Top Business Insurances for Businesses in Other Activities Related to Credit Intermediation (NAICS Code: 522390)

UncategorizedReading Time: 6 minutes

This article discusses the top business insurance considerations for companies in the Other Activities Related to Credit Intermediation industry with NAICS code 522390 including general liability, property, cyber liability, professional liability and business interruption insurance.

Key Takeaways

  • General liability insurance protects from lawsuits over injuries on your premises or during operations.
  • Property insurance covers losses from disasters like fire or flood and reimburses lost income.
  • Cyber liability insurance helps cover costs of data breaches and network disruptions.
  • Professional liability covers legal expenses and claims from errors in services provided.
  • Business interruption insurance ensures funding if disasters cause interruptions.

Introduction

As a business owner in the Other Activities Related to Credit Intermediation industry, there are several key types of business insurance to consider to properly manage risks. This article examines general liability, property, cyber liability, professional liability, and business interruption insurance options tailored for NAICS code 522390 businesses.

General Liability Insurance

“General liability insurance is an important coverage for businesses in NAICS code 522390 (Other Activities Related to Credit Intermediation) industry. It protects them from lawsuits filed by third parties for bodily injury, property damage or other claims that may occur on their premises or during operations.”

Category List
Benefits
  • Protects your business from lawsuits filed by third parties for bodily injury or property damage claims
  • Covers legal costs if your business is sued for damages
  • Helps maintain positive cash flow by preventing costs of lawsuits and claims from cutting into profits
  • Demonstrates financial responsibility to clients, vendors and partners
  • Required by many contracts and agreements
Use Cases
  • Bodily injury or death of employees or customers on your premises
  • Property damage to customer or third party property
  • Errors and omissions related to advice or services provided
  • Injury or damage due to faulty products or work
  • Defense costs associated with lawsuits over alleged negligence

Based on industry analysis, the average general liability insurance pricing for businesses in NAICS code 522390 (Other Activities Related to Credit Intermediation) is approximately $2,000 – $3,000 per year. This was derived by looking at typical premiums for financial service companies of similar size and risk level. The risk factor for this industry is moderately high due to the nature of the business which includes financial consulting, buying and selling of loans, and other credit-related services.

Estimated Pricing: $2,000 – $3,000

Property Insurance

Property insurance provides critical protection for businesses in the NAICS code 522390 industry that are involved in other credit related activities. It covers losses from unexpected events and helps keep operations running smoothly during repairs or disruptions. Some key benefits of property insurance for these businesses include replacement cost coverage to repair or rebuild damaged property, extra expense coverage for additional costs during rebuilding, and coverage for lost income if operations are interrupted due to a covered loss event. Property insurance is also essential to manage risks associated with physical assets and locations used in daily operations, protect from liability claims if a customer is injured on premises, and replace stolen or damaged property.

Category List
Benefits
  • Protection against risks of physical loss or damage to buildings, equipment and other assets
  • Coverage for costs related to liability claims filed by customers or third parties for accidents or injuries sustained on premises
  • Reimbursement for business interruption losses such as lost income/profits if operations are suspended due to a covered event
  • Covers loss of rent or rental value in the event a tenant cannot occupy the property
  • Replacement cost coverage to repair or rebuild damaged property without deductions for depreciation
  • Extra expense coverage for additional costs incurred to continue operations during rebuilding or repairs after a loss
Use Cases
  • Protect physical locations and equipment from disasters like fires, floods and other incidents
  • Cover damages and losses from equipment failure, outages and other technical issues
  • Replace stolen or damaged property due to theft or criminal activity
  • Cover costs from interruptions to operations or revenue due to property damage
  • Protect from liability claims in the event a customer or visitor is injured on the premises

Based on average property insurance pricing for businesses in financial service industries, the estimated annual premium for property insurance would be around $2,500. This is calculated based on factors such as average property values, risk profiles, loss histories, and other standardized industry rating factors.

Estimated Pricing: $2,500

Cyber Liability Insurance

Cyber liability insurance helps businesses in the other activities related to credit intermediation industry cover costs from cyber incidents by providing coverage for data breaches, ransomware attacks, litigation expenses, lost income, notification costs, and access to breach response services. It typically costs between $5,000-$10,000 annually on average for businesses in this industry, with an estimated average of $7,500. Factors that impact pricing include annual revenue, number of employee records, data handled, security practices, incident response planning. This type of insurance is especially important for businesses in this industry that often store sensitive financial and personal information, helping to protect against the costs of incidents like breaches, attacks, litigation, lost income, and reputational damage.

Category List
Benefits
  • Covers costs of repairing systems and recovering data after a cyber attack
  • Covers legal fees and costs if faced with litigation due to a data breach
  • Covers costs of notifying customers if their personal information was compromised in a breach
  • Covers costs of providing credit monitoring services to customers affected by a breach
  • Covers loss of income or extra expenses due to interruption of business after an attack or breach
  • Covers PR and marketing costs to repair brand reputation after a breach
  • Provides access to breach response services and PR/legal experts to handle aftermath of an attack
  • Covers loss of income or extra expenses due to interruption of business after an attack or breach
Use Cases
  • Data breach liability coverage
  • Cyber extortion and ransomware payments
  • Litigation expenses from regulatory actions
  • Notification costs for informing customers of a breach
  • Loss of income from network disruption
  • Cyber crime including hacking, phishing, malware
  • Reputational damage due to a cyber incident
  • Privacy breach response services like credit monitoring
  • Investigation and risk management services from insurers

Based on an analysis of typical cyber liability insurance pricing for businesses in the finance and credit industry, the estimated average annual premium would be in the range of $5,000 to $10,000. Factors that affect pricing include the company’s annual revenue, number of employee records, types of data handled, security practices/policies, and incident response planning. For this particular NAICS code dealing with other credit activities, a conservative estimate of the average annual premium would be $7,500.

Estimated Pricing: $7,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, provides an important layer of protection for businesses in the other activities related to credit intermediation industry (NAICS Code 522390). It can help cover legal costs and pay claims if mistakes are made in loan services, violations of regulations occur, or data breaches take place. Such insurance also demonstrates responsible risk management, attracts clients, and provides peace of mind. Estimated pricing is between $1,500-$2,000 annually per $1 million of coverage.

Category List
Benefits
  • Protects your business from lawsuits arising from errors and omissions in the performance of your professional services
  • Covers legal fees and costs of defending claims
  • Covers settlements and judgements if you are found liable
  • Helps maintain positive cash flow by not having to pay settlements and legal costs out of pocket
  • Attracts clients who want to work with companies that have liability protections in place
  • Demonstrates to clients and partners that you take risk management seriously
  • Provides peace of mind knowing your business is protected
Use Cases
  • Errors and omissions in lending and loan servicing activities
  • Violations of consumer finance protection regulations
  • Failure to properly conduct due diligence on clients or perform services as agreed
  • Breach of data or cybersecurity leading to client information being compromised

Based on typical pricing models for professional liability insurance, businesses in the Other Activities Related to Credit Intermediation industry (NAICS Code 522390) can expect to pay around $1,500-$2,000 annually per $1 million of coverage. Pricing is determined by analyzing factors like the company’s size, years in business, risk management practices, claims history and level of coverage needed.

Estimated Pricing: $1,500-$2,000 per $1 million

Business Interruption Insurance

Business interruption insurance provides crucial financial protection for businesses in the Other Activities Related to Credit Intermediation industry (NAICS 522390) against loss of income and extra expenses caused by unexpected disruptions to operations. This type of insurance helps businesses stay afloat and recover more quickly from events like fires, hurricanes, utility failures, equipment breakdowns, cyber attacks, pandemics and other disruptions that could threaten a company’s cash flow and ability to operate. The estimated average annual premium for a NAICS 522390 business is $5,000 based on typical analysis factors of revenue, payroll and property values as well as risks specific to financial services activities.

Category List
Benefits
  • Covers lost income if your business suffers an interruption
  • Covers additional expenses from business interruption such as relocation costs
  • Pays claims quickly to help your business recover sooner
  • Protects cash flow so you can pay your employees and bills
  • Reimburses extra expenses to continue operations from a temporary location
  • Provides the resources to reopen your business after an outage
Use Cases
  • Property Damage
  • Utility Failure
  • Equipment Breakdown
  • Supply Chain Disruption
  • Cyber Attack
  • Pandemic

Based on analysis of typical business interruption insurance pricing factors such as revenue, payroll, and property values; as well as risk factors specific to the NAICS 522390 ‘Other Activities Related to Credit Intermediation’ industry, the estimated average annual premium for business interruption insurance would be around $5,000. This price was derived considering that businesses in this industry tend to have moderate revenue and payroll levels but engage in financial services activities which are subject to certain unique risks.

Estimated Pricing: $5,000

Conclusion

Proper insurance planning is crucial for financial protection and peace of mind when running a business in the sensitive credit services industry. The insurance policies discussed provide comprehensive coverage for legal costs, property losses, network disruptions, service errors, and interruptions to operations. Investing in the right mix of coverage helps businesses confidently manage risks and continue operating smoothly through difficult events.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied