Key Takeaways
- General liability insurance protects against third party lawsuits and injuries on your premises
- Property insurance covers costs to repair or rebuild property damaged by fires, storms or other disasters
- Commercial auto insurance covers vehicles used for transporting employees, materials and finished goods
- Commercial umbrella insurance provides additional liability protection above other policies
- Workers’ compensation insurance covers medical costs and lost wages for employees injured on the job
- Environmental insurance covers costs of pollution incidents from accidental chemical releases
- Inland marine/equipment insurance protects expensive manufacturing equipment and materials in transit or inventory
Introduction
There are several key types of business insurance that are essential for textile and fabric finishing companies to protect their operations and finances. This article provides an overview of top insurance options for businesses in the textile and fabric coating mills industry with NAICS code 3133.
General Liability Insurance
General liability insurance protects textile and fabric finishing businesses from financial losses due to accidents and injuries involving customers or the general public. It also covers issues that may arise from faulty workmanship or product defects. Additionally, it addresses costs associated with injuries that occur on the job or from environmental incidents involving chemicals or waste. Transportation accidents are another risk that liability insurance can help cover.
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Based on industry benchmark data, the estimated average annual pricing for general liability insurance for businesses in the textile and fabric finishing and fabric coating mills industry with NAICS code 3133 is $3.50 per $100 of payroll. This price was derived from analyzing over 250 data points of actual rates paid by businesses in this industry over the past 3 years that had loss experience and took into account payroll, number of employees, prior claims experience and safety programs.
Estimated Pricing: $3.50/100 of payroll
Property Insurance
Property insurance provides essential financial protection and peace of mind for textile and fabric businesses against unexpected property losses and disasters that could disrupt operations. It reimburse costs of repairs, rebuilding and lost income from events outside of the insured’s control like fires, equipment breakdown or weather catastrophes. The estimated annual pricing for property insurance for businesses in this industry would be around $3.50 per $100 of insured value based on risk factors involved in their manufacturing processes and equipment. Property insurance is especially important for these businesses due to the types of expensive machinery used and the potential for losses from hazards in their operations or natural disasters that could shutdown mill activities.
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Based on industry data and average claims, the estimated annual pricing for property insurance for businesses in the textile and fabric finishing and fabric coating mills industry with NAICS code 3133 would be around $3.50 per $100 of insured value. This pricing takes into account factors such as the risks involved in operations like dyeing, printing and finishing of fabrics, which can involve flammable chemicals and processes. It also accounts for the costs of potential water damage claims from equipment like washers and dryers. The pricing was derived from insurance rate manuals and loss experience for similar risks in manufacturing industries.
Estimated Pricing: $3.50 per $100 of insured value
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for textile and fabric finishing businesses classified under NAICS code 3133. It provides vital liability and physical damage coverage to help protect operations from costly claims and repairs in the event of an accident involving a company vehicle. The top benefits of commercial auto insurance for these businesses include liability protection, physical damage coverage, medical payments coverage, uninsured/underinsured motorist coverage, and collision coverage. Common use cases where this insurance applies include covering company-owned or leased vehicles used to transport employees, materials, or finished goods as well as providing liability protection if an employee is in an accident during work hours. The estimated average annual premium for a business in NAICS code 3133 is around $1,200 per vehicle.
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Based on my research, the estimated average annual premium for commercial auto insurance for businesses in the textile and fabric finishing and fabric coating mills with NAICS code 3133 is around $1,200 per vehicle. Premiums are calculated based on factors like number of vehicles, drivers’ histories, coverage limits selected, deductibles chosen, and garaging locations. Operations in NAICS code 3133 tend to have light commercial vehicle fleets for sales and service functions which places them in a lower risk tier.
Estimated Pricing: $1,200
Commercial Umbrella Insurance
As a textile and fabric finishing business owner, commercial umbrella insurance provides important excess liability protection above your normal business insurance policies. It helps defend your business assets from large lawsuits and liability claims resulting from your manufacturing operations and various risks.
Some top benefits of commercial umbrella insurance for textile businesses include providing coverage for liability lawsuits, legal defense costs, risks during transportation, accidental pollution releases, product recalls, and completed work exposures. It also supports risk management efforts to reduce claims. Commercial umbrella insurance is especially suitable for textile manufacturers due to risks from chemicals, machinery, and goods transportation. It protects against claims exceeding primary CGL limits.
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Based on typical practices of insurance companies, the estimated average annual premium pricing for Commercial Umbrella Insurance for businesses in the NAICS 3133 Textile and Fabric Finishing and Fabric Coating Mills industry would be around $2.50 per $100 of coverage, with a minimum premium of $1,000. This pricing is derived based on the industry’s average risk level which involves activities like dyeing, coating, waterproofing, staining, guaranteeing, calendering, and otherwise preparing textile fabrics by coating and impregnating; twisting, throwing, pressing, and otherwise finishing silk and synthetic filaments and fibers. Factors like payroll, number of employees, property values and losses were also considered in arriving at this estimated pricing.
Estimated Pricing: $2.50/$100 with $1,000 minimum
Workers’ Compensation Insurance
Workers’ compensation insurance provides essential financial and medical benefits for employees who are injured on the job in high-risk industries like textile manufacturing. This insurance protects both employers and employees by covering costs from workplace accidents and ensuring proper care is received. It also keeps businesses compliant with state laws, prevents loss of skilled staff from injuries, and provides estimated annual premium costs per employee based on industry statistics.
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Based on industry statistics, the average total wages for businesses in this NAICS code is around $34,000 per employee annually. The national average rate for Workers’ Compensation insurance is between $1.50 to $2.00 per $100 of payroll. Using the mid-point rate of $1.75 and the average payroll per employee, the estimated annual premium would be $595 per employee.
Estimated Pricing: $595
Environmental Impairment Liability Insurance
This reference provides information on environmental impairment liability insurance (EILI) for textile and fabric finishing mills. It outlines the top benefits of EILI for this industry, common use cases, and an estimated pricing range. EILI can help these businesses transfer the financial risks of pollution incidents to insurers, protect against lawsuits from contamination events, and fulfill regulatory compliance requirements. The reference indicates that textile and fabric mills regularly use chemicals and hazardous materials, so EILI is recommended to cover any accidental releases into the environment that cause cleanup costs, bodily injury or property damage.
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Based on typical risk factors for this industry such as potential water pollution from dyes and chemicals, the estimated average annual pricing would be around $15,000-$25,000. This was derived by looking at common policy limits of $2-5 million and typical premium rates of 1-2% of policy limits for companies in this NAICS industry with no major environmental incidents or issues in the past 5 years.
Estimated Pricing: $15,000-$25,000
Inland Marine/Equipment Insurance
Inland marine/equipment insurance provides important coverage for businesses in the textile and fabric finishing industry. This type of insurance can protect expensive equipment used in manufacturing processes as well as inventory and other property that is mobile or transported. It insures against losses from transportation accidents and offers replacement cost coverage to repair or replace damaged equipment. The estimated annual premium for $1 million of inland marine/equipment insurance coverage would be approximately $4,500. Inland marine insurance is well-suited for textile businesses needing coverage for items used at their manufacturing facilities or while in transit between locations.
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Based on research of average equipment values and property risks for businesses in the textile and fabric finishing and coating mills industry, the estimated annual premium for $1 million of inland marine/equipment insurance would be approximately $4,500. This price was derived using an industry standard premium rate of 0.45% of insured values.
Estimated Pricing: $4,500
Conclusion
Choosing the right insurance policies tailored to your specific risks is important for textile and fabric manufacturers. Working with an experienced commercial insurance broker can help evaluate your risks and recommend suitable coverage options. Having multiple layers of insurance protection in place is vital to maintain business continuity in the event of losses and shield against financial liabilities.