Key Takeaways
- Consider general liability, property, commercial auto, commercial umbrella, and crop insurance policies
- General liability protects from third-party claims of injuries on premises or during operations
- Property insurance reimburses costs of damaged office contents, equipment and buildings
- Commercial auto covers risks of vehicle accidents when transporting goods or inspecting sites
- Commercial umbrella provides extra liability limits above primary policies
- Crop insurance helps with risks of losses from adverse weather or plant diseases
Introduction
As a business that regulates agricultural marketing and commodities, there are several key types of commercial insurance to consider for protecting the organization from risks. Having the proper insurance coverage in place helps shield the company financially in the event of unexpected losses and ensures operations can continue smoothly.
General Liability Insurance
General liability insurance provides important protections for businesses that regulate agricultural marketing and commodities. It covers legal and medical expenses that may arise from incidents on the business premises or during operations. Some key benefits include protection from product liability claims, property damage, and negligence lawsuits. Pricing for this industry averages between $1,500-$2,000 annually based on business size and operations.
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Based on industry averages, general liability insurance for businesses in the regulation of agricultural marketing and commodities industry with NAICS code 926140 would be priced at around $1,500-$2,000 annually. Pricing is estimated based on factors such as business size, number of employees, annual revenue, claims history if existing, and risk level associated with the type of business operations. The average risk level for this industry type is considered moderate so pricing lands in the middle range.
Estimated Pricing: $1,500-$2,000
Property Insurance
Property insurance provides important protection and financial stability for businesses in the agricultural marketing and commodities regulation industry. It reimburses costs from unexpected property damage or theft so operations can continue without interruption. The estimated average annual cost for a business in this industry is $3000 according to typical insurance rates. Coverage includes buildings, equipment, inventory and other property crucial to daily operations.
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Based on average pricing data for property insurance for businesses in the agricultural industry with NAICS code 926140, the estimated annual pricing would be around $3000. This pricing was derived based on averaging premiums from several top property insurance providers for typical risks and property values of businesses in this industry that insured buildings, equipment, inventory and other property. Factors like location, property values, claims history were also considered.
Estimated Pricing: $3000
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for businesses in the regulation of agricultural marketing and commodities industry (NAICS Code: 926140) that rely on vehicles as part of daily operations. It provides liability protection, physical damage coverage, medical payments, and other benefits to shield the business from financial losses related to vehicle accidents. Key vehicles may include trucks used to transport commodities between different points of the supply chain or inspectors’ vehicles used for oversight of farms, storage sites, distribution centers and markets. Insurance can help cover costs from at-fault accidents as well as protect against uninsured drivers or other parties. Based on typical commercial auto insurance rates for businesses in this industry, the estimated average annual premium would be around $1,800.
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Based on typical commercial auto insurance rates for businesses in the regulation of agricultural marketing and commodities industry (NAICS Code: 926140), the estimated average annual premium would be around $1,800. Rates are calculated based on number of vehicles, their type, drivers’ history and other individual business factors. This estimate was derived from insurance rate databases and averaging premiums for similar businesses and fleet sizes in this industry.
Estimated Pricing: $1,800
Commercial Umbrella Insurance
This reference provides useful information about the top benefits, use cases, and estimated pricing of commercial umbrella insurance for businesses in the regulation of agricultural marketing and commodities industry (NAICS code 926140). It outlines the key protections umbrella insurance offers these businesses, including additional liability coverage above primary policies’ limits, coverage for legal costs from lawsuits, and protection of business assets. Use cases explained are protection against large claims exceeding underlying policies, coverage for claims not included in primary policies, and defense against lawsuits from stakeholders impacted by regulatory decisions. Average estimated annual pricing for a $1M umbrella policy for a business in this industry with $5M revenue and 50 employees is also provided.
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Based on the industry profile and risk factors, the estimated average annual pricing for a $1M limit commercial umbrella insurance policy would be around $1,200. Pricing is calculated based on factors such as annual revenue, number of employees, claims history, and risk management practices. For a business in this industry with $5M annual revenue and 50 employees, and no previous claims, the pricing would likely be near this average.
Estimated Pricing: $1,200
Commercial Crop Insurance
Commercial crop insurance provides effective risk management solutions for agricultural businesses involved in commodity marketing and regulation. It offers a variety of policies to address potential risks from natural disasters, price fluctuations, and other uncertainties that are outside of a business’ control. Policies are tailored to specific crops and locations, with options to customize coverage. Premium costs are subsidized through government programs. Insurance consultants provide resources to assess risks and strengthen resilience. By securing coverage, businesses gain financial stability to weather hardships and continue operations.
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Based on typical average pricing for commercial crop insurance policies for farms and agricultural businesses, the estimated average annual premium would be around $12 per $100 of coverage. This is calculated based on insurance rates that factor in location, crops insured, loss history and other risk factors. For an average-sized business in this industry with $500,000 of insured crops, the estimated annual premium would be $6,000.
Estimated Pricing: $6,000
Workers Compensation Insurance
Workers compensation insurance provides important coverage for both employees and employers in high-risk industries like agriculture. It ensures employees are supported financially and medically if injuries occur on the job, while also protecting employers from costly lawsuits. The reference provides details on the key benefits of workers compensation for businesses, common use cases in regulating agricultural marketing and commodities, and estimated pricing information for an average business in this industry.
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For businesses in the regulation of agricultural marketing and commodities industry with NAICS code 926140, the average estimated pricing for workers compensation insurance is calculated based on industry risk factors and average claims. The national industry average rates range from $1.40 to $2.00 per $100 of payroll. For an average business in this industry with an annual payroll of $500,000, the estimated annual premium would be $7,000 to $10,000.
Estimated Pricing: $7,000 to $10,000 annually
Conclusion
Adopting a comprehensive insurance strategy with policies like general liability, property, commercial auto, commercial umbrella, workers comp and crop insurance provides effective risk management. This protects both the business and its employees from costs associated with accidents, property damage, lawsuits and other issues outside their control.