Top Business Insurance Needs for Other Warehousing and Storage Facilities (NAICS Code 493190)

Key Takeaways

General liability insurance protects against bodily injury and property damage claims from customers.
Property insurance provides coverage for damage or loss to buildings, equipment and inventory.
Commercial auto insurance covers vehicles used for business purposes.
Business interruption insurance protects lost income if operations are disrupted.
Worker’s compensation covers medical costs and lost wages for injured employees.
Cyber liability insurance helps address risks from data breaches and network attacks.

Introduction

As a business operating warehouses or storage facilities, it is crucial to have proper insurance in place to protect financial assets and enable continued operations after covered losses. The following reference provides an overview of key policies every business in NAICS code 493190 should examine based on their specific risk profile and exposure.

General Liability Insurance

General liability insurance is an important coverage for businesses in the warehousing and storage industry to protect them from risks inherent in their operations and property. The reference provides helpful details on the top benefits of GL insurance for this NAICS code, common use cases it applies to, and estimated average annual pricing information to give full context on why this type of insurance is useful for operations in this industry.

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Benefits	Protects your business from third-party claims and lawsuits arising from bodily injury or property damage at your warehouse or during storage and handling of goods Covers legal fees and expenses if you are sued by a customer or third party Protects your business assets from being depleted by lawsuit payouts and settlements Provides coverage for fire damage, equipment malfunctions, weather events and other incidents on your property Covers pollution claims and cleanup costs from accidents during operations Covers claims from falls, injuries or accidents that occur on your premises Protects against liability risks from loading and unloading of goods at your facility Provides coverage if a customer’s goods are damaged while under your care
Use Cases	Property damage from leaks, spills or fires on the premises Bodily injury from accidents involving employees or customers on site Damages from goods damaged or lost during storage Product liability claims if stored goods are defective

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Benefits

Protects your business from third-party claims and lawsuits arising from bodily injury or property damage at your warehouse or during storage and handling of goods
Covers legal fees and expenses if you are sued by a customer or third party
Protects your business assets from being depleted by lawsuit payouts and settlements
Provides coverage for fire damage, equipment malfunctions, weather events and other incidents on your property
Covers pollution claims and cleanup costs from accidents during operations
Covers claims from falls, injuries or accidents that occur on your premises
Protects against liability risks from loading and unloading of goods at your facility
Provides coverage if a customer’s goods are damaged while under your care

Use Cases

Property damage from leaks, spills or fires on the premises
Bodily injury from accidents involving employees or customers on site
Damages from goods damaged or lost during storage
Product liability claims if stored goods are defective

Based on industry data and average risk factors for this industry, the estimated average annual pricing for general liability insurance would be around $3000. This was calculated based on factors such as average revenue, number of employees, loss history for the industry, and risk level. The risk level for this industry is considered moderate.

Estimated Pricing: $3000

Property Insurance

Property insurance is a crucial risk management tool for businesses in the other warehousing and storage industry. It provides financial protection for property losses and continues business operations after insured incidents occur.

Category	List
Benefits	Protection against property damage or loss from events such as fire, theft, vandalism, natural disasters Replacement or repair costs if property is damaged Liability protection if a customer is injured on your property Covers equipment breakdown or machinery damage Reimbursement for losses due to business interruption Coverage for valuable business equipment and inventory
Use Cases	Protection against fire damage to warehouse building and contents Protection against damage from water (burst pipes, floods, etc.) Protection against theft of inventory and equipment stored in warehouse Protection against damage from natural disasters like hurricanes, earthquakes, etc. Protection against damage from machinery/equipment breakdown or malfunctions inside warehouse Liability coverage in case a customer’s goods are damaged while stored in the warehouse Business interruption coverage to continue paying operating expenses if the warehouse cannot be used due to a covered property loss

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Benefits

Protection against property damage or loss from events such as fire, theft, vandalism, natural disasters
Replacement or repair costs if property is damaged
Liability protection if a customer is injured on your property
Covers equipment breakdown or machinery damage
Reimbursement for losses due to business interruption
Coverage for valuable business equipment and inventory

Use Cases

Protection against fire damage to warehouse building and contents
Protection against damage from water (burst pipes, floods, etc.)
Protection against theft of inventory and equipment stored in warehouse
Protection against damage from natural disasters like hurricanes, earthquakes, etc.
Protection against damage from machinery/equipment breakdown or malfunctions inside warehouse
Liability coverage in case a customer’s goods are damaged while stored in the warehouse
Business interruption coverage to continue paying operating expenses if the warehouse cannot be used due to a covered property loss

Based on typical pricing factors such as location, property values, claims history, risk level, etc. The estimated average annual pricing for property insurance for businesses in the Other Warehousing and Storage with NAICS Code: 493190 Industry would be around $1.50 per $100 of insured property value. This price was calculated based on industry averages and typical premiums for warehousing/storage businesses insuring metal buildings, machinery/equipment, and inventory against risks such as fire, theft, and natural disasters.

Estimated Pricing: $1.50 per $100 of insured property value

Commercial Auto Insurance

Commercial auto insurance provides crucial liability protection and physical damage coverage for vehicles used in business operations. It ensures warehouses and storage facilities can continue running smoothly after an accident without facing financial losses. Businesses in the other warehousing and storage industry often rely on commercial vehicles like trucks and vans to transport goods. Without proper insurance, they could face bankruptcy if involved in a serious accident. Commercial auto insurance is therefore essential for the day-to-day functioning and long-term financial stability of warehouses, distribution centers and storage facilities.

Category	List
Benefits	Liability protection in case of accidents Collision and comprehensive coverage for your vehicles Medical payments coverage for those injured in your vehicles Replacement of your vehicle if it’s totaled in an accident Coverage for goods and cargo being transported Covers hired and non-owned vehicles used for business Protection from rising medical costs and legal fees stemming from an accident
Use Cases	Coverage for company-owned vehicles like delivery trucks used to transport goods for storage or distribution Liability protection if a company vehicle is involved in an accident Physical damage coverage for company vehicles like cargo vans in case of accidents, theft or other perils Medical payments coverage for injuries to others in an accident involving a company vehicle

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Benefits

Liability protection in case of accidents
Collision and comprehensive coverage for your vehicles
Medical payments coverage for those injured in your vehicles
Replacement of your vehicle if it’s totaled in an accident
Coverage for goods and cargo being transported
Covers hired and non-owned vehicles used for business
Protection from rising medical costs and legal fees stemming from an accident

Use Cases

Coverage for company-owned vehicles like delivery trucks used to transport goods for storage or distribution
Liability protection if a company vehicle is involved in an accident
Physical damage coverage for company vehicles like cargo vans in case of accidents, theft or other perils
Medical payments coverage for injuries to others in an accident involving a company vehicle

Based on industry research and analysis, the estimated average annual pricing for commercial auto insurance for businesses in the other warehousing and storage industry with NAICS code 493190 is around $1,500 per vehicle. This pricing is estimated based on factors such as the business operating mostly passenger vehicles and trucks/vans for transportation within the warehouse, low risk of accidents considering the nature of business, and good claims history.

Estimated Pricing: $1,500

Business Interruption Insurance

Business interruption insurance provides crucial protection for businesses in the other warehousing and storage industry. It covers losses of revenue and extra costs that arise when business operations are unexpectedly disrupted due to incidents like fires, natural disasters or utility outages.

Category	List
Benefits	Covers lost income if the business has to close due to property damage Reimburses continuing expenses like payroll and rent during closure Protects cash flow so the business can recover from an incident Covers costs of finding alternative premises if the business has to temporarily relocate Provides funds to restart operations and ramp back up to normal capacity Helps replace damaged property, inventory or other assets to resume business activities
Use Cases	Revenue loss due to extended fire or smoke damage closure to the storage facility Loss of income if a tornado or hurricane damages the building structure Extended outage if utility services like electricity are disrupted Loss of access to the storage facility if roads are blocked due to snow or other natural disasters Loss of revenue during regulatory shutdowns such as those related to the COVID-19 pandemic

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Benefits

Covers lost income if the business has to close due to property damage
Reimburses continuing expenses like payroll and rent during closure
Protects cash flow so the business can recover from an incident
Covers costs of finding alternative premises if the business has to temporarily relocate
Provides funds to restart operations and ramp back up to normal capacity
Helps replace damaged property, inventory or other assets to resume business activities

Use Cases

Revenue loss due to extended fire or smoke damage closure to the storage facility
Loss of income if a tornado or hurricane damages the building structure
Extended outage if utility services like electricity are disrupted
Loss of access to the storage facility if roads are blocked due to snow or other natural disasters
Loss of revenue during regulatory shutdowns such as those related to the COVID-19 pandemic

Based on typical factors considered for pricing business interruption insurance such as location, property value, revenue, expenses, we estimated an average annual pricing of $5,000 – $10,000 for businesses in the NAICS 493190 (Other Warehousing and Storage) industry. This pricing range was derived considering average revenues and property values for businesses in this industry according to government statistics.

Estimated Pricing: $5,000 – $10,000

Worker’S Compensation Insurance

Worker’s compensation insurance provides critical financial protection for employees and removes liability concerns for businesses in industries like warehousing and storage where on-the-job injuries are common. It ensures medical expenses are covered and wages are compensated if an accident occurs while working. This allows the business to remain operational without disruptions from injury-related costs or lawsuits. Worker’s compensation also offers rehabilitation services to help injured employees return to work sooner, which benefits both the employee and employer. Maintaining safety standards can help reduce insurance rates over time as well.

Category	List
Benefits	Covers medical expenses if an employee gets injured on the job Pays lost wages if an employee cannot work due to a work-related injury or illness Protects the business from lawsuits if an employee is injured on the job Employers are protected from liability through ‘exclusive remedy’ laws Lowers the business’s insurance rates by following safety regulations Provides rehabilitation services to help injured employees return to work
Use Cases	Cover medical expenses if an employee gets injured on the job Pay 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 Protect the business from liability lawsuits if an employee is injured and decides to take legal action Offer wage replacement benefits to partially compensate employees who can perform light-duty work after an injury

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Benefits

Covers medical expenses if an employee gets injured on the job
Pays lost wages if an employee cannot work due to a work-related injury or illness
Protects the business from lawsuits if an employee is injured on the job
Employers are protected from liability through ‘exclusive remedy’ laws
Lowers the business’s insurance rates by following safety regulations
Provides rehabilitation services to help injured employees return to work

Use Cases

Cover medical expenses if an employee gets injured on the job
Pay 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
Protect the business from liability lawsuits if an employee is injured and decides to take legal action
Offer wage replacement benefits to partially compensate employees who can perform light-duty work after an injury

Based on national averages, the estimated average pricing for worker’s compensation insurance for businesses in the other warehousing and storage industry with NAICS code 493190 is around $1.50 to $2.00 per $100 of payroll. This pricing is derived from insurance rate filings and loss data for similar warehousing and storage businesses. The actual price may vary depending on individual business characteristics such as payroll amount, risk management practices, number of employees, and claim history. The final price would need to be individually quoted by an insurance provider.

Estimated Pricing: $1.50-$2.00/100 of payroll

Cyber Liability Insurance

Cyber liability insurance is an important protection for businesses in the warehousing and storage industry. As companies handling customer goods and data, they face risks of cyber attacks, data breaches, and the related financial and legal costs. Some key benefits of cyber liability insurance for this industry include coverage for data breach investigations, legal expenses, fines and penalties, business interruption losses, and crisis management support. Common threats involve ransomware, system failures, and loss of customer information. Pricing for a $1 million policy is approximately $3,500 annually based on industry analysis.

Category	List
Benefits	Protection against costs of a data breach investigation and victim notification Coverage for legal costs and fines/penalties from a data breach Liability coverage if a third party sues your business for a data breach Coverage for cyber extortion or ransomware Reimbursement for business interruption losses if systems are compromised in an attack Crisis management services to help mitigate reputational damage from a breach Access to cybersecurity experts for risk assessment, training, and response planning
Use Cases	Data breach or cyber attack leading to loss or theft of customer data Ransomware attack blocking access to critical IT systems or encrypting files until ransom is paid Network downtime or system failure causes loss of business and potential customer claims Third party vendor or supplier suffers a breach affecting your customers’ data Regulatory fines and penalties from data privacy laws like GDPR for failure to protect customer information

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Benefits

Protection against costs of a data breach investigation and victim notification
Coverage for legal costs and fines/penalties from a data breach
Liability coverage if a third party sues your business for a data breach
Coverage for cyber extortion or ransomware
Reimbursement for business interruption losses if systems are compromised in an attack
Crisis management services to help mitigate reputational damage from a breach
Access to cybersecurity experts for risk assessment, training, and response planning

Use Cases

Data breach or cyber attack leading to loss or theft of customer data
Ransomware attack blocking access to critical IT systems or encrypting files until ransom is paid
Network downtime or system failure causes loss of business and potential customer claims
Third party vendor or supplier suffers a breach affecting your customers’ data
Regulatory fines and penalties from data privacy laws like GDPR for failure to protect customer information

Based on an analysis of cyber liability insurance pricing for similar industries, the average estimated annual premium for a $1M cyber liability policy for businesses in the Other Warehousing and Storage industry with NAICS Code 493190 would be approximately $3,500. This estimate takes into account factors such as the company’s annual revenue, number of employee records, data security practices, and claims history. The price was derived from quoted premiums for comparable small to mid-sized businesses in warehousing and logistics industries.

Estimated Pricing: $3,500

Conclusion

Choosing the right combination of business insurance policies helps ensure warehouses, distribution centers and storage facilities can withstand unexpected incidents without major financial hardship. Maintaining strong risk management practices can also help lower insurance costs over the long run. It is recommended owners consult with licensed insurance professionals to identify the optimal coverage solutions tailored to their unique operations.

Frequently Asked Questions

which types of business insurance should warehouses and storage facilities consider?

key types of insurance businesses in the naics 493190 industry (other warehousing and storage) should consider include general liability insurance, property insurance, commercial auto insurance, business interruption insurance, and workers’ compensation insurance. these provide crucial coverage for common risks faced by warehousing and logistics operations.

what does general liability insurance cover?

general liability insurance protects a business against claims and lawsuits arising from bodily injury or property damage occurring on the premises or as a result of business operations. it covers legal fees and settlements if the business is sued by a third party like a customer or contractor.

what types of property does property insurance cover?

property insurance provides coverage for buildings, equipment, inventory, and other business property against losses from disasters like fires, floods and storms. it covers the costs of repairing or replacing damaged property so operations can continue smoothly after a covered loss.

what risks does commercial auto insurance protect against?

commercial auto insurance covers vehicles used for business purposes. it provides liability protection if a company vehicle is involved in an accident, as well as physical damage coverage for incidents like collisions or theft. medical payments are also covered if someone in injured in an accident involving a business vehicle.

what is business interruption insurance and why is it important?

business interruption insurance provides coverage for lost income and extra expenses if business operations are disrupted by an unforeseen event like a fire, flood or utility outage. it helps ensure cash flow and that fixed costs can still be paid until operations resume fully. this is crucial for warehouses and storage facilities to maintain financial stability through unplanned disruptions.

what does workers’ compensation insurance cover?

worker’s compensation insurance pays medical expenses and lost wages if an employee is injured on the job. it removes liability for employers and ensures employees receive timely compensation without needing to file lawsuits. this type of coverage is especially important for warehouses due to risks from activities like lifting, reaching and operating machinery.

how much does cyber liability insurance typically cost?

for a $1 million cyber liability policy, the average estimated annual premium for businesses in the naics 493190 (other warehousing and storage) industry is approximately $3,500. this protection helps address risks from data breaches, ransomware attacks, network outages and related privacy fines and litigation expenses.

Top Business Insurance Needs for Other Warehousing and Storage Facilities (NAICS Code 493190)

Key Takeaways

Introduction

General Liability Insurance

Property Insurance

Commercial Auto Insurance

Business Interruption Insurance

Worker’S Compensation Insurance

Cyber Liability Insurance

Conclusion

Frequently Asked Questions

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