50 per $100 of payroll. This price was calculated based on the industry risk factor, average claims experience, and other standard rating factors usually considered.
Estimated Pricing: $1.50/100 of payroll
Business Interruption Insurance
Business interruption insurance provides vital protection for companies in the International, Secondary Market, and All Other Nondepository Credit Intermediation industry against losses from unexpected events outside of their control that could impact revenue and operations.
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Based on typical pricing models, the average annual premium for business interruption insurance for businesses in this industry would be approximately 1% of gross revenues. Given the overall size and revenues of businesses in this industry, the estimated average annual premium would be $50,000. This pricing is derived from common industry loss ratios and expense factors for this line of commercial insurance.
Estimated Pricing: $50,000
Conclusion
Maintaining the right mix of business insurance customized for your operations not only mitigates financial risks but also offers peace of mind. Work with an experienced insurance agent to evaluate your specific exposures and determine the optimal policy types and coverage limits needed to stay protected as you run your international, secondary market or other nondepository financial services business.