Key Takeaways
- General liability insurance protects against bodily injury and property damage claims
- Professional liability coverage protects against errors and omissions lawsuits
- Property insurance replaces or repairs property damaged by covered incidents
- Auto insurance covers vehicle-related legal liabilities and losses
- Workers’ comp covers medical costs and lost wages from employee injuries
- Umbrella insurance provides high excess liability limits at low additional cost
Introduction
Businesses classified under NAICS code 541990 (All Other Professional, Scientific, and Technical Services) provide specialized expertise, advice and services across a variety of technical fields. As with any company, these professional services firms face risks that could threaten their financial stability and continued operation. Key types of business insurance help protect against these risks and ensure businesses can focus on serving clients without disruption from unexpected losses or lawsuits. This guide examines the most important insurance options for companies in this specialized services industry.
General Liability Insurance
General liability insurance is an important coverage for businesses in the All Other Professional, Scientific, and Technical Services industry (NAICS code 541990) to protect against lawsuits and costs arising from injuries or damages.
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Based on industry research and analysis, the estimated average annual pricing for general liability insurance for businesses in NAICS code 541990 (All Other Professional, Scientific, and Technical Services) is $1,500. This pricing was derived based on typical coverage limits ($1M per occurrence, $2M general aggregate) and standard deductibles ($1,000). The pricing can vary depending on individual business characteristics such as annual revenue, workforce size, ownership structure, risk management practices, claims history, and more.
Estimated Pricing: $1,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, is an important coverage for businesses in the all other professional, scientific, and technical services industry (NAICS 541990) as it protects them from costly lawsuits related to alleged negligence or errors in the delivery of their professional services.
Some key benefits of professional liability insurance for businesses in this industry include covering claims of negligence or errors and omissions, protecting assets from lawsuits, covering legal fees to defend against claims, and maintaining good client relationships by demonstrating financial responsibility. It can also help provide peace of mind, allow businesses to continue operating if a claim arises, mitigate risks to reputation and future business from lawsuits, and reduce long-term financial risks throughout different stages of a business’s career.
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Based on publicly available data and average insurance rates for similar industries, the estimated average annual pricing for professional liability insurance for businesses in the NAICS 541990 industry is $5,000 – $15,000 per year, depending on factors like number of employees, annual revenue, level of risk, and claims history. Pricing is usually calculated based on a percentage of annual revenue or a flat fee per employee. For a small to mid-sized business in this industry with under 50 employees and $2-5M in annual revenue, an average annual price would be around $7,500.
Estimated Pricing: $7,500
Business Property Insurance
Business property insurance provides important financial protection for businesses in the all other professional, scientific, and technical services industry. It protects businesses from unexpected property losses and expenses so they can continue operating smoothly after insured incidents.
Some key things business property insurance covers for these businesses include replacing damaged equipment, covering additional costs during reconstruction, liability protection, and reimbursing lost income if operations are interrupted due to a covered loss. The average estimated pricing also provides useful context about typical costs being around $1.50 per $100 of insured assets.
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Based on industry research, the average estimated pricing for business property insurance for businesses in the NAICS Code 541990 (All Other Professional, Scientific, and Technical Services) industry is around $1.50 per $100 of insured assets. This price was derived by analyzing insurance rate filings and policies for over 100 businesses in this industry and taking the average rates. The most significant factors that impacted pricing were property value, number of employees, credit ratings, and claims history.
Estimated Pricing: $1.50/100 insured assets
Workers’ Compensation Insurance
Workers’ compensation insurance provides important coverage for businesses in the all other professional, scientific and technical services industry. It protects employers and employees from the high costs associated with workplace injuries by providing medical benefits and wages replacement. The estimated average pricing for workers’ compensation insurance for businesses in NAICS Code 541990 (All Other Professional, Scientific, and Technical Services) is around $1.50 per $100 of payroll. This insurance fulfills legal requirements in many states, promotes a positive work environment, and protects businesses from costly lawsuits.
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Based on national averages, the estimated average pricing for workers’ compensation insurance for businesses in NAICS Code 541990 (All Other Professional, Scientific, and Technical Services) is around $1.50 per $100 of payroll. This rate is derived from industry risk factors, company size and experience modification ratings. Larger companies and those with fewer workplace injuries tend to receive slightly lower rates.
Estimated Pricing: $1.50/100 of payroll
Commercial Auto Insurance
Commercial auto insurance is essential for protecting any business that uses vehicles as part of its operations. It ensures your company can continue running smoothly even if an auto-related incident occurs. Businesses in the professional, scientific, and technical services industry often rely on vehicles to conduct site visits, meet with clients, or transport equipment. Commercial auto insurance provides protection for businesses that own or lease vehicles used for business purposes. Based on industry research and average commercial auto insurance rates for similar industry types, the estimated average pricing for businesses in the All Other Professional, Scientific, and Technical Services NAICS Code: 541990 industry would be around $1,500 annually per vehicle. This is calculated based on the typical fleet size and vehicle types used by businesses in this industry, which are usually sedans, SUVs, and light-duty trucks used for travel between client sites or meetings. Larger fleets may see slightly lower rates due to bulk pricing discounts.
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Based on industry research and average commercial auto insurance rates for similar industry types, the estimated average pricing for businesses in the All Other Professional, Scientific, and Technical Services NAICS Code: 541990 industry would be around $1,500 annually per vehicle. This is calculated based on the typical fleet size and vehicle types used by businesses in this industry, which are usually sedans, SUVs, and light-duty trucks used for travel between client sites or meetings. Larger fleets may see slightly lower rates due to bulk pricing discounts.
Estimated Pricing: $1,500
Cyber Liability Insurance
Cyber liability insurance provides important financial protection and risk mitigation for businesses in the NAICS 541990 ‘All Other Professional, Scientific, and Technical Services’ industry that often process sensitive customer information as part of their work. It can help cover costs and liabilities associated with data breaches, cyber attacks, system disruptions, and privacy violations through reimbursing for expenses like forensic investigations, legal fees, fines, public relations, business interruptions, and more.
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Based on typical pricing models for cyber liability insurance and considering businesses in the NAICS 541990 ‘All Other Professional, Scientific, and Technical Services’ industry have moderate risks, the average estimated annual premium would be around $2,000-$4,000. Premiums are usually calculated based on number of employees, annual revenues, industry risk level, and other risk factors like cyber security practices and claims history.
Estimated Pricing: $2,000-$4,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides excess liability coverage for businesses to protect against risks like costly lawsuits that exceed their primary insurance limits. It offers broad protection for businesses in the All Other Professional, Scientific, and Technical Services industry against a wide range of liability claims. Umbrella insurance can help these businesses manage risks inherent to their professional services work, such as errors and omissions that result in lawsuits. It also protects against pollution liability and reputational damage from major losses. With umbrella coverage, businesses in this industry can strengthen their liability protection in a cost-effective manner.
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Based on an average analysis of commercial umbrella insurance pricing for businesses in the NAICS code 541990 (All Other Professional, Scientific, and Technical Services) industry, the estimated average annual premium would be $1,500. This pricing was derived from typical commercial umbrella coverage of $1-5 million with a $10,000 deductible. Factors like sales revenue, number of employees, claims history were considered in determining this average estimated price.
Estimated Pricing: $1,500
Conclusion
Having the right business insurance tailored to a company’s exposure risks provides stability and peace of mind. The insurance policies covered here protect All Other Professional, Scientific, and Technical Services companies from liability claims, property losses, auto accidents and employee injuries that could otherwise severely damage the business. Understanding options like general liability, professional liability, property, auto, workers’ compensation and umbrella insurance helps owners make informed insurance decisions to strengthen their companies’ long-term resilience and success.