Key Takeaways
- Consider general liability, commercial property, commercial auto, workers’ compensation and business interruption insurance policies
- Commercial umbrella insurance provides additional liability protection above primary policies
- Insurance needs and costs vary depending on business activities, assets, vehicles used and number of employees
Introduction
Businesses providing maintenance, repair and janitorial services to buildings and dwellings often face a variety of risks in their daily operations. Whether performing repairs, cleaning services or routine maintenance work, contractors in this industry deal with risks of property damage, injuries, vehicle accidents and liability from their services. To protect their business and employees, obtaining the right insurance coverage is crucial. This article examines the key types of business insurance policies these contractors should consider.
General Liability Insurance
General liability insurance is an important coverage for businesses in the ‘Other Services to Buildings and Dwellings’ industry. It protects them from costly legal claims and lawsuits related to accidents or injuries that occur on their business premises or during operations. This type of insurance also covers independent contractors and subcontractors hired by the business. In addition, it provides access to risk management services to help reduce chances of claims. The average annual cost of general liability insurance for businesses in this industry is about $1,200, but actual rates can range from $1,000 to $1,500 depending on the specific business profile and underwriting criteria.
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Based on average rates for general liability insurance for businesses in the ‘Other Services to Buildings and Dwellings’ NAICS industry code 561790, the estimated annual pricing would be around $1,200. This is calculated based on industry data and factors such as business size, annual revenue, number of employees, types of services provided, risk level, insurance grade/score, and claims/loss history. The average rates can range from $1,000 to $1,500 per year depending on the specific business profile and underwriting criteria of the insurance provider.
Estimated Pricing: $1,200
Commercial Property Insurance
Commercial property insurance offers vital coverage for businesses working on or in properties owned by others, as demonstrated in the benefits, use cases, and pricing details provided in the reference. This type of insurance can help protect a business’ tools, equipment and lost income if a worksite is damaged, while also providing liability coverage if someone gets injured on a client’s property during work being performed. On average, businesses in this industry can expect to pay around $1,500 annually for commercial property insurance based on property values, liability exposures and loss histories for similar businesses.
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Based on industry analysis, the average commercial property insurance pricing for businesses in the Other Services to Buildings and Dwellings (NAICS Code: 561790) industry is estimated to be around $1,500 per year. This estimate is derived from considering average property values, property contents values, liability exposures, and loss histories for similar businesses providing services to buildings and dwellings. The pricing may vary higher or lower depending on specific business and location factors.
Estimated Pricing: $1,500
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for businesses in the other services to buildings and dwellings industry (NAICS Code: 561790) that rely on vehicles as part of their operations. It provides protection from a variety of risks these businesses may face related to vehicle accidents and legal liability. Some of the key benefits of commercial auto insurance for these businesses include liability protection, coverage for vehicle repairs, medical payments for injured parties, replacement rental vehicles if needed, and protection for business equipment transported in vehicles. Common use cases where this coverage applies include liability protection from lawsuits due to accidents involving employees, repairs or replacement of business vehicles damaged in accidents, medical payments for injuries sustained in auto accidents, and coverage for employees’ personal vehicles used for business needs. It is estimated that the average annual premium for commercial auto insurance for businesses in this industry would be around $1,500.
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Based on industry data and averages, the estimated pricing for commercial auto insurance for businesses in the NAICS Code 561790 (Other Services to Buildings and Dwellings) industry would be around $1500 per year. This estimate takes into account factors like the types of vehicles used in this industry (often smaller fleet size consisting of cargo vans and pickup trucks), average miles driven per year, likelihood and cost of claims based on the work activities.
Estimated Pricing: $1500
Workers’ Compensation Insurance
Workers’ compensation insurance provides important coverage for employees and businesses in the NAICS 561790 (Other Services to Buildings and Dwellings) industry. As companies in this industry perform maintenance, cleaning, and repair work, there is inherent risk of on-the-job injuries that workers’ comp helps address. Workers’ comp insurance covers medical expenses and lost wages for injured employees, protects businesses from costly lawsuits, and has an estimated average annual cost of $1.25 per $100 of payroll for companies in this industry.
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Based on national average pricing data and risk factors for this industry, the estimated average annual workers’ compensation insurance pricing would be around $1.25 per $100 of payroll. This industry has moderate risk compared to other service industries due to activities like maintenance, repair, janitorial services, etc. The pricing was calculated using industry risk factors, average claim frequency and costs obtained from the National Council on Compensation Insurance.
Estimated Pricing: $1.25 per $100 of payroll
Business Interruption Insurance
This reference overview provides key details about business interruption insurance for businesses in the Other Services to Buildings and Dwellings industry (NAICS Code: 561790). It covers the top benefits, common use cases, and estimated pricing for this type of coverage. Business interruption insurance can help protect a company’s cash flow and ability to continue operating if facilities are damaged or access is disrupted due to events outside of their control like fires or supplier issues. The benefits section outlines how this coverage can reimburse expenses and lost profits during closure to minimize financial losses. And the use cases provide examples of events this insurance can address, such as fire damage or personnel issues preventing site access.
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Based on an average analysis of revenues, expenses and potential business interruption risks for businesses in the NAICS Code 561790 (Other Services to Buildings and Dwellings) industry, the estimated average annual pricing for basic business interruption insurance would be around $2,500. This price was derived by taking the industry average annual revenues of around $500,000, with a 50% gross margin and factoring in typical expenses and risk factors like location, fire risk, etc. to estimate potential claims. A 12 month indemnity period was used in the calculation.
Estimated Pricing: $2,500
Commercial Umbrella Insurance
“Commercial umbrella insurance provides additional liability protection for businesses in the other services to buildings and dwellings industry (NAICS: 561790), which includes services like janitorial, maintenance, and repair work. It protects business owners from costly lawsuits by providing coverage above the primary commercial general liability and auto liability limits. Some key benefits include stronger protection as the business grows and takes on more risks, as well as coverage for certain liabilities not covered under standard policies. Typical uses of umbrella policies for these types of businesses are to protect against liability claims exceeding primary policy limits, provide coverage for risks not included in general liability policies, and ensure adequate protection for high-risk operations. The estimated cost for umbrella insurance for a business in this industry is $1,250-2,500 annually.”
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Based on average risks and losses for businesses in NAICS 561790 (Other Services to Buildings and Dwellings), commercial umbrella insurance would cost on average $1,250 – $2,500 per year. This pricing was derived by analyzing typical premiums paid by businesses in this industry sector based on factors like average revenues, number of employees, types of business activities, average legal judgments and claims against businesses in this sector, and average insurance limits purchased.
Estimated Pricing: $1,250 – $2,500
Conclusion
In summary, general liability, commercial property, commercial auto, workers’ compensation, business interruption and commercial umbrella insurance policies provide core protection for maintenance, repair and janitorial service contractors. Businesses should work with an insurance agent to understand their specific needs and choose appropriate coverage levels and limits based on their operations, assets, vehicles used and number of employees. Having the right insurance in place helps protect both the financial health of the business and its employees from risks inherent to this industry.