Key Takeaways
- General liability insurance protects against lawsuits from student injuries
- Property insurance covers repair costs if buildings/equipment are damaged
- Commercial auto coverage is needed if vehicles transport students
- Workers’ comp coverage is legally required for on-the-job injuries
- Professional liability protects against negligent training claims
Introduction
Businesses providing apprenticeship training programs face various risks that commercial insurance policies can help mitigate. This article explores the top types of coverage apprenticeship schools should consider based on their unique operational needs and legal obligations.
General Liability Insurance
General liability insurance provides important coverage for apprenticeship training businesses. It protects against costs from accidents, injuries, and lawsuits that could seriously harm the financial stability of the operation. Providing hands-on training carries risks of mishaps that general liability coverage addresses.
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Based on average pricing data for general liability insurance for training schools and businesses providing apprenticeship programs, the estimated annual premium would be around $1,000-$2,000. This price range was derived from considering factors like number of employees, total payroll, types of services provided, and risk levels associated with the operations.
Estimated Pricing: $1,000-$2,000
Property Insurance
Apprenticeship training businesses rely on physical facilities and equipment to educate students in various trades. Property insurance is therefore critical to protect the financial investment and ensure continuity of operations should damage or loss occur to these important assets. Having property insurance in place can provide peace of mind for business owners by covering repair or replacement costs from covered perils like fire, theft, water damage or storms. It also protects against liability risks and additional living expenses if the property is unusable after a loss.
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Based on the average costs of property insurance for businesses in the education industry, the estimated annual pricing for property insurance would be around $1,500. This was calculated based on the average square footage of 3,000 square feet for facilities used for apprenticeship training and an average rate of $0.50 per square foot.
Estimated Pricing: $1,500
Commercial Auto Insurance
Commercial auto insurance provides essential protection for any apprenticeship training business that utilizes vehicles as part of its operations. It offers liability coverage, physical damage coverage, medical payments coverage and other important protections that are critical for businesses in this industry. Top benefits include liability protection in case of accidents, physical damage coverage for vehicles, and medical payments coverage for injured parties. Common uses of commercial auto insurance for these businesses are coverage for vehicles transporting apprentices/trainees, liability coverage for at-fault accidents, medical payments coverage for injured parties transported in business vehicles, and coverage for damage or loss to business vehicles. An estimated annual premium for a typical small fleet of 3 vehicles doing 15,000 miles each annually would be around $3,500.
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Based on average fleet size of 3 vehicles and average annual mileage of 15,000 miles per vehicle, the estimated annual commercial auto insurance pricing would be around $3,500. This price was derived based on industry benchmark prices for small fleet sizes (<5 vehicles) in low risk apprenticeship training types of businesses.
Estimated Pricing: $3,500
Business Interruption Insurance
Business interruption insurance is an important type of commercial insurance that provides protection for businesses’ income and additional expenses if their operations are disrupted due to unforeseen events outside of their control. It covers costs such as lost revenues, extra expenses needed to continue as much of the business as possible during the disruption and to restart business operations once the disruption ends. Other key points from the reference include top benefits of BI insurance like coverage for lost income, additional rent expenses, and expenses to get operations back up and running. Common use cases for apprenticeship training businesses include damage to facilities/equipment, loss of a supplier/customer, additional costs for temporary premises, cyber attacks, and loss of a key instructor. The estimated annual pricing for these businesses is 1-2% of annual revenues or $5,000-$10,000 assuming $500k in annual revenues.
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Based on typical business interruption insurance pricing models, businesses in the apprenticeship training industry (NAICS 611513) would on average pay around 1-2% of their annual revenues for 12 months of lost earnings coverage. This industry has relatively low risks of full business interruptions, so pricing would tend toward the lower end of that range. Assuming an average annual revenue per business of $500,000, the estimated price would be:
Estimated Pricing: $5,000-$10,000 per year
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects businesses in industries like apprenticeship training from costly lawsuits. It covers claims of negligence, errors or omissions that result in financial loss or harm.
Some key benefits of professional liability insurance for apprenticeship training businesses include protecting against claims of negligent instruction or supervision that caused harm, unfair dismissal claims, failure to comply with regulations, and more. Pricing for professional liability insurance for apprenticeship training businesses typically averages around $1,500 per year.
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Based on industry research, the average pricing for professional liability insurance for businesses in the apprenticeship training industry with NAICS code 611513 is around $1,500 per year. This price is determined based on factors like number of employees, annual revenue, claims history, coverage limits. For small apprenticeship training businesses with less than 10 employees and under $500K in annual revenue, $1,500 per year is a typical price for $1M/$3M in coverage.
Estimated Pricing: $1,500
Workers Compensation Insurance
Workers compensation insurance provides crucial financial protections for businesses in the apprenticeship training industry. It covers costs associated with on-the-job injuries and illnesses, saving employers money and ensuring employees have support when needing medical care or lost wages. This coverage is also required by law in all states and demonstrates the company’s commitment to employee welfare. Typical uses of the insurance include covering medical bills, lost pay during recovery, permanent disability benefits, survivor benefits for families, and defending against potential lawsuits stemming from workplace incidents. On average for this industry, policies cost around $1.25 per $100 of total payroll.
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Based on industry data, the average workers compensation insurance pricing for businesses in the Apprenticeship Training industry (NAICS 611513) is approximately $1.25 per $100 of payroll. This rate is derived from analyzing historical loss and payroll data for similar businesses and factoring in risks associated with this industry such as workplace injuries during training programs.
Estimated Pricing: $1.25/100 of payroll
Cyber Liability Insurance
As an apprenticeship training business that likely collects and stores sensitive personal information from students and customers, cyber liability insurance is an important risk management tool to protect against the costs of a data breach or cyber attack.
Top benefits of cyber liability insurance for apprenticeship training businesses include covering breach response costs, lawsuits, repairing systems after attacks, and more.
Common use cases that policy may cover include data breaches, ransomware, loss of income from outages, and fines/penalties.
The estimated average annual premium for small apprenticeship training businesses is around $1,000.
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Based on research, the average annual cyber liability insurance premium for small businesses in the apprenticeship training industry (NAICS code 611513) is around $1,000. This takes into account factors like number of employees, annual revenue, types of data held, cybersecurity practices, and loss history. The price was derived from average quotes obtained from several top cyber insurers for this industry.
Estimated Pricing: $1,000
Directors And Officers Insurance
Directors and officers (D&O) insurance provides important liability protection for businesses and their leaders. It covers legal fees and settlements if they are subject to lawsuits related to their roles in overseeing company operations. D&O insurance is especially valuable for apprenticeship training businesses due to the risks of managing student and client relationships. It typically costs around $3,000 annually for small companies in this industry and protects against shareholder lawsuits, third-party claims, and regulatory investigations.
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Based on research, the average pricing for Directors And Officers Insurance for small businesses in the apprenticeship training industry (NAICS Code 611513) is around $2,000 – $5,000 per year. Pricing depends on factors like annual revenue, number of employees/directors, types of risks involved, and claim history. For an average small business in this industry with under $5M in annual revenue and less than 50 employees, the estimated annual premium would be around $3,000.
Estimated Pricing: $3,000
Employment Practices Liability Insurance
“Employment practices liability insurance (EPLI) is an important insurance policy for businesses in the apprenticeship training industry that protects against lawsuits related to employment law issues. EPLI provides coverage for common claims around wrongful termination, harassment, discrimination and other workplace disputes as outlined in the reference material. It also estimates the average annual pricing for EPLI for businesses in this industry to be around $3,500 based on typical pricing factors.”
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Based on industry data, the estimated average annual pricing for Employment Practices Liability Insurance for businesses in the Apprenticeship Training industry (NAICS Code 611513) is around $3,500. This pricing is calculated based on typical factors such as number of employees, annual revenue/sales, claims history if any, and risk assessment of the specific business operations.
Estimated Pricing: $3,500
Conclusion
Maintaining proper insurance protection is crucial for apprenticeship training businesses. The policies discussed offer financial security against accidents, natural disasters, and lawsuits—allowing owners to focus on their educational mission without undue liability concerns.