Key Takeaways
- General liability insurance protects from lawsuits if someone gets injured on your property
- Directors and officers liability protects board members from lawsuits over management decisions
- Property insurance covers damage to buildings and equipment from events like fires or floods
- Cyber liability covers costs of data breaches like notifying individuals and legal defense
- Business interruption insurance helps pay expenses if operations need to shut down temporarily
- Employment practices liability protects from employee lawsuits over discrimination or harassment
- Worker’s compensation fulfills legal requirements and covers medical and lost wages for on-the-job injuries
- Discuss insurance needs with an agent familiar with non-profits to ensure right coverage levels
- Taking steps to prevent risks can help lower insurance premiums over time
- Budget for annual insurance premium costs as part of overall financial planning
Introduction
This guide covers the top types of business insurance that civic and social organizations with NAICS code 813410 should consider to protect their assets, finances and missions. Understand the key benefits, uses and estimated pricing of insurance options like general liability, directors and officers liability and more. It is also recommended to discuss insurance needs with an agent familiar with non-profits and take steps to prevent risks which can help lower premiums while maintaining adequate coverage should remain a priority.
General Liability Insurance
General liability insurance is an essential risk management tool for civic and social organizations. It protects these non-profits from costly lawsuits if a visitor is injured on their property or claims are made against their organization. Businesses in this industry face risks just like any other organization. Having the right insurance coverage in place, such as general liability, directors and officers liability, and employment practices liability insurance can help protect their assets, finances and reputation.
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Based on industry data and assuming no major prior claims, the estimated average annual pricing for general liability insurance for businesses in the Civic and Social Organizations industry (NAICS Code 813410) would be around $750-$1,250. This pricing was derived from typical premium rates that insurance companies charge for this industry which factors in elements like business size, number of employees, revenue, liability exposure and risk level.
Estimated Pricing: $1,000
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, provides important protections for non-profit organizations. D&O insurance protects the personal assets of directors and officers from legal costs and damages resulting from claims made against them due to wrongful acts in their roles with the organization. It is especially critical for civic and social organizations, as it helps attract qualified board members, protects organizational assets, and provides coverage for risks like discrimination claims against leadership. Based on typical rates presented, an annual D&O insurance policy for an organization in this industry would cost around $2,500 on average. D&O insurance also covers legal defense costs if directors or officers are sued, settlement or judgment costs if claims are successful, and helps non-profits serve communities by providing protection against various risks.
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After examining typical rates for Directors And Officers Liability Insurance policies for companies in the Civic and Social Organizations industry (NAICS Code: 813410), the estimated average annual premium is around $2,500. This pricing is based on a policy with a $1 million liability limit. Smaller non-profit organizations in this industry tend to pay less while larger organizations may pay more depending on factors like annual revenue, assets, number of employees/volunteers.
Estimated Pricing: $2,500
Property Insurance
Property insurance provides essential protection for the physical assets and infrastructure of civic and social organizations. It helps protects buildings, equipment, and other property against damages from covered causes of loss like fire, storms or theft. Without this coverage, replacing damaged property can be extremely costly and disruptive for their operations. Property insurance also provides liability coverage to protect the organization from claims of injuries that occur on their property. The average annual cost of property insurance for civic and social organizations is approximately $1,500 based on location and property values.
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Based on research, the average pricing for property insurance for businesses in the Civic and Social Organizations industry (NAICS 813410) is around $1,500 per year. This estimate was derived from analyzing insurance quotes and policies from several top insurance carriers for non-profit organizations of similar size and property values. Key factors that influence pricing include location, property value, loss history, security features. This range provides a reasonable estimate for basic property protection for most civic/social organizations.
Estimated Pricing: $1,500
Cyber Liability Insurance
Cyber liability insurance provides important protection for civic and social organizations from risks associated with data breaches and cyber attacks. It can help cover costs related to restoration, litigation, fines and lost income from network disruptions. The top benefits of cyber insurance for these organizations include coverage for notifying individuals affected by a breach, investigative costs, and PR/marketing costs to regain trust after an incident. Common use cases that might trigger a policy include ransomware attacks, data breaches, third party claims, and website outages. On average, civic and social groups in this industry can expect to pay around $1,500 annually for cyber liability protection.
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Based on industry benchmarks and typical factors like revenues, number of records, security practices, the estimated average annual premium for cyber liability insurance for businesses in the Civic and Social Organizations industry with NAICS code 813410 is around $1,500. This is derived from looking at small non-profits in this industry segment with under $3 million in annual revenues and less than 5,000 customer records.
Estimated Pricing: $1,500
Business Interruption Insurance
Business interruption insurance provides crucial financial protection for civic and social organizations by helping to maintain cash flow if operations are forced to temporarily shut down or relocate due to unforeseen disasters or events beyond their control. It covers extra expenses and lost revenue until normal business activities can resume. Some key benefits of business interruption insurance for civic and social organizations include protecting income if they need to move locations temporarily, reimbursing additional expenses to continue operating as normal, and helping pay employees if the business needs to close temporarily. This type of insurance is especially important for civic and social organizations as they rely on member dues and donations for revenue and also face risks such as cancellation of major fundraising events.
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After reviewing industry data and average claims, the estimated pricing for business interruption insurance for civic and social organizations is approximately $2,500 per year. This pricing was derived based on the typical revenue and expenses of organizations in this industry, along with historical claims data that shows an average payout of around $50,000 for interrupted operations over 3 months.
Estimated Pricing: $2,500
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important protection for civic and social organizations. EPLI helps defend against costly lawsuits related to employment issues like discrimination, harassment, wrongful termination and other claims from employees, former employees or job applicants. It covers legal fees and potential damages if such a claim is successful. EPLI also provides access to employment law attorneys and risk management services to help organizations avoid issues in the first place. Given the sensitive nature of work in the civic and social space and large number of employees, EPLI is especially valuable for these types of organizations to protect their missions from expensive litigation.
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Based on analyzing insurance rates for similar types of organizations, the estimated average pricing for Employment Practices Liability Insurance for businesses in the Civic and Social Organizations industry with NAICS code 813410 would be around $3,000 annually. This pricing assumes the organization has less than 50 employees and no prior claims or legal issues related to employment practices. The pricing can vary depending on factors like number of employees, prior claims experience, and specific industry risks.
Estimated Pricing: $3,000
Worker’S Compensation Insurance
Introducing worker’s compensation insurance for civic and social organizations with NAICS code 813410: Worker’s compensation insurance provides important financial protection and medical benefits for employees of civic and social organizations who are injured or become ill on the job. It ensures employees receive timely treatment and wage replacement to help them recover from work-related injuries or illnesses while also protecting the organization from costly lawsuits. The reference provides an overview of the top benefits, use cases, and estimated pricing of worker’s compensation insurance for businesses in this industry.
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Based on national averages, the estimated average pricing for worker’s compensation insurance for businesses in the Civic and Social Organizations industry with NAICS code 813410 is around $1.20 per $100 of payroll. This price was derived from considering industry risk factors, average payroll, claims history and other standard insurance pricing methodology.
Estimated Pricing: $1.20/100 of payroll
Conclusion
Maintaining proper insurance coverage is crucial for organizations in the civic and social space to manage risk and withstand unexpected events. The business insurances discussed provide essential protections that help these non-profits continue serving their communities without disruption. Budgeting for annual premium costs and prioritizing coverage even during lean budget years ensures organizations can focus on their missions.