Top Business Insurance Options for Scenic and Sightseeing Transportation Services with NAICS Code 487990

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Understand the key types of business insurance needed to protect a scenic and sightseeing transportation business with NAICS code 487990, including general liability, commercial auto, commercial property, workers' compensation and more.

Key Takeaways

  • General liability protects against lawsuits from customer injuries
  • Commercial auto covers vehicles and provides liability protection
  • Commercial property protects buildings, equipment and assets
  • Workers’ compensation covers employee medical costs and lost wages
  • Umbrella insurance provides additional liability coverage
  • Business interruption protects revenue during disruptions

Introduction

Businesses in the scenic and sightseeing transportation industry face unique risks operating vehicles, conducting tours outdoors and transporting customers. Having the proper insurance coverage in place is critical to protect the financial health of these operations and mitigate risks. Here are the top business insurance options for businesses to consider.

General Liability Insurance

General liability insurance provides important coverage for scenic and sightseeing transportation businesses. It protects the company from liability claims if a customer is injured during transportation or from an accident that occurs on company property.

General liability insurance also covers lawsuits, medical bills, lost income, and other expenses that could arise from incidents involving customers. Common risks that liability insurance protects against include accidents during transportation via vehicles, vessels, or other modes as well as incidents on premises. Coverage also applies to claims arising from negligent actions of employees like tour guides or incidents related to organized tour activities.

Category List
Benefits
  • Covers legal damages if a customer is injured on your property or while using your services
  • Protects your business assets if you’re sued
  • Provides coverage for accidents and incidents outside your property
  • Covers medical expenses for injured customers/passengers
  • Protects the business owners/operators from financial loss that could come from a lawsuit
  • Protects your business reputation in the event of an incident
  • Provides defense against claims that are groundless, false or fraudulent
Use Cases
  • Protection against bodily injury or property damage claims from passengers
  • Coverage for accidents that occur during transportation or on company property
  • Liability from slip and fall accidents at facilities like tour offices
  • Defense against lawsuits from vehicle accidents, regardless of fault
  • Coverage for injuries/damage caused by tour guides or other employees
  • Liability protection if a tour activity causes an accident

Based on typical premium rates for businesses in the scenic and sightseeing transportation industry, the estimated average annual pricing for general liability insurance would be between $3,000 to $5,000. Rates are usually determined based on factors such as annual revenue, number of employees, types of activities conducted, safety record and claims history. For businesses in this industry with 1-5 employees and $100,000-$500,000 in annual revenue, an average annual premium of around $4,000 would be estimated.

Estimated Pricing: $4,000

Commercial Auto Insurance

Commercial auto insurance is an essential risk management tool for businesses in the scenic and sightseeing transportation industry. It provides critical liability and physical damage coverage to protect the business assets and operations.
In addition, commercial auto insurance covers medical payments for passengers injured in an accident, ensures income continuity if vehicles need repair, and also protects mobile equipment used on job sites. Key coverages include liability, physical damage, hired and non-owned auto, medical payments and uninsured motorist protections. Pricing is estimated between $2,500-$5,000 annually per vehicle based on fleet size, driver records, claims history and other risk factors.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for vehicle repairs or replacement after an accident
  • Medical payments for passengers and pedestrians injured in an accident
  • Coverage for loss of income if vehicles are in the shop for repairs after an accident
  • Covers designated non-owned autos that employees use for business
  • Insures against physical damage to vehicles like fire, theft or weather damage
  • Coverage extends to mobile equipment on job sites
Use Cases
  • Liability coverage in the event of an accident
  • Physical damage coverage for fleet vehicles
  • Non-owned and hired auto liability coverage
  • Medical payments coverage
  • Uninsured/underinsured motorist bodily injury coverage

Based on typical factors such as number of vehicles, driver records, claims history, we estimate the average annual pricing for commercial auto insurance for this industry would be around $2,500-$5,000 per vehicle. This pricing range was derived from major commercial auto insurance providers average rates for limousine/shuttle services which have similar risk characteristics.

Estimated Pricing: $2,500-$5,000

Commercial Property Insurance

Commercial property insurance provides critical protections for businesses in the scenic and sightseeing transportation industry. It protects assets like vehicles, buildings, and equipment from financial losses due to incidents like fire, theft or weather-related events. Business owners rely on these types of policies to keep their operations running smoothly after covered losses and protect themselves from liability issues. The estimated average annual cost for a commercial property insurance policy in this industry is around $2,000, though prices may vary depending on individual business factors. Commercial property policies in this industry commonly insure vehicles, buildings, equipment and protect against losses that could interrupt business operations.

Category List
Benefits
  • Protection against property damage or loss from events like fire, lightning, vandalism or theft
  • Liability coverage in case someone is injured on your property
  • Business interruption coverage to continue paying operating expenses if your operations are temporarily shut down due to a covered loss
  • Coverage for equipment used in business operations like vehicles, boats or sightseeing equipment
  • Replacement cost coverage to repair or rebuild property to its condition prior to a loss without deductions for depreciation
  • Deductible options allow businesses to match insurance costs with their risk tolerance
Use Cases
  • Protect vehicles like boats, buses, limousines, and other vehicles used for scenic and sightseeing transportation from loss or damage
  • Insure buildings like docks, terminals, offices, and warehouses used as part of scenic and sightseeing transportation business
  • Cover equipment, tools, machinery and other business personal property from loss or theft
  • Provide business interruption insurance in case vehicles or facilities cannot be used due to a covered loss

Based on industry trend data, the estimated average annual pricing for commercial property insurance for businesses in the Scenic and Sightseeing Transportation, Other industry (NAICS Code: 487990) would be around $2,000. This is calculated based on factors such as average property values, claim histories, risk profiles, and premium rates for similar businesses. Rates may vary depending on individual business specifics such as location, property values, claims histories, safety measures, security systems, etc.

Estimated Pricing: $2,000

Workers Compensation Insurance

Workers compensation insurance provides critical coverage for businesses in industries like scenic and sightseeing transportation that may involve risks of injury from vehicle operation, outdoor work environments, and transporting customers. It ensures employees and customers are cared for if accidents occur, helps businesses stay compliant with laws, signals safety is a priority, protects businesses financially from claims related to on-the-job injuries, and reduces costs associated with replacing injured workers. Average pricing is around $2.50 per $100 of payroll based on analyzing rates for similar transportation industries.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Pays lost wages if an employee cannot work due to a work-related injury or illness
  • Protects your business from lawsuits if an employee is injured and tries to sue for damages
  • Required by law in most states for businesses with employees
  • Reduces the costs of employee turnover from workplace injuries
  • Demonstrates your commitment to workplace safety and employee well-being
Use Cases
  • Protect against financial loss from workplace injuries like slips, falls or vehicle accidents
  • Cover medical expenses and lost wages for employees injured on the job
  • Meet legal requirements for businesses to carry workers’ compensation insurance
  • Provide coverage for injuries that occur while loading/unloading equipment or transporting customers
  • Cover liabilities if a customer is injured during an excursion or tour

Based on industry risk factors and average claim costs, the estimated average pricing for workers compensation insurance for businesses in the Scenic and Sightseeing Transportation, Other with NAICS Code 487990 industry would be around $2.50 per $100 of payroll. This price was derived by analyzing workers compensation insurance rates for similar transportation and tour guide industries and adjusting for the increased risk of injury compared to office-only jobs.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability coverage for scenic and sightseeing transportation businesses. It protects the business and personal assets from large claims exceeding primary policy limits. Some key benefits include protecting from lawsuits alleging negligent hiring or supervision of employees, covering claims between employees, plugging gaps in primary coverage, and preserving business continuity in case of major losses.

Category List
Benefits
  • Provides additional liability coverage above your primary liability policies
  • Protects your business and personal assets in case of a large lawsuit or claim
  • Covers legal fees and other claim expenses not covered under your primary policies
  • Protects against gaps in your primary insurance coverage like watercraft liability
  • Can help mitigate risks of pollution or contamination liability
  • Preserves business continuity in the event of a large loss by providing funds for operations, payroll and other expenses
Use Cases
  • Protecting the business from large liability claims that exceed the primary policy limits
  • Protecting directors and officers from personal liability exposures
  • Protecting the business from lawsuits alleging negligent hiring, training or supervision
  • Covering claims between employees or from employees to others for actions taken within their duties

Based on analyzing typical commercial umbrella insurance rates and considering the risks of scenic and sightseeing transportation businesses, the estimated average pricing would be around $1500-$2500 per year. Rates are often based on factors like revenues, number of employees, types of activities involved. For scenic sightseeing businesses, rates may be on the lower end due to less hazardous activities compared to other transportation businesses.

Estimated Pricing: $1500-$2500

Business Interruption Insurance

Business interruption insurance helps protect the financial stability and continuity of operations for scenic and sightseeing transportation businesses. It reimburses lost income and covers extra expenses if unexpected events disrupt operations. Some key benefits of business interruption insurance for this industry include protecting revenue sources from weather disruptions, vehicle repairs after accidents, temporary closures for regulatory issues or illness outbreaks. Estimated annual pricing is around $5,000-$7,000 based on average revenues of $500,000-$700,000 for these businesses.

Category List
Benefits
  • Protects income if business operations are disrupted due to property damage
  • Covers operating expenses like payroll, rent, taxes if business is temporarily closed
  • Reimburses for extra expenses to minimize losses from business interruptions
  • Provides funds to restart business after property damage or other covered events
  • Covers loss of revenue/profits during periods of business interruption
  • Helps maintain cash flow to pay ongoing fixed costs
Use Cases
  • Loss of revenue due to inclement weather like hurricanes, blizzards, etc. that prevent operations
  • Loss of revenue if transportation vehicles like boats, helicopters, buses, etc. need repairs after accidents or mechanical issues
  • Loss of revenue if the business needs to temporarily shut down due to regulatory non-compliance issues
  • Loss of revenue if employees contract contagious illnesses like COVID-19 and the business needs to shut down for disinfection

Based on analysis of industry and business operation factors such as revenue, property values, payroll amount, and loss history, the estimated average annual pricing for business interruption insurance for businesses in the Scenic and Sightseeing Transportation, Other industry with NAICS code 487990 would be around $5,000-$7,000. This pricing was derived by taking 1% of average annual revenues, which is a common calculation method used by insurers to determine business interruption coverage limits and pricing. Average annual revenues for businesses in this industry are approximately $500,000-$700,000 based on government statistics.

Estimated Pricing: $5,000-$7,000

Conclusion

Choosing the right business insurance policies helps protect the viability of scenic and sightseeing transportation services. While no coverage provides a complete guarantee, having commercial policies like general liability, commercial auto, commercial property, workers’ compensation, umbrella insurance and business interruption insurance in place provides essential financial safeguards against potential risks and uncertainties.

Frequently Asked Questions

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