The management of companies and enterprises industry is comprised of a relatively small number of businesses. Some firms in this industry operate by holding securities and other equity interests of companies for the purpose of owning a controlling interest and influencing management decisions. Others may oversee and manage establishments belonging to certain companies or enterprises. These management companies will typically administer strategic or organizational planning decisions for the company. These management firms may also hold securities of the companies they manage.
There are currently 50,858 American private business establishments that are classified as falling within the NAICS’s management of companies and enterprises industry sector. If you are the owner of one of these firms, you understand the need for risk management. It is essential that you shield your investment from potential losses by insuring it with a commercial insurance policy designed specifically for the management of companies and enterprises industry.
Business Types in the Management of Companies and Enterprises Industry
Since the 1930’s, the National American Industry Classification System (NAICS) has been responsible for classifying all U.S. businesses into various industry sectors and subsectors. This classification system is extremely useful to economist as it facilitates greater ease in collecting, analyzing and reporting on financial data for each of the many different business industries.
The management of companies and enterprises industry is one of the smallest of the business sectors classified by the NAICS. It includes the following business types:
- Offices of Bank Holding Companies
- Offices of Other Holding Companies
- Corporate, Subsidiary and Regional Management Offices
Coverage Options Designed for the Management of Companies and Enterprises Industry
Business establishments in the management of companies and enterprises industry are typically responsible for major decision making and are privy to a lot of confidential information and data. In many cases, actions taken by key members of your staff can directly impact the financial well-being of both the companies being managed and their shareholders. As a result, there is a significant risk of liability lawsuits in this industry. Providers of commercial insurance offer a number of different coverage options so that, as a business owner, you can create a policy that is suitable to meet the specific needs of your firm.
Liability concerns are among the most important to business owners within the management of companies and enterprises industry. Some coverage options that may appeal to you include:
- Professional liability insurance: Also referred to as errors and omissions insurance, this coverage is among the most critical for businesses that deal with the management of companies and enterprises. It is designed to protect decision makers at your business from charges of professional negligence or failure to perform professional duties in the event that their performance leads to financial losses for your clients and their shareholders.
- Cyber liability and data-breach insurance: You likely have access to a lot of confidential company information and this can become a potential target of hackers. In the event that you are the victim of cyber crimes committed by a third-party actor, this insurance may cover the resultant losses and potential lawsuits.
- Employee theft coverage: Unfortunately, the problem of embezzlement, insider trading and employee theft exists. This coverage is designed to cover resultant losses and potential lawsuits if one of your employees is discovered to be committing crimes on the job. This coverage typically does not insure against crimes committed by principals or partners in your company.
These are just a few of the many coverage options that are available to you when you build a business insurance policy to protect your holding or management company. It may be worth your while to discuss your risks and insurance needs with a professional who can make fitting recommendations and help you create a policy that includes all the coverage you need.
Let an Independent Agent Help You Build the Right Business Insurance Policy
Commercial insurance providers offer several different coverage options and policy types. Navigating through your many alternatives to build a suitable policy can be a difficult and complex endeavor. You save time, money and irritation simply by working with an independent insurance agent in the Trusted Choice® network. These agents are equipped to answer your insurance-related questions, help you assess your business coverage needs, and counsel you about suitable coverage amounts. Furthermore, because they are not captive to any particular insurance provider, they can work with a number of different insurance companies to create a policy that is custom-built for your business.
Discover the convenience of keeping all your insurance coverage solutions under one roof. Consult a Trusted Choice network agent near you for more information and you can start reviewing policies specifically tailored to the management of companies and enterprises industry in no time.