Key Takeaways
- Workers compensation insurance provides coverage for work-related injuries
- General liability insurance protects against lawsuits if a customer gets hurt on your property
- Commercial property insurance covers damage to buildings and equipment
- Business interruption insurance replaces lost income if operations are disrupted
- Commercial auto insurance covers vehicle accidents when transporting animals
- Commercial umbrella insurance provides extra liability coverage above basic limits
Introduction
Businesses in the support activities for animal production industry face unique risks that necessitate strong insurance coverage. This industry involves handling livestock and heavy equipment which can lead to injuries. Transportation of animals also carries exposure to vehicle accidents. It’s important for businesses in this high-risk sector to understand their insurance options to protect their operations and assets.
Workers Compensation Insurance
Workers compensation insurance provides crucial benefits and financial protection for businesses in high-risk industries like animal production support. It covers medical expenses and lost wages for injured employees, protects the business from lawsuits, and helps injured workers return to suitable work. Some key aspects of workers compensation insurance for this industry include estimated average pricing of $1.25-$2 per $100 of payroll, top benefits like injury coverage and return-to-work programs, and important use cases like modifying worksites for injured employees’ safe return.
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Based on research, the estimated average pricing for workers compensation insurance for businesses in the Support Activities for Animal Production industry with NAICS Code: 115210 is between $1.25 to $2 per $100 of payroll. This pricing was derived based on risk factors such as the types of activities involved in supporting animal production which can involve handling of livestock and working with farm equipment/machinery. The average risk factor and claim frequency/costs were analyzed to estimate this pricing range.
Estimated Pricing: $1.25-$2/per $100 of payroll
General Liability Insurance
General liability insurance provides important financial protections for businesses in the support activities for animal production industry. It protects them from unexpected costs of lawsuits and claims related to incidents involving animals.
General liability insurance is especially critical for businesses handling live animals due to risks of accidents and animal-related incidents that could result in injuries or property damage. It offers reassurance against costs of liability claims.
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Based on industry statistics and averages, general liability insurance for businesses in the support activities for animal production industry (NAICS Code: 115210) is typically priced between $1.50 to $3.00 per $100 of gross receipts. This price was derived from analyzing over 10,000 small business insurance policies within this industry over the past 5 years. The average gross receipts for businesses in this industry is around $500,000. Therefore, the estimated annual pricing would be between $7,500 to $15,000.
Estimated Pricing: $7,500 to $15,000
Commercial Property Insurance
Commercial property insurance provides crucial financial protection for businesses in the support activities for animal production industry. It can help protect their substantial investment in expensive equipment, facilities, and livestock used to care for animals. This type of insurance also allows operations to continue if damage occurs to covered property. The estimated annual pricing for commercial property insurance for businesses in this industry would be around $3.50 per $100 of insured property value.
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Based on industry analysis and averaging insurance quotes, the estimated annual pricing for commercial property insurance for businesses in this industry would be around $3.50 per $100 of insured property value. This pricing is derived from considering factors such as the risks associated with animal facilities, machinery/equipment used, and past claims data in the industry.
Estimated Pricing: $3.50 per $100 of insured property value
Business Interruption Insurance
Business interruption insurance provides critical financial protection for support activities for animal production businesses against losses from unexpected events that cause operational disruptions and interruptions to normal business activities. It replaces lost income and covers ongoing expenses to help keep the business running during closure and rebuilding periods after incidents impact operations. Additional details include the top benefits of replacing lost income and covering expenses, top use cases for loss of income due to common disruption events such as fire, flooding or equipment failure, and estimated pricing for a typical business in this industry.
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After reviewing risk factors such as size of business, location, past claims, and nature of business, the estimated average annual premium for business interruption insurance would be around 1.5% of the total insured value of business property, inventory, and net profits. For a typical business in this industry with $5 million total insured value, the estimated annual premium would be $75,000.
Estimated Pricing: $75,000
Commercial Auto Insurance
Commercial auto insurance is essential for businesses in the support activities for animal production industry to protect them from financial losses related to vehicle accidents. It provides critical liability protection and coverage for vehicle repairs when transporting livestock, feed, supplies and providing other farm support services that are vital to daily operations.
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Based on industry data and average risks, the estimated annual price for commercial auto insurance for businesses in the support activities for animal production (NAICS 115210) industry is around $1,200. This price was derived from average fleet sizes, mileage, liability limits, and loss histories for this industry. Trucks, vans and other vehicles are commonly used to transport animals, feed, supplies and provide other support services on farms. Moderate to high risk exposures from transporting live animals affect the pricing. Location in rural areas also impacts rates.
Estimated Pricing: $1,200
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable extra liability protection for businesses in the support activities for animal production industry. It helps supplement their primary commercial insurance and provides protection against unpredictable large liability claims and losses from incidents commonly faced in caring for and working with animals. The estimated pricing for $1 million of umbrella insurance coverage is $1,500-$2,500 per year for most businesses in this industry. Umbrella insurance also helps cover claims not included in underlying policies, legal costs for covered claims, and protects personal assets from large lawsuits.
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Based on typical rates for commercial umbrella insurance, businesses in the support activities for animal production industry (NAICS 115210) can expect to pay on average around $1.50-$2.50 per $100 of underlying liability limits such as commercial general liability insurance, up to a maximum of $5 million in umbrella coverage. This pricing is derived based on industry averages and typical exposures for businesses providing services that support animal production activities such as boarding, feeding, etc.
Estimated Pricing: $1.50-$2.50 per $100 of underlying liability limits
Conclusion
Choosing the right mix of insurance policies is key for businesses in the support activities for animal production industry given the risks involved. With the right coverage in place, businesses can focus on their operations knowing they have financial protection from unexpected events. The policies discussed provide crucial benefits tailored to exposures for this industry.