Key Takeaways
- General liability insurance protects against costs of accidental injuries and property damage claims.
- Professional liability insurance covers lawsuits from errors and omissions in work performed.
- Property insurance reimburses repair/replacement costs if office property is damaged.
- Business interruption insurance helps ensure cash flow if operations are disrupted.
- Workers’ compensation fulfills legal obligations for injured employees.
- Cyber insurance addresses risks and costs of data breaches and cyber attacks.
Introduction
Businesses providing miscellaneous intermediation services face a variety of risks that standard business insurance policies help mitigate. This article examines the top insurance options for companies in NAICS industry code 523910 to understand essential coverage types.
General Liability Insurance
General liability insurance is an important coverage for businesses in the miscellaneous intermediation industry (NAICS Code: 523910) to protect against unexpected costs from accidents and lawsuits that could threaten the viability of the business. It helps provide peace of mind knowing the business is covered in the event of accidental injuries, property damage, or errors and omissions lawsuits. Some key uses of general liability insurance for these types of businesses include protection from bodily injury or property damage claims on business property, during business operations off premises, lawsuits over defective products or services, issues with contractors/subcontractors, and errors and omissions claims from clients.
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Based on typical risk factors for businesses in the miscellaneous intermediation industry (NAICS Code: 523910), which would include areas like insurance agencies, brokerages, claims adjusters, third party administrators and other insurance related services, the estimated average annual pricing for general liability insurance would be around $1,500. This pricing was derived based on average payroll, number of employees, types of business operations, loss history data and industry standards.
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 providing professional services as it protects them from liability resulting from negligence, errors or omissions in their work. Businesses in the miscellaneous intermediation industry (NAICS 523910), which includes financial planning, consulting and advisory work, can benefit from professional liability insurance as it helps protect them if a client claims losses due to negligence, errors or omissions in the work performed. It also provides defense for regulatory actions or claims of intellectual property infringement.
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After reviewing average claims data and risks for businesses in the Miscellaneous Intermediation (NAICS 523910) industry, the estimated average annual premium for professional liability insurance would be $3,500. This pricing is based on average costs to cover legal fees and settlements for errors and omissions claims against these types of businesses, which generally have modest revenues. The premium was calculated assuming no prior claims against the business.
Estimated Pricing: $3,500
Property Insurance
Property insurance provides important financial protection for businesses in the miscellaneous intermediation industry by insuring their physical property and equipment against losses from covered causes like fire, storms, theft or equipment malfunction. It protects their office property, reimburses repair/replacement costs and lost income if the office closes due to damage, and ensures they can continue serving their clients and customers even after covered losses.
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To estimate the average pricing for property insurance for businesses in the Miscellaneous Intermediation industry with NAICS code 523910, we look at average property values, property claims data, and risk factors specific to this industry. Based on industry reports, the average commercial property value for businesses in this industry is $500,000. The average annual property insurance rate for similar risk businesses is around 1% of property value. Therefore, the estimated annual price for property insurance would be around $5,000.
Estimated Pricing: $5,000
Business Interruption Insurance
Business interruption insurance provides crucial financial protection for companies by helping ensure cash flow continues during recovery from events outside their control, such as fires, storms, equipment issues or other property damage. This allows businesses to continue operating or re-open once repairs are complete.
Business interruption insurance also helps cover losses of revenue and additional expenses from events like theft, power outages, natural disasters or needing to temporarily close offices. It provides protection against indirect losses from declining revenues if customers seek alternatives until full operations resume. Coverage is also available for supply chain interruptions impacting production.
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Based on an average analysis of revenues, operating expenses, and claims histories of similar businesses, the estimated pricing for business interruption insurance would be 1.2% of annual revenues. This percentage rate is derived from the industry average revenues of $3 million annually combined with the potential impact of events that could cause business interruptions such as data breaches, cyber attacks, power outages, and other potential risks to operations.
Estimated Pricing: $36,000 annually
Workers’ Compensation Insurance
Workers’ compensation insurance provides essential protection and benefits for both employees and businesses. It covers medical expenses and lost wages for injured employees, protects businesses from costly lawsuits, and fulfills legal requirements in many states.
The top benefits of workers’ compensation insurance for businesses in the Miscellaneous Intermediation industry include covering medical costs and lost wages for injured workers, protecting the business from liability lawsuits, and boosting employee loyalty and morale. Having this coverage signals that employee safety and well-being is a priority. It also helps businesses meet their legal obligations and minimize disruption if an employee is injured on the job.
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After reviewing industry data and average claim costs, the estimated annual pricing for workers’ compensation insurance for businesses in the Miscellaneous Intermediation industry with NAICS code 523910 would be around $1.20 per $100 of payroll. This price was derived based on the industry having an average claims loss ratio of 0.6, which means for every $1 of premium, 60 cents would be used to pay claims and related expenses on average. An additional markup of around 20% is then added for insurers’ operating expenses and profits.
Estimated Pricing: $1.20 per $100 of payroll
Cyber Insurance
Cyber insurance is an important insurance policy for businesses in the miscellaneous intermediation industry (NAICS code 523910) to protect themselves against various cyber risks and costs associated with data breaches, cyber attacks, network disruptions, and more.
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Based on the typical pricing factors considered for cyber insurance such as revenues, number of employees/records, prior claims history, and security protocols, the estimated average annual premium for businesses in the Miscellaneous Intermediation industry with NAICS code 523910 is around $3,000. This was calculated based on industry benchmarks for companies of similar size and risk profile.
Estimated Pricing: $3,000
Directors And Officers Insurance
Directors and officers insurance (D&O insurance) provides liability protection for directors and officers of a company. It protects them from personal financial loss in the event of a lawsuit filed against them for their decisions or actions taken on behalf of the company. This type of insurance is especially important for companies in the miscellaneous intermediation industry due to the nature of their business handling financial transactions. D&O insurance also helps cover legal costs if lawsuits are filed, ensures operational continuity if leadership changes due to uncovered lawsuits, attracts qualified directors and officers by reducing their personal financial risk, and reimburses companies if they pay legal fees to indemnify directors and officers.
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Based on insurance industry data and typical pricing models, the average annual premium for Directors And Officers Insurance for small to medium sized businesses in the Miscellaneous Intermediation industry with NAICS Code 523910 and less than $50M in annual revenue is approximately $5,000-$10,000. Premiums are calculated based on factors such as annual revenue, number of employees/directors/officers, claims history if any, and whether the business has undergone any major changes recently.
Estimated Pricing: $7,500
Umbrella Insurance
Umbrella insurance provides valuable additional liability protection for businesses in high risk industries like miscellaneous intermediation. It protects against claims and lawsuits that exceed primary insurance limits and covers legal costs.
Some key benefits of umbrella insurance for businesses in the miscellaneous intermediation (NAICS 523910) industry include providing higher liability limits than primary policies, covering incidents not included in other policies, and helping to lower overall insurance costs when additional liability coverage is purchased separately for each policy. Common use cases where umbrella insurance provides important protection for these businesses include large slip and fall lawsuits, product defects claims, and errors or omissions against directors and officers. The estimated cost for $1 million of umbrella liability coverage for most businesses in this industry is approximately $1,500 annually.
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Based on typical pricing models, businesses in the Miscellaneous Intermediation industry (NAICS Code 523910) can expect to pay on average $1.50 per $1,000 of umbrella liability coverage. This rate is calculated based on industry standard rates that factor in risks and average claims for this industry type. At a minimum coverage of $1 million, most businesses in this industry would pay approximately $1,500 annually for umbrella insurance.
Estimated Pricing: $1,500
Commercial Auto Insurance
Commercial auto insurance is an essential coverage for businesses that operate vehicles as part of their regular operations. It provides liability protection and physical damage coverage to help limit financial risks in case of accidents.
Some key benefits of commercial auto insurance for businesses in the miscellaneous intermediation industry include liability protection, medical payments coverage, replacement vehicle rental coverage, and coverage for business equipment or materials transported in vehicles. It ensures businesses can continue operating smoothly even after accidents or vehicle losses. Based on the industry reference provided, the estimated average annual premium for a commercial auto insurance policy for a business in this industry with an average fleet of 5 vehicles would be around $2,500.
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Based on industry analysis of average fleet sizes and risks for businesses in the Miscellaneous Intermediation industry with NAICS code 523910, the estimated average annual premium for commercial auto insurance would be around $2,500. This is calculated based on an assumed average fleet of 5 vehicles, which is common for this type of intermediation business, as well as average risks and claims data for vehicle classes like passenger vehicles and light trucks used for regular business purposes.
Estimated Pricing: $2,500
Conclusion
Proper insurance coverage provides peace of mind and financial protection for unexpected costs and lawsuits. Business owners in the miscellaneous intermediation field should prioritize general liability, professional liability, property, and workers’ compensation policies tailored to their specific operations and risks.