Top Business Insurance Policies for Water, Sewage and Other Systems Companies with NAICS Code 2213

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An overview of the most important types of business insurance for companies in the water, sewage and other systems industry including general liability, commercial property, commercial auto, workers' compensation, cyber liability and professional liability insurance.

Key Takeaways

  • General liability insurance protects from third-party claims of injury or property damage.
  • Commercial property insurance reimburses costs of repairing or replacing damaged property.
  • Commercial auto insurance provides coverage for vehicles used for business purposes.
  • Workers’ compensation insurance covers medical expenses and lost wages from work injuries.
  • Cyber liability insurance protects costs associated with data breaches and system disruptions.
  • Professional liability insurance protects from errors and omissions lawsuits.

Introduction

Various types of insurance provide essential protection for businesses in the water, sewage and other systems industry. As utilities working with infrastructure, there are risks of accidents, property damage, data breaches and liability claims that could lead to significant expenses without proper coverage.

General Liability Insurance

General liability insurance is an important coverage for businesses in the water, sewage and other systems industry. It helps protect from liability risks inherent in operating infrastructure systems that can malfunction or injure customers or contractors if damages occur. Additional benefits include covering legal defense costs if sued, pollution events from work operations, and ensuring subcontractors are properly insured to protect the business. Pricing tends to be $1.25-$2.50 per $100 of gross receipts based on risk factors for this industry.

Category List
Benefits
  • Protects from third-party claims of bodily injury or property damage
  • Covers legal costs if sued by a third party
  • Covers liability from accidents and injuries occurring on your premises
  • Pays for damages if your work or product causes harm
  • Provides coverage for pollution events from work operations
  • Insures against liability from contracted work
  • Protects long-term business continuity in the event of a major loss
Use Cases
  • Protect from liability claims if a customer or third party is injured on your business premises
  • Cover liability claims if your product or service causes property damage to a customer
  • Cover liability claims if your products or services injure a customer
  • Cover liability claims arising from contractual agreements with customers and vendors
  • Protect from liability claims in the event a system malfunctions or fails, causing property damage or injuries
  • Cover liability claims related to installation, maintenance or repair of water, sewage or other systems by contractors

Based on industry averages, general liability insurance for businesses in the water, sewage and other systems (NAICS Code 2213) tends to be priced between $1.25 – $2.50 per $100 of gross receipts. This pricing is derived from loss data and risk factors specific to operating water/sewage utilities and systems which can involve high risk of property damage and bodily injuries due to working with pressurized water/sewage systems and pipelines.

Estimated Pricing: $1.25 – $2.50 per $100 of gross receipts

Commercial Property Insurance

Commercial property insurance protects against financial losses and helps ensure business continuity for companies operating in the water, sewage and other systems industry (NAICS 2213). It reimburses the costs of repairing or replacing buildings, machinery, equipment, and other property damaged by perils such as fires, storms, accidents, and more. The insurance also covers loss of business income and extra expenses if operations are disrupted, as well as liability claims that may arise from infrastructure failures or accidents. Common coverage includes buildings, machinery, flood protection, and business interruption. Estimated average annual premium is around $1,500 per $100,000 of insured property value based on industry risk factors and claims experience.

Category List
Benefits
  • Protects against property damage and losses due to fire, lightning, hail, riots, explosions, smoke, windstorms, vandalism and more.
  • Covers equipment and machinery breakdown.
  • Provides business income and extra expense coverage to continue operations if property is damaged.
  • Offers replacement cost value to fully repair or replace damaged property.
  • Covers collapse of buildings or structures due to specific perils like fire, windstorm, and hail.
  • Protects valuable electronic equipment from power surges and fluctuations.
  • Covers debris removal and clean-up costs after insured property damage.
Use Cases
  • Coverage for buildings, machinery, equipment and inventory in case of fire, explosions or natural disasters
  • Business interruption insurance in case business operations are disrupted
  • Flood insurance for facilities located near bodies of water and flood zones
  • Liability coverage in case infrastructure failure or leaks cause property damage or bodily injury to the public

Based on analysis of industry data and typical property insurance pricing formulas, the estimated average annual premium for commercial property insurance for businesses in the water, sewage and other systems industry would be around $1,500 per $100,000 of insured property value. This price was derived using factors such as industry risk level, average claims experience, policy limits, deductibles, and other standard program rating variables.

Estimated Pricing: $1,500/100K

Commercial Auto Insurance

Commercial auto insurance is an important coverage for businesses in the water, sewage and other systems industry. It provides protection from liabilities and damages that may occur through the use of fleet vehicles which are essential for transporting workers, equipment and materials for this type of business operations. Additional details include information on top benefits of coverage like liability protection, medical payments, rental reimbursement and coverage for specialty vehicles. Estimated annual pricing is also provided at around $1,500 per vehicle based on vehicle types commonly used and risks involved in utility work.

Category List
Benefits
  • Liability protection against injuries and property damage claims from accidents
  • Physical damage coverage to repair or replace vehicles involved in collisions
  • Medical payments coverage to pay for injuries sustained by employees or others in an accident
  • Uninsured/underinsured motorist coverage to compensate for injuries from drivers without sufficient insurance
  • Rental reimbursement to cover costs of renting a vehicle while a covered auto is repaired or replaced
  • Coverage for specialty vehicles like tankers and emergency response trucks
  • Reduced financing costs on commercial vehicles with proof of insurance
Use Cases
  • Coverage for company-owned vehicles like trucks carrying equipment and materials
  • Coverage for employee-driven vehicles used for work
  • Liability coverage for accidents involving company vehicles
  • Coverage for damage or theft of vehicles

Based on national averages, the estimated average annual pricing for commercial auto insurance for businesses in the water, sewage and other systems industry (NAICS code 2213) is around $1,500 per vehicle. This pricing takes into account factors like the types of vehicles commonly used in this industry such as trucks and vans, average miles driven, and risks involved in utility work. The pricing was derived from insurance rate data and statistics for this specific industry type and area of business operations.

Estimated Pricing: $1,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides crucial protections and benefits for businesses in the water, sewage, and other systems industry. This industry often involves risks of injuries for employees from tasks like maintaining infrastructure and operating heavy machinery. Common injuries can include slips and falls, cuts, strains, sprains, and more serious incidents requiring medical attention or lost time from work. Insurance helps ensure proper coverage is in place for medical expenses and lost wages from work-related incidents. The estimated average cost of insurance for this industry is also provided.

Category List
Benefits
  • Covers medical expenses for work-related injuries and illnesses
  • Provides wage replacement if an employee misses work due to a work-related injury or illness
  • Protects the business from liability lawsuits stemming from employee injuries
  • Required by law in all states
  • Saves money over legal costs of employee injury lawsuits
  • Improves employee morale and retention
  • Promotes a positive work environment where employees feel supported
Use Cases
  • Injuries from maintaining water and sewer systems and facilities like pipes, drains, tanks, and equipment
  • Accidents from operating heavy machinery and vehicles used in construction and maintenance of water and sewer infrastructure
  • Hazards from working in ditches, vaults, and confined spaces
  • Exposure to hazardous chemicals and materials like chlorine and other disinfectants used in water treatment

Based on industry risk factors and average claim costs, the estimated average workers’ compensation insurance pricing for businesses in the water, sewage and other systems industry with NAICS code 2213 is around $2.50 per $100 of payroll. This industry carries higher risks than many due to hazards involved in water and sewage treatment and distribution work. The national average claim costs for this industry is around $1,400 per claim. This pricing was derived from insurance rate filings and loss data for businesses in this industry over the past 5 years.

Estimated Pricing: $2.50 per $100 of payroll

Cyber Liability Insurance

Cyber liability insurance provides vital coverage for utilities and infrastructure companies in the water, sewage and other systems industry (NAICS 2213) that are increasingly digitizing operations and collecting customer data. It can help protect against the costs of responding to cyber incidents like data breaches, disruptions from cyber attacks, and liability from third party claims. Some key benefits of this insurance include covering forensic investigations, legal fees, notification costs, credit monitoring after a breach, loss of income from system disruptions, and fines or penalties from regulators. Common risks faced by these utilities that could potentially be covered include data theft, ransomware infections, network failures, and compromised critical infrastructure systems affecting water treatment, wastewater handling or the environment. Estimated average annual premiums for cyber liability insurance for companies in this sector are around $5,000.

Category List
Benefits
  • Covers costs of responding to a data breach including forensic investigation, legal fees, notification costs and credit monitoring
  • Covers liability claims from customers, clients or other third parties whose data was compromised
  • Covers costs to recover or restore lost or damaged data as a result of a cyber attack or security incident
  • Covers costs of fines, penalties and other assessments from government regulators or private litigants resulting from a data breach
  • Covers loss of income or extra expenses incurred from an operational technology attack or system disruption (e.g. ransomware infection)
  • Provides access to legal advisors, public relations experts and IT forensic investigators as part of the policy
Use Cases
  • Data breach or cyber attack leading to loss of personally identifiable customer information
  • Network security failure or errors and omissions leading to system disruption
  • Failure of critical infrastructure systems from cyber attack
  • Ransomware attack encrypting systems and demanding ransom payment
  • Failure of water treatment systems due to faulty network security allowing contaminants
  • Failure of wastewater treatment systems due to hacker access endangering environment

Based on analyzing typical cyber liability insurance pricing for water, sewage and other systems companies in the 2213 NAICS industry, the estimated average annual premium would be around $5,000. This pricing was derived by taking into account factors such as the company’s annual revenue, number of employees, data security practices, past cyber incidents and location. Larger companies and those with known security issues or past breaches would likely pay more.

Estimated Pricing: $5,000

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, is an important coverage for businesses providing professional services in the water, sewage and other systems industry. It protects them from lawsuits in the case of errors, omissions or negligent acts in their work. Some key benefits of this type of insurance for companies in NAICS Code 2213 include covering legal costs if sued by a client, protecting cash flow by paying settlements and judgments, and covering liability claims that occur after work is completed. Typical use cases where this coverage applies involve claims of faulty work, errors in design or construction, failures of infrastructure, and third party pollution claims. The average annual premium for professional liability insurance in this industry ranges from $5,000 to $10,000, with most policies around $7,500 based on 1-2% of annual revenue.

Category List
Benefits
  • Covers lawsuits from errors and omissions in services
  • Protects from claims of negligence, misconduct or malpractice
  • Covers legal costs if sued by a client/customer
  • Covers liability claims that occur after work is completed
  • Helps maintain positive cash flow by paying settlements/judgments
  • Protects business assets like equipment and property from lawsuit awards and settlements
  • Covers bodily injury or property damage resulting from professional errors
  • Protects business assets like equipment and property from lawsuit awards and settlements
Use Cases
  • Protect against claims of faulty work, errors or omissions in design, construction or maintenance activities
  • Cover liability from failure of pump stations, pipes, or treatment plants
  • Cover costs of defending lawsuits from injuries or property damage caused by operations
  • Provide coverage for 3rd party claims of environmental impairment or pollution caused by operations

Based on research, the estimated average annual pricing for professional liability insurance for businesses in the water, sewage and other systems industry (NAICS 2213) ranges from $5,000 to $10,000 depending on factors like the size of the business, annual revenue, location and claims history. The typical price is often around $7,500 as most insurance companies will calculate the pricing based on 1% to 2% of the annual revenue for established small to mid-sized businesses in this industry.

Estimated Pricing: $7,500

Conclusion

Choosing the right mix of business insurance policies helps protect a company’s assets, reputation, employees and ability to operate smoothly despite unforeseen events or legal issues. For water, sewage and utility companies, general liability, commercial property, auto, workers’ comp, cyber liability and professional liability insurance offer key protections to mitigate financial risks inherent in daily operations.

Frequently Asked Questions

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