Key Takeaways
- General liability insurance protects against claims of bodily injury or property damage from customers.
- Property insurance covers costs to repair or replace damaged business property and equipment.
- Business interruption insurance provides income replacement if the business must temporarily shut down.
- Commercial auto coverage is essential for businesses that use vehicles as part of operations.
- Workers’ comp covers medical expenses and lost wages for job-related employee injuries.
Introduction
Businesses classified under NAICS code 4599 for other miscellaneous retailers face an array of risks due to the variety of merchandise sold and interactions with customers. Proper insurance coverage is critical to protect these businesses financially against expenses from accidents, lawsuits, property damage and more. The top types of business insurance any retailer in this category should consider include general liability, property, business interruption, commercial auto, and workers’ compensation.
General Liability Insurance
General liability insurance provides protection for business owners against claims of bodily injury, property damage, and other losses resulting from negligent acts or omissions at their commercial operation. It helps shield a business’s assets from litigation expenses and damages awarded through lawsuits in relation to accidents and injuries that may occur.
General liability insurance also covers top benefits including legal costs if a customer is injured on premises, someone is hurt using a product or service, a supplier has an accident during delivery, a delivery driver causes an accident, property is damaged on premises, or a business vehicle causes an accident. It is especially important for retailers as customers regularly interact with business premises, products, and services. General liability provides protection against unexpected losses and lawsuits to help protect a business’s assets and earnings.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on an analysis of typical pricing factors such as revenue, number of employees, claims history, and risk level, the estimated average annual pricing for general liability insurance for businesses in the Other Miscellaneous Retailers industry (NAICS Code 4599) is around $1,500. This was calculated based on businesses in this industry having on average $500,000 in annual revenue, 5 employees, and being considered a moderate risk level for insurance purposes.
Estimated Pricing: $1,500
Property Insurance
Property insurance provides important protection for businesses in the other miscellaneous retailers industry (NAICS code 4599) against losses from damage or theft of property. It helps ensure funds are available to continue operating and recover from events like fires, storms or flooding that impact inventory, equipment, buildings and other business property. Having property insurance also protects businesses’ income if they temporarily must close for repairs after a covered loss and covers replacement costs without deductions for depreciation to fully repair or rebuild. Estimated average annual premiums for property insurance range around $2,500 depending on location, property value, claims history and security features.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical factors considered such as location, building size, property value, past claims, security features, the estimated average annual premium for property insurance would be around $2,500. This was calculated assuming a 2,000 square foot retail store located in a medium risk urban area with $500,000 of property value and no past claims.
Estimated Pricing: $2,500
Business Interruption Insurance
Business interruption insurance provides key protection for businesses in NAICS code 4599 against losses from unexpected closure due to covered events outside their control. It ensures financial stability and continuity of operations during recovery from hazards, disasters or other incidents that impact business property or customer access. Additional coverages within business interruption insurance help address indirect costs like temporary relocation expenses, extra operating costs, and lost profit claims that could threaten a business’s long-term viability following an insured disruption of their operations. Pricing typically falls within a range based on company size and risk profile to suit various budget levels.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical business interruption insurance pricing being around 0.5-1% of annual revenues for retailers, and the average annual revenue for businesses in NAICS 4599 being around $500,000, the estimated average annual pricing would be $2,500-5,000. This pricing takes into account average revenue size and risk level for businesses in this industry category. The pricing provided is an average estimate. Actual pricing would depend on individual business factors like location, size, claims history, risk management practices, and scope of coverage. Providing a range captures some of the variability in pricing that could occur between different businesses in this industry category.
Estimated Pricing: $2,500-5,000
Commercial Auto Insurance
Commercial auto insurance provides important liability and physical damage protections for retailers in the other miscellaneous industry (NAICS 4599) who regularly use vehicles as part of their business operations for deliveries, transporting inventory between locations, transport provided by sales representatives, and rental/loaner vehicles for customers. It covers costs from accidents and incidents involving business use vehicles. Coverage types like hired and non-owned auto protect businesses if an incident occurs in a vehicle that is rented or leased but not owned by the business. Based on analyzing rates for this industry, the estimated average annual commercial auto insurance premium would be around $1200 for 1-3 small delivery or service vehicles driving under 15,000 miles annually with a good claims history.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on analyzing commercial auto insurance rates for businesses in NAICS 4599 (Other Miscellaneous Retailers), the estimated average annual premium would be around $1200. This price was derived from looking at typical factors like number of vehicles, annual mileage, safety record, coverage limits. Businesses in this industry tend to have 1-3 small delivery or service vehicles driving under 15,000 miles annually with no major incidents reported in the last 5 years.
Estimated Pricing: $1200
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, provides crucial protection for businesses that offer professional services or advice. It covers costs if a client claims you caused harm or financial damage due to negligence. Businesses in the other miscellaneous retailers industry often handle a variety products that could potentially be defective or cause harm if not properly maintained. Professional liability insurance can help protect these businesses if a customer claims the business was negligent and caused unintentional harm or losses as a result. This type of insurance is especially important for retailers that perform installation, maintenance, or repair services in addition to product sales.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on analyzing typical pricing factors such as sales revenue, number of employees, past claims experience, and risk level of the industry, the estimated average annual premium for professional liability insurance would be around $2,500. The NAICS code 4599 industry has a moderate level of risk. Premiums tend to range from 1% to 3% of annual revenues for businesses in this industry. This pricing is derived from statistical averages of insurers’ rate manuals and actual policies/premiums for similar businesses.
Estimated Pricing: $2,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections for businesses in the other miscellaneous retailers industry. It covers medical expenses and lost wages if employees get injured on the job. This helps businesses avoid expensive lawsuits and encourages employees to recover and return to work quickly. Common injuries in this industry include slips, trips and falls, lifting injuries, repetitive motion injuries and cuts/lacerations from merchandise. Pricing is estimated to be $1.75 to $2.25 per $100 of payroll on average based on industry data and claims experiences.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and average claims, the estimated average pricing for workers’ compensation insurance for businesses in the Other Miscellaneous Retailers with NAICS Code: 4599 Industry would be around $1.75 to $2.25 per $100 of payroll. This price range was derived from analyzing payroll amounts and historical loss experiences of businesses in this industry.
Estimated Pricing: $1.75 to $2.25 per $100 of payroll
Cyber Liability Insurance
As a retailer handling sensitive customer data, cyber liability insurance provides important financial protections against cyber risks like data breaches, ransomware attacks, and network security failures. It can help cover lawsuits, regulatory fines, lost business costs, and professional services to respond to and recover from incidents. With an average premium of $2,500, cyber liability insurance is a cost-effective option for retailers in NAICS code 4599 to transfer these financial risks and keep their business operating smoothly even after an attack or breach.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on analyzing typical premium rates for businesses in the other miscellaneous retailers industry (NAICS 4599), the estimated average annual premium for cyber liability insurance would be around $2,500. This was calculated based on factors such as average annual revenues, number of employees, prior cyber claims/losses, and strength of cyber security practices. Businesses in this industry tend to have 10-50 employees and $1-5M in annual revenues.
Estimated Pricing: $2,500
Directors And Officers Insurance
Directors and officers (D&O) insurance protects businesses and the individuals who serve as the directors and officers from liability arising from claims made against them due to wrongful acts committed in their roles. It covers legal fees, settlements, judgments and other costs associated with lawsuits and protects personal assets. Some key benefits of D&O insurance for businesses in the other miscellaneous retailers industry include coverage for legal defense costs, settlements, governmental investigations, shareholder lawsuits, and employment claims like wrongful termination. Common uses cases where D&O insurance provides protection include shareholder lawsuits over wrong decisions, customer lawsuits over product harm or injuries, and employee lawsuits over wrongful termination, discrimination, or harassment. The estimated average annual premium cost for D&O insurance for businesses in this industry is $3,500.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on research of average pricing for D&O insurance for businesses classified under NAICS code 4599 (Other Miscellaneous Store Retailers), the estimated average annual premium is $3,500. This pricing is derived from averaging premium quotes from top insurance carriers for businesses in this industry with 1-50 employees and $1-5M in annual revenue.
Estimated Pricing: $3,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable additional liability protection for businesses in the other miscellaneous retailers industry. It covers costs and claims above primary insurance limits, protecting assets from costly lawsuits.
Common benefits of commercial umbrella insurance for businesses in the other miscellaneous retailers industry include providing protection from large liability claims exceeding primary insurance limits and protecting business owners from personal liability claims. It also provides additional coverage for slip and fall accidents on premises and lawsuits resulting from product defects or issues with merchandise sold.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on market averages, businesses in the ‘Other Miscellaneous Retailers’ industry with NAICS code 4599 can expect to pay around $2-4 per $1,000 of umbrella coverage. This pricing is calculated by looking at average claims costs and risks for businesses in the retail industry that sell a variety of merchandise. The pricing would be on the lower end for businesses with no losses or claims in the past 5 years. Additional pricing factors include number of employees, annual sales revenue, and types of activities. Common umbrella limits purchased are between $1-5 million.
Estimated Pricing: $2-4/1,000
Conclusion
By understanding the key risks retailers face and utilizing the appropriate insurance policies, businesses in the other miscellaneous retailers industry can feel secure knowing they have financial protection in place. This allows them to focus on operations without worries of one unexpected event severely impacting their finances and long-term viability.