Top Business Insurance Needs for Services to Buildings and Dwellings NAICS Code 5617

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An overview of the most important types of business insurance for companies in the services to buildings and dwellings industry with NAICS code 5617 including general liability, commercial property, workers' compensation and more.

Key Takeaways

  • General liability insurance protects against bodily injury and property damage claims.
  • Commercial property insurance covers costs from property losses like fire or theft.
  • Workers’ compensation insurance covers medical costs and lost wages if an employee gets injured on the job.
  • Commercial auto insurance provides liability and physical damage coverage for company vehicles.
  • Commercial umbrella insurance provides additional liability protection above primary policies.
  • Commercial cyber liability insurance covers costs from data breaches and cyber attacks.

Introduction

Businesses in the services to buildings and dwellings industry with NAICS code 5617 often face a variety of risks in the course of their operations. Whether providing cleaning, maintenance, repairs or other services within customer properties, these businesses need proper insurance protection. Several key types of coverage are essential for companies in this industry to shield themselves from financial losses.

General Liability Insurance

General liability insurance is an important coverage for businesses in the services to buildings and dwellings industry. It can protect them from a variety of risks involved with working in and around customers’ properties. Some of the key benefits include protecting the business from financial loss if someone gets injured on their worksite or due to their services, covering costs if work damages someone else’s property, and covering legal fees if sued for injuries or damages. It also allows businesses to fulfill contractual obligations requiring proof of insurance and provides peace of mind against unforeseen claims. Common use cases where liability insurance applies involve accidents, injuries or damages occurring while performing services like cleaning, extermination or janitorial work on customers’ properties.

Category List
Benefits
  • Protects your business from financial loss in the event someone is injured on your worksite or by your services
  • Covers costs if your work or services damage someone else’s property
  • Covers legal costs if you’re sued by a customer or third party for bodily injury or property damage
  • Protects your personal assets from claims and lawsuits
  • Allows your business to operate by fulfilling contractual obligations with clients that require proof of liability insurance
  • Provides peace of mind knowing you have coverage for unforeseen incidents and claims
  • Demonstrates financial responsibility, which can help grow your business and win more clients
Use Cases
  • Protect against bodily injury or property damage claims from customers
  • Cover liability claims from accidents that happen on a customer’s property while working
  • Cover third party claims if a subcontractor causes damage or injury
  • Protect from lawsuits if a service causes health issues or long term damage
  • Cover legal costs if sued for faulty workmanship or product failure

Based on typical insurance pricing for businesses in the services to buildings and dwellings industry, the average estimated annual general liability insurance would be around $1,200. This estimate is derived based on common industry factors such as average revenue, number of employees, level of risk. Businesses in NAICS code 5617 generally have moderate risk levels.

Estimated Pricing: $1,200

Commercial Property Insurance

Commercial property insurance is an important consideration for businesses in the services to buildings and dwellings industry. It provides protection from unexpected costs related to property damage or theft that could seriously harm business operations and cash flow.

Category List
Benefits
  • Protection from property damage and losses due to events like fire, wind, hail, explosion, and more
  • Reimbursement for losses to building infrastructure, office equipment, work vehicles, and other property
  • Coverage for loss of business income if property is damaged and business operations are interrupted
  • Coverage for extra expenses needed to continue operations temporarily during property repairs such as rental equipment or temporary work facilities
  • Liability protection if customers or workers are hurt on your property and make claims against your business
  • Guaranteed replacement cost value coverage to fully repair or rebuild damaged property without deductions for depreciation
Use Cases
  • Protection against fire damage
  • Protection against water damage from pipe bursts or other leaks
  • Protection against wind and hail damage from severe storms
  • Protection against theft or vandalism
  • Business interruption insurance to cover losses from periods where the business must close for repairs
  • Liability insurance in case a worker is injured on a job site

Based on industry data and typical rates, the estimated average annual pricing for commercial property insurance for businesses in NAICS code 5617 (Services to Buildings and Dwellings) would be around $1,500. This price is calculated based on an estimated property value of $500,000 and standard insurance rates of $3 per $100 of property value.

Estimated Pricing: $1,500

Workers Compensation Insurance

Workers compensation insurance is an important protection for businesses in the services to buildings and dwellings industry. It provides crucial medical, wage replacement and liability benefits to employees if they are injured on the job. It also protects employers from potentially significant financial and legal risks. The industry often involves risks of on-the-job injuries due to manual labor and heavy equipment usage. Workers compensation helps ensure employees receive support and can focus on recovery without financial concerns. It also helps get injured employees back to suitable work through rehabilitation programs. Having coverage is important to shield businesses from expensive liability claims and support an injured staff. National average rates for this industry are around $1.50 per $100 of payroll.

Category List
Benefits
  • Covers medical costs if an employee is injured on the job
  • Covers part of an employee’s lost wages while they recover from an injury
  • Protects the business from liability if an employee is injured and decides to sue
  • Reduces absenteeism and promotes a healthier workforce as injured employees can focus on recovering without financial worries
  • Provides peace of mind for business owners who want to ensure employees’ well-being
Use Cases
  • Cover medical expenses if an employee gets injured on the job
  • Provide lost wages if an employee cannot work due to a job-related injury or illness
  • Cover the cost of job rehabilitation or retraining if the injury prevents an employee from doing their original job
  • Protect the business from liability lawsuits if an employee is injured and seeks damages
  • Provide death benefits to an employee’s family if a work injury results in death

Based on national average data, the estimated average annual pricing for workers compensation insurance for businesses in the Services to Buildings and Dwellings industry (NAICS Code: 5617) is around $1.50 per $100 of payroll. This rate is derived based on analyzing insurance rates filed by top workers compensation insurance carriers specific to this industry code and adjusting for factors like employee job duties, company safety practices, experience modifer and others.

Estimated Pricing: $1.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides important protections for businesses that rely on vehicles as part of their services. It ensures businesses are covered for risks of operating vehicles and protects their income if vehicles are unavailable after an accident.

Commercial auto insurance is especially important for businesses in the services to buildings and dwellings industry (NAICS Code 5617). These businesses often rely on company vehicles to transport workers, tools and equipment between job sites. Commercial auto insurance provides critical liability, physical damage and medical payments protection for these vehicles and individuals involved in accidents.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for physical damage to vehicles
  • Medical payments for those injured in an accident
  • Coverage for uninsured/underinsured motorists
  • Replacement of hired and non-owned vehicles
  • Loss of income protection
Use Cases
  • Coverage for company vehicles used to transport employees and equipment to and from job sites
  • Liability protection in the event an employee causes an accident while driving for business
  • Collision coverage to repair or replace a vehicle if it’s damaged in an accident
  • Medical payments coverage for injured individuals in an accident involving a company vehicle

Based on national averages, businesses in the Services to Buildings and Dwellings industry (NAICS Code 5617) typically pay around $1500-$2000 annually per vehicle for commercial auto insurance. This pricing takes into account factors like the types of vehicles used (like vans or work trucks), annual mileage, driver qualifications, safety records, and insurance history. The average fleet size for these businesses is usually 3-5 vehicles.

Estimated Pricing: $1500-$2000

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection for businesses in the services to buildings and dwellings industry. It protects against risks not covered by primary policies and claims exceeding primary policy limits. Umbrella insurance is especially useful for services businesses using subcontractors or leased equipment, as it covers liabilities from their use. Businesses in this industry often face liability risks due to the nature of their work, such as providing cleaning, maintenance, and repair services at customer properties. So umbrella coverage helps protect their finances and assets against costly lawsuits stemming from injuries or property damage claims.

Category List
Benefits
  • Provides additional liability coverage above your general liability and auto liability limits
  • Protects your business from costly lawsuits and legal fees
  • Covers legal defense costs if you’re involved in a lawsuit
  • Protects your personal assets if your business is sued
  • Covers claims the exceed the limits of your primary policies
  • Protects against risks not covered by primary policies
  • Covers bodily injury or property damage claims resulting from pollution releases
Use Cases
  • To provide additional liability coverage above the primary general liability or commercial auto policies
  • To protect assets from large liability claims or lawsuits that exceed the limits of the underlying policies
  • To cover claims involving both bodily injury and property damage for services provided to buildings and dwellings such as cleaning services, pest control, etc.
  • To defend and pay claims from lawsuits involving allegations of negligence, errors, or omissions while providing services
  • To cover liabilities from the use of subcontractors and leased or non-owned equipment

Based on typical pricing models, businesses in the Services to Buildings and Dwellings industry (NAICS Code: 5617) can expect to pay around $1.50 – $2.00 per $100 of commercial general liability coverage for additional layers of commercial umbrella insurance. For example, a business with $1 million in primary commercial general liability limits would pay approximately $15,000 – $20,000 for $5 million of additional umbrella coverage. Pricing may vary based on individual business risk factors like types of services offered, claims history, and safety practices.

Estimated Pricing: $15,000 – $20,000

Commercial Cyber Liability Insurance

Commercial cyber liability insurance is an important risk management tool for businesses in the services to buildings and dwellings industry. This industry often works with sensitive customer data and requires protection from the costs of cyber incidents like data breaches or system outages. Some key benefits of this insurance include covering legal fees, PR costs, credit monitoring after a breach, losses from business interruptions, and more. Common threats this industry faces that the insurance helps protect against are data breaches, cyber attacks, system failures impacting customers, and cyber extortion. The estimated average annual price for a business in this industry is around $1250.

Category List
Benefits
  • Protects from costs of a cyberattack such as legal fees, PR recovery costs, credit monitoring for affected individuals
  • Covers liability in the event of a data breach exposing private customer information
  • Covers costs of notifying affected individuals in the event of a data breach
  • Provides coverage for loss of income if systems are down due to a cyber incident
  • Covers costs of forensic investigations and cyber extortion payments if required
Use Cases
  • Data breach or cyber attack resulting in loss of private customer information
  • Affected systems downtime and business interruption
  • Third party liability claims for system failures impacting customers
  • Regulatory fines and investigations from data privacy laws like GDPR
  • Cyber extortion and ransomware attacks

Based on typical pricing models, the average annual price for cyber liability insurance for businesses in the NAICS 5617 industry (Services to Buildings and Dwellings) would be approximately $1000-$1500. Pricing is usually determined based on factors like annual revenue, number of employees, security practices, previous data breaches or claims. For small to medium sized businesses in this industry with under 50 employees and less than $5M in annual revenue, the estimated average annual price would be around $1250.

Estimated Pricing: $1250

Conclusion

Proper business insurance tailored to the risks faced is crucial for businesses in the services to buildings and dwellings industry. The coverage highlights provide a useful overview of insurance considerations for NAICS 5617 companies. Maintaining adequate general liability, property, workers’ comp, auto and other policies protects both the business and its clients from unexpected costs.

Frequently Asked Questions

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