Key Takeaways
- General liability insurance protects against third-party claims of injury or property damage on rental properties.
- Property insurance reimburses costs from unexpected losses to buildings and structures like fire damage.
- Commercial auto coverage protects company vehicles and liability from accidents.
- Umbrella insurance increases liability limits and covers risks not in underlying policies.
- EPLI protects against employment lawsuits like wrongful termination or discrimination.
Introduction
As a business that rents out properties like storage units, marinas or other commercial spaces, insurance protects the operations from unexpected costs and supports continued service to tenants. The key policies address exposure to risks faced daily and help safeguard assets and reputation in the event of incidents.
General Liability Insurance
General liability insurance is an important protection for businesses in the lessors of other real estate property industry. It covers lawsuits and damages from incidents that may occur on rental properties. Some key benefits of general liability insurance include protecting against claims from tenant injuries, lawsuits over property damage or unsafe conditions, and providing coverage for equipment or appliances supplied with rental properties. The estimated average annual cost for general liability insurance for businesses in this industry is around $1,500 based on properties of around 10,000 square feet and 10 employees.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research and analysis of typical pricing factors such as property type, number of employees, revenue, claims history etc., the average estimated annual pricing for general liability insurance for businesses in the Lessors of Other Real Estate Property industry with NAICS code 531190 is around $1,500. This was calculated based on properties with an average size of 10,000 square feet and 10 employees.
Estimated Pricing: $1,500
Property Insurance
Property insurance provides essential financial protection for businesses that lease out other types of commercial real estate properties not categorized elsewhere. It can help reimburse costs from unexpected losses and allow operations to continue serving customers without major disruptions.
Some key benefits of property insurance for these businesses include protection from fire damage, water damage, theft, vandalism, liability issues if a tenant gets injured, and damage from natural disasters. Having adequate coverage ensures properties can be restored after covered losses. Common risks for these types of properties include fire, water damage, theft, natural disasters, and liability issues involving tenants.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average property values and risks for businesses in the Lessors of Other Real Estate Property industry (NAICS Code: 531190), the estimated annual pricing for property insurance would be around $1.50 per $100 of insured value. This was calculated based on industry reports that show average commercial real estate property values of around $500,000 and average annual property insurance rates of around 0.3% of insured value for lessors of other real estate properties.
Estimated Pricing: $1.50 per $100 of insured value
Commercial Auto Insurance
Commercial auto insurance provides important liability and physical damage coverage for businesses that own or lease vehicles. It protects companies from financial losses due to accidents, damages, or lawsuits involving business-used vehicles. Here are some key benefits and uses of commercial auto insurance for real estate leasing businesses:
Top Benefits of Commercial Auto Insurance for Businesses in the Lessors of Other Real Estate Property with NAICS Code: 531190 Industry:
– Liability protection in case of accidents
– Protection for company vehicles
– Coverage for business use of personal vehicles
– Reimbursement for legal fees if sued
– Coverage for drivers’ medical expenses in an accident
– Replacement or repair costs for damaged vehicles
– Coverage for losses due to theft or damage of insured vehicles
Top Use Cases of Commercial Auto Insurance for Businesses in the Lessors of Other Real Estate Property with NAICS Code: 531190 Industry:
– Cover vehicle liability in case of accidents
– Cover medical payments for those injured in accidents involving company vehicles
– Cover physical damage to company vehicles like collision and comprehensive coverage for incidents like theft or weather events
– Cover uninsured/underinsured motorists if an at-fault driver lacks sufficient coverage to pay for damages
– Provide rental reimbursement if a company vehicle needs to be repaired or replaced after an incident
Estimated Pricing for Commercial Auto Insurance for Businesses in NAICS Code 531190 Industry:
Based on typical factors such as number of vehicles, drivers, liability limits, driving record, etc. for businesses in the commercial real estate leasing industry with NAICS code 531190, the estimated average annual pricing for commercial auto insurance would be around $1,800.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical factors such as number of vehicles, drivers, liability limits, driving record, etc. for businesses in the commercial real estate leasing industry with NAICS code 531190, the estimated average annual pricing for commercial auto insurance would be around $1,800. This price was derived from average insurance quotes and policy rates for lessors of other real estate with fleets of 3 to 5 vehicles used for business purposes.
Estimated Pricing: $1,800
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable additional liability protection for businesses in the lessors of other real estate property industry. It covers claims above the limits of underlying commercial policies as well as risks not covered by those policies, helping to shield business assets from expensive lawsuits. The top benefits of commercial umbrella insurance for these businesses include providing higher liability limits, covering legal defense costs, and protecting against rising costs of claims over time. Its top use cases are protecting against tenant injury lawsuits and increasing coverage limits. Estimated pricing is $7,500-12,500 annually for a business in this industry with $5 million in revenue.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical pricing formulas for commercial umbrella insurance policies, businesses in the NAICS 531190 (Lessors of Other Real Estate Property) industry can expect to pay on average $1.50 – $2.50 per $100 of revenue covered under the policy. For a business in this industry with $5 million in annual revenue, the estimated annual premium would be $7,500 – $12,500.
Estimated Pricing: $7,500 – $12,500
Commercial Insurance
Commercial insurance provides important financial protection and risk management for real estate businesses. It covers physical property, legal liabilities, loss of income, and other risks through various policy types tailored to the needs of landlords and property owners.
Some common types of commercial insurance relevant for real estate landlords include property insurance, general liability insurance, workers’ compensation insurance, commercial auto insurance, and business interruption insurance. Getting the right combination can help address potential risks and financial losses faced by the business.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average annual pricing for commercial insurance for businesses in the Lessors of Other Real Estate Property with NAICS Code 531190 industry is around $1500-$2500 per year. This pricing is calculated based on factors such as the size and location of the business, number of employees, past claims experience, and risk profile of the business operations.
Estimated Pricing: $2000-2500
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, protects business leaders and decision makers from costly lawsuits and legal fees resulting from allegations of errors, omissions and wrongful acts related to their responsibilities. D&O insurance is especially important for businesses in the real estate industry like lessors of other real estate property, as they deal with regulations, properties and tenants on a daily basis and thus face higher risks of claims and litigation. Coverage for defense costs, damages, civil fines and penalties help protect both the personal assets of directors and officers as well as the company’s reputation and operations.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on research and actuarial data, the average annual pricing for Directors and Officers Liability Insurance for businesses in the NAICS Code 531190 (Lessors of Other Real Estate Property) industry is around $3,500. Premium rates tend to be on the lower end for this industry due to lower risks compared to other industries. The pricing is calculated based on factors such as number of employees, annual revenue, prior claims experience. For a small to mid-size business in this industry with less than 50 employees and under $10M in annual revenue, $3,500 would be a fair estimated price.
Estimated Pricing: $3,500
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important policy for businesses in the lessors of other real estate property industry to protect against costly employment-related claims and lawsuits. Given the risks these businesses face in regularly employing staff across multiple properties, EPLI can help limit the financial and reputational damages of employment lawsuits by providing coverage for legal defense costs and settlements. The estimated average annual premium of $1,500 also demonstrates the affordable price EPLI offers as a risk management strategy.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical pricing models, the estimated average annual premium for Employment Practices Liability Insurance for businesses in the Lessors of Other Real Estate Property industry with NAICS code 531190 would be around $1,500. This is estimated assuming the business has 10-50 employees, no prior claims, and standard policy limits of $1,000,000. The price is derived from consulting published insurance rates and considering industry risk factors.
Estimated Pricing: $1,500
Conclusion
By understanding their insurance needs and risks, lessors of other real estate can select coverage tailored to their industry. With the right combination of general liability, property, auto, umbrella and other policies in place, they gain strong financial security and peace of mind to focus on serving customers.