Top Business Insurance Options for Legislative Bodies with NAICS Code 921120

UncategorizedReading Time: 10 minutes

This article explores the most important types of business insurance for legislative bodies and government organizations classified under NAICS code 921120 including general liability, commercial property, commercial auto, workers' compensation, professional liability, cyber liability, commercial umbrella, directors and officers, and employment practices liability insurance.

Key Takeaways

  • General liability insurance protects against injuries to visitors and property damage claims.
  • Commercial property insurance covers costs to repair or rebuild damaged buildings and facilities.
  • Commercial auto insurance covers liabilities from vehicle accidents involving staff transportation.
  • Workers’ compensation insurance provides medical care and lost wages coverage for employee injuries on the job.
  • Professional liability insurance protects against lawsuits over advice or services provided.
  • Cyber liability insurance covers expensive data breach response costs and third party lawsuits.
  • Commercial umbrella insurance provides liability limits above standard policies.
  • Directors and officers insurance protects personal assets of directors and officers from business lawsuits.
  • Employment practices liability insurance protects against employment-related lawsuits like wrongful termination.

Introduction

Legislative bodies and government organizations classified under NAICS code 921120 face various business risks that threaten financial stability and continuity of operations. Proper insurance planning is crucial to mitigate exposure to liability claims, lawsuits, property damage, network security breaches, and other incidents. This article examines the most important types of commercial insurance legislative bodies should consider.

General Liability Insurance

General liability insurance is an important type of coverage that provides essential protection for businesses operating in the legislative bodies industry. It protects against costly claims and lawsuits that may arise from injuries or damage occurring on the premises or as a result of operations. Some key benefits of general liability insurance for this industry include covering bodily injury and property damage claims from visitors, defending against lawsuits from accidents at facilities, and providing protection from errors and omissions claims related to advice given. Pricing for general liability insurance for these businesses averages around $1,500 annually based on factors like payroll and risk level.

Category List
Benefits
  • Covers bodily injury and property damage claims from customers and third parties
  • Protects assets from lawsuits and resulting legal costs/settlements
  • Covers medical expenses for customers injured on your premises
  • Covers replacement or repair costs if your faulty work damages a customer’s property
  • Protects against slip and fall accidents and other injuries to visitors on your property
  • Provides coverage for injuries to co-workers or employees not covered by workers’ compensation
  • Defends you against false allegations and claims attempting to establish liability where none exists
Use Cases
  • Protect from claims of bodily injury or property damage from visitors at facilities and events
  • Cover costs of defending against lawsuits from accidents or injuries that occur on premises
  • Cover claims of errors and omissions from providing incorrect information or advice
  • Cover liability from damage or injury caused by contractors or temporary workers

Based on industry data, the average annual pricing for general liability insurance for businesses in the legislative bodies industry (NAICS 921120) is around $1,500. This price is derived from considering factors like average payrolls, number of employees, and risk level associated with the industry.

Estimated Pricing: $1,500

Commercial Property Insurance

Commercial property insurance is an important risk management tool for legislative bodies and government organizations. It provides financial protection against losses from property damage, theft, liability claims, and loss of income due to business interruption. Commercial property insurance offers legislative bodies key benefits such as replacement cost coverage to repair or rebuild damaged facilities, equipment breakdown protection, and liability coverage if anyone is injured on the insured property. It also helps ensure organizations can continue serving their communities even after experiencing covered losses like fires or natural disasters.

Category List
Benefits
  • Protection against financial loss from property damage or theft
  • Replacement cost coverage for damaged or lost property
  • Liability coverage for injuries or damages to others on your property
  • Additional living expenses if your property is uninhabitable after a covered loss
  • Lost income or earnings if your property is unusable after a covered loss
  • Equipment breakdown coverage for mechanical failures or electrical damage
  • Funds to upgrade property after a total loss to comply with latest building codes
Use Cases
  • Protection against fire damage to buildings and property
  • Coverage for damage caused by natural disasters like hurricanes, floods, earthquakes
  • Liability protection if a visitor is injured on your property
  • Replacement cost coverage to repair or rebuild damaged property
  • Business interruption insurance to cover loss of income if the property cannot be used

Based on data from the National Association of Insurance Commissioners and industry reports, the average annual pricing for commercial property insurance for businesses in the NAICS 921120 Legislative Bodies industry is $3,000-$5,000. Pricing is estimated using factors like the property value, location, loss history, security measures, and building materials/construction. The average property value for facilities in this industry is $5-10 million.

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

Commercial Auto Insurance

Commercial auto insurance provides key protection for legislative bodies that rely on vehicles as part of daily operations. It helps cover costs associated with liability, vehicle repairs, medical expenses, replacement vehicles, and loss of use while vehicles are being serviced.

The average annual price for commercial auto insurance for a legislative body is $1,500 per vehicle, with sedans being the most common type of vehicle covered. Factors like number of vehicles, driver qualifications, usage, safety features and driving records impact the final price.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for vehicle repairs if damaged
  • Medical payments for those injured in an accident involving your vehicle
  • Coverage for uninsured/underinsured motorists
  • Replacement cost coverage for a totaled vehicle
  • Waiver of depreciation for newer vehicles
  • Coverage for loss of use of a vehicle being repaired
Use Cases
  • Cover vehicles used for business purposes like fleet vehicles, staff transportation, facility vehicles
  • Protect against liability from accidents involving company vehicles
  • Provide coverage for medical payments for injured parties from accidents involving company vehicles

Based on industry data, the average annual price for commercial auto insurance for legislative bodies with NAICS code 921120 is $1,500 per vehicle. This price takes into account factors like number of vehicles, driver qualifications, safety features and driving records. The vehicles are typically sedans and used for transportation between offices and events by legislative personnel.

Estimated Pricing: $1,500

Workers’ Compensation Insurance

‘Workers compensation insurance provides key protections and benefits for both employees and employers in the legislative bodies industry. It ensures employees receive essential support if injured on the job while also protecting the organization from costly litigation. Some of the top pros include coverage of medical expenses and lost wages, protection from lawsuits, compliance with state laws, and assistance for employees to return to work through rehabilitation services.’

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 injury
  • Protects the business from lawsuits if an employee is injured and unable to work
  • Provides rehabilitation services to help injured employees return to work
  • Reduces costs of absenteeism, recruiting, and training associated with job injuries
Use Cases
  • Cover medical expenses and lost wages for employees injured on the job
  • Protect the legislative body from lawsuits filed by injured employees seeking damages
  • Comply with state laws requiring employers to carry workers’ comp insurance

Based on industry data, the average workers’ compensation insurance rate for businesses in the legislative bodies industry (NAICS 921120) is approximately $1.20 per $100 of payroll. This rate is calculated based on the risk level and average claims for this industry over time.

Estimated Pricing: $1.20 per $100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses and professionals in the legislative bodies industry from financial losses that could occur if they are sued for claims regarding their work or services. It covers legal defense costs and liability claims.

Category List
Benefits
  • Covers legal fees and damages from claims of error, omission or negligence
  • Protects business assets from large damage payouts
  • Reassures clients that they are protected if issues arise
  • Provides coverage for defense costs even if claims are ultimately proven groundless
  • Allows the business to focus on operations rather than litigation
  • Mitigates financial risk from lawsuits and claims
  • Provides coverage for defense costs even if claims are ultimately proven groundless
Use Cases
  • Protection against legal defense costs if sued by a client or third party for errors and omissions in services
  • Protection against damages or settlements if found liable in a professional liability lawsuit
  • Covers defense costs for regulatory or licensing board complaints and investigations

Based on typical risk factors and averages in the industry, professional liability insurance for businesses in the legislative bodies industry with NAICS code 921120 would likely be priced at $1,500 – $3,000 annually. Pricing is usually determined based on factors like the size of the business, annual revenue, number of employees, past claims experience, types of services provided, and risk management practices. For an average small to mid-sized legislative consulting business, $2,000 per year would be a reasonable estimate.

Estimated Pricing: $2,000 per year

Cyber Liability Insurance

Legislative bodies that handle large amounts of private citizen data face significant risks from cyber attacks and data breaches. Cyber liability insurance can help protect these organizations by covering costs associated with incidents like data breaches, ransomware attacks, third party lawsuits, credit monitoring services, notifying impacted individuals, and responding to cyber incidents in order to mitigate reputational and legal risks. The insurance is especially important for legislative bodies as a single data breach could potentially impact thousands of individuals and lead to costly legal battles and public relations issues.

Category List
Benefits
  • Covers data breach response costs like credit monitoring, legal services, and public relations expenses
  • Protects against lawsuits from clients or customers whose private information was compromised
  • Covers legal fees and fines/penalties from regulatory actions and privacy investigations
  • Reimburses for costs to notify clients of a breach and respond to individual inquiries
  • Covers business interruption expenses like lost income if systems are offline due to a cyber attack
  • Covers costs to recover and restore compromised systems and data
  • Provides access to breach response services and legal counsel in the event of an incident
  • Covers cyber extortion or ransomware attacks where hackers encrypt systems and demand payment for access
  • Covers costs associated with credit monitoring and identity theft protection services for individuals affected by a data breach
Use Cases
  • Data breach involving theft of personal information like SSN, phone numbers, addresses etc of citizens, customers and employees
  • Network security failure leading to disruption of critical IT systems and data loss
  • Damages and lawsuits from third parties affected by a data breach or system failure
  • Cost of notifying individuals and providing credit monitoring in the event of a breach
  • Ransomware attack locking critical systems and demanding ransom for data decryption
  • Third party liability if a contractor’s network is breached affecting the legislative body’s data
  • Reputational damage to brand if a data breach or system failure is widely publicized

Based on research of average cyber liability insurance pricing for small to medium sized businesses in the government sector, the estimated average annual premium would be around $2,500. This pricing is typically calculated based on factors like annual revenue, number of records held, security practices, and claims history. For legislative bodies their key risks would relate to data privacy regulations and potential network security breaches exposing constituent information.

Estimated Pricing: $2,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection for legislative bodies and government organizations. It protects organizations and elected officials from expensive lawsuits and ensures the organization is properly protected from a range of liability exposures.

Some key benefits of commercial umbrella insurance for legislative bodies and government organizations include:
– Provides liability coverage above primary insurance limits
– Covers legal defense costs above primary limits
– Protects personal assets of officials from lawsuits against the organization
– Covers liabilities not covered by standard business policies

Category List
Benefits
  • Provides additional liability coverage above your regular business insurance limits
  • Covers defense costs above your primary liability limits
  • Protects personal assets from costly lawsuits against your business
  • Covers liabilities not covered under standard business policies
Use Cases
  • Providing additional liability protection above the limits of underlying commercial policies like general liability, auto liability, employers liability
  • Covering discrimination, harassment, wrongful termination, and other employment practices liability claims not covered under general liability
  • Providing limits well above state minimum requirements for businesses operating fleet vehicles
  • Covering directors and officers from personal liability exposures that may arise from duties conducted on behalf of the organization
  • Protecting organizations and elected officials from lawsuits arising from administrative oversight or negligence
  • Covering legal costs associated with defending the organization and individuals covered from liability claims

Based on typical pricing structures for commercial umbrella insurance, businesses in the legislative bodies industry (NAICS 921120) can expect to pay around $1-2 per $100 of umbrella liability coverage, in addition to their underlying primary general liability policy, if they have no recent losses or claims. Factors like number of employees, types of operations/facilities, and loss history would impact the final quoted price. For a $1 million umbrella policy, the estimated annual premium would be $10,000-$20,000.

Estimated Pricing: $10,000-$20,000

Directors And Officers Insurance

Director and officers insurance (D&O insurance) provides coverage for lawsuits filed against directors and officers of an organization for errors made in their official capacities. It protects both the directors/officers and the organization from damages and legal defense costs of such suits. D&O insurance is especially important for legislative bodies given the political nature of their work and potential for lawsuits. It helps reimburse legal costs, cover settlements, and protects personal assets from business liabilities. D&O insurance also covers claims related to employment practices, regulatory investigations, cyber liability, and shareholder disputes.

Category List
Benefits
  • Covers legal fees and settlements for lawsuits filed against directors and officers
  • Protects personal assets of directors and officers from claims related to their duties
  • Covers defense costs even if allegations are found to be groundless or frivolous
  • Covers employment practices liability claims such as wrongful termination, discrimination, harassment etc.
  • Covers regulatory investigations and inquiries
  • Protects companies from lawsuits related to poor advice or judgment by directors and officers
  • Covers regulatory investigations and inquiries
  • Protects personal assets of directors and officers from claims related to their duties
Use Cases
  • Protection against legal actions and claims for wrongful acts
  • Reimbursement of legal defense costs for lawsuits
  • Coverage for settlements or judgments resulting from lawsuits
  • Protection for personal assets from business liabilities
  • Coverage for employment practices liability claims such as wrongful termination, harassment, and discrimination
  • Defense against shareholder derivative lawsuits
  • Protection against regulatory investigations and actions
  • Coverage for cyber liability from data breaches and privacy violations

Based on typical pricing models, the estimated average annual price for D&O insurance for businesses in the legislative bodies industry with NAICS code 921120 would be around $15,000-$25,000. Factors such as number of employees, annual revenue, and claims history help determine the final price. Larger organizations typically pay more due to higher risk levels.

Estimated Pricing: $15,000-$25,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides coverage for legislative bodies and organizations against costly lawsuits and damages resulting from claims related to violations of employment laws and practices. EPLI coverage can help protect legislative bodies from financial losses due to common claims such as wrongful termination, discrimination, harassment, retaliation, wage and hour violations, and workplace safety issues. It also provides access to legal and HR experts to help strengthen policies and reduce litigation risks. Pricing is estimated to average between $2,500-$5,000 annually depending on factors like annual revenue, number of employees, claim history, and HR best practices.

Category List
Benefits
  • Protects against claims of wrongful termination, discrimination, harassment and other workplace lawsuits
  • Covers legal costs associated with defending against employment-related claims
  • Compensates for back pay, lost wages, attorney fees and other damages if the lawsuit is lost
  • Covers punitive damages awarded in lawsuits against the organization
  • Provides access to legal and HR experts for counseling on policies and best practices
  • Reduces stress of unexpected lawsuits and protects organization’s reputation
Use Cases
  • Wrongful termination lawsuits
  • Discrimination claims
  • Harassment lawsuits
  • Retaliation or whistleblower claims
  • Wage and hour lawsuits
  • Workplace safety lawsuits

Based on research and industry data, the estimated average annual pricing for employment practices liability insurance for businesses in the legislative bodies industry (NAICS Code 921120) would be around $2,500-$5,000. Pricing is typically determined based on factors like annual revenue, number of employees, types of claims or lawsuits in the past, and strength of human resource policies and procedures. For this industry, insurers may offer slightly lower pricing given the public sector nature of the businesses and perceived lower litigation risk compared to private sector.

Estimated Pricing: $2,500-$5,000

Conclusion

In summary, general liability, commercial property, commercial auto, workers’ compensation, professional liability, cyber liability, commercial umbrella, directors and officers, and employment practices liability insurance offer crucial risk management protection for legislative bodies and government agencies. Having the right insurance mix can help limit financial losses and allow organizations to continue serving communities without disruption even after experiencing covered claims and incidents.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied