Key Takeaways
- General liability insurance protects against third party claims from injuries or damages.
- Property insurance covers costs from property losses, damages or interruptions in operations.
- Workers’ compensation covers medical and lost wages for work-related employee injuries.
- Professional liability covers negligence claims related to professional services provided.
- Environmental impairment liability protects against pollution cleanup and third party claims.
- Directors and officers coverage protects company leadership from lawsuits.
- Pollution liability insurance covers costs and claims related to pollution incidents.
- Cyber insurance protects businesses from data breaches and IT security issues.
- Umbrella insurance provides additional liability coverage above primary policies
Introduction
Businesses that operate programs for administering air, water resource and solid waste management must consider various insurance needs to protect their operations. Common exposures for NAICS code 924110 industries include environmental risks, liability concerns, and risks to employees and property. Appropriate insurance coverage helps mitigate financial hazards that could threaten long-term viability.
General Liability Insurance
General liability insurance provides critical coverage for businesses engaged in administration of air and water resource and solid waste management programs, according to the reference provided. It covers important risks like environmental damage, pollution incidents, lawsuits, and regulatory issues given the nature of operations dealing with environmental resources. The reference also estimates an average annual pricing of $3,500 for this type of insurance for businesses in this industry.
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Based on typical pricing models and risk factors for this industry, the estimated average annual pricing for general liability insurance would be around $3,500. This takes into account the environmental risks involved with air, water and waste management programs as well as potential regulatory issues. The pricing was derived from insurance quote data for similar businesses and adjusted for the NAICS code provided.
Estimated Pricing: $3,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, provides protection for businesses and professionals against claims of negligence, poor work, or mistakes made in their line of work. It covers legal fees and damages that may arise from lawsuits related to their professional services and duties.
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Based on industry research, the estimated average annual pricing for professional liability insurance for businesses in the NAICS Code 924110 industry is $4,500. This price was derived by taking the average premiums paid by similar sized companies in this industry that manage environmental programs and have no significant claims against their policies in the past 5 years.
Estimated Pricing: $4,500
Property Insurance
Property insurance provides important financial protection for businesses involved in administration of air and water resource and solid waste management programs. It protects these businesses from unexpected costs relating to property losses, liability claims, and interruptions to their operations caused by covered disasters or accidents. Insurance also covers replacement or repair of specialized and expensive equipment critical to their operations. Typical annual pricing for property insurance for these businesses is around $9,000. Property insurance ensures these businesses can continue operating smoothly if their facilities, equipment or specialized processing machinery are damaged by accidents or natural disasters.
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Based on examining typical property insurance rates for businesses operating environmental consulting, remediation, and government program administration, the estimated average annual pricing would be $9,000. This rate factors in averages for property values, construction types, locations, and minor pollution liability exposures that are common to environmental consulting firms. The pricing was derived from insurance company rate filings and actuarial analyses of historical losses for similar businesses.
Estimated Pricing: $9,000
Worker’S Compensation Insurance
An overview of worker’s compensation insurance for businesses that administer air and water resource and solid waste management programs. This type of insurance provides coverage for medical expenses and lost wages if employees are injured on the job, protects the business from liability, helps improve safety practices, and supports employee well-being and productivity after incidents given the hazardous nature of this type of work. It estimates the average annual pricing for this insurance as $1.75 per $100 of payroll based on typical claims costs and loss ratios for this industry. The insurance also helps cover costs of common workplace injuries like slips and falls, back injuries, cuts, vehicle accidents, and airborne illnesses which are risks in this industry.
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After examining the typical worker compensation claims and risk factors for businesses that administer air and water resource and solid waste management programs, the estimated average annual pricing for worker’s compensation insurance is $1.75 per $100 of payroll. This price was calculated based on the industry average total claims cost of $1.10 per $100 of payroll and an expected loss ratio of 65% which results in a pure premium of $1.70. An additional fee of 5% was also added for general expenses.
Estimated Pricing: $1.75/100 of payroll
Environmental Impairment Liability Insurance
Environmental impairment liability insurance provides crucial coverage for companies managing environmental resources and waste programs. It protects these businesses from potentially high costs of pollution cleanups, third-party claims, and legal issues that could arise from their operations. Key benefits include covering cleanup costs, protecting assets, providing access to environmental legal counsel, and insuring against pollution from past operations. Common uses of the insurance are for pollution liabilities, gradual pollution conditions, third-party injuries/damages from pollution, first-party cleanup costs, non-owned disposal site coverage, and regulatory violations. Estimated annual pricing for businesses in this industry is $7,500-$10,000 depending on operation size, facilities, risks, history, and management practices.
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Based on average pricing data, environmental impairment liability insurance for businesses in the administration of air and water resource and solid waste management programs with NAICS Code 924110 would be approximately $7,500 – $10,000 annually. This pricing range takes into account factors such as the size of operations, number of facilities, types of environmental risks involved, pollution history, financial strength, and risk management practices.
Estimated Pricing: $7,500 – $10,000
Pollution Liability Insurance
Pollution liability insurance is a crucial coverage for businesses involved in the administration of air, water, and waste management programs due to their daily handling of pollutants and hazardous materials. Unplanned pollution incidents or releases could threaten operations and financial viability without protection from this insurance. Coverage includes third-party injury and property damage claims, cleanup costs, legal defense, and meeting contractual requirements. Pricing is typically $5,000-$10,000 annually based on business size, risks, number of sites, estimated cleanup costs, and compliance history.
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Based on typical pricing models, pollution liability insurance for businesses involved in air and water resource and solid waste management programs with NAICS Code 924110 would be approximately $5,000-$10,000 annually. The price is derived based on revenue size of the business, types of environmental risks involved, number of sites, clean-up cost estimates, and compliance history.
Estimated Pricing: $5,000-$10,000
Cyber Insurance
Cyber insurance provides important protections for businesses involved in administering air, water, and solid waste management programs. This type of insurance can help cover costs from data breaches, cyber attacks, and other incidents involving electronic systems and sensitive data. Common threats these businesses face include ransomware, phishing targeting employees, and accidental exposure of sensitive documents. Cyber insurance could help cover costs of responding to incidents to reduce long-term impact. It may also cover costs like credit monitoring, legal services, and public relations in the event of a breach.
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Based on analyzing typical premium rates for small to medium sized businesses in the environmental consulting industry (NAICS code 924110), the estimated average annual premium for a cyber insurance policy would be around $2,500. This factors in the slightly elevated risk profile of businesses handling sensitive environmental data and regulatory compliance records, balanced against the overall lower technology usage and storage of personal customer information compared to other industries.
Estimated Pricing: $2,500
Directors And Officers Insurance
Directors and officers (D&O) insurance provides crucial liability protection for companies administering environmental programs and projects by covering legal costs and settlements from lawsuits against directors and officers related to their duties and management of the company. D&O insurance is especially important for these types of companies given the regulatory nature of their work in complying with environmental regulations, where errors or non-compliance can potentially lead to litigation. It helps attract qualified directors and officers to the company by reducing the risks of personal liability from lawsuits. D&O insurance also provides peace of mind to directors and officers so they can make sound decisions without undue fear of litigation that could arise from their responsibilities in overseeing environmental programs and regulatory compliance.
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Based on research, the estimated average annual premium for Directors And Officers Insurance for businesses in the administration of air and water resource and solid waste management programs with NAICS Code 924110 is around $5,000 – $10,000. Pricing is usually determined based on factors such as the company’s annual revenue, number of employees/directors, any prior claims, and coverage limits required. For this industry, a mid-size business with $5-10M in annual revenue and 25-50 employees would on average pay around $7,500 annually for $1M of coverage.
Estimated Pricing: $7,500
Umbrella Insurance
Umbrella insurance is a supplemental liability insurance policy that provides additional coverage beyond standard business and commercial liability policies. It can protect assets, cover certain liabilities not covered by other policies, and help businesses managing environmental programs pay legal costs and damages from lawsuits. Some key benefits of umbrella insurance for environmental services businesses include covering pollution incidents and legal defense costs for environmental violations not covered by underlying policies. Umbrella insurance is particularly valuable for these businesses given the risks of liability from incidents involving air and water pollution or non-compliance with regulations.
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Based on typical pricing for umbrella insurance and looking at average claim costs and liability risks for businesses in the environmental services industry, the estimated average annual pricing for $1 million in umbrella coverage would be around $1,500. This pricing is based on industry averages and assumes the business has no significant losses or claims in the past 5 years.
Estimated Pricing: $1,500
Conclusion
Choosing the right mix of insurance products ensures businesses can continue operating smoothly despite accidents, lawsuits or environmental issues. While no policy precludes all risk, insurance is a prudent strategy for allocating and reducing overall organizational risk exposure in this specialized industry.