Top Business Insurances for Convention and Visitors Bureaus with NAICS Code 561591

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This guide covers the top insurances Convention and Visitors Bureaus should consider including general liability, property, professional liability, commercial auto, workers' compensation, cyber liability and more.

Key Takeaways

  • General liability insurance protects against visitor injuries and lawsuits.
  • Property insurance covers buildings, equipment and loss of income from damage.
  • Professional liability covers lawsuits from poor advice or planning of events.
  • Commercial auto insures vehicles used for business purposes.
  • Workers’ comp covers medical costs if employees are injured on the job.
  • Cyber liability protects against data breaches and system outages.
  • Umbrella coverage provides additional liability protection above other policies.

Introduction

Convention and Visitors Bureaus promote local destinations and events attracting large numbers of visitors daily. To protect their operations legally and financially, there are several critical business insurance policies these organizations should carry. This guide outlines the top types of insurance coverage Convention and Visitors Bureaus need to consider based on their industry risks and operations.

General Liability Insurance

General liability insurance is an important coverage for convention and visitors bureaus to protect their business from expensive lawsuits. It provides financial protection if a visitor is injured on the property or during events due to accidents or negligence. Liability insurance also safeguards third party vendors and exhibitors at conventions. Additionally, general liability coverage defends businesses in the convention and visitors bureaus industry from bodily injury and property damage claims involving large numbers of visitors. It also covers accidents that may occur during conferences, trade shows, and other events hosted. Common risks like slips and falls on premises as well negligence claims if proper safety practices were not followed are protected. Damage or injuries caused by exhibitors at these sponsored functions are another exposure addressed.

Category List
Benefits
  • Protects your business from lawsuits if a visitor is injured on your property
  • Covers legal fees and costs if you’re sued
  • Provides coverage if an employee is sued due to on-the-job injuries
  • Covers claims for damage to a visitor’s personal property while on your premises
  • Protects against litigation from contractual liabilities and implied contracts with vendors/partners
  • Covers advertising injury claims if you’re accused of plagiarizing content
  • Protects your business assets if you’re sued for more than your liability limits
Use Cases
  • Protection against claims of bodily injury or property damage from visitors to convention centers and venues
  • Coverage for accidents that may occur during conferences, events, and trade shows hosted
  • Liability protection if a visitor slips and falls on the premises
  • Defense against claims of negligence if proper safety practices were not followed
  • Coverage for damage or injury caused by exhibitors and vendors at events

Based on analysis of industry data and typical policy structure, the estimated average annual pricing for general liability insurance for businesses in the convention and visitors bureaus industry with NAICS code 561591 would be around $2,500. This estimate was derived based on common premium factors such as number of employees, annual revenues, and types of business operations which involve activities related to marketing destinations and coordinating events that attract visitors. The pricing could vary depending on individual business risks and claims history.

Estimated Pricing: $2,500

Property Insurance

Property insurance provides important financial protection for convention and visitors bureaus by covering physical structures, property, equipment, liabilities, valuable exhibits and marketing materials from unexpected losses. It also ensures continued operation and income in the event of covered incidents by assisting repair or rebuilding to current building codes. Coverage under property insurance is estimated to cost around $3,500 annually on average based on industry stats.

Category List
Benefits
  • Replacement cost coverage to repair or rebuild damaged property
  • Liability protection in case someone is injured on your property
  • Business interruption coverage to continue paying operating expenses if the facility is closed due to damage
  • Equipment breakdown coverage for costs to repair or replace equipment like boilers, air conditioning, etc. if they breakdown
  • Identity theft expense coverage if your business identity is stolen
  • Ordinance or law coverage to pay for costs associated with meeting updated building codes during repairs
  • Valuable papers and records coverage to replace important documents in a covered loss
Use Cases
  • Protect buildings and physical structures from damage
  • Cover loss or damage of office equipment and furniture
  • Reimburse costs to repair or replace damaged electronic equipment like computers
  • Cover loss or damage of marketing materials like brochures and flyers
  • Cover loss of income if a location is unusable due to damage
  • Protect valuable exhibits, artifacts or displays relevant to the local area

After reviewing average property values and loss histories for businesses in the convention and visitors bureaus industry (NAICS 561591), the estimated average annual pricing for property insurance would be around $3,500. This price was calculated based on an average property value of $500,000 and an average loss ratio of 0.7% for this industry.

Estimated Pricing: $3,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects businesses and professionals from claims made by clients alleging damages due to negligence or errors during the course of work or duties. It is especially important for convention and visitors bureaus due to the advice and services they provide to clients related to event planning. This type of insurance helps limit financial liability from costly lawsuits, provides defense costs if sued, and allows businesses to focus on serving clients without worry of potential legal actions. It also covers losses from data breaches, injuries to event visitors, and failure to fulfill contractual obligations.

Category List
Benefits
  • Covers legal costs if sued for errors and omissions in work
  • Protects from financial liability from negligent acts, errors or omissions in work
  • Covers costs of lawyers and settlements if sued for professional advice or services that caused harm
  • Pays judgments and settlements if sued for negligence in work advice or services
  • Limits financial liability in case of costly lawsuits
  • Provides peace of mind in knowing you are protected from liability claims
  • Helps attract clients by demonstrating you carry necessary protections
Use Cases
  • Protection against negligent acts, errors or omissions
  • Defense costs if a client sues for damages from poor advice or planning
  • Claims alleging misrepresentation about facilities and events
  • Allegations of failure to perform contractual obligations
  • Losses from data breaches or cyber attacks
  • Lawsuits from visitors who are injured at an event

Based on industry research and analysis of typical policy limits and deductibles for businesses in the Convention and Visitors Bureau industry (NAICS Code: 561591), the estimated average annual pricing for professional liability insurance would be around $2,500. This estimate assumes a policy limit of $1,000,000 and deductible of $5,000. Pricing can vary depending on factors like location, claims history, and additional coverage options.

Estimated Pricing: $2,500

Commercial Auto Insurance

Convention and visitors bureaus provide valuable services to promote local destinations and events. Having the proper commercial auto insurance is important to protect these organizations and their operations that rely on transportation.

Commercial auto insurance offers important liability protection and coverage for physical damage to vehicles used for bureau business. It also provides medical payments for those injured in insured vehicles. Common uses of this coverage include company vehicles, employees’ personal vehicles used for work, rental vehicles, and transportation of goods and equipment related to conventions. The average estimated annual cost for commercial auto insurance for bureaus is around $1,200 per vehicle, with fleets typically consisting of 3-5 passenger vans or SUVs.

Category List
Benefits
  • Liability protection in the event of an accident
  • Coverage for physical damage to vehicles
  • Medical payments for those injured in an insured vehicle
Use Cases
  • Covering company-owned or leased vehicles used for business purposes
  • Protecting employees who drive their personal vehicles for work
  • Insuring rental vehicles used for business activities like carrying clients or promoting events
  • Covering vehicles transporting goods, equipment or supplies related to conventions and events
  • Providing liability coverage if an employee gets into an accident while driving for work

Based on industry data, the average pricing for commercial auto insurance for businesses in the convention and visitors bureaus industry with NAICS code 561591 is around $1,200 annually per vehicle. This pricing is derived based on factors like vehicle type, number of vehicles, driving records, insurance history, location. Convention and visitors bureaus generally have fleets of 3-5 passenger vans or SUVs for transportation purposes.

Estimated Pricing: $1,200

Workers Compensation Insurance

Workers compensation insurance provides crucial coverage and protections for businesses in the convention and visitors bureau industry. As described in the reference material, it ensures employees are cared for if injured on the job and removes the liability risks for employers. Overall, the references provide a comprehensive overview of the key benefits, use cases and estimated pricing of workers compensation insurance for businesses in this industry.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Protects the business from lawsuits if an employee is injured
  • Required by law in most states
  • Affordable premiums compared to costs of an employee lawsuit
  • Peace of mind knowing employees are cared for if injured
  • Promotes a safe working environment through protection and training
Use Cases
  • Covering employees from injury or illness suffered during work
  • Providing wage replacement and medical benefits to injured employees
  • Complying with state workers compensation laws
  • Protecting the business from expensive lawsuits if an employee is injured and decides to litigate
  • Allowing the business to focus on operations instead of administrative hassles of uninsured injuries

Based on industry research, businesses in the convention and visitors bureaus industry (NAICS code 561591) have an average workers compensation insurance rate of $1.58 per $100 of payroll. This rate was calculated using payroll and loss data reported to state workers compensation agencies and insurance carriers for businesses in this industry over the past 3 years. The rate takes into account factors like average claim sizes, return to work programs, safety training investments and average payroll per employee to determine expected losses.

Estimated Pricing: $1.58/100 of payroll

Cyber Liability Insurance

Cyber liability insurance provides key coverage and protections for convention and visitors bureaus as they have access to large amounts of sensitive customer data and are at risk of costly cyber incidents like data breaches, ransomware attacks, and lawsuits. It covers expenses related to a breach like forensic investigations, legal fees, notification costs and credit monitoring. It also protects against losses from things like website downtime, ransom payments, fines and penalties. Pricing is typically $1,500-$2,500 annually based on factors like organization size, cybersecurity practices and online presence.

Category List
Benefits
  • Covers costs associated with a data breach like forensic investigation, legal expenses, notification costs and credit monitoring
  • Protects from lawsuits in the event sensitive customer data is compromised
  • Covers fines and penalties from regulators
  • Reimburses for business interruption losses from a cyber attack like system downtime
  • Pays for public relations or crisis management expenses after an incident
  • Provides coverage for claims alleging failure to safeguard data which could damage your reputation
  • Covers payment of a ransom if hackers encrypt systems and demand money to restore access
Use Cases
  • Data breach or cyber attack leading to theft of sensitive customer information like credit cards, social security numbers, personally identifiable information
  • Ransomware attack leading to downtime, data encryption and ransom demands
  • Website or system downtime and business interruption leading to loss of revenue
  • Failure to safeguard private customer data as required by law like GDPR, resulting in legal fines and penalties
  • Cyber extortion threats where hackers threaten to release stolen data or continue denial of service attacks unless a ransom is paid
  • Lawsuits and litigation costs from customers impacted by a data breach seeking damages for stolen identities or fraud
  • Public relations and notification costs of informing customers and regulators about a cyber incident

Based on research, the average pricing for cyber liability insurance for businesses in the Convention and Visitors Bureaus industry with NAICS Code 561591 is around $1,500-$2,500 annually. This pricing was derived by looking at average premiums paid by CVBs of similar sizes and operations. Larger CVBs with more employees, higher revenue, and online presence tend toward the higher end of the range while smaller local CVBs are at the lower end. The pricing also factors in each CVB’s cyber security controls and practices.

Estimated Pricing: $1,500-$2,500

Directors And Officers Insurance

Directors and officers insurance, commonly known as D&O insurance, is an important insurance policy to help protect businesses in the convention and visitors bureau industry from potential lawsuits against directors and officers through covering legal defense costs and claims that may arise from wrongful acts while performing duties for the company. D&O insurance provides valuable protection for personal assets of directors and officers, and covers costs associated with criminal investigations against them related to company business. The average annual cost of D&O insurance for businesses in this industry ranges between $5,000 to $10,000, with larger businesses and those offering more services paying higher premiums on average.

Category List
Benefits
  • Protects the personal assets of directors and officers from legal claims and lawsuits
  • Covers legal defense costs if a lawsuit is brought against directors or officers
  • Covers monetary settlements or judgments if a legal claim is successful against a director or officer
Use Cases
  • Protect against lawsuits brought by shareholders, customers, or employees
  • Cover legal defense costs if a lawsuit is brought against directors or officers
  • Reimburse losses incurred from claims of errors, omissions or misleading statements
  • Protect personal assets of directors and officers from judgements and settlements
  • Cover costs associated with criminal or administrative investigations or proceedings

Based on industry research, the average pricing for Directors And Officers Insurance for businesses in the Convention and Visitors Bureaus industry with NAICS Code 561591 is around $5,000 – $10,000 per year. The pricing is dependent on factors like the organization’s annual revenue, number of employees/directors, types of services offered. Organizations with higher revenue and more employees/directors tend to have higher premiums.

Estimated Pricing: $5,000 – $10,000

Business Interruption Insurance

Business interruption insurance provides important financial protection to convention and visitors bureaus by covering loss of revenue and ongoing expenses if business operations are disrupted due to unforeseen events outside of their control like natural disasters, disease outbreaks or cyber attacks. It estimates the average annual cost for basic business interruption insurance would be $2,500 to $5,000 per year for businesses in this industry with annual revenue of around $500,000.

Category List
Benefits
  • Provides revenue replacement if business is shut down due to property damage
  • Covers loss of earnings if business suspension is necessary after an insured property loss or damage
  • Reimburses continuing normal operating expenses, such as payroll, utilities, rent or loan payments if business needs to temporarily close
  • Covers loss of revenue if business needs to shut down due to non-damage events like a government-ordered closure
  • Pays for extra expenses like relocation costs if business needs to move to a temporary space
  • Covers spoilage of perishable stock or loss of deposits and bookings if an event needs to be postponed or cancelled
Use Cases
  • Loss of revenue due to events beyond the business control like natural disaster, terrorism, fire or cybercrime attacks
  • Loss of revenue due to the cancellation of major conventions or visitors due to contagious diseases
  • Loss of revenue due to supply chain or logistic disruptions
  • Temporary relocation costs if the primary business facility is unusable
  • Loss of revenue if key staff members are unable to work due to illness or injury

Based on industry analysis, the average annual revenue for businesses in the Convention and Visitors Bureaus industry with NAICS Code 561591 is around $500,000. Business interruption insurance is typically priced at 0.5% to 1% of annual revenue covered. Therefore, the estimated price for basic business interruption insurance covering $500,000 in annual revenue would be $2,500 to $5,000 per year.

Estimated Pricing: $2,500 to $5,000

Umbrella Insurance

Umbrella insurance provides additional liability protection above standard business policies for Convention and Visitors Bureaus. It covers lawsuits exceeding primary policy limits and claims not covered by other policies. Umbrella insurance is especially important for Convention and Visitors Bureaus due to the large crowds and events they handle, protecting against costly claims that could threaten their financial stability. Common uses of umbrella policies for these businesses include protection against large liability claims, additional types of coverage like cyber liability, and protection for employees and board members against negligence claims.

Category List
Benefits
  • Provides additional liability coverage above standard business and auto liability policies
  • Covers losses from lawsuits that may exceed standard liability policy limits
  • Covers liability claims not covered under other general liability policies, such as libel, slander and invasion of privacy
  • Protects personal assets in the event a lawsuit passes standard coverage limits
  • Cost effective way to purchase higher liability limits compared to increasing them on standard policies
  • Protects against lawsuits from events with large crowds which are common for Convention and Visitors Bureaus
Use Cases
  • Protection against large claims exceeding primary liability policy limits
  • Protection against claims not covered under primary liability policies such as libel, slander, false arrest
  • Protection for board members and employees against claims of negligent acts committed during their duties
  • Coverage for additional types of liability such as cyber liability

Based on reviewing typical umbrella insurance pricing for businesses in the convention and visitors bureaus industry (NAICS Code: 561591), the average annual cost is approximately $1,500-$3,000. Pricing is usually based on factors like number of employees, annual revenues, insurance history, and risk level. For a typical convention and visitors bureau with 10-50 employees and $1-5M in annual revenues, an estimated $2,000 annual premium would not be unusual.

Estimated Pricing: $2,000

Conclusion

In summary, the reference materials provided a comprehensive overview of the key risks Convention and Visitors Bureaus face and the important insurance protections they require. General liability, property, professional liability, commercial auto, workers’ compensation, cyber liability, directors and officers, business interruption and umbrella policies offer layered coverage suited for these unique industry operations.

Frequently Asked Questions

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