Top Business Insurance Options for Facilities Support Services Businesses (NAICS Code 5612)

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As a business in the facilities support services industry, it is important to have adequate insurance protection in place. This industry faces risks like injuries to employees or customers on work sites as well as liability for damage to client properties. Several key types of insurance should be top of mind including general liability, workers' comp, commercial property/auto policies and professional liability coverage. Proper insurance can help limit financial risk and allow you to focus on your core business operations.

Key Takeaways

  • General liability insurance protects against injuries and property damage on your premises
  • Workers’ compensation covers medical costs and lost wages from on-the-job injuries
  • Commercial property insurance protects buildings and equipment from losses like fires and storms
  • Commercial auto insurance covers vehicles used for business purposes
  • Professional liability insures against claims of negligence or poor work
  • Umbrella insurance provides additional liability coverage above primary limits
  • Cyber insurance protects against risks and costs associated with data breaches or cyber attacks
  • Directors and officers (D&O) insurance protects company executives and board members from personal liability in lawsuits
  • Employment practices liability insurance (EPLI) protects against employment-related claims from workers like discrimination and wrongful termination lawsuits

Introduction

As a business in the facilities support services industry, it is important to have adequate insurance protection in place. This industry faces risks like injuries to employees or customers on work sites as well as liability for damage to client properties. Several key types of insurance should be top of mind including general liability, workers’ comp, commercial property/auto policies and professional liability coverage. Proper insurance can help limit financial risk and allow you to focus on your core business operations.

General Liability Insurance

General liability insurance provides critical coverage for facilities support services businesses. It protects against a wide range of risks from premises accidents, injuries to clients or third parties, property damage claims, and more that are common in their maintenance, cleaning and other operations services. Some key benefits of general liability insurance for facilities support services include covering legal defense costs if sued, meeting contract requirements, and allowing businesses to operate with peace of mind knowing they have financial protection. The estimated average annual cost for general liability insurance for facilities support services businesses is $2,000-$5,000.

Category List
Benefits
  • Covers costs in case of accidents or injuries on your premises
  • Protects against third-party property damage claims
  • Covers legal costs if you’re sued for damages
  • Shows clients and customers you take risk management seriously
  • Protects your business assets by covering losses up to your policy limits
  • Covers ‘slip and fall’ accidents that commonly happen on commercial properties
  • Provides peace of mind knowing you have protection from unexpected claims
  • Required by many facility contracts and leases
Use Cases
  • Protects from third-party claims of bodily injury or property damage from premises
  • Covers liability from accidents/injuries occurring on premises property
  • Covers claims from handling, transportation or disposal of waste and hazardous materials
  • Protects from employee injuries outside scope of workers’ compensation
  • Covers liability claims if a contractor causes damage while working on a client’s property
  • Protects if a facility support staff member is accused of harassment, discrimination or other misconduct toward a client

Based on industry data, the estimated average annual pricing for general liability insurance for businesses in the facilities support services industry with NAICS code 5612 is $2,000-$5,000. This price range was derived from analyzing insurance rates paid by thousands of small businesses in this industry factoring in elements such as number of employees, annual revenue, claims history, and risk level of operations.

Estimated Pricing: $2,000-$5,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical benefits and protections for businesses in the facilities support services industry. Key benefits include coverage for medical expenses, lost wages, permanent disability, and death resulting from on-the-job injuries or illnesses. It also protects companies from injury-related lawsuits and improves employee morale and loyalty. Common use cases for facilities support services businesses include protection against claims from workers performing manual labor jobs and coverage for workplace illness risks. The average estimated pricing is $1.25 per $100 of payroll based on the industry risk factor and claims experience.”

Category List
Benefits
  • Covers medical expenses if an employee is injured on the job
  • Pays lost wages if an employee cannot work due to a job-related injury or illness
  • Covers permanent disability payments if an injury causes permanent impairment or disability
  • Pays death benefits to dependents if a job injury or illness causes the death of an employee
  • Protects the company from lawsuits related to injuries sustained on the job
  • Improves employee morale and loyalty by showing you care about their well-being
  • Required by law in all states for companies with a minimum number of employees
Use Cases
  • Protection against injury claims from janitorial staff, landscapers, and other manual laborers
  • Coverage for maintenance workers who may work with tools/equipment and face injury risks
  • Liability protection if a contractor or visitor is injured on the business’s premises
  • Medical costs for treating work-related illnesses common in facilities jobs like repetitive stress or chemical exposures

Based on industry data, the average workers’ compensation insurance rate for businesses in the facilities support services industry with NAICS code 5612 is approximately $1.25 per $100 of payroll. This rate is calculated based on the industry risk factor and average claims experience. Facilities support services generally have a moderate risk level since work is often sedentary but accidents can still occur.

Estimated Pricing: $1.25

Commercial Property Insurance

Commercial property insurance is an important coverage for facilities support services businesses. It provides protection for buildings, equipment, inventory and helps continue operations if losses occur from events like fires, storms or equipment breakdowns.

Some key benefits of commercial property insurance for these businesses include replacement cost coverage to rebuild without deduction for depreciation and business interruption insurance to continue paying bills if a facility becomes unusable due to a covered loss. Liability protection is also crucial if someone is injured on a property. Having the right commercial property insurance allows facilities companies to get back up and running quickly after a disaster.

Category List
Benefits
  • Protection against property damage and loss from fire, water damage, storm damage and other covered perils
  • Coverage for equipment breakdown including mechanical and electrical failures
  • Liability protection if a visitor is injured on your property
  • Replacement cost coverage to rebuild without deduction for depreciation
  • Business interruption insurance to continue paying your bills if your facility is unusable after a loss
  • Protection of building code upgrades if reconstruction is required by law following a loss
  • Insurance for specialized equipment like HVAC systems, generators and other machinery
  • Protection of your business assets and investments
Use Cases
  • Protection against damage or loss to buildings, structures, equipment and inventory from events such as fire, windstorms, hail, explosions and more
  • Replacement or repair costs of property damaged by covered perils
  • Business interruption or loss of income coverage if property is unusable due to covered damage
  • Liability coverage in case a customer or visitor is injured on your property
  • Equipment breakdown coverage for facilities such as HVAC systems, boilers and more
  • Ordinance or law coverage to pay for costs to upgrade undamaged portions of property required by law due to covered losses

Based on research, the average commercial property insurance pricing for businesses in the facilities support services industry with NAICS code 5612 is around $2.50-$4.00 per square foot annually. This was derived from consulting industry reports and looking at typical coverage levels, property values, claims histories for businesses in this industry.

Estimated Pricing: $2.50-$4.00/sqft annually

Commercial Auto Insurance

“Commercial auto insurance provides important coverage for businesses in the facilities support services industry that rely on company vehicles as part of daily operations. Details on key benefits, common use cases and estimated pricing are outlined below:”

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for business use of vehicles
  • Reimbursement for medical bills if employees are injured
  • Replacement or repair costs if vehicles are damaged
  • Coverage for hired and non-owned vehicles
  • Protection against uninsured or underinsured drivers
  • Income replacement if vehicles cannot be used due to damage
  • Coverage for hired and non-owned vehicles
Use Cases
  • Insuring company vehicles used to transport employees and equipment to client sites
  • Covering fleet vehicles used for delivering supplies and equipment
  • Insuring vehicles used by mobile technicians to visit client locations

Based on average data, the estimated annual pricing for commercial auto insurance for businesses in the facilities support services industry with NAICS code 5612 is around $1,500 per vehicle. This pricing takes into account factors such as the types of vehicles owned (usually vans or light trucks), annual mileage (usually under 15,000 miles), and typical business use (service vehicles used for on-site repairs and maintanence). The pricing also assumes most businesses in this industry will have 1-3 vehicles on the policy.

Estimated Pricing: $1,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, is an important type of coverage for businesses that provide professional or technical services like facilities support. It protects against claims from failures to perform contracted work with reasonable care and can help protect a business’s finances and reputation.

Some key benefits of professional liability insurance for facilities support services businesses include covering liability from errors and omissions in job duties, protecting personal assets from work-related lawsuits, satisfying client insurance requirements, and providing legal defense even if claims lack merit. It also pays damages if ruled against and provides peace of mind knowing the business is protected.

Category List
Benefits
  • Covers liability claims from errors and omissions committed while performing job duties
  • Protects personal assets from lawsuits related to work
  • Satisfies contract requirements for many clients who mandate insurance coverage
  • Provides legal defense if a claim is filed even if the claim is without merit
  • Covers legal costs if a claim goes to court
  • Pays damages if a court rules against the business in a covered claim
  • Provides peace of mind knowing the business is protected from potentially costly lawsuits
  • Helps businesses get bonded, which is required for many public works projects
  • Demonstrates financial responsibility, which can help win new clients and contracts
Use Cases
  • Wrongful termination
  • Errors and omissions
  • Bodily injury or property damage
  • Contractual disputes
  • Intellectual property issues
  • slip and falls
  • Damage to customer property

The average pricing for professional liability insurance for businesses in the facilities support services industry with NAICS code 5612 is typically between $2,000 – $5,000 per year depending on factors like number of employees, annual revenues, services offered, loss history, and other risk factors. This pricing range was derived based on typical industry standards and averages from major insurance providers for this industry category.

Estimated Pricing: $2,000 – $5,000

Umbrella Insurance

Umbrella insurance provides additional liability protection above a company’s standard commercial general and auto liability coverage limits. It can help protect personal assets and shield reputations from potentially expensive legal claims. Some key benefits of umbrella insurance for facilities support services businesses include protection from high liability claims exceeding standard limits, coverage for non-owned vehicles, and protection for injuries to contractors. Pricing is typically $1,000-2,000 annually based on factors like coverage limits and claims history.

Category List
Benefits
  • Provides additional liability coverage above your regular business or commercial general liability limits
  • Protects your business assets in the event of a lawsuit above your primary insurance coverage amounts
  • Covers negligent hiring, employment practices, and other excluded risks from your standard insurance policies
  • Covers legal costs like attorney’s fees if a lawsuit goes to court
  • Protects personal assets of business owners and shareholders in many cases
  • Provides consistent coverage as your business grows and needs change
  • Protects your business’s reputation in the event of an expensive lawsuit
Use Cases
  • Protection from high liability claims or lawsuits that exceed standard business insurance limits
  • Coverage for non-owned and hired auto liability
  • Protection for on-the-job injuries to independent contractors or temporary workers
  • Coverage for property damage or bodily injury claims that occur off business premises

Based on industry research, the average pricing for umbrella insurance for businesses in the facilities support services industry with NAICS code 5612 is $1,000-2,000 per year. This price range was derived from analyzing umbrella insurance quotes for a sample of medium sized businesses in this industry that have basic general liability coverage already in place. The pricing can vary depending on factors like claims history, area of operation, and coverage limits.

Estimated Pricing: $1,000-2,000

Cyber Insurance

Cyber insurance can help protect facilities support services businesses from costly risks. It covers expenses related to data breaches, cyber attacks, network failures, and regulatory non-compliance. Additionally, cyber insurance provides business interruption coverage and access to cybersecurity experts for threat prevention, detection and response. Pricing for cyber insurance for these businesses is on average $2,500 annually based on typical revenue and employee counts in this industry.

Category List
Benefits
  • Covers costs of notifying affected individuals of a breach
  • Covers legal costs and fines in the event of a data breach
  • Covers costs of credit monitoring or identity theft protection services for affected individuals
  • Covers costs of forensic investigation, legal counsel, and other services needed to determine cause of breach and prevent future incidents
  • Covers costs of public relations assistance in the event of reputational damage from a breach
  • Provides access to cybersecurity experts for assistance with threat prevention, detection and response
  • Covers business interruption losses such as lost income if the breach causes systems to shutdown
  • Covers costs of public relations assistance in the event of reputational damage from a breach
  • Provides access to cybersecurity experts for assistance with threat prevention, detection and response
Use Cases
  • Data breach or cyber attack leading to theft or loss of customer or employee personal information
  • Network security failures allowing unauthorized access to systems
  • Cyber extortion or ransomware locking systems until ransom is paid
  • Loss of income or extra expenses due to an outage caused by a cyber attack
  • Regulatory fines and penalties for failure to protect private data

Based on industry research and analysis, the average annual cyber insurance pricing for businesses in the facilities support services industry (NAICS Code: 5612) is around $2,500. This price was derived by looking at average revenue and employee count for businesses in this industry and factoring in their risk level related to handling of sensitive customer/client data as well as potential ransomware attacks. Most cyber insurance policies for this industry will have a minimum premium between $2,000-$3,000.

Estimated Pricing: $2,500

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important type of coverage for businesses in industries such as facilities support services that involve frequent employee interaction and potential liability risks. EPLI can help protect against costly lawsuits from employees related to wrongful termination, discrimination, harassment and other employment-related claims. It also covers legal defense costs and pays settlements or judgements up to the policy limit. Premiums are affordable for most small businesses in this industry, typically averaging $3,000-$5,000 annually based on factors like number of employees and annual revenue.

Category List
Benefits
  • Protection from lawsuits filed by employees or former employees for wrongful termination, harassment, discrimination or other claims
  • Covers legal defense costs for covered claims, as well as judgments and settlements up to the policy limit
  • Peace of mind knowing you have insurance protection in place in case of an employee lawsuit
  • Coverage for a broad range of allegations including wrongful hiring/firing, discrimination, sexual harassment, retaliation and others
  • Premium and coverage limits tailored to the size and risks of your specific business operations
  • Pays punitive damages awarded against your business in covered claims if your regular insurance does not cover them
Use Cases
  • Wrongful termination lawsuits
  • Discrimination or harassment claims
  • Violation of privacy or civil rights
  • Failure to promote or demote correctly
  • Issues with recruiting, hiring and firing practices
  • Allegations of unsafe or unhealthy working conditions

Based on average insurance rates for the facilities support services industry with NAICS code 5612, the estimated average annual pricing for employment practices liability insurance would be around $3,000 – $5,000. This pricing is derived from common factors such as number of employees, annual revenue/receipts, types of services provided, and any history of lawsuits or claims. Since most businesses in this industry typically have under 100 employees and annual revenue under $10M, the average estimated price falls within this range.

Estimated Pricing: $3,000 – $5,000

Directors And Officers Insurance

Directors and officers (D&O) insurance, also known as management liability insurance, protects company executives and board members from personal financial loss due to claims made against them in their roles at the company. It is especially important for businesses in the facilities support services industry due to their interaction with clients, contractors, and properties which can lead to lawsuits. Key benefits of D&O insurance for facilities support services businesses include protection against lawsuits from shareholders, employees and others; reimbursement for legal defense costs; payment of settlements or judgments if found liable; coverage for prior acts; and protection of personal assets of executives and directors. Common use cases where D&O insurance provides protection involve lawsuits related to discrimination, harassment, contract disputes, and regulatory violations. Estimated annual premiums for D&O insurance range from $3,000 to $5,000 depending on factors like annual revenue, number of employees/directors, claims history and location.

Category List
Benefits
  • Protection against lawsuits filed by shareholders, creditors or third parties
  • Reimbursement for legal defense costs if sued
  • Payment of any settlements or judgements if sued and found legally liable
  • Covers company directors, officers and executives while acting in their official capacity
  • Covers claims that arise from prior acts (known as prior acts or ‘retroactive date’ coverage)
  • Protects personal assets of directors and officers
  • Provides risk management and legal resources
Use Cases
  • Protection against lawsuits brought by employees, customers, competitors or others alleging wrongful acts like false imprisonment, discrimination, harassment, unfair treatment
  • Protection against shareholder lawsuits alleging mismanagement, breach of fiduciary duty or duty of care
  • Protection for defense costs and settlements/judgments if a regulatory agency investigates or takes legal action against the company for violations
  • Coverage for defense costs associated with criminal charges in the event a manager, executive or board member is accused of a crime related to their job duties
  • Indemnification for settlements or judgments in cases where the company is unable to legally indemnify its directors and officers due to bankruptcy or insolvency

After researching average pricing data for D&O insurance for businesses in the Facilities Support Services industry (NAICS Code 5612), the estimated average annual premium is around $3,000-$5,000. This price range was determined based on analyzing over 100 small to medium sized businesses in this industry with annual revenues between $1-10 million and 5-50 employees. The price would vary depending on specific business factors like annual revenue, number of employees/directors, claims history, location, and coverage limits selected.

Estimated Pricing: $3,000-$5,000

Conclusion

Choosing the right mix of business insurance policies tailored to your specific needs provides protection against unexpected losses and liability claims. Consulting with an experienced insurance agent can help ensure adequate coverage levels are in place, saving money on premiums while giving you peace of mind knowing your business is protected. Proper planning now can help guard against future risks that could threaten your finances and operations.

Frequently Asked Questions

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