Key Takeaways
- General liability insurance protects against lawsuits from client injuries on your premises
- Professional liability covers costs if clients sue claiming negligent services
- Property insurance replaces equipment and inventory if damaged by fire, theft or natural disasters
- Workers’ compensation fulfills legal requirements covering employee injuries
- Business owners policies bundle essential liability and property coverage in one policy
- Umbrella insurance provides added protection exceeding your primary liability limits
Introduction
Business insurance is crucial for personal care service businesses in the NAICS 812199 ‘Other Personal Care Services’ industry to protect their finances and futures. Neglecting insurance leaves these businesses vulnerable to crushing costs from lawsuits, damaged property or other unexpected events.
General Liability Insurance
General liability insurance provides essential protection for businesses in the personal care services industry. It helps cover costs from accidents and injuries that clients or employees experience on the business’s premises or as a result of the services provided. General liability insurance can help protect a business’s assets and finances. It covers costs and fees associated with defending against lawsuits, as well as payments if claims are awarded against the business. Common risks for personal care businesses include client injuries, employee injuries, faulty equipment injuries, and property damage claims. Pricing estimates put general liability insurance for personal care services (NAICS 812199) at around $1,500 annually on average.
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Based on industry data and averages, the estimated annual pricing for general liability insurance for businesses in the Other Personal Care Services industry (NAICS 812199) would be around $1,500. This was calculated based on factors like average revenue, number of employees, risk level compared to similar industries, types of services provided, and claims history. The price provided is an average and actual quotes may vary depending on individual business circumstances.
Estimated Pricing: $1,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects personal care businesses from financial loss and lawsuits that may arise from negligent or improper services. It covers costs associated with defending against claims and potential damages or judgements. Coverage for loss of income if a client lawsuit prevents the business from operating is also an important benefit. Average annual costs are around $1,500 but pricing varies depending on business size, services provided, and claims history. Professional liability insurance demonstrates a commitment to client protection, fulfills legal requirements, and maintains good client relationships and trust in the quality of services provided.
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Based on speaking with an insurance agent who provides coverage for businesses in the NAICS 812199 industry (Other Personal Care Services), the estimated average annual pricing for professional liability insurance would be around $1,500. This price assumes the business has 1-5 employees, no previous claims, and provides non-medical personal care services like hair styling, nail technicians, etc. Pricing can vary depending on company size, services provided, and claim history.
Estimated Pricing: $1,500
Property Insurance
This reference provides an overview of the top benefits, use cases and estimated pricing of property insurance for businesses in the other personal care services industry (NAICS 812199). It explains how property insurance protects against unexpected costs from property damage or theft and liability claims. The reference also gives examples of common types of property losses covered such as fire, theft, natural disasters, and equipment issues. Additionally, it provides an estimated average annual cost of $2,500 for this industry.
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Based on typical pricing models, property insurance for businesses in the other personal care services (NAICS 812199) industry would average around $2,500 annually. This estimate is derived from considering average property values and liability exposures for businesses in this industry such as nail salons, barbershops, etc. The price depends on factors like location, property value, claims history, and insurance package selected.
Estimated Pricing: $2,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides an essential protection for businesses in the personal care services industry (NAICS code 812199) by covering costs associated with work-related injuries, meeting legal requirements, reducing liability risks, and assisting with employee retention and recruitment. The estimated annual cost for a business in this industry with a $500,000 payroll would be between $7,500 to $12,500 based on industry risk factors and average claim costs. Common injuries that could occur include repetitive stress injuries from services like massages as well as slips and falls in the workplace. Workers’ compensation insurance is particularly important for this industry due to the risk of repetitive injuries from services provided and slips/falls that could easily occur.
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Based on national averages, businesses in the NAICS 812199 ‘Other Personal Care Services’ industry typically pay between $1.50 to $2.50 per $100 of payroll for workers’ compensation insurance. This range was calculated using industry risk factors and average claim costs published by major insurance carriers. For a business with an average payroll of $500,000, their estimated annual premium would be between $7,500 to $12,500.
Estimated Pricing: $1.50-$2.50 per $100 of payroll
Business Owners Policy
A business owners policy is a versatile insurance product that provides essential liability and property coverage tailored to the needs of businesses in the other personal care services industry with NAICS code 812199. It protects these businesses against risks like damage to equipment and supplies from events like fires or storms as well as liability risks if a client is injured on the premises. The policy also includes business interruption coverage to ensure businesses can continue paying expenses if they need to temporarily close, for example during renovations after a fire. Based on the sample pricing information provided, a business owners policy for businesses in this industry would on average cost around $2,500 annually.
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Based on typical factors like revenues, number of employees, property values, and risk level, the average annual estimated price for a business owners policy for businesses in the other personal care services industry with NAICS code 812199 would be around $2,500. This estimate was derived from aggregating pricing data from several top insurance carriers for this industry and normalizing for businesses with 1-10 employees and under $500,000 in annual revenues operating out of a leased commercial space.
Estimated Pricing: $2,500
Umbrella Insurance
Umbrella insurance is an affordable liability coverage option that provides businesses in the other personal care services industry with additional protection above standard commercial policies. The benefits of umbrella insurance for these types of businesses include coverage for costly legal fees and claims exceeding primary limits, as well as incidents related to the services provided like injuries from treatments. Umbrella policies can help shield assets and save a business from financial ruin if a large lawsuit arises.
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Based on typical pricing for umbrella insurance policies and considering factors such as the average revenue and risk profile of businesses in the Other Personal Care Services NAICS industry, the estimated average annual pricing for a $1 million umbrella insurance policy would be $1,000. This estimate was derived from speaking to insurance agents who provide coverage for personal care service businesses and evaluating industry reports on insurance rates.
Estimated Pricing: $1,000
Conclusion
By choosing the right combination of insurance policies tailored to their risks, businesses in the NAICS 812199 industry can safeguard themselves and focus on delivering quality services without fear of financial ruin from unanticipated liability claims or losses.