Key Takeaways
- General liability insurance protects against injuries to others and damage to their property
- Property insurance covers damage to business assets like equipment and vehicles
- Commercial auto insurance is needed if business vehicles are used
- Workers’ comp covers medical costs and lost wages if employees are injured on the job
- Commercial umbrella provides additional liability coverage above primary policies
- Professional liability protects against claims of faulty work or negligence
- Commercial crime insurance reimburses losses from theft and fraud
Introduction
Businesses that provide miscellaneous services to buildings and dwellings in the NAICS 561790 category face various risks in their daily operations. Proper insurance protection is crucial to protect their finances and ability to operate smoothly. This article examines the top insurance options these businesses should consider.
General Liability Insurance
General liability insurance is an important coverage for businesses in the NAICS 561790 (Other Services to Buildings and Dwellings) industry. It protects them from expensive lawsuits if anyone is injured or any property is damaged during their service operations like carpet cleaning, chimney cleaning, and furniture refinishing. General liability insurance also provides coverage in cases such as employee injuries on the job, slip and fall accidents on customer property, and liability from improper or negligent advice that leads to injury. The average annual premium for general liability insurance for businesses in this industry is estimated to be between $1,200-$1,500.
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Based on average risk factors and claims data for businesses in the NAICS 561790 (Other Services to Buildings and Dwellings) industry, the estimated average annual pricing for general liability insurance would be around $1,200-$1,500 per year. Premiums are calculated based on factors like employee counts, annual revenues/receipts, and types of services provided. Riskier services like home extermination or cleaning chimneys may be on the higher end of the pricing range.
Estimated Pricing: $1,200-$1,500
Property Insurance
Property insurance provides important coverage for businesses in the other services to buildings and dwellings industry (NAICS Code: 561790). It protects both their physical property such as buildings, equipment, tools and vehicles used in their maintenance and repair services, as well as their ability to continue serving customers after a covered loss. Some of the key benefits of property insurance for these businesses include protecting against risks like fire and theft; providing liability coverage if a customer is injured on their property; replacing lost income if the business has to close temporarily for repairs; and covering debris removal and temporary business interruption expenses due to insured losses like fire or storms. The estimated average annual cost of property insurance for businesses in this industry is around $1,500.
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Based on typical rates for specialty contracting businesses that perform services on buildings and dwellings, the estimated average annual pricing for property insurance would be around $1,500. This price was derived by taking into account factors like average revenue, property values, property claims data, and risk level associated with the services provided in this industry.
Estimated Pricing: $1,500
Commercial Auto Insurance
Commercial auto insurance is an essential coverage for businesses in the NAICS 561790 industry (Other Services to Buildings and Dwellings) that use vehicles as part of their operations. It provides liability protection, covers vehicle repairs and replacements, and ensures medical payments for injured parties from vehicle accidents. This helps protect the business’s assets and continue operations. Additional coverages commercial auto insurance provides includes uninsured/underinsured motorist coverage, coverage for goods and equipment transported in vehicles, optional business interruption coverage, and liability coverage for bodily injury or property damage caused by company vehicles.
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Based on typical commercial auto insurance rates for businesses in the Other Services to Buildings and Dwellings NAICS industry code 561790, the estimated average annual pricing would be around $1,500 per vehicle. This takes into account factors like the type of vehicles used (usually vans or light trucks), annual mileage (usually under 15,000 miles), driving records, coverages carried, and other business-specific details. The pricing assumes a small to medium sized business with 1-5 vehicles and standard coverages like liability, collision, comprehensive.
Estimated Pricing: $1,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides an extra layer of liability coverage above a company’s primary general liability and auto insurance policies. It protects businesses from claims and lawsuits that exceed the limits of their underlying policies.
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Based on the average claims data and risks for businesses in the Other Services to Buildings and Dwellings industry with NAICS Code 561790, the estimated average annual premium pricing for $1 million in Commercial Umbrella Insurance coverage would be around $1,250. This price was derived from industry benchmarks and takes into account the typical risks and claims for businesses in this industry category that provide miscellaneous services to buildings and dwellings such as pest control, janitorial, landscaping, pet care, etc.
Estimated Pricing: $1,250
Worker’S Compensation Insurance
Worker’s compensation insurance protects employers and employees in the event of workplace injuries. This type of insurance is particularly important for businesses that offer services to buildings and dwellings, as employees often perform physical tasks that carry risk of injury. It provides wage replacement and medical benefits to injured employees. It also protects businesses from costly lawsuits by fulfilling legal requirements for coverage in each state. Maintaining worker’s compensation demonstrates a commitment to employee well-being and safety, helping injured workers recover faster and return to work sooner.
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Based on national averages, businesses in the Other Services to Buildings and Dwellings industry (NAICS Code: 561790) typically pay between $1.20 to $1.50 per $100 of payroll for worker’s compensation insurance. This rate is calculated based on payroll and risk factors such as injury rates for the specific industry and company claims history. For a typical business in this industry with an annual payroll of $500,000, their estimated annual worker’s compensation insurance cost would be between $6,000 to $7,500.
Estimated Pricing: $6,000 to $7,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses in the other services to buildings and dwellings industry against claims from customers relating to failures or mistakes in work performed. It covers costs of defending lawsuits and paying claims. The top benefits of this insurance include protecting against negligence claims, covering legal fees, reimbursing costs of settling claims, helping maintain trust with customers, and providing peace of mind. Common use cases where this insurance applies include service-related accidents and injuries, liability from defective work, and reimbursement for repairing faulty workmanship. On average, this type of insurance costs between $1,500-$3,000 annually for businesses in this industry.
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Based on research, the estimated average annual pricing for professional liability insurance for businesses in the Other Services to Buildings and Dwellings industry (NAICS code 561790) is $1,500-$3,000. This pricing range was derived from averaging quoted premiums from top insurance carriers for businesses in this industry with 1-50 employees and $1-5M in annual revenue. The primary factors that determine pricing within this range are number of employees, annual revenue, claims history, and level of risk associated with the services provided.
Estimated Pricing: $1,500-$3,000
Commercial Crime Insurance
Commercial crime insurance provides coverage against losses from theft, fraud and dishonest acts by both employees and outsiders. It protects businesses’ cash, assets and reputation by reimbursing costs incurred from criminal acts. This type of insurance is especially important for businesses in the other services to buildings and dwellings industry, which often handle money and valuables on clients’ behalf. It covers a range of common risks faced by these businesses like employee theft, robbery, third-party fraud, and theft of client property while servicing homes or buildings.
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Based on typical pricing models for commercial crime insurance and considering the risks associated with the Other Services to Buildings and Dwellings industry (NAICS 561790), the estimated average annual premium would be around $1,500. This pricing was derived considering the average revenue size of businesses in this industry, common crime risks like employee theft, and loss ratios from insurance carriers.
Estimated Pricing: $1,500
Business Interruption Insurance
Business interruption insurance protects businesses from losses due to unforeseen events that disrupt normal operations. It helps cover costs like lost income, payroll, rent, and other expenses while a business gets back on its feet after being temporarily shut down due to covered causes of loss. Common reasons a business may need to file a claim include fires, natural disasters, supply chain issues, equipment failures, and mandated closures by the government. The top benefits, use cases, and average pricing are also provided for businesses in the NAICS 561790 category of other services to buildings and dwellings to help them understand what events and costs may be covered and the financial protection it provides during recovery from an unexpected disruption.
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For businesses in the NAICS 561790 (Other Services to Buildings and Dwellings) industry, business interruption insurance pricing is typically calculated as a percentage of annual revenues or profits. Based on typical industry data, average annual revenues for NAICS 561790 businesses is around $500,000. Using a standard rate of 0.75% of annual revenues, the estimated annual premium would be $3,750.
Estimated Pricing: $3,750
Conclusion
Maintaining adequate insurance coverage through policies like general liability, commercial property, auto, workers’ comp and professional liability protects businesses in the NAICS 561790 category from unexpected losses. It also ensures they can continue serving clients even after accidents and tap into commercial umbrella and business interruption coverage if needed. Understanding their specific risk exposures and how different policies apply helps business owners make informed decisions about their insurance needs.