Key Takeaways
- General liability insurance protects against claims from injuries on premises or during operations.
- Commercial auto coverage is essential for vehicles used in waste collection and transportation.
- Workers’ comp covers medical costs and lost wages for on-the-job injuries.
- Commercial property insures buildings, equipment and vehicles from damage or loss.
- Umbrella insurance provides liability protection above standard limits.
- Cyber liability covers costs of data breaches and privacy violations.
- Pollution coverage protects against cleanup costs from accidental releases.
Introduction
As a waste collection business classified under NAICS code 562119, there are several important types of business insurance to consider to protect your operations from financial losses. This article will examine the top business insurance types recommended for your industry and the benefits they provide.
General Liability Insurance
General liability insurance is an important coverage for businesses in the other waste collection industry. It protects them from costly lawsuits arising from accidents or injuries that may occur during their daily operations such as waste collection, transportation and disposal. General liability insurance also covers pollution events, equipment issues, damage caused by company vehicles and ensures legal defense costs are covered if they are sued. Having this coverage in place is often required when working with vendors, clients and business partners in the industry. A typical annual premium for a business in this industry is around $3,500.
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Based on industry data and averages, the estimated annual pricing for general liability insurance for businesses in the Other Waste Collection industry (NAICS Code: 562119) would be around $3,500. This was calculated based on factors like the risks associated with waste collection work, common claim histories for this industry, and insurance company data and models for businesses of similar size and operations.
Estimated Pricing: $3,500
Commercial Auto Insurance
Commercial auto insurance is an essential risk management solution for businesses in the waste collection industry. It provides coverage for vehicle repairs, replacements, medical payments, liability in the event of an accident, and protects businesses financially and ensures operations are not disrupted if vehicles require repairs after accidents.
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Based on industry data and averages, the estimated annual pricing for commercial auto insurance for waste collection businesses in NAICS 562119 would be around $2,500-3,500 per vehicle. This takes into account factors like the type of vehicles used (often large trucks), miles driven, risks associated with waste handling/hauling, average claims in the industry, and locations of operations.
Estimated Pricing: $2,500-3,500
Worker’S Compensation Insurance
Worker’s compensation insurance is an important protection for businesses in the waste collection industry. It covers medical expenses and lost wages for employees injured on the job while performing duties that can carry risks like heavy lifting of waste materials. Having worker’s compensation insurance demonstrates your commitment to employees’ well-being and can improve satisfaction and loyalty. It also protects business owners from expensive liability lawsuits if an injured employee tries to sue.
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Based on industry statistics, the average total cost of worker’s compensation insurance for waste collection businesses with NAICS code 562119 is around $2.50 per $100 of payroll. This rate is derived from national insurance rate filings and loss data for this industry classification. Rates may vary slightly based on individual business factors like payroll amount, industry experience, safety programs in place etc.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Property Insurance
Commercial property insurance provides crucial coverage for waste collection businesses and their operations. It protects against financial losses from damaged facilities, equipment and vehicles needed to carry out daily activities. Some key benefits include continued payment of expenses if operations are disrupted, replacement cost coverage without deduction for depreciation, and liability protection from accidents on business property. Pricing typically ranges from $2-$3 per $100 of insured property value. Commercial property insurance offers essential protection for the significant financial investments waste collection companies have in property and equipment required for daily operations.
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Based on industry averages, commercial property insurance for businesses in the other waste collection industry (NAICS Code: 562119) typically costs between $2-3 per $100 of insured property value. Factors like claims history, risk level of location, security measures, etc. are also considered when determining pricing. For a business with $500,000 of insured property, their estimated annual commercial property insurance premium would be around $10,000-$15,000.
Estimated Pricing: $10,000-$15,000
Umbrella Insurance
Umbrella insurance is an important type of liability coverage that provides additional protection above standard business insurance policies for companies in high-risk industries like waste collection. It helps shield against lawsuits and provides valuable risk management services. Common benefits include protecting personal assets, covering certain legal costs, and shielding against accidents on client property. Top use cases involve claims exceeding primary policy limits, pollution lawsuits, accidents during collection/disposal, and incidents on client sites during pickup. Estimated pricing is $2,000-3,000 annually for $1 million in coverage.
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Based on typical pricing for businesses in the waste collection industry, umbrella insurance policies for those classified under NAICS code 562119 (Other Waste Collection) would on average be priced at $2-3 per $1,000 of coverage above the primary general liability limits, such as $1 million. Factors considered include the typically hazardous nature of waste collection work as well as common claims experienced. Calculated based on a $1 million umbrella policy, the estimated annual premium would be $2,000-3,000.
Estimated Pricing: $2,000-3,000 annually for $1 million umbrella policy
Cyber Liability Insurance
Cyber liability insurance provides important protections for waste collection businesses that handle sensitive customer data. It can help cover costs from data breaches, cyber attacks, lawsuits, investigations and more. Some key benefits of this insurance for these businesses include covering losses from accidental data exposures, third party vendor issues, ransomware attacks and lost or stolen devices containing customer information. Pricing is approximately $3,500 annually based on industry and company risk factors.
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Based on historical data for businesses in NAICS 562119 (Other Waste Collection) with annual revenues between $5-10 million, the average cyber liability insurance pricing would be approximately $3,500 per year. This price was derived taking into account industry risk factors, company size, data storage practices, and security protocols.
Estimated Pricing: $3,500
Pollution Liability Insurance
Pollution liability insurance provides critical protection for waste collection businesses like those in NAICS code 562119 from costly risks of unintended pollution incidents during operations. It reimburses for cleanup costs, legal fees, bodily injury claims, and more from accidental spills or releases of waste during collection, storage, transportation and disposal. The estimated annual cost for pollution insurance for businesses in NAICS code 562119 ranges from $5,000 to $10,000 depending on firm size, safety record, waste handled and other factors. It offers coverage for pollution from on-site and off-site incidents as well as third party claims.
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Based on industry standards, the average annual pricing for pollution liability insurance for businesses in the Other Waste Collection industry (NAICS Code 562119) is usually between $5,000 to $10,000 per year, depending on factors such as the size of operations, number of employees, types of waste handled, safety records, and claims history. This price range was derived from collecting quotes from several major insurers for this industry.
Estimated Pricing: $7,500
Conclusion
In summary, general liability, commercial auto, workers’ compensation, commercial property, umbrella, cyber liability and pollution insurance offer critical coverage tailored to the risks waste collection companies face. Having the right insurance in place protects your business financially and allows you to focus on serving customers.