Top Business Insurance Needs for Sporting and Athletic Goods Manufacturers (NAICS 339920)

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Key business insurance products and protections sporting and athletic goods manufacturers should consider based on common risks and liabilities in the industry.

Key Takeaways

  • General liability insurance protects against claims of injuries from defective products or accidents on premises.
  • Commercial property insurance covers costs to repair buildings and equipment damaged by disasters.
  • Workers compensation insurance provides medical coverage and wage replacement for work injuries.
  • Product liability insurance protects against costly lawsuits over injuries caused by defective equipment.
  • Commercial auto insurance insures vehicles used for deliveries and protects from liability in accidents.
  • Directors and officers insurance protects personal assets of executives from lawsuits.
  • Employment practices liability insurance provides coverage for workplace claims.

Introduction

As a sporting and athletic goods manufacturer, certain business insurance policies are imperative to protect your operations from common risks in the industry. Key coverage needs stem from liability exposures related to manufacturing processes, product defects that could cause harm, vehicle usage, and workplace injuries.

General Liability Insurance

General liability insurance is an important coverage for businesses in the sporting and athletic goods manufacturing industry (NAICS 339920). It provides financial protection and peace of mind from lawsuits related to injuries, defective products, property damage and more. An average quote for general liability insurance for these types of businesses is around $3.50 per $100 of gross receipts. The top benefits include protection from injury claims, legal costs if sued, covering premises liability risks, and showing customers you take risk management seriously. The main use cases center around product liability protection and covering visitors at your premises or events. General liability insurance is vital for manufacturers in this industry to shield their business from costly legal battles.

Category List
Benefits
  • Provides protection against injury and property damage claims from customers, employees or the general public
  • Covers legal fees and costs if sued for damages by a third party
  • Protects your business assets like equipment, inventory and building from losing money in a lawsuit
  • Shows clients and customers you take risk management seriously
  • Covers claims that may arise from defective products or materials used in manufacturing
  • Protects against losses due to theft or property damage at your business premises
  • Provides coverage for incidents that occur away from your premises, such as at trade shows or customer sites
Use Cases
  • Protection against bodily injury and property damage claims from defective or dangerous products
  • Protection against claims if a customer gets injured while using or interacting with company’s products
  • Coverage for on-premises injuries such as slips, trips and falls
  • Defense costs if sued for accusations related to advertising, promotions or contracts
  • Indemnification if a lawsuit arises from professional services provided like consultation or instruction
  • Protection for business during events and demonstrations involving athletics like tournaments or races
  • Coverage for damage or harm that occurs during delivery or transportation of goods

Based on industry data, the average general liability insurance pricing for businesses in the sporting and athletic goods manufacturing industry (NAICS 339920) is around $3.50 per $100 of gross receipts. This pricing is derived from insurance company filings and industry reports, taking into account factors like the type of manufacturing, risk of product liability claims, sales volumes, and loss histories for similar businesses.

Estimated Pricing: $3.50 per $100 of gross receipts

Commercial Property Insurance

Commercial property insurance is an important coverage for businesses in the sporting goods manufacturing industry. It provides financial protection for repairing or replacing damaged buildings, equipment and lost income due to unexpected property damage from events like fires, floods or storms.

Category List
Benefits
  • Covers damages to buildings and equipment from disasters like fires, floods and other perils
  • Covers liability lawsuits if a customer gets injured on your premises
  • Covers loss of income if the property is unusable after damage like a fire or flood
  • Replaces damaged equipment and structures so you can reopen your business quickly
  • Covers theft of merchandise, equipment and supplies from your facility
  • Insures valuable business equipment and machinery that is expensive to replace
  • Protects your business’s fixed assets like property and equipment
Use Cases
  • Protect against property damage from fire, smoke, water, storms and other perils
  • Reimburse for costs to repair or reconstruct damaged buildings, machinery and equipment
  • Cover lost business income and extra expenses if operations are interrupted by covered property damage

Based on typical factors such as location, building value,contents value and operations, the estimated average annual pricing for commercial property insurance for businesses in the Sporting and Athletic Goods Manufacturing industry with NAICS code 339920 is around $2.50 per $100 of insured value. This price was derived from industry data and analysis of risk factors for manufacturing facilities of sporting goods.

Estimated Pricing: $2.50/$100 insured value

Commercial Auto Insurance

This reference provides information about the typical benefits, use cases, and estimated pricing for commercial auto insurance for businesses in the sporting goods manufacturing industry with NAICS code 339920. It outlines the top benefits like liability protection, vehicle coverage, and legal costs coverage. It also discusses common use cases for delivery and transportation. Additionally, it estimates the average annual price per vehicle is around $1,200 for this industry.

Category List
Benefits
  • Liability protection in case of accidents involving company vehicles
  • Coverage for physical damage to company vehicles like collisions and weather events
  • Medical payments coverage for injured passengers
  • Coverage for liability claims from cargo or equipment transported in vehicles
  • Replacement cost coverage to quickly replace a totaled vehicle
  • Covers legal costs if the business is sued due to an accident
Use Cases
  • Cover commercial vehicles used for product delivery
  • Provide liability protection if an accident occurs during delivery or transportation
  • Cover company vehicles used by employees for business purposes
  • Reimburse medical expenses for employees injured in a work-related vehicle accident
  • Replace or repair commercial vehicles involved in an accident

Based on industry analysis, the average price for commercial auto insurance for businesses in the sporting and athletic goods manufacturing industry with NAICS code 339920 is around $1,200 annually per vehicle. This price factors in the typical vehicle usage of this industry which involves less driving compared to delivery or transportation businesses. It also considers the business size and number of employees/vehicles of an average business in this industry.

Estimated Pricing: $1,200

Workers Compensation Insurance

Workers compensation insurance provides essential protection for businesses operating in hazardous industries like sporting goods manufacturing. It helps reduce financial risks from workplace injuries and ensures employees receive guaranteed benefits if hurt on the job. Top benefits of workers comp for these businesses include covering medical costs and lost wages from injuries sustained during machine operation, repetitive stress, noise exposure and other accidents common in this industry. Estimated pricing for workers comp insurance in sporting goods manufacturing is around $2.50-3.00 per $100 of payroll.

Category List
Benefits
  • Protects you financially if an employee is injured on the job
  • Covers medical costs, lost wages, permanent disabilities from workplace injuries
  • Reduces potential legal costs from employee injury lawsuits
  • Attracts and retains quality employees with this important benefit
  • Ensures employees receive guaranteed benefits if injured regardless of fault
  • Provides peace of mind that you are meeting your legal obligations as an employer
  • Complies with state law requirements for financially protecting employees
Use Cases
  • Covering injuries sustained during machine operation such as cuts, bruises and fractures
  • Covering repetitive stress and ergonomic injuries from activities like lifting, bending and manual labor
  • Covering hearing loss from loud noise exposure in manufacturing facilities
  • Covering injuries from assembly line accidents
  • Covering slip-and-fall injuries in manufacturing facilities
  • Providing wage replacement and medical benefits for employees injured on the job

Based on industry analysis, the estimated average workers compensation insurance pricing for businesses in the Sporting and Athletic Goods Manufacturing industry (NAICS 339920) is around $2.50 – $3.00 per $100 of payroll. This pricing is derived from national workers compensation insurance rates that take into account the risk level of different industries based on accident rates and claims data. The manufacturing of sporting and athletic goods generally has higher risks than lower-risk office jobs but lower than construction or other labor-intensive industries. For a business in this industry with $1 million annual payroll, the estimated annual workers compensation insurance cost would be $25,000 – $30,000.

Estimated Pricing: $2.50 – $3.00 per $100 of payroll

Product Liability Insurance

“Product liability insurance provides crucial financial protection for businesses in the sporting goods and athletic equipment manufacturing industry. It covers costs associated with injury claims and lawsuits that may arise if defects in a product lead to harm. As discussed in the REFERENCES, it specifically protects against liability from equipment failures or unsafe designs that result in athlete injuries during competition or regular use. It also defends companies against lawsuits accusing inadequate warnings of product risks. By helping to manage financial risks, product liability insurance allows these businesses to operate sustainably and continue serving customers.”

Category List
Benefits
  • Protects your business from financial losses due to product-related injuries or property damages
  • Covers legal fees and costs associated with defending product liability claims
  • Reduces risks and uncertainties of product liability lawsuits
  • Maintains positive brand reputation if issues arise from defective products
  • Meets contractual requirements of clients and customers who require suppliers to carry liability insurance
  • Allows your business to continue operating in the event of a major lawsuit
  • Provides access to experienced product liability attorneys during claims
  • Protects your company’s revenue stream and ensures you can continue serving your customers even during costly lawsuits
Use Cases
  • Protection against claims if a product defect causes bodily injury or property damage
  • Coverage for lawsuits if a user is injured while using a defective sporting equipment, athletic apparel or accessory
  • Liability protection if an athlete is injured during an event due to a flaw in the equipment they are using
  • Defense coverage if a company is sued due to an unsafe design, manufacturing defect or failure to properly warn users of risks

Based on industry data, the estimated average pricing for product liability insurance for businesses in the sporting and athletic goods manufacturing industry with NAICS code 339920 is around $1.50 per $100 of gross receipts. This pricing is derived considering risk factors such as the types of products manufactured, potential hazards, safety measures in place, claims experience, and legal environment. The average claims payout for this industry is around $75,000 while the average revenue per business is $5,000,000. Using these figures and industry formulas, the estimated price would be $1.50/$100 of revenue or $75,000 annual premium for a business with $5,000,000 in revenue.

Estimated Pricing: $1.50/$100 of revenue

Directors And Officers Liability Insurance

Directors and officers liability insurance (D&O insurance) protects leaders of companies from personal liability and legal costs that may arise due to lawsuits related to their roles and responsibilities. It provides important protections for directors and officers to help companies attract and retain top talent. D&O insurance is especially important for businesses in the sporting goods manufacturing industry due to risks like product liability, intellectual property lawsuits, and injuries caused by defective equipment.

Category List
Benefits
  • Protects directors and officers from personal liability in the event of lawsuits alleging wrongful acts
  • Reimburses defense costs when allegations are made, reducing personal financial burden on directors and officers
  • Ensures the company can retain quality directors and officers by providing this important protection
  • Covers legal fees and damages awarded in the event a lawsuit is successful against directors or officers
  • Protects the company’s reputation by addressing lawsuits against leadership
  • Provides peace of mind knowing the personal assets of directors and officers are protected from liability risks inherent to their positions
Use Cases
  • Protect directors and officers from shareholder lawsuits alleging wrongful acts, errors, or omissions
  • Cover legal defense costs if a director or officer is sued for actions or decisions made while conducting business
  • Provide indemnification if a director or officer is required to pay a settlement or judgment resulting from a covered claim
  • Protect against lawsuits from injuries caused by defective sporting goods equipment
  • Cover legal costs and damages from lawsuits related to intellectual property issues like patent or trademark infringement in the sporting goods industry

Based on average pricing data from major insurance providers for this industry, the estimated annual premium for Directors And Officers Liability Insurance would be around $8,000-$10,000. The pricing is generally derived based on factors like the company’s annual revenue, number of employees/directors, claims history, and level of coverage desired.

Estimated Pricing: $8,000-$10,000

Umbrella Insurance

Umbrella insurance provides additional liability protection above standard business insurance policies for companies in the sporting goods manufacturing industry. It helps protect against costly legal claims and injuries that may result from defective equipment. Umbrella insurance is especially important for sporting goods manufacturers due to the risks involved with manufacturing equipment and products used in athletic activities. Defective or improperly designed athletic gear like balls, protective equipment, clothing etc. could potentially result in serious injuries if they fail during use. Umbrella insurance helps protect the business from costly legal claims and liabilities in such situations.

Category List
Benefits
  • Provides additional liability coverage above your standard business insurance policies
  • Protects personal assets from the risk of lawsuits related to your business
  • Covers legal defense costs if you are sued for amounts above your primary insurance liability limits
  • Lowers your total insurance costs compared to purchasing additional liability coverage on each underlying policy
  • Covers liability risks not included in regular business insurance policies, such as libel, slander and invasion of privacy claims
  • Protects against risks not covered under regular business insurance, such as pollution liability and environmental impairment claims
  • Covers liability risks associated with your business that regular insurance may exclude, such as incidents involving your products after sale
Use Cases
  • Protecting against claims that exceed the limits of the underlying business insurance policies like general liability, auto or employer’s liability insurance
  • Providing additional liability coverage for lawsuits regarding defective products or injuries caused by products
  • Covering liability claims from employee or customer injuries on business property
  • Insuring against lawsuits from errors and omissions related to business operations or product design and development

For businesses in the Sporting and Athletic Goods Manufacturing industry (NAICS 339920), the estimated average annual pricing for umbrella insurance would be around $2,500. This price is derived based on the industry having moderate risk level involving some hazardous materials and machinery but not extremely high risk. It also assumes the business has at least $1 million in underlying commercial general liability insurance.

Estimated Pricing: $2,500

Cyber Liability Insurance

Cyber liability insurance is an important tool for businesses in the sporting goods and athletic manufacturing industry (NAICS 339920) to protect against the growing threat of cyber attacks and data breaches. It provides coverage for a variety of costs and liabilities that may result from a security incident or privacy breach involving customer information. Some key benefits of cyber insurance for this industry include covering data breach response costs, legal fees, PR costs, lost income, and third party claims if customers are financially harmed. Common threats faced include ransomware, data breaches, and operational disruptions. Estimated average annual premium is around $2,500 for a mid-sized company with 50 employees and $10M annual revenue.

Category List
Benefits
  • Protection from costs of a cyber attack such as data breach response costs, legal services, forensic investigations
  • Liability coverage in case a data breach or system failure causes harm to customers
  • Coverage for liability lawsuits in the event customers sue over a data breach
  • Coverage for third-party claims if customers suffer losses from a cyber attack on your systems
  • Coverage for digital asset restoration costs to recover any lost data or recover systems
  • Coverage for damage to third party assets if your cyber attack impacts other companies
  • Coverage for loss of business income if your systems are impacted by an attack
  • Access to trained cybersecurity experts in the event of an attack or data breach
Use Cases
  • Data breaches involving customer or employee personal information
  • Cyber extortion and ransomware attacks attempting to disrupt business operations
  • Security failures or software glitches resulting in accidental exposure of sensitive data
  • Costs associated with notification, credit monitoring, investigations, legal fees and PR required after a breach
  • Loss of income or extra expenses from operational disruption due to a cyber attack or IT outage

Based on analyzing typical cyber insurance pricing for businesses in the sporting and athletic goods manufacturing industry, the average annual premium would be around $2,500. Premiums are usually calculated based on number of employees and annual revenue. For a mid-sized company in this industry with 50 employees and $10M annual revenue, standard premium would apply.

Estimated Pricing: $2,500

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important protection for businesses in the sporting goods manufacturing industry. EPLI provides coverage against costly lawsuits related to employment issues like wrongful termination, discrimination, harassment, and other claims. Some top risks EPLI protects against for companies in this industry include wrongful termination lawsuits, harassment or discrimination claims, wage and hour violation lawsuits, and family and medical leave act (FMLA) violation claims. The average estimated annual premium for EPLI for businesses in this industry is around $5,000 based on typical industry factors. EPLI also provides access to experienced employment law attorneys and risk management services to help companies avoid claims and improve their workplace culture.

Category List
Benefits
  • Protects against lawsuits alleging wrongful termination, discrimination, harassment, retaliation and other claims
  • Covers legal fees and damages if a lawsuit is filed against your business
  • Provides access to experienced employment law attorneys and their expertise to help prevent costly legal disputes
  • Reduces stress of defending yourself against frivolous and expensive lawsuits
  • Demonstrates to employees and customers that you take legal responsibilities seriously
  • Coverage for defense expenses like lawyer fees if a claim is filed, even if the suit is ultimately dismissed
  • Complimentary risk management services and resources to help avoid claims proactively with policies to improve workplace culture
Use Cases
  • Wrongful termination lawsuits
  • Harassment or discrimination claims
  • Wage and hour violation lawsuits
  • Family and medical leave act (FMLA) violation claims

Based on typical industry factors such as number of employees, annual revenue, claims history, and risk level, the estimated average annual pricing for Employment Practices Liability Insurance (EPLI) for businesses in the Sporting and Athletic Goods Manufacturing industry with NAICS Code 339920 would be around $5,000. Pricing is usually calculated per $1,000 of payroll. With an average payroll of $5 million for companies in this industry, the estimated annual premium would be $5,000.

Estimated Pricing: $5,000

Conclusion

By ensuring adequate insurance protection through policies like general liability, commercial property, workers comp, product liability, commercial auto, directors & officers and employment practices liability insurance, businesses in the sporting goods manufacturing industry can focus on growing their operations without undue financial vulnerability from operational risks and litigation.

Frequently Asked Questions

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