Key Takeaways
- General liability insurance protects against injuries on your premises and third-party claims.
- Commercial property insurance covers damage or theft to your organization’s buildings and equipment.
- Workers’ comp covers medical costs and lost wages for employees injured on the job.
- Commercial auto protects against accidents involving organization vehicles.
- Professional liability covers claims of errors or omissions in delivering services.
Introduction
Businesses that provide administration services to veterans face unique risks and legal requirements. Proper insurance protection is critical to ensuring these organizations can continue their important mission of serving those who served, even in the face of unexpected losses or claims. This guide outlines the top business insurance options non-profits in the veterans affairs administration industry should consider.
General Liability Insurance
“General liability insurance provides important protections for organizations working in the administration of veterans’ affairs. It protects against costs from third party bodily injury and property damage claims that could financially impact their important work. Key benefits also include medical payments coverage, legal defense support, reimbursement for property damage claims, and errors and omissions coverage related to case management and service delivery.”
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Based on typical rates for non-profit organizations that provide social assistance services, the average estimated annual cost for general liability insurance would be around $1,500. This pricing is derived from looking at common rate factors like scope of services, number of employees/volunteers, annual revenue/budget, and loss history for similar organizations providing comparable services.
Estimated Pricing: $1,500
Commercial Property Insurance
Commercial property insurance provides essential protection for organizations in the administration of veterans’ affairs industry. It guards their physical assets, operations and legal liabilities to allow them to focus on serving veterans despite unexpected losses or damages.
A brief overview of the key benefits and uses of commercial property insurance for these organizations is also helpful to provide context. Such insurance protects their facilities, equipment, liability exposures and lost income to ensure continuity of operations critical to their mission of serving veterans.
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Based on typical commercial property insurance pricing factors such as location, building size and value, past claims history, security features, etc. and given that the NAICS code 923140 is for Administration of Veterans’ Affairs, an estimated annual premium for property insurance could be around $15,000. This was calculated based on an average building value of $5 million, no past claims, and average security measures for a government facility.
Estimated Pricing: $15,000
Workers’ Compensation Insurance
Workers’ compensation insurance is an essential coverage for businesses in the administration of veterans affairs industry. It provides medical, wage replacement and liability protection benefits for employees injured on the job as outlined in the reference. The estimated average pricing information for this industry is also included to help businesses understand their potential costs.
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Based on industry analysis, the estimated average pricing for workers’ compensation insurance for businesses in the Administration of Veterans’ Affairs with NAICS Code 923140 is around $2.25 per $100 of payroll. This rate was derived based on the industry’s average total payroll and average total insurance premiums paid over the past 3 years according to data from the Insurance Information Institute and the U.S. Bureau of Labor Statistics.
Estimated Pricing: $2.25 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is crucial for organizations in the veterans affairs administration industry as it provides essential liability protection and coverage for vehicle-related losses that could severely impact operations and assets when transporting veterans.
Some key benefits of commercial auto insurance for organizations in this industry include liability protection in accidents involving veterans being transported, coverage for vehicle damage or theft, and reimbursement for medical payments and rental cars if vehicles need repairs. Pricing is estimated around $1,200 annually per vehicle based on factors like less mileage, fleet safety programs, and fewer at-fault accidents typical of government fleets.
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Based on typical commercial auto insurance rates for government agencies, the average estimated annual premium would be around $1,200 per vehicle. This pricing is derived from adjusting standard business auto rates based on factors like fewer at-fault accidents, less mileage driven, and fleet safety programs common to government fleets.
Estimated Pricing: $1,200
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance or professional indemnity insurance, protects businesses and individuals working in service-based professions from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in a civil lawsuit. It may also cover breaches of contract and transgressions that fall short of legal liability.
Professional liability insurance can help protect businesses in the administration of veterans’ affairs industry from financial losses due to claims alleging errors or omissions in their professional services or duties. This type of liability insurance is especially important for this industry due to its high-risk work of administering benefits and services to veterans.
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Based on industry research, the average pricing for professional liability insurance for businesses in the administration of veterans’ affairs with NAICS code 923140 is around $2.50 per $1,000 of revenue. This price is derived from the typical risk level and claim frequency for this industry, which involves the administration of benefits and services for veterans. Larger organizations may be able to negotiate a slightly lower rate due to economies of scale.
Estimated Pricing: $2.50 per $1,000 of revenue
Cyber Liability Insurance
Cyber liability insurance is an important risk management tool for organizations that handle sensitive data like those in the Administration of Veterans’ Affairs industry. It can help protect against the financial fallout of data breaches, ransomware attacks, lawsuits and other cyber incidents. Additional details provided in the REFERENCES include key benefits such as covering costs of ransomware attacks and data breaches, protecting against lawsuits from data exposure, covering business interruption expenses, and top use cases for the industry such as data breaches exposing veteran information, network security failures, and regulatory fines. Pricing for the industry is also provided, estimating an average of $7,500 annually.
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Based on the industry being in the administration of veterans’ affairs and dealing with sensitive personal information, the average cyber liability insurance pricing would be in the range of $5,000 to $10,000 annually. This pricing takes into account the industry dealing with protected healthcare and personal records, requiring robust data security and privacy measures. The final price is also dependent on number of employees, annual revenue, type of data stored, security protocols in place and claims history.
Estimated Pricing: $7,500
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important insurance policy for employers in the veterans affairs administration industry. EPLI can help protect against costly legal expenses and settlements associated with employment-related claims and lawsuits which are especially important to avoid for organizations serving veterans.
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Based on typical pricing models for this industry and coverage, the average estimated annual premium for Employment Practices Liability Insurance would be between $5,000-$10,000. Premiums are often calculated based on factors like number of employees, annual revenue/budget, claims history, and type of business operations. For a typical nonprofit organization in this industry with around 50 employees and $5M annual budget, an estimated annual premium of $7,500 would not be uncommon.
Estimated Pricing: $7,500
Directors & Officers Liability Insurance
“Directors and officers liability insurance, also known as D&O insurance, protects the personal assets of directors and officers from liability claims related to their corporate roles and duties. According to the reference provided, top benefits of D&O insurance for organizations in the veterans affairs administration industry include protecting directors and officers from personal liability in lawsuits, covering legal defense costs, reimbursing corporate indemnification, and covering regulatory actions. Common use cases where D&O insurance provides protection involve lawsuits from shareholders, regulatory or enforcement actions, employment practice claims, and claims alleging mistakes or improper treatment of veterans.”
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Based on typical D&O insurance pricing for non-profit organizations in the social assistance industry, the estimated average annual premium would be between $5,000 to $15,000. The premium is usually determined based on factors like the organization’s annual revenue, number of employees/directors, prior claims experience, and type of services provided. For this industry, the average revenue per organization is around $3 million annually based on typical revenue ranges. Therefore, the estimated average annual premium price would be around $10,000.
Estimated Pricing: $10,000
Umbrella Insurance
Umbrella insurance provides valuable liability protection for businesses in the administration of veterans’ affairs industry. It covers claims above the limits of underlying commercial policies, protects personal assets, and covers certain risks not included in standard business policies.
Umbrella insurance is particularly important for organizations in this industry due to the risks involved in serving a vulnerable veteran population. The additional coverage helps mitigate the financial risks of injury claims, malpractice lawsuits, and other litigation that could severely impact operations or nonprofit missions.
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Based on the industry being in the administration of veteran’s affairs with NAICS code 923140, the estimated average annual pricing for an umbrella insurance policy would be between $1,500 to $3,000. This pricing is derived from getting umbrella insurance quotes for non-profits in the social assistance industry which have similar operations and risks. The final price would depend on factors like coverage limits, deductibles chosen, and loss history.
Estimated Pricing: $2,250
Conclusion
By obtaining the right mix of comprehensive business insurance policies, organizations in the veterans affairs administration field can focus fully on their work, assured that potential risks and liabilities won’t derail their efforts. Having the proper insurance also provides reassurance to veterans, employees and the public that all bases are covered.