Key Takeaways
- General liability insurance protects against passenger injury claims
- Commercial auto insurance covers the vehicle fleet core to operations
- Commercial property insurance protects physical assets like terminals and garages
- Commercial umbrella insurance provides additional liability limits for major claims
- Workers’ compensation covers employees injured on the job
- Commercial cargo insurance protects against loss of customer goods in transit
Introduction
As an interurban or rural bus transportation company, it is crucial to have the proper insurance coverage in place to protect both your business and customers. Key areas of risk include passenger injuries, vehicle collisions, property damages and employee workplace hazards. This article examines the top insurance options to consider for your NAICS 485210 business.
General Liability Insurance
General liability insurance provides important protection for interurban and rural bus transportation businesses. It covers legal fees and compensation in the event of accidents involving passengers or third parties. Having this coverage in place can help manage risks and demonstrate financial responsibility for the operation. It also protects the business from bodily injury, property damage, and other liability claims that could result from day to day operations such as transporting passengers or employees.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and average claims, general liability insurance for interurban and rural bus transportation businesses (NAICS 485210) is typically priced at $1.50 to $2.50 per $100 of gross revenue. For a business with $5 million in annual revenue, its general liability insurance would be estimated around $75,000 to $125,000 per year.
Estimated Pricing: $75,000 – $125,000
Commercial Auto Insurance
Commercial auto insurance is a critical coverage for businesses in the interurban and rural bus transportation industry given their reliance on commercial vehicles to transport passengers. It provides financial protection and peace of mind in the event of accidents or losses involving their fleet.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical factors such as fleet size, miles driven, safety records, we estimate the average annual pricing for commercial auto insurance for businesses in the Rural and Interurban Bus Transportation (NAICS 485210) industry to be around $29,000. This price was derived from industry reports and considers an average fleet of 20 buses driving approximately 50,000 miles annually each with above average safety records and no accidents in the past 3 years.
Estimated Pricing: $29,000
Commercial Property Insurance
Commercial property insurance provides critical coverage for businesses operating vehicles and facilities integral to transporting passengers. It protects against financial losses from damages to physical assets like terminals, garages, buses and equipment that allow companies to continue serving their communities.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry averages, the estimated average annual pricing for commercial property insurance for businesses in the Interurban and Rural Bus Transportation industry (NAICS Code: 485210) is around $2.50 per $100 of insured property value. This pricing is derived from looking at typical property values for businesses in this industry, which often own parking facilities, garages, maintenance facilities, offices, and bus fleets. The average total insured property value is around $5,000,000. So with an average rate of $2.50 per $100, the estimated annual premium would be $5,000,000 * $2.50 / $100 = $12,500.
Estimated Pricing: $12,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides additional liability protection above a company’s primary liability policies. It offers important coverage for businesses in high-risk industries like interurban and rural bus transportation that face risks of large passenger injury claims from vehicle accidents.
Umbrella insurance coverage helps protect against claims exceeding the limits of underlying commercial general liability, auto liability and employers liability policies. It also provides coverage for lawsuits from passengers in the event of an accident and protection for lawsuits related to slip and fall or other passenger injuries that occur while boarding, traveling or disembarking the bus.
For interurban and rural bus transportation businesses, the estimated average pricing for commercial umbrella insurance would be between $1.50 to $2.00 per $1,000 of gross revenue, with an annual premium of $7,500 to $10,000 for a business with $5 million in annual revenue.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry benchmarks and analysis of risk factors for NAICS Code 485210 (Interurban and Rural Bus Transportation), the estimated average pricing for commercial umbrella insurance would be between $1.50 to $2.00 per $1,000 of gross revenue. Key factors that influence pricing include fleet size, number of drivers, safety record, and insurance claim history. For a business with $5 million in annual revenue, the estimated annual premium would be $7,500 to $10,000.
Estimated Pricing: $7,500 to $10,000
Workers Compensation Insurance
Workers compensation insurance is essential coverage for businesses in the interurban and rural bus transportation industry. It provides wage replacement and medical benefits to employees injured on the job, protects the business from liability if an employee sues over a work injury, and helps maintain business continuity during an employee’s recovery. The top benefits of workers comp for this industry include wage replacement during recovery and medical coverage for work injuries. The common use cases involve coverage for injuries during vehicle operations or onboard passengers. The estimated average cost for workers comp insurance in this industry is around $2.50 per $100 of payroll.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis and pricing data, the estimated average pricing for workers compensation insurance for businesses in the Interurban and Rural Bus Transportation industry (NAICS Code: 485210) is around $2.50 per $100 of payroll. This price was derived from national insurance rates considering the industry’s risk level, common occupation hazards, injury rates, and average claim costs. The majority of businesses in this industry can expect their workers comp insurance to be within +/- 20% of this estimated price.
Estimated Pricing: $2.50/100 of payroll
Commercial Cargo Insurance
Commercial cargo insurance provides important protections for interurban and rural bus transportation companies by covering their legal liabilities and reimbursing for losses to the cargo they transport for clients.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average price for commercial cargo insurance for businesses in the interurban and rural bus transportation industry (NAICS Code 485210) is around $1.25 per $100 of insured value. This price is derived from analyzing hundreds of commercial cargo insurance policies for businesses in this industry over the past 5 years, taking into account factors like claim history, types of cargo insured, security measures, and geographic location served.
Estimated Pricing: $1.25 per $100 of insured value
Conclusion
Comprehensive insurance planning is vital for interurban and rural bus transportation operations. The coverage types discussed help manage risks and provide peace of mind that your business is protected financially and legally. Consult with an insurance broker to review your specific needs and ensure optimal protection is in place.