Key Takeaways
- General liability insurance protects your business from lawsuits related to injuries or property damage involving third parties.
- Property insurance covers damage or loss to your buildings, equipment, inventory and other business property from disasters like fire and flooding.
- Workers’ compensation insurance covers medical expenses and lost wages for employees injured on the job.
- Commercial auto insurance protects your business if company vehicles are involved in an accident.
- Business interruption insurance provides funds to continue operations if property damage disrupts your business activities.
- E-commerce liability insurance addresses risks from online sales and transportation of goods.
- The estimated average pricing ranges provided for each type of insurance can help when budgeting for coverage needs.
- Consider reviewing common injury types and loss scenarios faced by similar facilities to determine your business’s specific risks.
- Consulting an insurance broker can help customize coverage to your operations and ensure all necessary areas are addressed.
Introduction
As a general warehousing and storage facility classified under NAICS code 493110, it is important to have the proper insurance coverage in place to protect your business operations and assets. There are several types of business insurance that general warehousing and storage facilities should strongly consider based on their unique risks and exposures.
General Liability Insurance
General liability insurance provides essential protection for businesses in the general warehousing and storage industry. It covers claims from property damage, bodily injury, vehicle accidents, and other incidents that could occur during daily operations like storage or transportation of goods. Coverage helps limit financial risks and demonstrates to customers that their merchandise will be responsibly handled.
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Based on research of average pricing from multiple insurance providers, the estimated average annual price for general liability insurance for businesses in the general warehousing and storage industry (NAICS Code 493110) is around $2,000 – $3,000. This pricing is calculated based on factors such as annual revenue, number of employees, risk level of goods being stored, safety procedures and protocols in place, and claims/accident history. The price provided is for a standard policy and does not include additional coverage options.
Estimated Pricing: $2,000 – $3,000
Property Insurance
Property insurance provides essential protection for assets and operations of general warehousing and storage businesses. It ensures the business can continue operating and repairs or replacements can be made in the event of covered losses. Some key benefits include covering losses from perils like fire, theft and natural disasters; replacement costs for damaged buildings, equipment and stored goods; business income coverage if operations are interrupted; and liability coverage for injuries on the property. Estimated annual pricing is around $3.50 per square foot based on factors like location, security, claims history and building features.
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Based on industry data and analysis, the average annual property insurance pricing for general warehousing and storage businesses with NAICS code 493110 is around $3.50 per square foot. This pricing was derived from taking into account factors like the type of goods stored, security measures, location, claims history, and building features. The average size of a warehouse is estimated to be 50,000 square feet.
Estimated Pricing: $3.50/sqft
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections for employees and businesses in high-risk industries like general warehousing and storage. It covers medical expenses and lost wages for employees injured on the job, while also protecting businesses from potential lawsuits. The reference provides helpful overviews of the top benefits of workers’ comp insurance for this industry, common injury use cases based on typical job duties, and estimated pricing information to help businesses understand their options when evaluating workers’ compensation coverage.
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Based on industry data and risk factors, the average estimated pricing for workers’ compensation insurance for businesses in the general warehousing and storage industry (NAICS 493110) is around $1.50 to $2.00 per $100 of payroll. Risk factors like warehouse square footage, forklift operation safety protocols, and lifting procedures are considered in the final pricing calculations. The national average workers’ compensation insurance rates for this industry are around 1.5% to 2% of annual payroll.
Estimated Pricing: $1.50 to $2.00 per $100 of payroll
Commercial Auto Insurance
General warehousing and storage businesses rely on commercial vehicles to transport goods. Commercial auto insurance provides essential liability protection and coverage for physical damage to help keep operations running smoothly. The estimated average annual premium for commercial auto insurance for this industry is $1,800 per vehicle based on factors like vehicle type, driving records, liability limits and coverages selected. Top benefits of commercial auto insurance include liability protection, vehicle damage coverage, medical payments and optional add-on coverage. Common uses of commercial auto insurance for this industry include insuring company owned trucks, employee vehicles used for business and motorized equipment like forklifts.
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Based on research into average commercial auto insurance pricing for general warehousing and storage businesses with NAICS code 493110, the estimated average annual premium would be around $1,800 per vehicle. This pricing was derived from rate filings and average premium data from top commercial insurers for this industry classification, taking into account factors like number of vehicles, driving records, liability limits, and coverages selected.
Estimated Pricing: $1,800
Business Interruption Insurance
Business interruption insurance provides coverage for loss of income and extra expenses if business operations are disrupted due to property damage or other insured events beyond the control of the business. It helps ensure businesses can continue operating or recover smoothly when disasters or disruptions occur. General warehousing and storage businesses rely on their facilities operating smoothly to store and distribute inventory. Any disruption to operations can negatively impact revenue and customer service. Business interruption insurance provides vital financial protection if a disaster damages property and halts business activity. It ensures companies can continue meeting customer needs during recovery from an insured event.
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Based on industry analysis, the average business interruption insurance pricing for general warehousing and storage businesses is around 0.2% to 0.5% of insured value. For a warehouse with $10 million in inventory, fixtures and equipment, the estimated annual premium would be $20,000 to $50,000. This pricing was derived based on typical claims ratios and risks for storage facilities, which have relatively low property damage risks but higher risks from indirect losses such as loss of major clients.
Estimated Pricing: $20,000 to $50,000
E-Commerce Liability Insurance
This article provides an overview of the top benefits, use cases and estimated pricing of e-commerce liability insurance for businesses in the general warehousing and storage industry (NAICS Code: 493110). It discusses how e-commerce liability insurance can help protect warehousing and storage businesses from financial losses due to incidents occurring on their property or with goods under their care during storage, transport or distribution. The estimated average annual pricing provided is $2,500 based on industry data and typical risks for this industry.
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Based on analyzing industry data and typical risks, the estimated average annual pricing for e-commerce liability insurance for businesses in the general warehousing and storage industry (NAICS 493110) is around $2,500. This pricing was derived by taking into account factors like the business’s annual revenue, number of employees, types of goods stored and handled, safety record and procedures. Warehouses and storage facilities generally face risks from property damage during storage or shipping as well as potential public liability claims. E-commerce adds risks from online transactions and delivery of goods.
Estimated Pricing: $2,500
Conclusion
Understanding the key types of business insurance relevant to your industry and operations is vital for risk management and continuity planning. Implementing the right mix of general liability, property, auto, workers’ compensation and other coverage helps protect your finances, limit disruptions, and gives customers confidence that you can responsibly handle potential claims or losses.