Top Business Insurances for Utilities Regulators and Administrators with NAICS Code 926130

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Understanding the key insurances utilities regulators should consider including general liability, professional liability, cyber liability, property & casualty and more.

Key Takeaways

  • General liability protects against third party claims for injuries on premises or during operations
  • Professional liability covers costs and damages from errors and omissions in regulatory duties
  • Cyber liability addresses risks and costs from data breaches and network disruptions
  • Property and casualty insures valuable assets from losses and reimburses income if disrupted
  • Directors and officers liability protects personal assets of leaders from lawsuits
  • Workers compensation ensures support for employees injured on the job

Introduction

Utilities regulators and administrators in areas like communications, energy and utilities play an important oversight role that also carries certain risks. Several types of business insurance can help protect these organizations financially against the costs of accidents, mistakes, lawsuits and other unplanned events given the nature of their work regulating critical infrastructure industries.

General Liability Insurance

General liability insurance provides critical protection for utilities regulatory agencies. It covers legal costs and damages if accidents occur on premises or during operations that injure people or damage property. In addition, general liability coverage helps defend regulatory bodies against lawsuits that may arise from errors and omissions during their duties of overseeing utility services and infrastructure projects. It also pays claims if accidents involving company vehicles cause harm. General liability insurance gives regulators peace of mind knowing their assets and jobs are protected from risks inherent to the industry.

Category List
Benefits
  • Protection against third-party bodily injury and property damage claims
  • Defense costs if a claim or lawsuit is brought against your company
  • Coverage for accidents involving employees, customers and the general public
  • Protection for claims related to errors, omissions and negligence in duties
  • Coverage for liability arising from professional services like permitting, inspections and regulatory oversight
  • Peace of mind knowing assets like equipment and facilities are protected
  • Covers premises and operations risks inherent to utilities regulation such as administrative offices and inspection sites
Use Cases
  • Protect from lawsuits if a visitor falls and gets injured on premises
  • Cover legal costs and damages if a utility worker gets injured on the job
  • Provide coverage if weather events like storms damage property of others
  • Defend and pay claims if accidents with company vehicles cause bodily harm or property damage
  • Pay claims if errors in regulation lead to service outages damaging businesses or property

Based on industry data and analysis of risk factors, the estimated average annual pricing for general liability insurance for businesses in the regulation and administration of communications, electric, gas, and other utilities industry with NAICS code 926130 is $4,500. This price was derived by analyzing average claims data for businesses in this industry and factoring in risk considerations such as regulatory compliance issues.

Estimated Pricing: $4,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, is an important protection for businesses involved in the utilities regulation and administration industry. Errors or negligence during oversight, policymaking, licensing or other duties could expose these organizations to costly legal claims and liability. Some key benefits of this type of insurance for the industry include covering legal defense costs and damages payments from lawsuits alleging mistakes or negligence during regulatory work. It also provides protection for claims that may arise years after the work was performed. Potential use cases where this coverage applies include errors in day-to-day activities, failure to properly handle customer complaints, and data privacy breaches. Estimated premiums for organizations in this industry range from $15,000 to $25,000 annually depending on factors like revenue, number of employees, and claims history.

Category List
Benefits
  • Covers claims for damages arising out of errors and omissions in the performance of professional duties
  • Protects against allegations of negligence, incompetence or malpractice
  • Covers defense costs in the event of a covered lawsuit
  • Pays damages if found legally liable for a mistake in professional work
  • Provides coverage for claims that may arise years after the work was performed
Use Cases
  • Errors and omissions in performing day-to-day regulation, administration, and oversight activities
  • Failure to properly investigate and act on customer complaints
  • Mistakes or negligence in policymaking, rulemaking, licensing, and other administrative functions
  • Misconduct or misconduct of staff involved in regulation, oversight, and administration
  • Breaches in data security and privacy for customer and business information

Based on statistical analysis of typical premium rates charged for this industry and average exposures, the estimated average annual premium would be between $15,000 to $25,000. Rates are influenced by factors such as annual revenue, number of employees, scope of services, and claims history. Larger organizations or those with high-risk services tend toward the higher end of the range.

Estimated Pricing: $15,000 – $25,000

Cyber Liability Insurance

Cyber liability insurance is an important policy for utilities companies to protect against the financial risks of data breaches, cyber attacks, network disruptions, and third party liability claims. It can help cover costs associated with responding to incidents and restoring operations, as well as providing specialist legal and PR support. Some key benefits of cyber insurance for utilities include covering legal fees, notifying customers, reimbursing fraudulent charges, and compensating for lost business due to network issues. Common uses involve responding to data breaches, dealing with fines, legal defense, loss of income from disruptions, ransomware payments, and damages to third parties. Estimated annual premiums for $1 million in coverage is around $7,000 based on industry averages, though actual quotes vary based on specific company risk factors.

Category List
Benefits
  • Covers legal fees and costs associated with investigating and responding to cyber attacks or data breaches
  • Covers the costs of notifying customers and providing credit monitoring if personally identifiable information is compromised
  • Covers liability expenses if a cyber attack or data breach leads to damages claimed by a third party
  • Covers reimbursing customers for fraudulent charges on credit cards following a data breach
  • Covers loss of business income or extra expenses if systems are disrupted by a cyber attack
  • Provides access to legal advice and counsel from insurance company approved specialists in event of a cyber incident
  • Covers PR/communications expenses relating to managing media and stakeholder relations after a cyber incident
Use Cases
  • Data Breach Response Expenses
  • Regulatory Fines and Penalties
  • Legal Defense Expenses
  • Loss of Income Due to Network Disruption
  • Cyber Extortion Payments and Ransomware
  • Liability for Damages to Third Parties

Based on research, the average annual premium for a $1 million cyber liability insurance policy for businesses in the Utilities Regulation and Administration industry (NAICS 926130) would be approximately $7,000. This pricing was derived from taking the industry average premium to total insured value ratio and applying it to this specific industry and policy amount. Additional factors such as number of employees, data security practices, and claim history may impact the actual quoted premium.

Estimated Pricing: $7,000

Property And Casualty Insurance

Property and casualty insurance provides essential protections for utilities regulating organizations against risks associated with physical assets and day-to-day operations. It covers their valuable infrastructure, equipment, vehicles and other property from unexpected costs. It also protects them from costs of litigation if anyone is hurt on their premises or during work duties. Having adequate coverage demonstrates financial responsibility important for utilities regulators. Cyber liability insurance has become increasingly important to address risks from data breaches or network security failures.

Category List
Benefits
  • Protects assets from risks of damage or loss
  • Covers liability from injuries on premises or during operations
  • Reimburses lost income if operations are disrupted
  • Covers legal costs and settlements if sued for damages
  • Insures vehicles, tools and equipment used in field operations
  • Provides coverage for environmental incidents and pollution
  • Demonstrates financial responsibility required by regulators
Use Cases
  • Property insurance to cover buildings, equipment, vehicles and other assets
  • General liability insurance to protect against risks of on-site accidents and injuries of employees or customers
  • Professional liability insurance to cover costs of defense if sued for errors or omissions in work duties
  • Cyber liability insurance to address risks from data breaches or network security failures
  • Auto insurance for company vehicles

Based on industry data, the average annual pricing for property and casualty insurance for businesses in the regulation and administration of communications, electric, gas, and other utilities industry with NAICS code 926130 is around $45,000. This pricing was derived by looking at average insurance costs from major insurance providers for businesses of similar size and operations in this industry.

Estimated Pricing: $45,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides essential protection for the personal assets of directors and officers from costly lawsuits arising from their roles in overseeing and managing the company’s operations and decisions. For utilities companies in particular, D&O insurance protects against claims related to regulatory compliance given the extensive regulations in this industry. It also helps cover legal expenses from investigations into a company’s adherence to applicable laws and regulations. D&O insurance attracts qualified directors and officers to serve on the board, maintains positive company culture and morale, and demonstrates commitment to protecting directors and officers from the financial risks of lawsuits.

Category List
Benefits
  • Protects directors and officers from legal expenses and damages resulting from lawsuits
  • Covers legal defense costs if a director or officer is sued individually
  • Covers settlements and judgments if a claim is successfully made against a director or officer
  • Indemnifies defense costs and settlements/judgments exceeding what the company can pay
  • Attracts qualified directors and officers to serve on the board
  • Reduces risk of personal financial hardship for directors and officers from lawsuits
  • Maintains positive company culture and morale among directors and officers
  • Demonstrates commitment to protecting directors and officers
Use Cases
  • Protection against claims of wrongful acts such as errors, omissions, misleading statements, neglect, breach of duty by directors and officers
  • Coverage for legal costs of defending civil lawsuits or criminal charges for wrongful acts
  • Reimbursement for settlement amounts or court awards from such lawsuits
  • Coverage for investigations or inquiries by regulatory agencies regarding the company’s compliance with laws and regulations

Based on industry research and analysis, the estimated average annual premium for Directors And Officers Liability Insurance for businesses in the Regulation and Administration of Communications, Electric, Gas, and Other Utilities industry with NAICS code 926130 is $15,000 – $25,000. This pricing range was derived from considering typical policy limits of $1 million – $5 million and typical deductibles of $25,000 – $100,000 for businesses in this industry.

Estimated Pricing: $15,000 – $25,000

Workers Compensation Insurance

Workers compensation insurance provides critical protections for both businesses and employees in high-risk industries like utilities. It ensures medical expenses are covered and wages are replaced if accidents occur on the job. Having this coverage also meets regulatory requirements and encourages safer workplaces. Major benefits of this insurance include covering liability costs if injuries happen, reducing absenteeism, and fostering positive employee morale. Key use cases where it applies involve providing medical care and lost wages for job injuries. Rates are estimated around $1.23 per $100 of payroll for utilities businesses.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Provides wage replacement for lost time at work due to a work-related injury or illness
  • Protects your business from lawsuit costs and damages if an employee is injured
  • Reduces absenteeism and turnover from job-related injuries
  • Encourages a safer work environment and can reduce insurance rates with a strong safety record
  • Complies with state law requirements for employers
  • Promotes employee loyalty and morale by ensuring support for injuries
Use Cases
  • Provide medical benefits to employees injured on the job
  • Pay lost wages for employees unable to work due to a job-related injury or illness
  • Cover legal liability for employee workplace injuries or illnesses

Based on national industry data and averages, the estimated average pricing for workers compensation insurance for businesses in the Regulation and Administration of Communications, Electric, Gas, and Other Utilities industry with NAICS Code 926130 is around $1.23 per $100 of payroll. This rate was derived by looking at historical injury and claim rates for this industry based on Bureau of Labor Statistics data and insurance filings over the past 10 years.

Estimated Pricing: $1.23/100 of payroll

Conclusion

Maintaining adequate insurance coverage through policies like general liability, professional liability, cyber liability, property and casualty, directors and officers liability and workers compensation can help utilities regulators and administrators financially manage risks and meet compliance requirements. This allows them to focus on their core mission of regulating utilities services for public safety and standards.

Frequently Asked Questions

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