Key Takeaways
- General Liability insurance protects against third party claims such as customer injuries on premises.
- Property insurance covers equipment, tools and other business property against risks of loss.
- Auto insurance covers vehicles used for business purposes.
- Inland Marine insures equipment used off-premises or in transit.
- Workers’ Comp covers medical costs and lost wages for on-the-job injuries.
- Equipment Breakdown protects against losses from machinery failures.
- Cyber Liability covers costs of data breaches and cyber attacks.
- Professional Liability protects against lawsuits over faulty work.
Introduction
Businesses classified under NAICS Code 8112 that provide electronic and precision equipment repair and maintenance services require certain types of business insurance to protect their operations. This guide covers the most important insurance policies these businesses should consider including General Liability, Property, Auto, Inland Marine, Workers’ Compensation and more.
General Liability Insurance
General liability insurance provides important liability protection for businesses in the electronic and precision equipment repair industry. This type of insurance helps protect against lawsuits in cases where a customer is injured on the business premises or equipment is damaged during the repair process. It also helps cover legal fees if the business needs to defend itself against a liability claim. Pricing for general liability insurance for businesses in this industry averages between $1,500-$2,000 per year based on business size and other risk factors. General liability insurance covers key risks faced by equipment repair businesses like liability from faulty workmanship, injuries to customers or employees, and property damage claims.
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Based on industry analysis, the average pricing for general liability insurance for businesses in the electronic and precision equipment repair and maintenance industry (NAICS Code 8112) is around $1,500 – $2,000 per year. This pricing was derived from insurance quotes and policies from multiple large insurance companies for small businesses in this industry that have 1-10 employees, $100k-$500k in annual revenue, and are located in medium to large cities in the United States. The pricing can vary depending on business size, revenues, location risks, claims/loss history, and additional insurance coverage/options selected.
Estimated Pricing: $1,500 – $2,000
Business Property Insurance
As an electronics repair business, it is important to protect the valuable tools, equipment and other property essential to operations. Business property insurance provides crucial coverage for losses that could jeopardize the business. Some key coverages include protection against fire damage, theft of tools and equipment, liability if a customer’s device is damaged during repair, and replacement or repair costs for business property damaged by storms, weather events or natural disasters. Estimated annual premiums for a small business in this industry are around $1,200.
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Based on the industry data, businesses in the electronic and precision equipment repair and maintenance industry typically have average business property insurance pricing. Factors such as location, equipment value, number of employees are considered in determining the final premium. For an average small business in this industry with $100,000 equipment value and 5 employees, the estimated annual premium would be around $1,200.
Estimated Pricing: $1,200
Commercial Auto Insurance
Commercial auto insurance is an important risk management tool for businesses in the electronic and precision equipment repair and maintenance industry (NAICS Code 8112). It provides liability protection and physical damage coverage for company vehicles used to transport technicians and equipment to client sites. It also estimates the average annual price for commercial auto insurance would be around $1,500 per vehicle based on factors like number of vehicles, driver qualifications, areas of operation, miles driven and claims history. Commercial auto insurance ensures businesses in this industry are properly protected from financial losses due to accidents or claims involving company vehicles.
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Based on average risks and exposures for businesses in the electronic and precision equipment repair and maintenance industry, the estimated average annual price for commercial auto insurance would be around $1,500 per vehicle. This price was derived from considering average number of vehicles, driver qualifications, areas of operation, average miles driven, average claims per year, and other standard rating factors that insurance companies use to determine commercial auto insurance premiums for this industry.
Estimated Pricing: $1,500
Inland Marine Insurance
Inland marine insurance provides valuable coverage for equipment, tools, and other property used off-premises or in transit by businesses in the electronic and precision equipment repair and maintenance industry. Inland marine insurance can help ensure continuity of operations after a covered loss by replacing damaged or stolen specialized equipment essential to their business. It also provides fixed rates to budget for protecting valuable business property.
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Based on average inland marine insurance rates for businesses in the electronics repair and maintenance industry, the estimated annual pricing would be around $2.50 per $100 of insured equipment value. This pricing was derived by looking at typical equipment values for businesses in this industry, which often include electronics diagnostic and test equipment, precision tools and parts. The risk level for this industry is moderate so pricing falls in the middle range compared to higher risk industries like manufacturing and lower risk industries like professional services.
Estimated Pricing: $2.50 per $100 of insured equipment value
Workers Compensation Insurance
Workers’ compensation insurance provides essential coverage to help businesses in the electronic repair and maintenance industry protect their employees and finances from common on-the-job injuries and accidents. It replaces lost wages, covers medical costs from injuries such as burns and cuts, meets legal requirements, and protects against liability if a client’s equipment is damaged during repair work – helping attract skilled workers, retain top talent, and create a positive work culture. An average policy for this NAICS code 8112 industry costs around $2.50 per $100 of payroll.
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Based on industry data and risk factors, the estimated average pricing for workers compensation insurance for businesses in the electronic and precision equipment repair and maintenance industry (NAICS Code 8112) is around $2.50 per $100 of payroll. This estimate was derived from published industry rates that take into account factors like accident rates, injury types and costs, compliance with safety regulations, and company size.
Estimated Pricing: $2.50/100 of payroll
Equipment Breakdown Insurance
Equipment breakdown insurance provides critical coverage for businesses in the electronic and precision equipment repair and maintenance industry. It protects against unexpected repair costs and lost income from machinery failures.
Equipment breakdown insurance is especially important for these businesses as they rely heavily on specialized tools and machinery. Any unplanned downtime due to equipment failures can be very costly in terms of lost revenue and productivity. This type of insurance helps offset expenses to keep operations running smoothly.
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Based on industry benchmarks, the average equipment breakdown insurance pricing for businesses in the NAICS code 8112 (Electronic and Precision Equipment Repair and Maintenance) industry is around $0.50-$1.00 per $100 of insured value. This pricing is derived considering the type of equipment these businesses typically have such as electronics testing and repair equipment, precision measuring devices, and more. The risk level is moderate since proper maintenance is usually performed. A business with $500,000 insured value can expect to pay around $2,500-$5,000 annually.
Estimated Pricing: $2,500-$5,000 annually
Cyber Liability Insurance
This reference provides an overview of cyber liability insurance for businesses in the electronics repair and maintenance industry (NAICS code 8112). It covers the top benefits, use cases, and estimated pricing for a policy. As businesses in this industry handle customers’ personal electronic devices, they face risks of data breaches and system compromises. Cyber liability insurance can help cover costs and liabilities from various cyber incidents that could occur due to infected systems, careless data handling, or other cyber threats.
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Based on the industry type of Electronic and Precision Equipment Repair and Maintenance (NAICS Code 8112), the average pricing for a cyber liability insurance policy would be around $2,500 annually. This price was derived based on assessing the typical risk profile of businesses in this industry, which involves work on electronic equipment but not necessarily storing large amounts of customer data. The risk of a cyber incident is moderate. The policy would provide coverage for costs related to a data breach, legal claims, and system downtime from a cyber attack.
Estimated Pricing: $2,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, can help businesses in the electronics and precision equipment repair and maintenance industry (NAICS 8112) protect themselves from expensive liability claims and lawsuits related to faulty repairs, data breaches, or other errors. It provides important coverage for negligence, cyber incidents, and other legal and financial risks these businesses may face. It covers legal fees and settlements for claims made by clients for inadequate work or harm caused by the insured’s professional activity or advice.
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Based on average quotes from top insurance carriers for the electronic and precision equipment repair and maintenance industry (NAICS Code 8112), the estimated annual pricing for professional liability insurance would be around $1,500 – $3,000. Pricing is usually determined based on factors like number of employees, annual revenue, types of services offered, claims history, risk management practices. For a small business in this industry with 5 employees and $500,000 annual revenue offering general repair services for electronics and medical equipment, an estimated annual price would be $2,000.
Estimated Pricing: $2,000
Conclusion
Choosing the right combination of business insurance policies helps electronics and precision equipment repair shops minimize financial risks. The policies discussed in this guide such as General Liability, Property, Auto and others are essential for protecting business assets, employees, vehicles and revenue streams against losses.