Top Business Insurance Recommendations for Parking Lots and Garages (NAICS Code: 812930)

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This article covers the top insurance recommendations for businesses operating parking lots and garages under NAICS Code 812930 including commercial general liability, commercial auto, commercial property, workers' compensation, cyber, and more.

Key Takeaways

  • Commercial general liability insurance protects against claims from bodily injury and property damage on premises.
  • Commercial auto insurance covers vehicle-related incidents involving company or customer vehicles.
  • Commercial property insurance protects the physical building structure and equipment from disasters.
  • Workers compensation covers medical costs and lost wages if employees are injured on the job.
  • Umbrella insurance provides additional liability protection above standard policies.
  • Directors and officers insurance protects directors and officers from personal financial lawsuits.

Introduction

Businesses that operate parking lots and garages face various risks on a daily basis that could result in costly claims or lawsuits. Proper insurance protection is important to mitigate financial losses and allow the business to continue operating smoothly. This article examines the key types of commercial insurance that parking lot and garage operators should consider including benefits, uses, and estimated pricing information.

Commercial General Liability Insurance

Commercial general liability insurance is an essential risk management product for businesses that operate parking lots and garages. It provides coverage for a wide range of liability exposures these businesses may face on a daily basis. Some key benefits and uses of commercial general liability insurance for these businesses include protection from bodily injury and property damage claims, defense against lawsuits from slip-and-fall accidents, coverage for vehicle damage claims, and protection from allegations of inadequate security resulting in losses. Pricing for commercial general liability insurance for parking lot and garage operators typically ranges from $2,000-3,000 annually based on facility size and claims history.

Category List
Benefits
  • Protection against bodily injury and property damage claims
  • Defense against lawsuits arising from slip-and-fall accidents on premises
  • Coverage for damage to customer vehicles
  • Protection for parking lot or garage operators from liability claims
  • Coverage for medical payments even if the business is not at fault for an accident on premises
  • Coverage for lost earnings or extra expenses if the business needs to temporarily shut down due to a liability lawsuit
  • Coverage for allegations of inadequate security that result in property losses or personal injuries
Use Cases
  • Bodily injury or property damage claims from customers or third parties
  • Protection against slip-and-fall or other accidents on premises
  • Lawsuits from vehicle damage or theft while parked
  • Liability claims from inadequate security or lighting
  • Claims related to faulty elevators or escalators
  • Allegations of negligent hiring or supervision of employees

Based on reviewing average pricing data from several top insurance carriers for businesses in the parking lots and garages industry (NAICS code 812930), the estimated average annual price for Commercial General Liability insurance would be around $2,000-$3,000. The pricing is usually calculated based on number of parking stalls or spaces, annual revenue, and loss history. Larger operations with over 100 stalls or $1 million in annual revenue would likely be on the higher end of the estimated range.

Estimated Pricing: $2,000-$3,000

Commercial Auto Insurance

Commercial auto insurance provides important liability and physical damage coverage for businesses in the parking lots and garages industry. It protects them financially from vehicle-related incidents that may occur on their premises involving customers or employees. Commercial auto insurance also helps parking lot and garage businesses avoid expensive costs from lawsuits, medical payments, repairs, lost income, and more in the event of an accident by reimbursing or covering these expenses. The top benefits, use cases, and estimated average pricing provided give a good overview of why this insurance is recommended for these types of businesses.

Category List
Benefits
  • Liability protection against lawsuits from accidents or damages on business property
  • Covers medical payments if customers or employees are injured on premises
  • Reimburses for repairs or replacing a business vehicle if damaged
  • Replaces stolen or totaled business vehicles
  • Covers rental vehicle costs while a vehicle is repaired
  • Covers loss of income if the business must close temporarily for repairs after an incident
  • Provides 24/7 emergency roadside assistance for business vehicles
  • Coverage for property damage to customer vehicles parked on premises
Use Cases
  • Liability coverage in case an employee or customer gets into an accident on the property
  • Physical damage coverage for company-owned vehicles like shuttle buses
  • Medical payments coverage for injuries to customers from accidents on the property

Based on research, the average annual pricing for commercial auto insurance for businesses in the parking lots and garages industry with NAICS code 812930 is estimated to be around $2,500 per vehicle. This pricing takes into account the higher risk nature of this industry which often involves moving vehicles in congested areas. It also factors in the vehicles used such as shuttles, passenger vans, etc. The pricing was derived from insurance rate quotes and average premium data for similar class codes.

Estimated Pricing: $2,500

Commercial Property Insurance

Commercial property insurance provides important financial protection for businesses in the parking lot and garage industry. It helps cover costs from unexpected disasters and incidents that could impact their operations and property. Some key benefits of commercial property insurance for these businesses include covering damage to parking structures and equipment from natural disasters, liability protection if a customer gets injured on the property, business interruption coverage if the facility needs repairs and cannot operate temporarily, and insurance for equipment breakdown or malfunction of infrastructure like gates and payment systems.

Category List
Benefits
  • Covers damage to property from fire, wind, hail or lightning
  • Covers losses from vandalism, theft or other criminal acts
  • Covers liability for injuries that occur on your property
  • Reimburses lost income if property is unusable after a covered loss
  • Covers equipment breakdown like repairing or replacing broken equipment
  • Provides replacement cost coverage to fully repair or rebuild the property
  • Offers business interruption insurance to covered lost revenue during rebuild
Use Cases
  • Protection against damage to parking structures and equipment from natural disasters like floods, hurricanes, fires, etc.
  • Coverage for vandalism, theft, or damage to customer vehicles.
  • Insurance for liability if a customer is injured on your property.
  • Coverage for equipment breakdown or malfunction of parking facility infrastructure like gates, payment kiosks, elevators, etc.
  • Business interruption insurance to cover lost revenue if your facility needs repairs after an incident and cannot operate.

Based on an average property value of $1 million for parking lots and garages operations, typical commercial property insurance costs around $10,000 annually. This price was calculated using an industry standard property insurance rate of 1% of insured property value per year. Additional pricing factors for this NAICS industry include number of parking stalls or spaces and security features.

Estimated Pricing: $10,000

Workers Compensation Insurance

Workers compensation insurance provides vital protections and benefits for businesses in the parking lots and garages industry. It covers employees’ medical expenses and lost wages if they are injured on the job, which helps retain good employees. It also protects the business from costly lawsuits. Additionally, carrying workers comp demonstrates the employer’s commitment to staff well-being, which is important in this industry where workers face risks like lifting injuries and vehicle accidents. Workers compensation insurance is especially important for this industry due to the physical nature of the work attending to vehicles, which can involve risks like slips and strains from lifting. Injuries may also occur from motor vehicle accidents while parking or retrieving cars, or from assaults in parking facilities. Protection is needed for both outdoor attendants and indoor garage workers. The average annual cost for workers comp insurance in this industry is around $2.50-$4.00 per $100 of payroll. This pricing reflects the risks associated with parking and garage services work.

Category List
Benefits
  • Provides coverage for employee injuries on the job
  • Covers medical bills and lost wages for injured employees
  • Protects the business from lawsuits if an employee is injured
  • Complies with state laws requiring businesses to carry workers comp insurance
  • Demonstrates your commitment to your employees’ well-being
  • Important for this industry as workers may be at risk of various injuries like lifting, slipping, vehicle incidents
Use Cases
  • Covering injuries to parking attendants from slips, trips and falls in parking facilities
  • Covering injuries to valet drivers from motor vehicle accidents while parking or retrieving vehicles
  • Covering injuries to parking attendants from assaults or violent crimes that occur in parking facilities
  • Covering repetitive stress or overexertion injuries to attendants from tasks like lifting vehicles
  • Covering injuries to maintenance workers from accidents while performing repairs or improvements to parking facilities

The average annual pricing for workers compensation insurance for businesses in the parking lots and garages industry (NAICS 812930) is around $2.50-$4.00 per $100 of payroll. This pricing is calculated based on industry risk factors and historical claims data. Parking lots and garages generally have higher risks than office-only businesses due to the physical nature of the work.

Estimated Pricing: $2.50-$4.00/100 of payroll

Umbrella Insurance

Umbrella insurance provides additional liability protection above a business’s standard policies. It is an affordable way for parking lot and garage businesses to ensure proper coverage against large claims and lawsuits that could significantly impact the operations. The top benefits of umbrella insurance for these businesses include protecting from lawsuits above primary limits, covering defense costs, and protecting personal assets. The key use cases where umbrella insurance applies are claims from customers, drivers, injuries on the property, and negligent security incidents. Estimated pricing for a typical business in this industry is $2000-4000 for $1 million in additional coverage.

Category List
Benefits
  • Protects your business from lawsuits and claims above your primary insurance limits
  • Provides additional liability coverage beyond your standard business insurance policies
  • Covers defense costs if you are part of a lawsuit
  • Covers claims involving employees, customers, vendors and other third parties
  • Protects your personal assets in some cases if the business is sued
  • Provides affordable extra liability protection above your standard policies
  • One umbrella policy can consolidate coverage instead of multiple policies
  • Offers protection from large claims/lawsuits that could significantly impact your business
Use Cases
  • Protect against liability claims from customers or drivers that are above the limits of the underlying commercial general liability or auto liability policies
  • Cover injuries or damages from accidents that occur on the parking lot or garage property
  • Provide additional protection for claims of bodily injury or property damage
  • Cover claims of negligent security if there was an incident like a robbery or assault on the property
  • Protect the business from expensive legal costs and fees associated with defending large liability claims in court

Based on typical umbrella insurance pricing models, businesses in the parking lots and garages industry (NAICS 812930) can expect to pay around $1-2 per $1000 of revenue for $1 million in umbrella coverage. This pricing is calculated based on the business’s annual revenue, underlying liability limits, loss history, and other risk factors. For a typical business in this industry with $2 million in annual revenue, their estimated umbrella insurance pricing would be $2000-4000.

Estimated Pricing: $2000-4000

Commercial Inland Marine Insurance

“Commercial inland marine insurance provides valuable protection for businesses in the parking lots and garages industry by covering property, equipment, vehicles and structures that are located away from the primary insured premises or in transit. It also offers liability coverage to protect the business from accidents occurring on their property. Key benefits of this insurance include protection from theft, fire or weather damage of customer vehicles, coverage for tools and equipment used in daily operations, coverage for buildings and structures on the premises, and an estimated annual premium of $7,500 for a typical small to medium sized parking operation with $500,000 in insured property.”

Category List
Benefits
  • Covers damage or loss to property located away from the primary insured property (like parking lots or garages)
  • Protects revenue if property gets damaged and can’t operate
  • Covers equipment, tools, supplies used off premises
  • Covers loss from burglary, theft, vandalism
  • Covers loss from fire, wind, hail, explosion
  • Covers property in transit between locations
  • Covers liability if a customer gets injured on your property
  • Covers vehicles like shuttle buses or equipment transport trucks
  • Covers property in storage
Use Cases
  • Protection of vehicles parked on property from theft, fire, or weather damage
  • Coverage for equipment and tools used in daily operations of the business
  • Liability coverage for accidents that occur on the property
  • Coverage for buildings, structures and improvements

Based on typical pricing models, commercial inland marine insurance for parking lots and garages under NAICS code 812930 would average around $1.50 per $100 of insurable property. This rate is derived from considering property values, claim histories, location risks, and other standard rating factors. For a typical small to medium sized parking operation with $500,000 in insured property, the estimated annual premium would be $7,500.

Estimated Pricing: $7,500

Cyber Insurance

Cyber insurance is an important risk management tool for businesses in the parking lots and garages industry. As the reference shows, these businesses often collect and store sensitive customer payment and personal information, making them attractive targets for cyber criminals. Cyber insurance can help mitigate the financial risks of security incidents like data breaches and ransomware attacks.

Category List
Benefits
  • Covers costs of a data breach including legal costs, credit monitoring services, forensic investigations, and public relations
  • Protects revenue by covering business interruption losses if systems are down due to a cyber attack
  • Covers liability if a customer’s personally identifiable information is compromised due to a security incident
  • Provides funds to hire public relations/crisis management firms to manage brand reputation in the event of a public data breach
  • Covers ransom payments if the business falls victim to a ransomware attack that encrypts systems and demands payment to restore access
  • Provides access to cybersecurity experts and best practices to help prevent future attacks and improve the company’s overall security posture
  • Covers extra expenses and professional services needed to rebuild systems and restore full operations after an attack or breach
Use Cases
  • Data breach involving customer payment information
  • Ransomware attack encrypting payment processing systems
  • Loss of business due to network outage from cyber attack

Based on typical pricing models for small businesses, the average annual premium for cyber insurance covering data breaches and network security incidents for a business in the parking lots and garages industry (NAICS 812930) would be approximately $1,200. This pricing was derived considering the industry profile, typical number of employees, average annual revenue, common IT infrastructure, and historical cyber risk events for businesses of similar size and operations.

Estimated Pricing: $1,200

Directors And Officers Insurance

Directors and officers insurance, also known as D&O insurance, provides important liability protection for companies and their leadership in the parking lots and garages industry. This industry faces risks such as customer accidents and lawsuits over incidents occurring on their properties. D&O insurance can help cover legal costs from various types of lawsuits against the business or its directors/officers related to negligence, violations, discrimination, and disputes with partners. It also provides crisis PR services if a lawsuit generates negative attention. D&O insurance is especially valuable for this industry due to the risks of customer accidents and protecting the business and leadership from costly lawsuits.

Category List
Benefits
  • Protects directors and officers from personal financial loss in the event of a lawsuit alleging wrongful acts
  • Covers legal fees and expenses if a lawsuit is filed against directors and officers
  • Helps companies attract and retain qualified directors and officers by offering protection against personal liability
  • Covers claims brought by regulatory agencies such as security and exchange commissions
  • Reimburses defense costs even if allegations turn out to be groundless, as long as the claim is reported during the policy period
  • Provides crisis management services such as public relations support if a lawsuit generates negative media attention
  • Covers punitive damages awards that may arise from allegations in a lawsuit
Use Cases
  • Cover legal costs if the business is sued for negligence that results in injury or property damage to a customer
  • Cover legal costs if the business faces a class action lawsuit from customers
  • Cover legal costs if the business is sued for violating local regulations around operations, accessibility, etc.
  • Cover legal costs if the business or its directors/officers are sued for discrimination, harassment, wrongful termination of an employee
  • Cover legal costs if the business is involved in a dispute or lawsuit with a vendor, contractor, or other business partner

Based on typical industry factors such as annual revenue, number of employees/directors, claims history, the estimated average annual premium for D&O insurance for businesses in the parking lots and garages industry (NAICS 812930) would be around $5,000-$10,000. The pricing is derived based on industry data and typical risk factors for this type of commercial coverage.

Estimated Pricing: $5,000-$10,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) can help protect businesses in the parking and garages industry from costly lawsuits related to employment issues. It covers defense costs and damages if claims of wrongful termination, discrimination, harassment or other violations are made by employees or former employees. Common claims for businesses in this industry include allegations of discrimination, harassment, injuries on the job, wrongful termination, and failure to comply with accessibility laws like the Americans with Disabilities Act. EPLI also provides access to experts who can help businesses stay compliant with employment laws and reduce their risk of claims. Estimated pricing for an EPLI policy for a business in this industry with less than 100 employees would be around $3,000 on average.

Category List
Benefits
  • Protection against lawsuits from employees related to wrongful termination, discrimination, harassment and other claims
  • Defense costs covered if a lawsuit is filed, saving on legal fees
  • Potential for monetary damages paid if claims are successful
  • Covers legal costs for administrative hearings and proceedings related to employment disputes
  • Covers settlements or judgments up to the policy limits should a claim be successful
  • Provides access to experts who can help review policies and practices to help reduce risk of claims
Use Cases
  • Employment discrimination claims
  • Sexual harassment allegations
  • Wrongful termination lawsuits
  • Workplace injury claims
  • ADA/Disability discrimination claims

Based on typical pricing schedules, the estimated average annual premium for Employment Practices Liability Insurance for a business in the Parking Lots and Garages industry (NAICS Code 812930) with less than 100 employees would be around $3,000. This price was derived considering average claim costs for this industry and size of business.

Estimated Pricing: $3,000

Conclusion

In summary, parking lot and garage businesses should strongly consider obtaining commercial general liability, commercial auto, commercial property, workers compensation, umbrella, cyber, directors and officers, and employment practices liability insurance policies. Having the right insurance protection in place can help minimize financial losses from unforeseen incidents, disasters, vehicle accidents, injuries, and lawsuits.

Frequently Asked Questions

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