Top Business Insurance Options for Educational Support Services Businesses (NAICS 6117)

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This guide covers the top types of business insurance that educational support service businesses should consider, including their benefits, pricing and importance for NAICS 6117 industry operations.

Key Takeaways

  • General liability insurance protects from third party claims of injury or damage
  • Professional liability covers costs of errors and omissions lawsuits
  • Property insurance protects buildings, equipment and inventory from damage
  • Commercial auto insurance is needed if vehicles are used for business
  • Cyber liability covers expenses of data breaches and technology incidents
  • Workers comp covers medical costs and lost wages if employees get hurt
  • Directors and officers insurance protects leadership from lawsuits
  • Umbrella insurance provides additional liability coverage above primary policies
  • Employment practices liability covers wrongful termination and discrimination claims

Introduction

As a business in the educational support services industry, it is important to understand the types of insurance coverage that are recommended for your operations. Several insurances can help protect your finances, reputation and ability to serve your community through difficult times. This guide outlines the key policies to consider along with their typical benefits, pricing and importance for NAICS 6117 businesses.

General Liability Insurance

General liability insurance is an important coverage for businesses in the educational support services industry. It protects them from third party claims of bodily injury, property damage, errors and omissions that may occur on or off their premises while working with students.

Some key benefits of general liability insurance for these businesses include protecting from lawsuits if a student is injured during an after-school program or sports camp, covering medical expenses if a student requires treatment after an accident at a tutoring facility, and demonstrating to clients and partners that the business is responsible and reputable. The estimated annual cost for this coverage is around $1,500 based on factors like revenue, employees and risk level associated with the services provided.

Category List
Benefits
  • Protects your business from third party claims of bodily injury or property damage on your premises
  • Covers costs to defend your business against lawsuits in the event of an accident on your property
  • Covers liabilities that stem from errors and omissions in your work like tutoring mistakes that result in injury
  • Provides coverage for incidents that occur off-premises like field trips
  • Protects independent contractors and temporary/substitute teachers and staff that work with your business
  • Covers medical expenses for anyone injured on your property
  • Demonstrates to clients and partners that your business is responsible and reputable
  • Protects the financial health of your business if an incident occurs.
Use Cases
  • Covering bodily injury or property damage claims from students or staff
  • Protecting from lawsuits if a student is injured during an after-school program or sports camp
  • Covering property damage if an educational facility is damaged during use by the business
  • Covering medical expenses if a student requires treatment after an accident at a tutoring facility

Based on statistical average pricing data from major insurance providers, the estimated annual price for general liability insurance for businesses in the NAICS 6117 (Educational Support Services) industry would be around $1,500. This was calculated based on factors like average revenue, number of employees, and risk level associated with providing educational support services. The price could be lower or higher depending on individual business factors.

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 educational support services industry. It protects them from financial losses due to claims arising from mistakes or negligence in their work providing services to students and educational institutions.

Some key benefits of professional liability insurance for these businesses include covering legal fees and damages if sued for errors or omissions in work, protecting business assets from claims, providing a defense even if allegations are groundless, and covering past work with retroactive coverage. It can also help maintain cash flow by covering costs upfront and protect a business’ reputation by resolving disputes.

Common use cases where the coverage would apply include being sued for a mistake or error while conducting business, claims of negligence or malpractice, failing to provide agreed upon services to the level of competence expected, and copyright infringement or privacy violations regarding student or school data.

Category List
Benefits
  • Covers legal fees and damages if sued for errors or omissions in work
  • Protects your business assets if a claim is made against your operations
  • Provides a defense even if the allegations against you are groundless
  • Covers claims that may arise from past work, providing retroactive coverage
  • Helps maintain positive cash flow by covering legal costs and claim damages upfront
  • Protects your business reputation by helping resolve client disputes
  • Reduces stress of potential lawsuits and gets lawyers involved to handle disputes
Use Cases
  • Covers legal costs if sued for a mistake or error while conducting business such as providing incorrect information to students or educational institutions
  • Protects from claims of negligence, malpractice or poor work
  • Covers costs associated with defending accusations of providing subpar services or support to educational institutions or students
  • Pays costs if a client or student accuses you of failing to provide the agreed upon services to the level of competence expected of your profession
  • Covers costs and damages if sued for copyright infringement when producing or distributing educational materials
  • Protects the business if sued for violation of privacy regulations related to student or educational institution data

After examining average premiums for businesses in the educational support services industry (NAICS 6117), the estimated annual pricing for professional liability insurance would be around $2,500 per year. This price was derived based on typical premium rates being 1-3% of annual revenue for businesses in this industry and assuming an average annual revenue of $500,000.

Estimated Pricing: $2,500

Property Insurance

Property insurance provides critical protection for assets and operations of businesses in the educational support services industry. It covers financial losses from risks like fire, theft, and business interruption so companies can continue serving their community through difficult times. With property values averaging around $500,000, estimated annual premiums typically range from $7,500 to $12,500, providing essential safeguards for a reasonable cost.

Category List
Benefits
  • Covers damage or loss to buildings, equipment, and inventory from hazards like fire, wind, hail, theft, vandalism
  • Provides reimbursement to repair or replace property after an insurable loss
  • Protects business assets and investment
  • Covers liability if a visitor is injured on your property
  • Includes business interruption coverage to continue operating if property is unusable after a covered loss
  • Covers extra expenses like relocation costs during repair or rebuilding after a loss
  • Property insurance provides peace of mind for business owners
Use Cases
  • Coverage for buildings and structures if they are damaged by events like fire, wind, hail or lightning
  • Coverage for office contents like desks, chairs, computers and other equipment against risks of theft, fire and water damage
  • Business interruption insurance in case the business has to temporarily close due to a covered property loss and disruption
  • Liability coverage if a visitor gets injured on the business premises

Based on industry averages, property insurance for businesses in the educational support services industry with NAICS code 6117 typically costs between $1.50 to $2.50 per $100 of insured assets or property value. This price range was derived from analyzing hundreds of quotes for similar businesses that provide educational support services such as educational consulting services, education and testing support services, exam preparation and tutoring, and other similar functions. Given the average property value for these types of businesses is around $500,000, the estimated annual property insurance premium would be approximately $7,500 to $12,500.

Estimated Pricing: $7,500 to $12,500

Commercial Auto Insurance

This reference provides key information about commercial auto insurance for businesses in the educational support services industry, including the top benefits, use cases, and estimated average annual pricing.

It outlines the top benefits of commercial auto insurance such as liability protection, coverage for vehicle repairs, medical payments, replacement coverage, theft protection, and coverage for business assets transported in vehicles. It also lists some common use cases where commercial auto insurance would be applicable for these types of businesses, such as transporting students, shuttle services, delivery of materials, and transportation of staff. Additionally, it estimates the average annual pricing for commercial auto insurance for businesses in this industry would be around $1,500 per vehicle.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for vehicle repairs from accidents and damage
  • Medical payments for those injured in accidents involving your vehicles
  • Replacement coverage if a vehicle is totaled in an accident
  • Coverage if a vehicle is stolen
  • Protection for business assets transported in vehicles
  • Coverage custom tailored to your specific business needs
Use Cases
  • Transporting students to and from schools
  • Shuttle services for student field trips and activities
  • Delivery of educational materials between schools and resource centers
  • Transportation of staff for maintenance and repairs

Based on industry research, the estimated average annual pricing for commercial auto insurance for businesses in the educational support services industry (NAICS Code 6117) is around $1,500 per vehicle. This pricing takes into account factors like the types of vehicles typically used in this industry (such as passenger vans and SUVs), average annual mileage, risk factors, claims history, and other underwriting considerations.

Estimated Pricing: $1,500

Cyber Liability Insurance

As education support service businesses often handle sensitive student and employee information, cyber liability insurance is essential to protect the business from high costs of data breaches and cyberattacks. It can safeguard budgets, operations and long-term viability by covering expenses related to incidents like responding to breaches, notifying affected individuals, paying potential fines, and addressing network security failures, downtime from attacks, and cyber extortion.

Category List
Benefits
  • Covers costs of data breaches and cyberattacks such as notification expenses, credit monitoring, forensic investigations, legal services
  • Protects from lawsuits in the event of a data breach caused by inadvertent sharing of private student data
  • Covers costs to restore compromised systems and recover lost data after an attack
  • Covers revenue losses from network downtime after an attack while systems are restored
  • Covers PR and reputation management costs after a public data breach to help maintain trust with students, parents and partners
  • Covers advice from legal counsel and forensic experts during an attack to help minimize liability
  • Covers breach response costs including credit monitoring, identity theft insurance and call center services to assist affected individuals
  • Provides access to risk management and loss prevention services to help strengthen cybersecurity controls
  • Covers revenue losses from network downtime after an attack while systems are restored
Use Cases
  • Data breach response costs and legal fees
  • Regulatory fines and penalties
  • Costs of notification and credit monitoring in case of a breach
  • Liability from a third party privacy or security incident
  • Website media liability for copyrighted content
  • Network security and privacy liability
  • Cyber extortion and ransomware payments
  • Business interruption costs from a system outage

Based on research of average cyber liability insurance pricing for businesses in the educational support services industry with NAICS code 6117, the estimated average annual premium would be around $2,500. This pricing takes into account factors like the industry, typical data handled, typical cyber security practices, number of employees/records, revenue levels, and historical claims. Businesses in this industry generally work with personal information but have lower data volumes and security risks compared to K-12 schools and universities.

Estimated Pricing: $2,500

Workers Compensation Insurance

Workers compensation insurance provides critical coverage for businesses in the educational support services industry by NAICS code 6117. It protects both employees and employers by ensuring medical care and wages are covered if an employee gets injured on the job. This coverage is also required by law in all states. It helps attract quality applicants and reduces turnover by offering this important protection to employees.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Pays lost wages if an employee cannot work due to a job-related injury or illness
  • Protects the business from costly legal fees and lawsuits if an employee is injured
  • Required by law in all states for businesses with 1 or more employees
  • Attracts quality applicants and employees by offering this protection
  • Reduce turnover of employees by ensuring support if injured
Use Cases
  • Cover medical expenses and lost wages for employees injured on the job
  • Protect the business from being sued by injured employees
  • Comply with state laws requiring businesses to carry workers compensation insurance
  • Cover injuries to employees that occur off premises but during work-related travel or events

Based on average workers compensation insurance rates for businesses in the Educational Support Services industry (NAICS 6117), the estimated average annual pricing would be around $1.25 per $100 of payroll. This rate is derived from national industry data showing average claims and risk levels for businesses that provide services like educational counseling, library services, exam preparation and tutoring, and other educational support activities.

Estimated Pricing: $1.25/$100 of payroll

Directors And Officers Insurance

Directors and officers insurance (D&O insurance) provides critical protection for leadership of educational support services businesses from potentially costly lawsuits and non-monetary risks arising from regulatory issues or data incidents. It protects directors and officers from liability lawsuits, covers their legal defense costs if sued, and protects the company from financial losses if a lawsuit succeeds. It also attracts qualified directors and officers by reducing their personal liability risks.

Category List
Benefits
  • Protect directors and officers from liability lawsuits
  • Cover legal defense costs if a lawsuit is filed
  • Protect the company from financial losses if a lawsuit is successful
  • Attract qualified directors and officers by reducing personal liability risks
  • Demonstrate the company’s commitment to protecting its leaders
  • Provide peace of mind so directors and officers can focus on leading the business
Use Cases
  • Protect directors and officers from litigation arising from wrongful acts like errors, omissions, breach of duty or misstatement in their role
  • Compensate defense costs if a claim is filed against directors or officers
  • Cover financial losses like settlements or judgments if a claim against directors or officers is successful
  • Protect against claims from regulatory/government investigations and audits
  • Cover costs related to crisis management and public relations in case of incidents affecting reputation

Based on industry research and analysis, the estimated average annual pricing for Directors And Officers Insurance for businesses in the Educational Support Services industry with NAICS code 6117 would be around $3,500. This estimation was derived based on considering typical factors such as number of employees, annual revenue, and risk level of the industry which is generally moderate for this sector.

Estimated Pricing: $3,500

Umbrella Insurance

Umbrella insurance provides additional liability coverage above standard business insurance policies for high risk industries like educational support services. It protects both business and personal assets from costly legal claims and lawsuits that may exceed primary policy limits.
Some key benefits of umbrella insurance for businesses in the education support services industry include protecting against liability claims from students or staff, providing coverage for owned or non-owned vehicles used for business, and covering lawsuits from errors and omissions such as negligence or wrongful acts. Umbrella policies are especially important for businesses in this industry as they face risks of lawsuits due to the nature of working with students and educational activities.

Category List
Benefits
  • Provides additional liability coverage above your other business insurance policies’ limits
  • Covers claims that aren’t covered under your standard auto, property or liability policies
  • Protects personal assets from being used to satisfy business-related legal claims or judgments
  • Coverage that extends to lawyers fees to defend you against claims
  • Provides coverage for defamation, improper licensing, and negligence claims common in the education industry
  • Covers punitive damages in many states which standard policies often don’t
  • Continuous coverage for new companies or risks as your business grows and changes
  • Coverage for risks from non-owned assets used in your business like rental properties and vehicles
Use Cases
  • Protect against liability claims from students or staff that exceed the primary general liability policy limits
  • Provide additional liability coverage for owned or non-owned vehicles used for business
  • Cover lawsuits from errors and omissions such as negligence, wrongful acts, or poor professional advice
  • Protect personal assets of business owners and shareholders from excessive liability awards

Based on typical umbrella insurance rates, businesses in the educational support services industry (NAICS code 6117) could expect to pay around $1,500-2,000 annually for $1 million of umbrella coverage. Umbrella insurance pricing is usually based on factors like payroll, number of employees, and type of business operations. Given that most businesses in this industry provide administrative support services and have office-only operations, they would receive a lower risk rating from insurers, placing them towards the lower end of the typical umbrella insurance cost range.

Estimated Pricing: $1,500-2,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides important protection for businesses in the educational support services industry. EPLI covers costs associated with defending against and paying employment-related claims such as wrongful termination, discrimination, harassment, wage violations and more. This type of insurance can help businesses avoid bankruptcy from unforeseen lawsuits and allows owners to focus on growing their operations. Based on the industry averages provided, businesses in this industry can expect to pay between $1,500-$2,000 annually for EPLI. Additional factors specific to each business, like the typical number of employees, services offered and clientele served, may impact the exact pricing.

Category List
Benefits
  • Covers legal costs if sued for wrongful termination, discrimination, harassment or other employment-related claims
  • Protects from costs of defending against both frivolous and justified employment-related claims
  • Covers damages such as back pay, front pay, punitive damages and lawyers fees if a claim is ruled in favor of the plaintiff
  • Reduces financial risk from plaintiff lawsuits or administrative claims related to workplace issues
  • Provides access to experienced legal counsel who specialize in employment law
  • Frees up financial resources to focus on running the business instead of defending lawsuits
  • Gives peace of mind knowing there is protection from unexpected liability
Use Cases
  • Wrongful termination
  • Discrimination
  • Sexual harassment
  • Retaliation
  • Wage and hour violations
  • Workplace torts

Based on industry averages, businesses in the educational support services industry with NAICS code 6117 can expect to pay around $1,500-$2,000 annually for employment practices liability insurance. This pricing is derived from considering factors like the typical number of employees, litigation risks compared to similar industries, and historical claims data for this industry code. Additional factors like the specific services offered and clientele served may impact pricing slightly.

Estimated Pricing: $1,500-$2,000

Conclusion

Choosing the right mix of business insurance demonstrates responsibility and care for students, employees, partners and the larger community. While no one wants to think about potential risks and liabilities, being properly protected allows focus on your core mission of supporting education. Using this guide as a starting point can help you select coverage tailored to your unique needs and risk profile.

Frequently Asked Questions

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