Key Takeaways
- General liability insurance protects against lawsuits from injuries on your premises or during operations
- Property insurance covers property damage and loss from events like fire, flooding or theft
- Workers’ compensation ensures injured employees receive benefits and protects against lawsuits
- Professional liability protects against negligence claims related to service provision
- A business owner’s policy combines essential coverages in one affordable package
Introduction
Businesses in the All Other Personal Services industry face various risks that threaten their finances and operations. Purchasing adequate insurance coverage is crucial to mitigate losses and protect the business. This article examines the top insurance policies businesses classified under NAICS Code 812990 should consider.
General Liability Insurance
General liability insurance helps protect businesses in the NAICS 812990 All Other Personal Services industry from costly lawsuits and claims that may arise from business operations by providing coverage for bodily injury, property damage, medical expenses and other liability losses.
It is important protection for businesses in this industry as they directly interact with and provide services to clients and customers, so injuries, property damage or other incidents could occur and result in legal claims. The insurance helps cover legal defense costs and damages if a claim or lawsuit results. General liability insurance also covers occurrences both on and off the business’s premises and can provide crisis management services if a serious incident affects multiple customers.
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Based on typical pricing models for general liability insurance, businesses in the All Other Personal Services NAICS 812990 industry can expect to pay on average around $1,000-$2,000 annually for their general liability insurance. This pricing range was derived from considering the typical risks and exposures of businesses in this industry category which involves a mix of miscellaneous personal services. The average cost assumes no significant prior claims or losses on the part of the business being insured.
Estimated Pricing: $1,000-$2,000
Property Insurance
Property insurance offers valuable financial protection and peace of mind for businesses in the all other personal services industry. It can help cover expenses to repair or replace property if damaged by events like fires, floods or break-ins so the business can continue operating without disruption. The key benefits of property insurance for these businesses include covering property damage or loss, equipment breakdown or failure, liability if a customer is injured on the property, and theft or vandalism of property and equipment. Top use cases where property insurance provides protection include fire damage, water damage from burst pipes, theft or vandalism, lost business income if premises is unusable, and replacement value coverage to fully repair or replace damaged property. Estimated average annual pricing for property insurance for businesses in this industry is around $1,200.
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Based on typical rates for businesses in the personal services industry, the estimated average annual pricing for property insurance would be around $1,200. This was calculated based on an assumed insured property value of $200,000 and an insurance rate of 0.6% of total insured value. Rates can vary depending on business size, location, claims history, and other risk factors.
Estimated Pricing: $1,200
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections and benefits for businesses in the All Other Personal Services industry. It ensures employees are cared for if injured on the job and protects businesses from expensive lawsuit costs. It also helps control costs from on-the-job accidents and demonstrates care for employee well-being. Additionally, it is essential for businesses to comply with state laws requiring coverage and saves legal expenses by providing compensation without needing to prove fault.
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Based on national industry averages, the estimated average pricing for workers’ compensation insurance for businesses in the All Other Personal Services industry (NAICS Code 812990) would be around $2.50 per $100 of payroll. This price was derived using average claim rates and risk factors for occupations like barbers, hairdressers, pet groomers, dating services, etc. which have a moderate risk level.
Estimated Pricing: $2.50/100 of payroll
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects businesses and professionals from claims made by clients alleging harm resulting from the failure to render competent services. It is a crucial risk management tool especially for service-based businesses that interact closely with customers on a regular basis.
Some key benefits of professional liability insurance for businesses in the NAICS 812990 “All Other Personal Services” industry include covering legal fees and damages from negligence claims, providing protection from expensive lawsuits, reducing business ownership stress, attracting customers by demonstrating financial responsibility, and satisfying mandatory liability coverage requirements. The top uses of this insurance for these businesses are to provide protection against claims of injury or damages from customers, protect from lawsuits if a customer accuses them of causing harm, cover legal costs and potential settlements if sued, and mitigate financial risks that could jeopardize the business.
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Based on researching average pricing for professional liability insurance for personal service businesses, the estimated annual premium would be around $1,500. Premium pricing is usually based on factors like annual revenue, number of employees, types of services provided. For businesses in the NAICS 812990 category which encompasses a wide range of personal services, an average revenue of $500,000 and 5 employees was used to derive this estimated annual premium price.
Estimated Pricing: $1,500
Business Owner’S Policy
A Business Owner’s Policy, commonly known as a BOP, provides comprehensive insurance protection for small businesses. It combines coverage for property, liability, business interruption and other risks into one convenient package.
The top benefits of a BOP for businesses in the All Other Personal Services industry include property protection, liability protection, business interruption coverage, and equipment breakdown coverage. A BOP can help protect their equipment, clients, employees, and income from unexpected losses.
The estimated pricing for a BOP for businesses in the All Other Personal Services NAICS 812990 industry would be around $1,500-$2,000 annually based on typical coverage limits including $500k-$1M in property coverage, $1M in general liability coverage, and $50-100k in business income coverage.
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Based on industry analysis, the average estimated pricing for a Business Owner’s Policy for businesses in the All Other Personal Services NAICS 812990 industry would be around $1,500-$2,000 annually. This pricing was derived based on typical coverage limits for businesses in this industry including $500k-$1M in property coverage, $1M in general liability coverage, and $50-100k in business income coverage. Additional coverages like commercial auto are not as common for this industry type.
Estimated Pricing: $1,500-$2,000
Umbrella Liability Insurance
Umbrella liability insurance provides an extra layer of protection for businesses in high-risk industries like personal services. As described in the reference, it helps limit liability from claims above standard insurance limits and covers lawsuits, legal costs, and incidents outside of business premises. The reference also notes that umbrella insurance acts as an additional coverage on top of commercial general liability policies, protecting against risks for personal services businesses that directly interact with clients through alleged negligence or errors, as well as lawsuits with damages exceeding underlying coverage amounts.
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Based on typical pricing factors like annual revenues, number of employees, types of services provided, and risk factors, the estimated average annual pricing for umbrella liability insurance for businesses in NAICS code 812990 (All Other Personal Services) would be around $1,500. This estimate assumes annual revenues of under $2 million, less than 50 employees, and primarily providing personal or home services like pet grooming, tax preparation, DJ services, etc. Pricing can vary up or down based on individual business risk assessments.
Estimated Pricing: $1,500
Cyber Liability Insurance
Cyber liability insurance provides important protection for businesses in the All Other Personal Services industry with NAICS code 812990 that handles sensitive customer data. It can help offset significant costs that may arise from data breaches, cyber attacks, network interruptions and related legal liabilities. The top benefits of this insurance include covering breach response costs, lawsuit damages, system recovery expenses, business interruption losses, and public relations management. The most common use cases involve liability from data disclosures, customer lawsuits, notification processes, and cyber attack recovery. On average, a business in this industry can expect to pay around $1,500 annually for basic cyber liability coverage.
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Based on average pricing data, businesses in the All Other Personal Services industry with NAICS code 812990 can expect to pay around $1,500 annually for basic cyber liability insurance coverage. This pricing was derived from looking at typical premiums businesses in this industry pay which ranges between $1,000 to $2,000 depending on factors like annual revenue, number of employees, security practices, and claims history.
Estimated Pricing: $1,500
Conclusion
Properly insuring an All Other Personal Services business helps shield it from unexpected costs that could jeopardize its survival. The insurance policies discussed provide important protections for property, liability, workers, income, and professionals risks – securing the business’s assets, personnel and long-term success.