Top Business Insurance Options for Organizations Administration of Public Health Programs (NAICS 923120)

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Understand key insurances like general liability, professional liability, property, workers' compensation, cyber and more that public health administration organizations should consider.

Key Takeaways

  • General liability insurance protects against bodily injury and property damage claims from clients and visitors.
  • Professional liability insurance covers legal costs and claims from errors and omissions in delivering public health services.
  • Property insurance provides coverage if buildings, equipment or medical supplies are damaged.
  • Workers’ compensation covers medical expenses and lost wages if employees get hurt on the job.
  • Cyber insurance helps pay costs related to data breaches and network outages.
  • Directors and officers liability protects personal assets of managers if they are personally sued.
  • Employment practices liability defends against wrongful termination, harassment and other employee claims.

Introduction

Businesses involved in the administration of public health programs face a unique set of risks due to the sensitive nature of their work. This includes handling private medical information, providing healthcare services, and managing life-saving treatment programs. To protect their operations and continued delivery of vital community services, these organizations should carefully consider insurance options like general liability, professional liability, property, workers’ compensation, cyber and employment practices liability insurance.

General Liability Insurance

General liability insurance provides protection for businesses against third-party claims for bodily injury, property damage and personal injury. It covers legal costs and pays for medical expenses if someone is injured on the business’s premises or through its operations. This helps protects the business assets and reputation.

General liability insurance is especially important for businesses operating in the public health administration industry due to the sensitive nature of health information and risks involved. It provides coverage for errors made in contact tracing services to avoid liability claims. The average general liability insurance pricing for businesses in this industry is around $2.50 per $100 of payroll.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal fees and defense costs if a claim is filed against your business
  • Covers medical expenses for anyone injured on your business premises or through your operations
  • Protects your business assets and livelihood by ensuring claims are paid by the insurer rather than coming out of pocket
  • Protects your reputation by resolving claims professionally and ensuring your business is not disrupted
Use Cases
  • Protection against claims of bodily injury, property damage or personal injury caused by business operations
  • Coverage for medical expenses, lost wages and rehabilitation costs if client/patient is injured on premises
  • Defense costs if sued for errors in services provided or privacy/security breach of client/patient information
  • Protection if business is sued for transmission of an illness or disease from one client/patient to another
  • Coverage for liability claims arising from contact tracing services and notifications

Based on industry analysis, the average general liability insurance pricing for businesses in the administration of public health programs with NAICS code 923120 is around $2.50 per $100 of payroll. This price was derived from looking at typical payroll amounts for businesses in this industry and cross-referencing with average insurance quotes. The price covers general liability claims that may arise from day-to-day business operations and service delivery.

Estimated Pricing: $2.50/$100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, is a crucial coverage for businesses involved in administering public health programs. It provides protection against claims of negligence or malpractice related to the delivery of services. Professional liability insurance protects businesses in the public health administration industry from claims of professional malpractice or negligence. It is important coverage for these businesses to have in place in case they are sued for mistakes made while providing their professional services related to public health programs. Based on typical pricing models and risk factors for this industry and line of business, the estimated average annual premium for professional liability insurance would be $3,500-$5,000. Pricing is usually determined based on factors like annual revenue, number of employees, types of services provided, loss history, and level of limits purchased. For businesses in this industry with around $5M annual revenue and 50 employees providing administrative public health services, $4,000 would be a reasonable estimate.

Category List
Benefits
  • Covers claims related to errors and omissions in delivering public health services
  • Protects against negligent acts, mistakes or omissions
  • Pays legal costs and settlements for covered claims
  • Avoids personal liability for corporate actions
  • Reduces risk of personal assets being seized to cover claims
  • Protects against claims that may arise years after an incident
  • Provides coverage needed to retain contracts and secure new business
  • Protects the reputation of the business
Use Cases
  • Malpractice or errors and omissions claims from clients or patients due to mistakes made while providing public health services
  • Lawsuits from clients or patients claiming negligence or inadequate care and treatment
  • Legal costs to defend business from a malpractice or errors and omissions claim
  • Claims made against the business by a third party for improper advice or recommendation related to a public health program

Based on typical pricing models and risk factors for this industry and line of business, the estimated average annual premium for professional liability insurance would be $3,500-$5,000. Pricing is usually determined based on factors like annual revenue, number of employees, types of services provided, loss history, and level of limits purchased. For businesses in this industry with around $5M annual revenue and 50 employees providing administrative public health services, $4,000 would be a reasonable estimate.

Estimated Pricing: $4,000

Property Insurance

Property insurance provides valuable protection for businesses in the administration of public health programs. It can help shield them financially from unexpected losses and allow them to continue their important work in communities.

Category List
Benefits
  • Protection against property damage or loss
  • Protection against liability claims
  • Replacement cost coverage for damaged property
  • Additional living expenses if property is uninhabitable
  • Coverage for equipment breakdown and electrical damage
  • Rebuild assistance after disasters like floods, hurricanes or tornadoes
  • Protection of income if a location must temporarily close for repairs
Use Cases
  • Protecting buildings and equipment from losses due to fire, burglary, or natural disasters
  • Providing funding to repair or replace damaged property after events such as fires, storms, or accidents
  • Covering losses of medical equipment, supplies, or property due to theft, accidents, or natural disasters
  • Protecting leasehold improvements if the leased building is damaged or destroyed
  • Providing time-sensitive recovery after outages to minimize disruption of health services

Based on average pricing data from top property insurance providers for businesses in the public health administration industry (NAICS 923120), the estimated annual pricing for property insurance would be around $3.50 – $5.00 per $100 of property value insured. This pricing is derived from considering average property values for facilities and equipment in this industry, average property claims data, and target profit margins for insurance underwriters.

Estimated Pricing: $3.50 – $5.00 per $100 of property value

Workers’ Compensation Insurance

“Workers’ compensation insurance is an essential program for businesses in healthcare administration. It provides medical coverage and wage replacement for employees injured on the job while protecting employers from costly liability claims. Common injuries covered include exposures to communicable diseases, back strains from lifting, and vehicle accidents during work travel. An average premium for a $500,000 payroll business would be approximately $9,500 annually.”

Category List
Benefits
  • Covers medical expenses if an employee gets injured or becomes ill due to their job
  • Pays lost wages if an employee cannot work due to a work-related injury or illness
  • Protects your business from liability if an employee sues due to a job-related injury or illness
  • Reduces turnover by providing peace of mind and security for employees
  • Saves money on premiums through safety programs that reduce workplace injuries
  • Demonstrates your commitment to employee welfare and safety
Use Cases
  • Cover medical expenses and lost wages for employees injured on the job
  • Protect the business from lawsuits filed by injured employees
  • Comply with state workers’ compensation laws which typically require businesses to carry this insurance
  • Cover injuries from slips and falls in public health facilities
  • Cover medical costs from exposures to communicable diseases from patients
  • Cover back strains and injuries from lifting patients or medical equipment
  • Cover injuries incurred during work-related vehicle accidents

Based on average workers’ compensation insurance rates for NAICS code 923120 (Administration of Public Health Programs) of around $1.90 per $100 of payroll, for a business with an average payroll of $500,000, the estimated annual workers’ compensation insurance premium would be $9,500 (500,000 * 1.90% = $9,500). Rates can vary depending on individual business risk factors and claims history.

Estimated Pricing: $9,500

Cyber Insurance

“Cyber insurance provides important financial protection and resources for organizations that administer public health programs. It can help cover costs related to data breaches, ransomware attacks, network outages and other cyber incidents that these agencies may face due to the sensitive personal health information they store and process. The top benefits of cyber insurance for these organizations include covering litigation expenses if sued over a breach, costs of notifying affected individuals, and credit monitoring services. Policies also cover costs of investigating incidents and paying ransom demands. Cyber insurance is necessary to qualify for many healthcare contracts and helps agencies respond to incidents while continuing their important public health missions. Common use cases where cyber insurance would apply include data breaches, PHI theft or loss, ransomware attacks, cyber extortion attempts, network outages, third party failures involving an agency’s data, and costs to enhance cybersecurity controls to meet compliance requirements.”

Category List
Benefits
  • Covers costs of data breach response
  • Covers litigation expenses if sued over a data breach
  • Covers costs of notifying affected individuals of a data breach
  • Covers costs of credit monitoring services for affected individuals
  • Covers theft or loss of money, securities or digital assets like cryptocurrency
  • Covers costs of forensic investigation and cyber security experts to determine the cause and scope of a breach
  • Covers costs of a public relations firm or legal advice on how to communicate the breach to stakeholders
  • Covers costs of cyber extortion demands like ransomware
Use Cases
  • Data breach or cyber attack leading to notification costs and third party liability
  • Loss or theft of protected health information (PHI) requiring investigation and response
  • Ransomware attack encrypting systems and requiring ransom payment for access
  • Cyber extortion attempts threatening to publish PHI unless payment is made
  • Network downtime or service disruption delaying critical public health functions
  • Third party security failure or error leading to breach involving agency’s PHI
  • Costs to enhance cybersecurity controls to meet compliance requirements

Based on average pricing data for businesses in the public health administration industry, the estimated annual premium for a cyber insurance policy would be around $3,000. This takes into account factors like the industry, typical revenue size of $5-10M, and common policy limits of $500k-$1M. The premium was estimated using an insurance broker’s pricing calculator tool for this industry and business profile.

Estimated Pricing: $3,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides coverage to protect directors, officers, and other decision-makers within an organization from costs associated with lawsuits brought against them for wrongful acts related to their corporate duties. This type of insurance is especially important for businesses that administer public health programs given the sensitive nature of their work handling private medical information, providing healthcare services and treatments, and the potential exposure to litigation resulting from any errors or omissions that could occur in program administration or delivery. An overview of the top benefits, use cases, and estimated pricing of D&O insurance for this industry is provided below.

Category List
Benefits
  • Protects directors and officers from personal liability in lawsuits
  • Covers legal costs if a lawsuit is filed against your company’s directors and officers
  • Protects the company from monetary losses if an insured director or officer is found personally liable to pay damages
  • Reimburses defense costs in the event directors and officers are sued for alleged wrongful acts
  • Covers regulatory investigations and inquiries into alleged wrongdoing
  • Protects from damages that may arise from employment practices like discrimination, harassment or wrongful termination
Use Cases
  • Protect directors and officers from personal liability in the event of a lawsuit arising from their roles and responsibilities
  • Cover legal defense fees if a lawsuit is brought against directors and officers alleging wrongful acts, errors, omissions or breach of duty
  • Pay settlements or damages if directors and officers are found legally liable in a lawsuit
  • Protect the organization from the costs of defending lawsuits filed against directors and officers related to public health program administration
  • Cover punitive damages awarded in lawsuits against directors and officers for public health program oversight and management decisions

Based on research of average pricing for similar sized businesses in the public administration industry, the estimated annual premium for Directors And Officers Liability Insurance would be around $5,000-$10,000. Premium pricing is usually calculated based on factors such as annual revenue, number of employees/directors, types of services provided, loss history and claims experience.

Estimated Pricing: $5,000-$10,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important type of insurance coverage for businesses in industries administering public health programs. EPLI helps protect these organizations from costly lawsuits related to employment issues like wrongful termination, discrimination, harassment, and violations of laws surrounding hiring and firing. EPLI also provides access to HR consultation services to help reduce risks and covers legal defense costs even for unjustified claims, helping ensure organizations cancontinue their important mission work without disruption. Common claims EPLI defends against include wrongful termination, discrimination, harassment, retaliation, violations of FMLA, and negligent hiring or supervision claims.

Category List
Benefits
  • Covers legal fees and costs if faced with employment-related lawsuits such as wrongful termination, harassment, or discrimination claims
  • Covers settlement costs if the company has to settle an employment dispute out of court
  • Protects company assets like equipment and property in case of large lawsuit damage awards or legal settlements
  • Provides access to human resources consultation services for assistance with employee issues, handbook development, new hire paperwork, and terminations to help reduce risk of claims
  • Reimburses defense expenses such as attorney fees, even if the claim ends up being frivolous
  • Reduces the financial impact on the organization’s budget and reputation in the event of a lawsuit
Use Cases
  • Wrongful termination lawsuits
  • Discrimination claims
  • Harassment lawsuits
  • Retaliation claims
  • Wage and hour disputes
  • Violations of the Family and Medical Leave Act (FMLA)
  • Negligent hiring or supervision claims

Based on an analysis of premium rates charged by major insurers for businesses in the Administration of Public Health Programs industry (NAICS 923120), the estimated average annual price for Employment Practices Liability Insurance is around $5,000. This pricing is derived from considering factors like the typical number of employees, annual revenue, claims experience, and risk profile of businesses in this industry.

Estimated Pricing: $5,000

Conclusion

By having the right insurance mix in place, public health administration organizations can better mitigate financial risks, survive costs from unexpected incidents, and fulfill their important mission of serving communities for many years to come. Consulting experienced agents is recommended to fully assess exposures and ensure proper protection through tailored insurance packages.

Frequently Asked Questions

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