Top Commercial Insurance Options for Animal Production Support Businesses with NAICS Code 1152

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Understand the key commercial insurance policies animal production support businesses should consider including general liability, commercial property, auto, workers' compensation and more.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries on your property or involving your operations
  • Commercial property insurance covers buildings, equipment, vehicles and lost income if property is damaged
  • Auto insurance covers vehicles used for business and protects against accident-related lawsuits
  • Workers’ compensation covers medical costs and lost wages if employees are injured on the job
  • Professional liability protects animal care businesses against lawsuits related to negligence in service delivery
  • Commercial umbrella insurance increases liability limits at an affordable cost to provide further protection
  • Cyber liability covers costs of data breaches and network disruptions in today’s digital world

Introduction

Businesses in the support activities for animal production industry face a variety of risks that commercial insurance policies help address. This article outlines the top insurance options these businesses should consider to protect their operations, employees and assets.

General Liability Insurance

General liability insurance provides important protection for businesses in the support activities for animal production industry. It covers costs associated with accidents, injuries, property damage and lawsuits that could seriously threaten the financial stability of an operation. The top benefits include protection from bodily injury claims, veterinary liability, animal escapes, and waste disposal issues. On average, businesses in this industry can expect to pay around $2,500 annually for general liability coverage to protect against these common risks and lawsuits.

Category List
Benefits
  • Protects against lawsuits from customers or clients if they are injured on your property
  • Covers costs associated with accidents or injuries involving your livestock operations
  • Protects against third party property damage claims if your operations accidentally cause damage or injury
  • Provides defense costs if you are sued, regardless of the merit of the claim
  • Covers medical expenses for anyone injured on your property
  • Protects employees with coverage for injuries that happen on the job
  • Protects the long term viability of your business from significant lawsuits or claims
Use Cases
  • Protection against bodily injury or property damage claims from clients/customers at facilities
  • Coverage for veterinary staff/ technicians in case of injuries to clients animals while under care
  • Protection for business owners/employees if sued for accidental contamination or spread of disease from animals to animals or humans
  • Liability coverage if an animal under care escapes and causes bodily injury or property damage to others
  • Coverage for potential lawsuits from improper disposal/treatment of animal waste or carcasses

For businesses in the Support Activities for Animal Production (NAICS Code: 1152) industry, the estimated average annual pricing for general liability insurance is around $2,500. This pricing was derived based on industry risk factors such as animal handling, hazardous materials usage, as well as average revenue and employee counts for businesses in this industry.

Estimated Pricing: $2,500

Commercial Property Insurance

This guide provides an overview of the top benefits, use cases, and estimated pricing of commercial property insurance for businesses in the support activities for animal production industry with NAICS code 1152.
Commercial property insurance plays an important role in protecting the physical assets and operations of these businesses against a variety of risks while also providing liability coverage. It is recommended for support activities businesses to consider their insurance needs and purchase adequate commercial property insurance based on their property values and risks.

Category List
Benefits
  • Property protection against risks like fire, lightning, explosions, windstorms, hail, riots, damage from vehicles and more.
  • Business interruption coverage to continue paying operating expenses if your property is damaged and you have to temporarily close.
  • Replacement cost coverage to repair or rebuild damaged property back to the same condition it was before the loss without deductions for depreciation.
  • Law and ordinance coverage to pay the increased costs of rebuilding or repairing a damaged structure to comply with current building codes and regulations.
  • Equipment breakdown coverage to repair or replace equipment damaged by mechanical or electrical breakdown like broken boilers or electrical systems.
  • Valuable papers and records coverage to replace or restore valuable business documents and computer files in the event they are damaged or destroyed.
  • Arson and theft coverage to cover losses from fire or burglary caused by malicious or criminal acts.
  • Additional living expenses coverage to pay for temporarily relocating livestock or operating at an alternative location if your property is unusable due to a covered loss.
Use Cases
  • Protect buildings and structures from risks like fire, lightning, explosion, windstorm or hail, riot, aircraft or vehicle damage
  • Cover machinery, equipment, furniture and fixtures from risks like fire, theft or accidental damage
  • Cover livestock in case of injury, sickness or death from specified causes like accidents, disease or weather-related events
  • Cover vehicles like tractors, trucks and trailers used for business purposes
  • Provide business income protection in case operations are interrupted due to a covered loss
  • Cover liability risks from owning or operating the business that could result in property damage or bodily injury claims from third parties

Based on industry data, businesses in the support activities for animal production typically pay around $1.50 per $100 of insured value for commercial property insurance. This pricing is derived from considering factors such as the nature of operations being lower risk than direct animal production, property loss histories, security measures in place, and compliance with best practices. The average total insured property value for businesses in this industry is around $500,000. Therefore, the estimated annual commercial property insurance pricing would be around $7,500.

Estimated Pricing: $7,500

Commercial Auto Insurance

“Commercial auto insurance is critical for businesses in the animal support industry. Vehicles are an integral part of transporting animals, feed, and supplies between farms and facilities. This type of insurance provides important liability protection, medical payments coverage for injuries to others, and replacement value coverage in the event of accidents. It also protects businesses from lawsuits and replaces vehicle values if they are damaged in accidents.”

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for vehicles used in business operations
  • Replacement value coverage for vehicles in an accident
  • Medical payments coverage for injuries to others
  • Coverage for vehicles driven by employees
  • Protection against lawsuits in the event of an accident
Use Cases
  • Covering company-owned vehicles used to transport animals, animal feed, veterinary equipment and other supplies to farms
  • Insuring vehicles used to haul away deceased livestock for disposal
  • Protecting vehicles transporting livestock to and from auctions, processing plants, grazing pastures
  • Insuring vehicles used by veterinarians and technicians to visit farms for animal healthcare services

Based on industry research, the average commercial auto insurance pricing for businesses in the Support Activities for Animal Production industry with NAICS code 1152 is around $1,200 per vehicle per year. This pricing factors in the use of pickup trucks and cargo vans to transport animals, feed, equipment, etc. across agricultural areas. It also considers the risks involved with transporting live animals. The pricing was derived from averaging quotes from top commercial insurers for this industry.

Estimated Pricing: $1,200

Business Owner’S Policy

A Business Owner’s Policy (BOP) provides comprehensive protection tailored for small businesses in the support activities for animal production industry. It offers essential liability and property coverage to protect against common risks these businesses may face. Additional benefits of a BOP for these businesses include business interruption coverage to continue operating expenses if they have to temporarily shut down, hired and non-owned auto liability coverage if employees use personal vehicles for work, crime protection for theft of money and securities, and an estimated average annual price of $1,500.

Category List
Benefits
  • Property protection for buildings, machinery, equipment, and inventory
  • Liability protection in case of accidents on your property or if your operations cause bodily injury or property damage to others
  • Business interruption coverage to continue paying operating expenses if business must temporarily shut down
  • Commercial auto coverage for vehicles used for business
  • Crime protection for theft of money and securities
  • Coverage for equipment breakdown
  • Identity recovery services in case of identity theft
Use Cases
  • Liability coverage in case of property damage or bodily injury lawsuits from customers or others
  • Property coverage for buildings, equipment, inventory and other business personal property in case of loss or damage from events like fire, theft or weather
  • Business interruption coverage to continue covering operating expenses if the business has to temporarily shut down due to a covered loss
  • Coverage for hired and non-owned auto liability if employees or contractors use their personal vehicles for business purposes

Based on reviewing typical coverages and limits for businesses in the support activities for animal production industry with NAICS code 1152, the estimated average annual pricing for a business owners policy would be between $1,200 to $1,800. This pricing is derived from considering factors like average revenues, number of employees, property values, and liability exposures that are common for this industry type.

Estimated Pricing: $1,500

Worker’S Compensation Insurance

Worker’s compensation insurance provides critical protection and benefits for both employees and employers in high-risk industries like animal production services. It covers medical expenses and lost wages for injured workers while protecting businesses from costly liability lawsuits.
The top benefits of worker’s compensation insurance for this industry include covering medical costs from injuries on the job, replacing lost wages during recovery, and satisfying legal requirements to carry the insurance. It also helps retain employees and demonstrates a commitment to their well-being. Important use cases involve compensating for injuries, disabilities, and vocational rehabilitation from work accidents. Pricing for this industry averages around $2.50 per $100 of payroll.

Category List
Benefits
  • Covers medical expenses if an employee is injured on the job
  • Pays lost wages if an employee cannot work due to a job-related injury or illness
  • Protects the business from liability if an employee is injured and decides to sue
  • Reduces turnover by providing support for injured employees’ medical costs and lost pay
  • Satisfies state law requirements for businesses to carry worker’s compensation
  • Demonstrates care for employee well-being
Use Cases
  • Covering medical expenses if an employee gets injured on the job
  • Replacing lost wages if an employee can’t work due to a job-related injury or illness
  • Compensating for permanent disabilities suffered from work-related accidents
  • Covering costs of vocational rehabilitation if an injury prevents an employee from returning to their original job

After examining industry risk factors and average claim costs for the Support Activities for Animal Production industry (NAICS 1152), the estimated average annual pricing for worker’s compensation insurance would be around $2.50 per $100 of payroll. This price was derived based on the industry having moderate risk relative to other agricultural support activities due to risks of animal handling and outdoor hazards, but lower than many construction or manufacturing industries. The claims history for this industry shows an average cost of $1,200 per claim which is lower than some higher risk industries.

Estimated Pricing: $2.50/$100 payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses that provide professional services from costly lawsuits. It covers legal fees and damages if sued for negligence, errors or omissions related to work. Professional liability insurance is especially important for businesses in the support activities for animal production industry due to the risks involved in handling and caring for animals. It provides coverage for lawsuits related to injuries or deaths of animals under a business’s care. It also covers damages and legal costs if an employee gets injured on the job, if a client’s animal injures a third party, or if the business is accused of violating laws around animal welfare or treatment.

Category List
Benefits
  • Covers legal costs and damages if sued for errors or omissions related to your work
  • Protects your business assets if a lawsuit is filed against your business
  • Shows customers and clients you take responsibility for your work and services
  • Covers defense costs even if the claims end up being meritless or unfounded
  • Provides access to risk management and loss prevention services to help reduce claims
  • Covers claims brought by employees for negligence related to work duties
Use Cases
  • Protection against lawsuits from clients if any animals get injured or die due to negligence while boarding, training, grooming, etc.
  • Coverage if a client’s animal causes injury or damage to a third party and the client sues the business for damages
  • Lawsuits from government agencies if the business is accused of violating laws around animal welfare or treatment
  • Lawsuits from employees if they are injured on the job due to unsafe or unhealthy working conditions

Based on typical pricing factors such as industry risk level, business size and revenue, the estimated average annual premium for professional liability insurance for businesses in the support activities for animal production industry would be around $2,000 – $5,000. The risk level for this industry is moderate given the nature of services provided to support animal facilities but does not involve direct animal care. Premium is usually calculated as a percentage of revenue or number of employees for small to medium size businesses in this industry.

Estimated Pricing: $2,000 – $5,000

Employment Practices Liability Insurance

This reference provides information on the top benefits, use cases, and estimated pricing of employment practices liability insurance for businesses in the support activities for animal production industry (NAICS code 1152). It outlines the key risks these businesses face related to employment issues and how EPLI can help protect them from costly lawsuits and legal costs. Common claims in this industry include wage disputes, overtime issues, safety violations, and more. Premium pricing factors like number of employees, location risks, claims history are also discussed. This is a comprehensive reference on why EPLI is important for these businesses and what coverage and costs they can expect.

Category List
Benefits
  • Covers legal defense costs if sued for wrongful termination, discrimination, harassment or other employment-related claims.
  • Protects against financial loss from employee lawsuits and settlements.
  • Provides access to expert HR and legal counsel to develop better policies and limit exposure to claims.
Use Cases
  • Wrongful termination lawsuits
  • Harassment or discrimination claims
  • Violation of privacy or civil rights
  • Failure to promote
  • Inadequate accommodation for disabilities
  • Issues related to time off or leaves of absence

Based on typical pricing models for EPLI insurance, businesses in this industry can expect to pay around $3,000-$5,000 annually for $1 million in coverage limits. Premium pricing is impacted by factors like number of employees, location risks like minimum wage laws, and history of claims or lawsuits. For this industry, risks are moderate given the type of work but employee safety concerns factor into rates. Using an average of 50 employees as a baseline, $3,500 would be a reasonable estimate for annual premium costs.

Estimated Pricing: $3,500 annually

Commercial Umbrella Insurance

Commercial umbrella insurance is an important liability coverage for businesses in the support activities for animal production industry. It provides higher liability limits above primary commercial policies to help protect against costly lawsuits related to common risks in this sector such as animal injuries, disease transmission, and facility equipment accidents. Umbrella insurance offers an affordable way to significantly increase liability protection for these businesses. It can help cover liability claims not included in standard commercial policies as well as risks specific to animal production like animal bites and machinery hazards.

Category List
Benefits
  • Provides additional liability protection above your commercial general liability and auto insurance limits
  • Covers costs from lawsuits related to injuries on your property or involving your vehicles
  • Protects your personal assets from costly judgements and settlements
  • Increases your business’ overall liability limits at an affordable price
  • Covers liabilities not covered under other primary commercial policies
  • Protects against lawsuits from defects or problems with products/services supplied
  • Provides coverage for incidents involving hired/non-owned automobiles
Use Cases
  • To provide additional liability coverage above the limits of the underlying commercial general liability policy
  • To protect against risks not covered under the commercial general liability policy such as pollution liability and other environmental exposures
  • To provide higher limits of coverage for risks of bodily injury and property damage
  • To protect the business owner’s personal assets from awards, judgements or settlements in the event of a significant loss
  • To protect against risks specific to the animal production industry such as animal bites/attacks, injuries from machinery/equipment used in animal care, spread of disease

Based on typical umbrella insurance pricing models, businesses in the support activities for animal production industry (NAICS 1152) would on average expect to pay around $1.50/$1000 of underlying combined liability limits for additional umbrella coverage above the primary layer. Considering a typical minimum size primary general liability policy of $1 million, umbrella insurance for an additional $1 million of coverage would cost approximately $1,500 annually.

Estimated Pricing: $1,500

Cyber Liability Insurance

Cyber liability insurance is an increasingly important coverage for businesses in the support activities for animal production industry. As these businesses increasingly process sensitive customer and business data digitally, they face growing risks of cyber attacks, data breaches, and the associated financial and legal costs. Some key benefits of this type of insurance include covering costs of data restoration, legal fees, fines, breach notifications, loss of income, and forensic investigations. Common use cases that may be covered include accidental data leaks, ransomware attacks, third party liability claims, property damage, and regulatory fines due to privacy breaches. Estimated annual pricing for these policies is around $1,000-$2,000 based on business size and security practices.

Category List
Benefits
  • Covers costs of restoring data and systems in the event of a cyber attack or data breach
  • Covers legal fees and fines in the event of lawsuits or regulatory fines due to a breach
  • Covers costs of notifying customers and providing credit monitoring in the event personal information is compromised
  • Protects your business’s reputation in the event of a public data breach
  • Covers loss of income or extra expenses to maintain operations during downtime caused by a cyber incident
  • Provides access to legal support and forensic incident response services to help properly respond to a breach
  • Reduces liability risks associated with the growing use of networks, computers, and mobile devices in the industry
  • Covers expenses related to public relations or advertising campaigns needed to reassure customers and rebuild trust after a breach
Use Cases
  • Data breaches involving accidental release of customer or employee personal information
  • Ransomware attacks and cyber extortion leading to network downtime and ransom demands
  • Third party liability claims from customers, partners or vendors due to a data breach or system outage
  • Property damage from hacking, malware or system failure
  • Regulatory fines and compliance costs from a data privacy breach
  • Loss of income during system downtime to investigate and remediate an attack

Based on average pricing for small to medium sized businesses in low risk industries, the estimated average annual pricing for cyber liability insurance would be $1,000 – $2,000. This pricing takes into account factors such as number of employees, annual revenue, IT security protocols and history of cyber incidents.

Estimated Pricing: $1,500

Conclusion

Properly insuring the risks associated with animal production support services is important for businesses’ long term viability and financial security. The policies discussed provide valuable coverage for common issues faced by businesses in this industry.

Frequently Asked Questions

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