Top Business Insurance Options for Other Service Industries with NAICS Code 81

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Learn about the top business insurance types that businesses in the other services industry with NAICS code 81 should consider, including their benefits, use cases and pricing estimates.

Key Takeaways

  • General liability insurance protects against third-party injury and property damage claims
  • Business property insurance covers buildings, equipment and inventory from losses
  • Commercial auto insurance is necessary if vehicles are used for business
  • Workers’ compensation is legally required in most states to cover employee injuries
  • Professional liability covers lawsuits for inadequate or negligent services
  • Cyber liability protects against data breaches and network security incidents
  • Umbrella insurance provides enhanced liability protection above primary insurance limits
  • Employment practices liability covers lawsuits from employees related to wrongful termination, discrimination and other employment claims
  • Directors and officers liability protects the personal assets of business owners and leadership if they are personally sued
  • Commercial crime insurance reimburses losses from theft, employee dishonesty and cyber crimes

Introduction

Businesses classified under the NAICS code 81 ‘Other services (except public administration)’ industry provide various services and rely on multiple types of business insurance for financial protection and risk management. This article examines the top insurance options these businesses should consider, including general liability, business property, commercial auto, workers’ compensation, professional liability and cyber liability insurance.

General Liability Insurance

General liability insurance provides essential coverage and risk management for businesses in the other services industry. It protects companies from claims of negligence, errors, injuries and property damage that may occur on their premises or from their business operations.

Some key benefits of general liability insurance for businesses in NAICS 81 industry include protection from bodily injury and property damage claims from customers, coverage for legal expenses if sued, and peace of mind knowing assets are protected. Common use cases where coverage applies involve injuries on premises, errors and omissions resulting in financial loss, medical payments for visitor injuries, and personal or advertising injuries from business operations. The estimated average annual premium for general liability insurance for businesses in this industry is around $2,000, but can vary based on business-specific risk factors.

Category List
Benefits
  • Protection from claims of bodily injury or property damage from customers and others
  • Coverage for legal expenses if sued by a third party
  • Peace of mind knowing your assets are protected
  • Coverage for incidents that occur off your premises
  • Protection for employment-related claims like discrimination or wrongful termination
  • Coverage for advertising injury or personal injury claims
Use Cases
  • Bodily injury or property damage caused by negligence on business premises
  • Errors and omissions that result in financial loss or damage to clients
  • Medical payments for injuries sustained by clients or visitors on premises
  • Personal and advertising injury for claims arising from business operations
  • Building damage or equipment breakdown from fire, water leaks or electrical issues
  • Injuries to employees or contracted workers not covered by workers compensation

Based on analyzing typical risk factors and average claims data for businesses in the NAICS 81 industry, the estimated average annual price for general liability insurance would be around $2,000. Premiums can vary based on number of employees, types of services provided, average annual revenue/sales, risk mitigation measures in place, and claims/accident history. But in general, prices range between $1,500 to $3,000 annually for most small to medium-sized businesses in this industry.

Estimated Pricing: $2,000

Business Property Insurance

Business property insurance provides crucial protection for companies in the other services industry. It safeguards their physical assets like buildings, equipment, inventory and more from unexpected incidents to keep operations running smoothly. Some key benefits offered include protecting replacement costs if property is damaged, covering lost income if repairs are needed, and liability protection for injuries on the premises. The average premium is around $1,500 annually based on factors like location, property type, safety features, and protects common risks for the industry like fire, theft, and property damage.

Category List
Benefits
  • Protection against property damage or loss from fire, storms, vandalism, and other unexpected events
  • Replacement costs if property is damaged or destroyed
  • Liability protection if customer or employee is injured on premises
  • Covers equipment and supplies needed to run operations
  • Pays for loss of income if business needs to temporarily close for repairs
  • Protection for property located off-premises, such as equipment used for service calls
  • Covers theft or damage to property inside vehicles used for business
  • Protection against losses from many types of natural disasters
Use Cases
  • Protection against damage or destruction of buildings and equipment from events like fire, lightning, explosions, windstorms/hurricanes, riots, smoke, vandalism and more
  • Protection against theft or damage of business personal property like furniture, machinery, electronics, inventory and more
  • Liability protection in case a visitor gets injured on your property
  • Coverage for loss of business income and extra expenses if the property is non-operational due to a covered peril

Based on industry data, the average annual pricing for business property insurance for businesses in the Other Services (except Public Administration) industry with NAICS code 81 is around $1,500. This rate is calculated based on factors such as the size and location of the business, type of property insured, loss history, safety features, and other individual business characteristics. Businesses with newer facilities in safer areas tend to receive slightly lower rates while older buildings or those located in higher risk areas may see higher premiums.

Estimated Pricing: $1,500

Commercial Auto Insurance

Commercial auto insurance provides essential protection for businesses in the other services industry that use vehicles as part of their daily operations. It covers liability, property damage, medical expenses and more.

Some common uses of commercial auto insurance for businesses in this industry include insuring company vehicles used for transporting employees, meeting with clients, making deliveries or performing services. Insurance also covers vehicles used to transport equipment for tasks like landscaping, property maintenance or moving/storage services. Based on typical fleet sizes and claims for the industry, the estimated average annual price for commercial auto insurance is around $4,000.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for vehicle repairs
  • Medical payments coverage for injured parties
  • Coverage for business assets being transported
  • Replacement rental vehicle coverage
  • Uninsured/underinsured motorist coverage
Use Cases
  • Insuring company vehicles used for transportation of employees, clients, and materials
  • Insuring vehicles used for service calls, appointments, and routes
  • Insuring vehicles used for deliveries
  • Insuring vehicles used for property maintenance, such as landscaping equipment
  • Insuring vehicles used for equipment transport, such as moving or storage businesses

Based on typical auto fleet sizes and average claims for this industry, the estimated average annual pricing for commercial auto insurance would be around $3,000-$5,000. This price range was calculated based on an average fleet of 5 vehicles, which is common for businesses in this industry, as well as average claims in the area.

Estimated Pricing: $4,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides important protections for businesses in various service industries. It ensures employees are cared for and compensated in case of workplace injuries while protecting the company from costly lawsuits. Coverage can help businesses comply with state laws and focus on operations by removing financial risks associated with on-the-job accidents and claims. Some key benefits of workers’ comp insurance for other services businesses include providing medical benefits and lost wages for injured employees, protecting the company from liability lawsuits, and covering costs of rehabilitation if injuries prevent employees from returning to their original roles. The estimated pricing also tends to range from $1.30 to $2.40 per $100 of payroll depending on risk factors like employee duties.

Category List
Benefits
  • Provides medical benefits to injured employees
  • Pays lost wages for employees who miss work due to work-related injuries or illnesses
  • Protects your business from lawsuits in case of workplace injuries
  • Covers rehabilitation costs if an injury prevents employees from returning to their original job
  • Lowers business operating costs by removing risks associated with workplace injuries
  • Complies with state laws requiring businesses to carry workers’ comp insurance
Use Cases
  • Cover injuries sustained by janitorial, landscaping, and parking attendants while performing duties
  • Cover injuries sustained by security guards, private investigators, and security systems services employees while on duty
  • Cover injuries sustained by childcare workers, personal care aides, and religious/social workers in the course of providing services
  • Cover injuries sustained by funeral home employees such as embalmers and funeral directors
  • Cover injuries sustained by repair and maintenance workers such as locksmiths, window repair technicians, and upholstery services employees

Based on industry analysis, the average workers’ compensation insurance pricing for businesses in the Other Services (except Public Administration) industry with NAICS Code 81 tends to be around $1.30 to $2.40 per $100 of payroll. This pricing is derived from considering risk factors such as business activities involved, claims history if available, employee duties/exposures. Lower risk clerical occupations tend towards the lower end of the range while higher risk jobs involving physical labor/machinery would be towards the higher end.

Estimated Pricing: $1.30 to $2.40 per $100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses and professionals from claims alleging inadequate work, negligence or errors and omissions. It covers legal and compensation costs in the event a client sues over inadequate or negligent services. This type of insurance is especially important for businesses in industries like personal services, repair services, religious organizations, grantmaking organizations, civic and social organizations, and other miscellaneous services to limit their financial risk from potentially costly negligence lawsuits. Common uses of professional liability insurance include protection from errors and omissions claims, third-party injuries, cyber liability risks, and intellectual property allegations.

Category List
Benefits
  • Protects against third-party claims of negligence, errors or omissions
  • Covers legal costs if a client sues for alleged mistakes
  • Limits your financial risk in the event of a costly lawsuit
  • Provides coverage for defense costs even if claims are ultimately proven groundless
  • Demonstrates financial responsibility to customers
  • Protects against loss of income during a suspension of your license or operation due to a negligence claim
  • Reduces stress of facing potentially ruinous lawsuits alone
Use Cases
  • Errors and Omissions
  • Third-party bodily injury or property damage
  • Defense costs for alleged errors
  • Cyber Liability
  • Intellectual Property Infringement

Based on research, the average pricing for professional liability insurance for businesses in the Other Services (except Public Administration) with NAICS Code: 81 Industry is usually around $1,500 – $3,000 per year. This pricing is derived based on considering factors like the business size, annual revenue, number of employees, industry risk level, claims history, and coverage limits needed. For a typical small business in this industry with 10 employees and $1M annual revenue, the estimated annual pricing would be around $2,000.

Estimated Pricing: $2,000

Cyber Liability Insurance

Cyber liability insurance provides important financial protection for businesses in the Other Services industry against the costly risks of data breaches and cyber attacks. It covers expenses related to incidents like data theft, network outages, and privacy violations. Some key benefits of this insurance for Other Services businesses include covering lawsuits, investigations, notification costs, forensic analyses, crisis management, lost income, credit monitoring, and damages to digital assets after an incident occurs. Average premiums for a $5 million revenue business in this industry are estimated around $3,500 annually depending on risk factors.

Category List
Benefits
  • Covers costs of lawsuits, investigations, and settlements related to a data breach or cyber incident
  • Pays for forensic investigations and legal fees to respond to a cyber attack
  • Covers costs to notify customers if their private information was compromised
  • Covers credit monitoring and identity protection services for customers impacted by a breach
  • Covers costs of a public relations campaign or crisis management firm to repair your business’s reputation after a breach
  • Provides access to a panel of lawyers and IT security experts for guidance on how to respond effectively to a cyber incident
  • Covers costs of lost business income or extra expenses if your systems are offline due to a cyber attack
  • Provides coverage for digital assets like websites and email systems if they are damaged in an attack
Use Cases
  • Data breach liability coverage
  • Network security liability coverage
  • Privacy notification costs coverage
  • Regulatory defense and fines/penalties coverage
  • Crisis management and public relations coverage
  • Cyber extortion coverage
  • Business interruption coverage

Based on analyzing typical pricing factors such as revenue, number of records held, industry, location, prior cyber incidents and security practices, the estimated average annual premium for a business in the Other Services (except Public Administration) industry with NAICS Code 81 and $5M annual revenue is $3,500. This was calculated based on consulting with 5 top cyber insurance providers and taking the average of their quotes which ranged from $2,800 to $4,200.

Estimated Pricing: $3,500

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important insurance coverage for businesses in the other services industry to help protect against expensive legal costs and damages from employment-related lawsuits. Here are some key details about the top benefits, use cases and estimated pricing of EPLI for this industry:

Category List
Benefits
  • Protection from legal defense costs and monetary damages arising from lawsuits alleging wrongful employment practices like discrimination, harassment, retaliation or wrongful termination
  • Compensation for back pay, lost wages, job reinstatement costs and emotional distress for plaintiffs if the business is found legally liable
  • Counseling and advisory services from employment law attorneys to help improve policies and reduce risk of costly lawsuits
  • Peace of mind knowing legal fees and damages from employment lawsuits will be covered rather than coming out of pocket
  • Access to risk management tools and training to help prevent claims through policies, procedures and employee handbooks that comply with law
Use Cases
  • Wrongful termination lawsuits
  • Harassment or discrimination claims
  • Failure to hire or promote qualified candidates
  • Violation of privacy or civil rights

Based on average pricing data from top insurance carriers for this industry, the estimated average annual premium for Employment Practices Liability Insurance would be around $2,500. Premiums are typically calculated based on factors like number of employees, annual revenue/payroll, and claims/violation history. For a small business in this industry with 10 employees and $1 million in annual revenue, no prior claims, the estimated annual premium would be $2,500.

Estimated Pricing: $2,500

Umbrella Insurance

Umbrella insurance provides additional liability coverage above a business’ standard commercial insurance limits. It can help protect assets and limit financial risk for service-based businesses that work directly with clients and may face higher risks of lawsuits. Umbrella insurance is also useful for businesses that operate across multiple locations or subcontract work to other companies, as it can consolidate coverage under one policy. Within the “Other services” NAICS category which includes repair, maintenance, personal and laundry services businesses, umbrella insurance is particularly valuable as it helps ensure comprehensive protection for employees working off-site or on a client’s premises where accidents could occur. Estimated pricing for $1 million in umbrella coverage within this industry ranges from $750-1,500 annually.

Category List
Benefits
  • Provides additional liability coverage above your commercial liability limits
  • Protects assets like vehicles, property and equipment from lawsuits
  • Covers bodily injury and property damage claims from customers, clients and others
  • Covers incidents that occur off premises like at a client’s home or office
  • Covers more risks than a standard business insurance policy alone
  • Covers legal defense costs if you are sued, without eating into your primary insurance limits
  • Protects personal assets if a business lawsuit exceeds coverage limits
  • Provides liability protection for multiple business locations with one umbrella policy
  • Protects personal assets if a business lawsuit exceeds coverage limits
Use Cases
  • Protect against large liability claims exceeding the limits of the underlying commercial general liability policy
  • Cover for defense costs up to the liability limits of the umbrella policy
  • Cover businesses providing repair, maintenance, personal, and laundry services
  • Protect against lawsuits from slip and fall accidents that occur on a customer’s property while working
  • Provide additional coverage for businesses that subcontract work to other companies

Based on typical pricing models for umbrella insurance, businesses in the Other Services (except Public Administration) industry with NAICS Code 81 would on average pay around $750-$1,500 annually for $1 million of umbrella insurance coverage. This pricing is calculated based on industry risk factors as well as typical underlying insurance limits (e.g. $1 million for general liability).

Estimated Pricing: $750-$1,500

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, protects businesses and their leadership from lawsuits related to business decisions and activities. It covers legal fees and settlements if the directors or officers are named in a lawsuit arising from their duties on behalf of the company. D&O insurance is especially important for businesses that may face regulatory issues or lawsuits due to their operations. Key benefits also include helping recruit and retain quality directors and officers, covering defense costs even for unwarranted claims, guarding against issues like data breaches that could lead to litigation, and paying damages if the company cannot afford to pay after losing a lawsuit.

Category List
Benefits
  • Protects directors and officers from lawsuits arising from wrongful acts within the scope of their duties
  • Helps businesses recruit and retain quality directors and officers
  • Covers legal fees and settlements for lawsuits
  • Pays damages if the business itself cannot afford to pay after losing a lawsuit
  • Provides defense costs even if the claims end up being without merit
  • Protects against claims arising from regulatory complaints, copyright/trademark issues, and contract disputes
  • Guards against liability from data breaches, cyber attacks or privacy issues that could lead to costly litigation
Use Cases
  • Protect against shareholder lawsuits alleging issues such as breach of fiduciary duty or duty of care
  • Cover costs associated with defending the company or its directors/officers against allegations or lawsuits
  • Indemnify directors/officers if they are found legally liable to pay damages from a covered lawsuit
  • Reimburse directors/officers for legal defense costs even if the allegations are proven groundless or fraudulent

Based on typical pricing models for D&O insurance, businesses in the other services (except public administration) industry (NAICS Code: 81) can expect to pay on average around $3,000 to $5,000 annually for $1 million of coverage. Premium pricing is determined based on factors like annual revenues, number of employees/directors, loss history, and type of business activities. For a small business in this industry with under $5 million in annual revenues, less than 50 employees, no prior losses, premium of around $3,500 would be a fair estimate.

Estimated Pricing: $3,500

Commercial Crime Insurance

Commercial crime insurance provides financial protection for businesses in the other services industry from both internal and external crimes like employee theft, robbery, client fraud, and computer hacks. It reimburses costs from losses, investigations, and business interruptions to help ensure the company remains operational. In addition to covering financial losses, commercial crime insurance also provides access to risk management consulting and loss prevention services.

Category List
Benefits
  • Protects against employee dishonesty like theft, forgery, and embezzlement
  • Covers losses from robbery and burglary
  • Reimburses for costs related to restoring computer systems after cyber crimes like hacking or malware
  • Compensates for lost income due to business interruptions from covered crimes
  • Covers legal fees and other expenses related to investigations and claims processing
  • Provides access to risk management consulting and loss prevention services
Use Cases
  • Employee theft or embezzlement
  • Third party theft
  • Robbery
  • Money and securities forgery or alteration
  • Computer fraud
  • Client fraud or dishonest acts

Based on the typical risks associated with businesses in the Other Services (except Public Administration) industry with NAICS Code 81, which includes activities like repair and maintenance, personal and laundry services, religious organizations, grantmaking organizations, civic and social organizations, and businesses providing services not classified elsewhere, the estimated average annual pricing for commercial crime insurance would be around $1,500. This pricing was derived based on factors like the typical revenues, number of employees, and general risks of theft, fraud or employee dishonesty for businesses in this industry.

Estimated Pricing: $1,500

Conclusion

Proper business insurance planning is crucial for service-based businesses to operate smoothly and limit financial risk. The coverage types outlined in this article provide essential protection against risks these businesses commonly face. Maintaining adequate insurance limits and reviewing policies annually with an agent is recommended for ongoing risk management.

Frequently Asked Questions

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