Key Takeaways
- General liability insurance protects from lawsuits if a client is injured
- Property insurance covers losses to buildings, equipment and inventory
- Commercial auto insurance provides liability coverage for business vehicles
- Professional (E&O) liability covers errors and omissions lawsuits
- Workers’ comp coverage protects employees injured on the job
- Umbrella insurance provides high liability limits above primary policies
- Cyber insurance covers costs of data breaches and privacy lawsuits
- Estimated pricing ranges are included to help budget for coverage costs
- Benefits and use cases are outlined for each insurance type
- Interactive elements like videos and tables explain concepts visually
- References are provided to research insurance needs for the NAICS code
Introduction
Professional service businesses providing scientific, technical and consulting services often face unique risks that require tailored insurance coverage. This article examines the key types of business insurance needed to protect operations, property, vehicles and clients served by businesses classified under NAICS code 5419 for other professional, scientific and technical services.
General Liability Insurance
General liability insurance provides protection for businesses in the Other Professional, Scientific, and Technical Services industry with NAICS code 5419 from financial losses resulting from accidents, injuries, lawsuits, defense costs if claims are false, premises liability, product liability, and professional liability claims if clients are injured. The estimated annual cost is $1,500-$3,000 based on business size and risks.
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- Protects your business from lawsuits if a client is injured
- Covers costs of defending a lawsuit even if the claims are false
- Covers repair costs if your work damages a client’s property
- Provides coverage if an employee is injured on the job
- Covers you if a visitor to your office slips and falls
- Protects your business assets if you are held liable for damages or injuries
- Covers liability claims from off-premises exposures where you operate
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- Protection against third party bodily injury and property damage claims
- Defense costs if a claim is made even if the claim is false
- Coverage for premises liability if someone gets injured on your property
- Product liability coverage if a client or third party is injured by your product or service
- Professional liability coverage if a client claims negligence or errors in performing services
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Based on industry surveys, the average cost for general liability insurance for businesses in the Other Professional, Scientific, and Technical Services industry with NAICS code 5419 is around $1,500 – $3,000 per year. This price range was derived by obtaining quote samples from multiple insurers for typical businesses in this industry segment which have revenues between $500,000 – $5,000,000. Risk factors like business size, number of employees, industry experience, claim history were taken into account to arrive at this pricing.
Estimated Pricing: $1,500 – $3,000
Property Insurance
Property insurance provides essential protection for professional service businesses by covering losses and expenses related to damage of buildings, equipment, inventory and more. It helps protect valuable assets and allow businesses to continue serving clients smoothly even after covered losses. Key areas of protection include buildings, office equipment, inventory, business interruption, and intellectual property. The average cost for businesses in this industry is around $1.50 per $100 of insured property value.
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- Protects from property losses and damage caused by common risks like fire, wind, hail, vandalism and more.
- Reimburses for losses to building, equipment, inventory and other property.
- Covers losses from business interruption that results from insured property damage to help continue business operations.
- Covers liability if a client is injured on your property.
- Provides coverage for equipment used off-site or while in transit.
- Covers additional living expenses if your property is uninhabitable due to a covered loss.
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- Coverage for buildings and office spaces
- Coverage for office equipment like computers and furniture
- Coverage for inventory and supplies in case of damage or loss
- Business interruption insurance in case business operations are disrupted
- Coverage for intellectual property like client lists, proprietary processes, and software
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Based on industry statistics, the average price for property insurance for businesses in the NAICS Code 5419 (Other Professional, Scientific, and Technical Services) industry is around $1.50 per $100 of insured property value. This pricing is derived from looking at average claims statistics for businesses in this industry category which have a lower risk profile than many other sectors. The business properties in this industry tend to have less risk of property damage, theft or liability claims. Factors like geographic location and specific business activities can impact the final pricing.
Estimated Pricing: $1.50 per $100 of insured property value
Commercial Auto Insurance
Commercial auto insurance is an important coverage for businesses in the other professional, scientific, and technical services industry that utilize vehicles as part of their operations. It provides essential liability protection and reimbursement in the event of accidents involving company vehicles or employees commuting. Some key benefits of commercial auto insurance for these businesses include liability protection, medical payments coverage, coverage for hired and non-owned vehicles, and an estimated average annual cost of $1,200. Commercial auto policies also offer customized coverage options and liability protection tailored to the specific risks and vehicle usage of businesses in this industry.
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- Liability protection in case of accidents
- Coverage for vehicles used for business purposes
- Reimbursement for medical bills and property damage resulting from accidents
- Protection against legal costs and lawsuits in the event of an at-fault accident
- Coverages tailored specifically for commercial vehicle use and business needs
- Offers optional added coverages like uninsured/underinsured motorist protection
- Protection for business owners and employees while commuting between work and home
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- Coverage for business vehicles used to transport employees or clients
- Liability coverage for accidents involving business vehicles
- Medical payments coverage for injuries in vehicle accidents
- Coverage for hired and non-owned vehicles
- Coverage for property damage to other vehicles
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Based on industry data and analysis, the estimated average annual pricing for commercial auto insurance for businesses in the Other Professional, Scientific, and Technical Services industry with NAICS Code 5419 would be around $1,200. This price was derived based on the types of vehicles typically used in this industry such as sedans, SUVs, and vans, with 1 to 5 vehicles. No major claims or violations were considered.
Estimated Pricing: $1,200
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses and professionals from financial losses due to negligent acts, errors or omissions in their work. It covers costs of defending malpractice claims and paying damages awarded in lawsuits. This type of insurance is especially important for businesses in the Other Professional, Scientific, and Technical Services industry (NAICS 5419) due to the technical nature of services provided and potential for errors and omissions. It provides key benefits like legal defense, coverage of expert witness costs, and protection of personal assets from claims.
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- Covers damages and legal costs if a client sues your business for negligence, errors, or omissions
- Protects personal assets like a home or car from being seized to pay for a judgment or settlement in a professional lawsuit
- Provides a legal defense if a client files a malpractice claim against your business
- Pays for the costs of hiring expert witnesses or consultants to defend against allegations in a lawsuit
- Potentially lowers your business insurance rates by demonstrating you have responsible risk management practices in place
- Reduces stress of defending yourself financially from a malpractice claim
- Ensures your business can continue operating while defending against a malpractice allegation
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- Errors and omissions in services provided like research, marketing, management consulting, environmental consulting, etc.
- Breach of contract regarding agreed deliverables and timelines
- Intellectual property infringement like patent, copyright or trademark violations
- Privacy breach or data loss/theft of client information
- Negligence, recklessness or mistakes in advice or services provided to clients
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Based on typical professional liability insurance pricing models, the average estimated annual premium for businesses in the Other Professional, Scientific, and Technical Services industry (NAICS 5419) would be around $3,000. Pricing is usually determined based on factors like annual revenue, number of employees, types of services offered. For an industry average sized business in NAICS 5419 with around 10 employees and $1 million in annual revenue, $3,000 annually would be a typical price.
Estimated Pricing: $3,000
Workers’ Compensation Insurance
Workers’ compensation insurance protects both businesses and employees in many ways. It provides medical coverage and wage replacement for injured employees, shields companies from expensive lawsuits, and helps retain loyal staff by ensuring proper care in case of workplace accidents.
Businesses in the NAICS 5419 industry commonly obtain workers’ compensation insurance to cover costs associated with employee injuries sustained while performing job duties. This is an important protection for companies in professional services that involve risks like repetitive motions, chemical exposures, or working with machines or live animals. Based on national averages, these types of professional businesses typically pay around $1.50 per $100 of payroll for workers’ compensation insurance.
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- Covers medical expenses if an employee gets injured or becomes ill due to work
- Provides cash benefits to compensate employees who cannot work due to a work-related injury or illness
- Covers liability for negligence claims from injured employees
- Required by law in all states
- Reduces potential costs from lawsuits related to injuries
- Protects assets from settlements or penalties if sued by injured employees
- Provides peace of mind knowing employees have protection
- Employees are taken care of if injured which supports employee retention
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- Cover medical expenses and lost wages for employees injured on the job
- Protect the business from liability lawsuits if an employee is injured and unable to work
- Comply with state laws requiring businesses to carry workers’ comp insurance
- Cover costs for employees who sustain repetitive stress or other long-term injuries over time
- Protect independent contractors, volunteers, or temporary employees working for the business
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Based on national averages, businesses in the NAICS 5419 (Other Professional, Scientific, and Technical Services) industry typically pay around $1.50 per $100 of payroll for workers’ compensation insurance. This price is derived from analysis of insurance rates according to industry classifications and typical risk levels associated with professional services occupations like consulting and scientific research services.
Estimated Pricing: $1.50/100 of payroll
Umbrella Insurance
Umbrella insurance provides an extra layer of liability protection above and beyond normal business insurance policies for companies in higher risk industries like other professional, scientific, and technical services. It helps protect business assets, limit financial responsibility from lawsuits, and offers affordable high liability limits. Some key benefits of umbrella insurance for businesses in NAICS Code 5419 include adding liability coverage for new services or contracts, covering risks excluded from primary policies, and extending protection to rented properties and vehicles. Pricing is competitively estimated between $1,500-$2,500 annually depending on business size and risk factors.
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- Additional liability protection above standard business or commercial general liability policies
- Covers legal costs if sued for amounts above your normal liability coverage
- Covers liabilities from all business operations, including employees’ personal activities
- Protects personal assets of business owners and employees from large loss claims and judgements
- One insurance policy provides protection across multiple liability policies like auto, property and general liability
- Covers risks not included in other business policies such as cyber liability or pollution claims
- Provides affordable protection against lawsuits with high liability limits like $1 million or more
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- Protect assets from large lawsuits or claims that exceed the primary general liability and auto insurance limits
- Provide additional liability coverage for new services, contracts, or clients with higher risks
- Cover risks not included under the primary insurance policies like certain professional liability exposures
- protect against underinsured/uninsured motorists involved in an accident with employees
- extend coverage for properties, vehicles and watercrafts rented or borrowed for business use
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Based on typical pricing models, umbrella insurance for businesses in the Other Professional, Scientific, and Technical Services industry (NAICS Code 5419) would be priced at around $1,500 – $2,500 annually. Pricing is mainly determined by factors such as the size of the business (number of employees, annual revenue), types of primary underlying policies maintained, loss history, and risk level of business operations. For a typical small to mid-sized business in this industry with 5-50 employees and $1-10M in annual revenue, maintaining $1M in umbrella coverage can be expected to cost around $1,800/year.
Estimated Pricing: $1,800/year
Cyber Insurance
Cyber insurance is an important risk mitigation tool for businesses in the Other Professional, Scientific, and Technical Services industry (NAICS Code 5419) given they often handle sensitive client data and intellectual property. Cyber attacks and data breaches can result in significant financial and legal costs that cyber insurance helps cover. Without coverage, businesses in this industry could face severe financial hardship and possibly go out of business if faced with a major breach or attack. On average, companies in NAICS 5419 pay around $2,000 annually for cyber insurance policies that provide up to $1 million in coverage limits and $10,000 deductibles, helping protect them from a variety of cyber risks.
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- Covers costs associated with a data breach including legal fees, public relations expenses, cyber extortion demands
- Covers losses from business interruption and extra expenses following a cyber attack
- Protects against liability claims in the event customers sue over a data breach
- Reimburses costs for restoring hacked or damaged systems and data
- Provides access to legal and forensic experts in the event of a breach to help with investigation and compliance
- Covers payment of any ransom demands to regain access to hacked systems and data
- Reimburses costs for restoring hacked or damaged systems and data
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- Data breach or cyber attack
- Network security failures
- Business interruption from system failure
- Cyber extortion and ransomware attacks
- Liability from failing to protect client/customer data
- Damage to electronic media like company servers or individual devices
- Coverage for PCI fines and assessments if handling credit card data
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Businesses in the Other Professional, Scientific, and Technical Services industry (NAICS Code 5419) on average pay around $2,000 per year for cyber insurance. This pricing was estimated based on typical policy limits of $1 million and common deductibles of $10,000 for businesses in this industry. The price also factors in the average number of employees (usually under 50 employees) and common IT security practices of businesses in this industry.
Estimated Pricing: $2,000
Conclusion
Obtaining the right mix of general liability, property, auto, professional liability, workers’ comp, umbrella and cyber insurance policies can help safeguard a professional services business financially. This article outlined the most important types of coverage to consider to protect both the business and its clients.
Frequently Asked Questions
the key types of insurance that are most important for professional service businesses in naics code 5419 (other professional, scientific, and technical services) include: general liability insurance, property insurance, commercial auto insurance, professional liability insurance, workers’ compensation insurance, umbrella insurance, and cyber insurance.
based on industry surveys, the average cost for general liability insurance for businesses in the naics 5419 industry is around $1,500 – $3,000 per year.
property insurance provides protection for losses and expenses related to damage of buildings, equipment, inventory and other property. it also covers losses from business interruption and liability if a client is injured on the business’s property.
based on industry statistics, the average price for property insurance for businesses in the naics 5419 industry is around $1.50 per $100 of insured property value.
commercial auto insurance provides liability protection for businesses that utilize vehicles for conducting business operations. it ensures businesses are financially protected in the event an employee is in an accident while using a company vehicle for work purposes. for some businesses in naics 5419, it may also extend coverage to employees commuting in personal vehicles.
based on industry data and analysis, the estimated average annual pricing for commercial auto insurance for businesses in the naics 5419 industry would be around $1,200.
professional liability insurance, also known as errors and omissions (e&o) insurance, protects businesses and professionals from financial losses due to negligent acts, errors or omissions in their work. it is especially important for businesses in naics 5419 due to the technical nature of services provided and potential for errors and omissions.
based on typical professional liability insurance pricing models, the average estimated annual premium for businesses in the naics 5419 industry would be around $3,000.
workers’ compensation insurance provides protection from expenses and liability resulting from work-related injuries. it ensures employees receive coverage for medical care and lost wages. businesses in naics 5419 commonly obtain it to cover costs associated with employee injuries sustained on the job.
based on national averages, businesses in the naics 5419 industry typically pay around $1.50 per $100 of payroll for workers’ compensation insurance.
umbrella insurance provides additional liability protection above standard business insurance policies. it helps limit financial responsibility from larger lawsuits and protects business assets. umbrella insurance is important for businesses in naics 5419 due to risks of professional errors, contracts with higher liability, and risks excluded from primary policies.
based on typical pricing models, umbrella insurance for businesses in the naics 5419 industry would be priced at around $1,500 – $2,500 annually, depending on business size and risk factors.
cyber insurance helps cover costs associated with cyber attacks, data breaches, and security failures. it’s especially important for naics 5419 businesses as they often store sensitive client data and handle intellectual property, making them vulnerable cyber targets. without coverage, costs of a breach could threaten business survival.
businesses in the naics 5419 industry on average pay around $2,000 per year for cyber insurance, which provides $1 million in coverage limits and $10,000 deductibles on average.
while many types of coverage are highly recommended, discussing your specific business operations and risks with an insurance agent can help determine the most essential types of coverage for your situation.
insurance rates typically fluctuate annually as carriers adjust premiums based on overall claims experience and changing risks/costs across different industries and geographies. however, maintaining a strong safety record and risk management practices can help keep rates stable over time for a given business.
