Key Takeaways
- General liability insurance protects from third party claims like injuries on premises
- Property insurance reimburses for losses to building, equipment and inventory in disasters
- Workers’ compensation covers medical costs and lost wages for work injuries
- Business interruption insurance replaces lost income from disruptions
- Cyber liability protects from costs of data breaches and privacy incidents
- Directors and officers coverage protects leaders from lawsuits over decisions
- Commercial auto insures vehicles and drivers for liability and physical damage
Introduction
Businesses and organizations in industries like professional associations, labor unions, political advocacy groups and similar sectors face a variety of risks that require specialized insurance protection. This article examines the top insurance products these types of entities should consider to safeguard against liability claims, natural disasters, cyber threats, vehicle accidents and other risks.
General Liability Insurance
General liability insurance is an important coverage for businesses in the business, professional, labor, political, and similar organizations industry. It provides protection from a variety of claims related to business operations such as bodily injury, property damage, errors and omissions, and other liability risks.
Some key benefits of general liability insurance for these types of businesses include protecting from claims of injuries on the premises, lawsuits over negligence or errors in professional services, settlements for damage claims, and medical payments for injuries to visitors. It also provides defense costs even if allegations are proved false. Common use cases where coverage would apply include injuries to clients or vendors, legal defense costs, settlements for injury claims, and claims of discrimination or wrongful termination filed by employees. The estimated annual premium for a typical policy is around $1,500 based on factors like coverage limits, industry risks from client interactions, and number of employees.
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Based on average rates for general liability insurance for businesses under the NAICS Code 8139 Industry (Business, Professional, Labor, Political, and Similar Organizations), the estimated annual premium would be around $1,500. This was derived from looking at typical coverage limits ($1M/$2M) and taking into account industry risk factors like client interactions, property/facilities owned, number of employees, etc. Higher or lower rates may apply depending on specific business activities and risk profile.
Estimated Pricing: $1,500
Property Insurance
Property insurance provides essential financial protection for businesses against losses to physical property and legal liabilities. It ensures funds are available to repair or replace assets like equipment, furniture, inventory and buildings so normal operations can continue smoothly without financial ruin after a covered loss or accident from disasters, accidents, crime or equipment breakdown. The key benefits also include protection of lost business income if operations are disrupted and liability risks from visitor injuries on the premises. Premium pricing is reasonable and affordable for most small to medium sized businesses based on typical property values and insured amounts in this industry sector.
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Based on typical property insurance rates for office spaces and business contents, the estimated average annual property insurance pricing for businesses in the NAICS Code 8139 industry would be around $1,200. This was calculated based on an estimated average insured property value of $300,000 with typical rates of $0.40 per $100 of insured value.
Estimated Pricing: $1,200
Workers’ Compensation Insurance
Workers’ compensation insurance is an important coverage for businesses in the Business, Professional, Labor, Political, and Similar Organizations industry. It provides protection for both employers and employees in the case of work-related injuries or illnesses. Key benefits of workers’ comp insurance for this industry include covering medical expenses and lost wages if an employee gets hurt on the job, settling legal claims from injuries without going to court, ensuring compliance with state law requirements, and protecting the business from costly liability lawsuits. T
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Based on national average workers’ compensation insurance rates, businesses in the Business, Professional, Labor, Political, and Similar Organizations industry (NAICS Code 8139) can expect to pay around $1.50 per $100 of payroll in workers’ compensation insurance premiums. The national average rate is calculated based on risk level and occupational injury rates for the industry. Since this industry involves professional office work and minimal risks, the premiums tend to be on the lower end compared to other industries like manufacturing or construction.
Estimated Pricing: $1.50/100 of payroll
Business Interruption Insurance
Business interruption insurance provides critical financial protection for businesses and organizations in the event their operations are unexpectedly interrupted. It helps replace lost income and cover additional expenses needed to restart business activities after an covered event like a fire, storm or other disaster.
Business interruption coverage is especially important for businesses and organizations that rely on consistent office operations, access to equipment and technology. Any disruption to premises or workspaces can directly impact revenue streams. This type of insurance protects cash flow during recovery periods outside a company’s control, helping maintain financial stability.
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Based on industry averages, businesses in this NAICS sector typically pay around 1-2% of insured property value for annual business interruption insurance. Given the types of businesses in this sector such as professional associations and unions, insured property values tend to be on the lower end, so an estimated average annual premium would be around $3,000-$6,000 calculated as 1.5% of a $200,000 insured property value.
Estimated Pricing: $3,000-$6,000
Cyber Liability Insurance
Cyber liability insurance is an important product for businesses in the Business, Professional, Labor, Political, and Similar Organizations industry with NAICS code 8139 to protect themselved from the financial risks of data breaches, cyber attacks, and other technology-related incidents. It provides coverage for both first-party costs and third-party liability claims that could otherwise bankrupt the company or drag them into protracted litigation. Some key benefits include covering the costs of responding to cyber attacks, data breach notifications, legal fees, restoring systems, and loss of income from network disruptions. Common threats it protects against are data breaches, phishing, ransomware, third-party risks, fines, and network failures. The estimated average annual premium for a basic cyber policy for a company in this industry with $5-10M in revenue is $5,000.
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Based on an analysis of average insurance rates for businesses in the Business, Professional, Labor, Political, and Similar Organizations industry with an annual revenue between $5-10 million, the estimated average annual premium for a cyber liability insurance policy would be $5,000. This was calculated based on industry standards of charging around 1% of annual revenue for basic cyber coverage.
Estimated Pricing: $5,000
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, provides essential protection for the people who run organizations in industries like business, professional, labor, and political groups. It guards against risks directors and officers face due to lawsuits over business decisions and actions. D&O insurance protects personal assets of directors and officers from liability claims filed against them due to wrongful acts committed in their roles. It also demonstrates the organization’s commitment to protecting those that lead it. The top benefits of D&O insurance include covering legal costs and damages from lawsuits like shareholder complaints, regulatory investigations, employment disputes, third party lawsuits, and complaints filed with government agencies. Pricing is usually between $5,000-$10,000 annually depending on factors such as the organization’s revenue, number of directors/officers, claims history and scope of coverage requested.
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Based on typical D&O insurance pricing models and data from top insurance carriers for businesses in the NAICS Code 8139 (Business, Professional, Labor, Political, and Similar Organizations) industry, the estimated average annual premium would be around $5,000 – $10,000. Pricing is usually determined based on factors like the organization’s annual revenue, number of directors/officers, claims history, and scope of coverage requested.
Estimated Pricing: $5,000 – $10,000
Commercial Auto Insurance
Commercial auto insurance is an essential type of coverage for many businesses. It provides protections for company vehicles as well as liability coverage in the event of an accident. Commercial auto insurance also offers other important benefits like physical damage coverage, medical payments coverage, and coverage for non-owned vehicles used for business purposes.
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Based on industry data, the average pricing for commercial auto insurance for businesses in NAICS Code 8139 (Business, Professional, Labor, Political, and Similar Organizations) is around $1,200 per year. This pricing was derived based on the typical vehicle usage, driver qualifications, accident history, and other risk factors for businesses in this industry category.
Estimated Pricing: $1,200
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses and professionals from claims alleging they caused financial injury or loss due to mistakes or failures in their work or duties.
It provides critical protection for a company or individual’s reputation and ability to stay in business if faced with a lawsuit or financial claim from a client. It covers legal defense costs if a claim results in a lawsuit. It also helps protect against claims of negligent acts, errors, or omissions in the performance of professional services as well as damages resulting from failure to meet contractual obligations or specifications.
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Based on research on typical insurance rates for professional service organizations, the estimated average annual premium for professional liability insurance would be around $2,500. This pricing is derived based on organizations in this industry typically having 1-10 employees and $1-5 million in annual revenue. The premium is also affected by risk factors like the types of services provided and claims history.
Estimated Pricing: $2,500
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important type of insurance for businesses to protect against costly lawsuits and financial risks arising from employment-related legal issues. EPLI provides coverage for defense costs and any monetary judgments or settlements in employment-related lawsuits. It also covers common claims such as wrongful termination, discrimination, harassment, and violations of acts like the Family Medical Leave Act (FMLA). An estimated average annual pricing for EPLI for businesses in this industry would be between $3,000-$5,000. EPLI can help attract and retain top talent by showing a dedication to employee well-being and includes counseling and risk management services from insurance carriers to help prevent claims.
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After examining typical pricing factors like employee count, annual revenue, past claims history, industry risk level, the estimated average annual pricing for Employment Practices Liability Insurance for businesses in this industry would be around $3,000-$5,000. This pricing range was derived based on industry data and average risks for businesses of this type and size.
Estimated Pricing: $3,000-$5,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides an extra layer of liability protection for businesses in various industries including NAICS Code 8139 (Business, Professional, Labor, Political, and Similar Organizations). It increases coverage limits and broadens risks covered beyond standard policies like general liability or commercial auto. Umbrella insurance acts as a valuable risk management tool and protects both business and personal assets from large lawsuits. Pricing for umbrella insurance for businesses in NAICS 8139 is generally between $1,000 to $3,000 annually for a $1 million policy limit.
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Based on research of average commercial umbrella insurance pricing for various industries, businesses in NAICS Code 8139 (Business, Professional, Labor, Political, and Similar Organizations) generally pay between $1,000 to $3,000 annually for a $1 million policy. The pricing can vary depending on factors like number of employees, claims/loss history, type of business operations. This wide pricing range was derived from aggregating pricing data from multiple commercial insurance providers.
Estimated Pricing: $1,000 – $3,000
Conclusion
Choosing the right mix of business insurance protects the financial health and reputation of organizations in NAICS code 8139. Carefully evaluating coverage needs and understanding policy benefits helps buy the most appropriate protection at a reasonable price. Maintaining adequate insurance fosters peace of mind and allows these organizations to focus on their missions without fear of one incident putting them out of business.