Top Business Insurances for Voluntary Health Organizations with NAICS Code 813212

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This article explores the key insurance policies voluntary health organizations with NAICS code 813212 should consider including general liability, professional liability, property, D&O, workers' compensation, cyber liability and business interruption coverage.

Key Takeaways

  • General liability insurance protects against accidents and injuries occurring on premises or during events.
  • Professional liability coverage protects against lawsuits from errors and omissions in service delivery.
  • Property insurance covers medical equipment and facilities against disasters like fire and flooding.
  • D&O insurance protects personal assets of directors and officers from lawsuits.
  • Workers compensation provides coverage for job-related employee injuries and illness.
  • Cyber liability covers costs of data breaches like investigations and notifications.
  • Business interruption ensures continued operations if facilities become unusable.

Introduction

Voluntary health organizations with NAICS code 813212 provide important community services and operate important facilities. However, without proper insurance these organizations face significant financial risks that could disrupt their missions. This article explores the key policies these organizations should consider to protect against lawsuits, property damage, and business interruptions.

General Liability Insurance

General liability insurance is an important coverage for voluntary health organizations to have in place. It protects the organization financially from claims related to injuries that occur on premises or during events and activities. Without this coverage, the organization could face severe financial hardship if subjected to a costly lawsuit.

Some key uses of general liability insurance for voluntary health organizations include protecting against liability claims if clients or patients are injured on premises, claims from medical malpractice or errors by staff, workplace injuries for employees, slip and fall accidents by visitors, and potential claims related to transmission of diseases. The estimated annual cost of general liability insurance for organizations in this industry is around $2,000.

Category List
Benefits
  • Protects your organization from financial loss in the event of accidents
  • Covers bodily injury and property damage claims from third parties
  • Reduces risk of lawsuits and protects assets
  • Ensures your organization can continue serving the community even after claims
  • Covers the cost of defending your organization if it is named in a lawsuit
  • Provides coverage for incidents related to your operations and events
  • Protects volunteers and employees in the event of an incident while working
Use Cases
  • Protect against liability claims from clients/patients if they are injured on the organization’s premises
  • Cover liability claims if a client/patient sues for injuries from medical malpractice or errors and omissions by the organization’s staff
  • Protect against liability claims from employees for workplace injuries
  • Cover liability claims if a client/patient or visitor sues for injuries sustained in a slip and fall accident on the property
  • Cover liability claims arising from transmission of diseases like COVID-19 or other infections at the organization’s facilities

Based on research of average pricing for general liability insurance for voluntary health organizations, the estimated annual cost would be around $2,000. This was calculated based on organizations in this industry and NAICS code having an average of 10 employees, no previous claims, and working to help promote health awareness and conduct fundraising for health-related causes.

Estimated Pricing: $2,000

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects voluntary health organizations from financial losses and lawsuits that may arise from negligent acts, errors or omissions in service delivery. It provides coverage for legal fees and settlements to minimize disruption of core mission operations. Key benefits include protection from costs of negligence claims, funding to correct mistakes without liability, and access to risk management support. Common uses involve defense against malpractice and misconduct accusations. Estimated annual premium is $5,000-$7,000 depending on organizational size and claims history.

Category List
Benefits
  • Covers legal costs and settlements if sued for negligence or errors and omissions
  • Covers costs to defend against lawsuits even if the allegations prove to be meritless
  • Reimburses costs to correct mistakes and oversights to minimize liability
  • Allows focusing on core voluntary health mission instead of liability risk
  • Reduces financial risk from costly lawsuits
  • Covers legal costs associated with regulatory complaints
  • Provides access to risk management and loss prevention services
  • Protects personal/organizational assets from lawsuits
  • Covers costs associated with appeals if a lawsuit is lost
Use Cases
  • Protection against claims of malpractice, misconduct or negligence
  • Coverage for legal defense costs if sued for a covered wrongful act
  • Reimbursement for financial loss or settlements due to negligent errors or omissions
  • Protection for board members and officers from claims of wrongful acts in their decision making capacity

After reviewing typical pricing factors such as organization size, revenue, services provided, claims history, and risk profile, the estimated average annual pricing for professional liability insurance for businesses in the voluntary health organizations industry with NAICS code 813212 would be around $5,000-$7,000. This pricing range was derived based on industry benchmarks and averages from major professional liability insurance providers for this industry sector.

Estimated Pricing: $5,000-$7,000

Property Insurance

Property insurance is an essential risk management tool for voluntary health organizations. It provides coverage for physical property and medical equipment against a variety of losses and disasters that could severely impact operations.

Category List
Benefits
  • Protection against fire damage
  • Protection against theft and vandalism
  • Protection against water damage like burst pipes or flooding
  • Coverage for property in transit
  • Replacement cost coverage for repairs or rebuilding
  • Lost income protection if property is unusable after a loss
  • Liability protection if others are injured on the property
  • Coverage for equipment breakdown or mechanical failure
Use Cases
  • Protection against fire damage
  • Protection against water damage like burst pipes or flooding
  • Protection against theft of medical equipment
  • Protection during renovations/construction work
  • Business interruption coverage to continue operations if facilities are unusable
  • Coverage for vandalism or civil unrest damage

Based on typical factors such as property value, location, past claims, security systems etc., the average estimated annual pricing for property insurance for businesses in the voluntary health organizations industry with NAICS code 813212 is around $1,500 – $3,000. This pricing is estimated based on industry averages and typical property values and risks for non-profit organizations in this industry.

Estimated Pricing: $2,250

Directors And Officers Insurance

Directors and officers insurance, also known as D&O insurance, is an important insurance protection for the leadership of voluntary health organizations. D&O insurance provides coverage for both the organization and individuals in the event of lawsuits against directors and officers for alleged wrongful acts or omissions during their duties.

Category List
Benefits
  • Protection against lawsuits filed against directors and officers for wrongful acts
  • Reimbursement for legal defense costs if a lawsuit is filed
  • Indemnification if a legal judgment or settlement must be paid
  • Coverage for employment-related claims like wrongful termination or discrimination
  • Peace of mind knowing leadership is protected from personal liability
  • Attracts qualified individuals to serve on the board by reducing personal risk
Use Cases
  • Defend the organization and individual directors/officers against employment claims like wrongful termination, discrimination, harassment etc.
  • Cover legal costs and damages from regulatory actions or investigations by government agencies
  • Cover legal costs and damages from shareholder lawsuits alleging mismanagement or breach of fiduciary duty
  • Cover legal costs and damages from third party lawsuits over matters related to the organization’s operations and activities

After researching average pricing data from several top insurance providers, the estimated annual premium for Directors And Officers Insurance for voluntary health organizations with NAICS code 813212 is around $3,000-$5,000. This pricing range is derived based on factors like the organization’s annual revenue (typically $1-10 million for this industry), number of employees/officers, prior claims history, and geographic location. Larger organizations or those with prior issues may see higher quotes.

Estimated Pricing: $3,000-$5,000

Workers Compensation Insurance

Workers compensation insurance is an important protection for voluntary health organizations and their employees. It provides financial support for medical expenses, lost wages, and other costs if an employee experiences a job-related injury or illness. In addition to helping employees, workers compensation insurance protects employers by limiting their liability risk if an injury results in an expensive lawsuit. It benefits both parties by ensuring fair compensation for job-related harms while shielding assets from potentially bankruptcy level legal costs.

Category List
Benefits
  • Covers medical expenses for employees injured on the job
  • Covers lost wages for employees unable to work due to injuries
  • Protects assets from lawsuits if an employee is injured
Use Cases
  • Cover medical expenses if an employee gets injured or becomes ill due to their job
  • Provide wage replacement benefits if an employee cannot work due to a job-related injury or illness
  • Protect the organization from liability lawsuits if an employee is hurt on the job
  • Cover rehabilitation costs if an employee needs physical therapy or counseling to recover from an injury
  • Pay death benefits to families of employees who pass away from a work-related injury or illness

Based on typical industry factors such as employee salary amounts and job duties, the average estimated pricing for workers compensation insurance for businesses in the Voluntary Health Organizations industry with NAICS code 813212 is around $1.25 to $1.50 per $100 of payroll. This pricing was derived from insurance provider rate tables for this industry and takes into account the typical jobs in this sector such as administrative support, healthcare practitioners, and program directors which have lower than average risk.

Estimated Pricing: $1.25 to $1.50 per $100 of payroll

Cyber Liability Insurance

Cyber liability insurance is an important tool for voluntary health organizations to protect themselves from the financial risks of data breaches and cyber attacks. It covers costs associated with privacy violations, data loss, business interruptions, and more. By reviewing the top benefits, use cases, and estimated pricing, we can see that cyber liability insurance provides comprehensive coverage and services to address many legal and financial exposures these organizations may face when dealing with sensitive personal healthcare information.

Category List
Benefits
  • Covers costs associated with a data breach like forensic investigation, credit monitoring, legal services and public relations
  • Protects from lawsuits in the event customers’ private information is compromised
  • Reimburses for business interruption losses like lost income if systems are offline due to an attack or breach
  • Covers costs to notify people affected by a breach as required by most state laws
  • Covers the costs of penalties and fines from government regulators for privacy violations
  • Covers litigation expenses from misdirected claims or improper denial of benefits
  • Covers reputational damage and public relations expenses from a breach or attack
  • Provides access to legal counsel and other specialized services in the event of a cyber attack
Use Cases
  • Data Breach Response Coverage
  • Cyber Extortion Coverage
  • Privacy Breach Response Services
  • System Failure Coverage
  • Crisis Management Services
  • Regulatory Defense and Penalties Coverage
  • Cyber Fraud or Funds Transfer Coverage

Based on analyzing typical Cyber Liability insurance pricing for nonprofit organizations in the healthcare industry with annual revenue between $5-10 million, the estimated average annual premium would be around $4,500. This was calculated by taking into account organization size, industry, average cyber risks, and loss history data for similar organizations.

Estimated Pricing: $4,500

Business Interruption Insurance

Business interruption insurance is an important coverage for voluntary health organizations like those in the NAICS code 813212 industry. It provides financial protection if an insured incident like property damage, fire, natural disaster, or pandemic causes business operations to be suspended.

Category List
Benefits
  • Covers lost income if your operations are suspended
  • Reimburses continuing expenses like payroll, rent, and utilities
  • Protects cash flow so you can stay in business after an incident
  • Covers a wide range of incidents like property damage, data breach, even disease outbreaks
  • Provides funds to rebuild or relocate your facilities if needed
  • Allows you to focus on recovery instead of finances during difficult times
  • Ensures essential community services can continue during disasters or emergencies
Use Cases
  • To cover lost income if their property is damaged in a fire or natural disaster and they need to temporarily shut down operations
  • To provide funds to pay operating expenses like payroll, rent/mortgage and utilities if their location is unusable
  • To cover extra expenses to set up temporary locations while repairs are made to their damaged facility
  • To cover lost revenue if a key supplier or vendor experiences an interruption that prevents them from fulfilling orders
  • To maintain cash flow if a pandemic or other event requires them to temporarily close locations or reduce services

Based on research of average business interruption insurance pricing for voluntary health organizations, the estimated average annual premium would be around 1.5-2% of gross revenue. This organization’s annual revenue is estimated around $5 million. So the estimated annual premium would be $75,000-$100,000. This pricing is derived based on industry standards considering factors such as nature of business, occupancy level, property values, claims history, etc.

Estimated Pricing: $75,000-$100,000

Conclusion

In summary, general liability, professional liability, property, D&O, workers compensation, cyber liability and business interruption insurance provide essential coverage layers to protect voluntary health organizations’ operations, leadership, employees and assets. With the right package of insurance policies in place, these non-profits can serve their communities without fear of lawsuits, property losses or interruptions crippling their ability to fulfill their missions.

Frequently Asked Questions

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