The Top 7 Seven High-Growth Industries and Their Unique Insurance Needs

Following are the seven fastest growing industries according to the US Bureau of Labor Statistics. Beyond the need for "ordinary" coverages (i.e. property, liability and automobile), each of these industries presents at least one unique coverage or risk management issue to which agents and brokers must pay special attention.

NAICS base codes are provided along with brief descriptions of each industry as defined by the NAICS (http://www.naics.com). Base codes may include several specific classifications.

Your top seven are:

Management, Scientific and Technical Consulting Services (5416): This industry and its employees provide professional advice and assistance to businesses, municipal entities and governments seeking/needing help and direction in all areas of business or entity management. Scientific and technical consultants provide more specialized expertise. Specialized knowledge, experience and/or training are required of these consultants. Insurance coverages unique to this class of operation include:
• Professional Liability or Errors & Omissions protection (differs based on consulting specialty);
• Kidnap & Ransom coverage if working internationally;
• EPLI policy providing third party protection;
• Fiduciary Liability if advising or handling money; and
• If the employee works from home, one of two specific homeowners' policy endorsements may be required.

Individual and Family Services (6241): This industry and its employees are primarily engaged in providing nonresidential individual and family social assistance services specifically directed toward children, the elderly, persons diagnosed with mental retardation or persons with disabilities. Services include counseling, day care, advocacy and recovery help. Some insurance and loss exposures agents and brokers should consider are:
• Professional Liability (for counseling and other professional services);
• EPLI with Third Party coverage;
• Fiduciary Liability (if helping with finances);
• Coverage for sexual abuse and sexual harassment;
• Accident & Health coverage for those being cared for and volunteers; and
• Directors & Officers coverage.

Home Health Care Service (621610): This industry is primarily engaged in providing skilled nursing services in the individual patient's home offering a range of services including: personal care services; homemaker and companion services; physical therapy; medical social services; medication administration; medical equipment and supplies training; counseling; 24-hour home care; occupation and vocational therapy; dietary and nutritional services; speech therapy; audiology; and high-tech care, such as intravenous therapy. Insurance and risk management considerations include:
• Medical Malpractice;
• Sexual assault and harassment coverage;
• Crime/Fiduciary coverage; and
• Workers' compensation coverage - especially critical if the home health agency pays the health care providers as independent contractors; they may still be employees for workers' compensation purposes.

Securities, commodity contracts and other financial investments and related activities (523): This classification engages a plethora (a whole bunch) of financial service professionals from investment bankers through to commodities brokers and trust officers and portfolio managers. The economic downturn is not permanent, so this will likely be a growth profession again soon. Special insurance coverages that should be explored include:
• Professional Liability; and
• Fiduciary Liability/Dishonesty Bonds.

Facilities Support Services (561210): This industry is primarily engaged in providing a combination of support services within a client's facilities such as janitorial; maintenance; trash disposal; guard and security; mail routing; reception; laundry; and other related services that support the operations of the client's facilities. Establishments that operate correctional facilities (i.e., jails) on a contract or fee basis are included in this industry class. Special insurance considerations include:
• Fiduciary Liability/Dishonesty Bonds;
• Professional Liability (i.e. Law Enforcement Liability for guard services); and
• Bailee's coverage.

Residential Care Facilities (6232, 6233, 6239): A wide range of operations is anticipated by this particular classification. Establishments and employees engaged in this industry primarily provide residential care and personal care services to facility-housed patients who suffer from mental retardation; require on-going medical care; suffer from a mental health issue; or provide group living for the elderly that do not require continuous medical treatment (retirement home). Also included in this broad classification are employees of children's homes, "boot camp" facilities, half-way homes and orphanages. Like some of the previous classifications, insurance coverages that may need to be considered include:
• Professional Liability (for medical, counseling or other professional services);
• EPLI with Third Party coverage;
• Fiduciary Liability (if helping with finances);
• Coverage for sexual abuse and sexual harassment;
• Accident & Health coverage for those being cared for and volunteers; and
• Directors & Officers coverage.

Independent Artists, Writers and Performers (711510): This industry comprises independent (i.e., freelance) individuals primarily engaged in performing in artistic productions, creating artistic and cultural works or productions or in providing technical expertise necessary for these productions. This industry also includes athletes and other celebrities exclusively engaged in endorsing products and making speeches or public appearances for which they receive a fee. A few of the unique insurance issues faced by these free spirits includes:
• Workers' Compensation coverage (a majority are self-employed and need the protection);
• Media Professional Liability protection; and
• Disability Income coverage.

While this may not be an all-inclusive list of each industry's unique insurance needs, this does serve to highlight some of the coverages that require consideration when providing protection for insureds in this industry.

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