Key Takeaways
- General liability insurance protects against third-party lawsuits from injuries on premises or defective products
- Property insurance reimburses costs of damage to buildings, equipment, inventory from fires, floods and other disasters
- Workers’ comp covers medical expenses and lost wages for employees injured on the job
- Product liability protects against claims if a product defect causes injury or property damage
- Commercial auto covers vehicles used for transport, sales and delivery
- Business income replaces lost profits if property damage halts operations
- Cyber liability responds to data breaches, network outages and ransomware attacks
- D&O protects personal assets of directors and officers from lawsuits
- EPLI defends harassment, discrimination and wrongful termination lawsuits
Introduction
As a fluid power valve and hose fitting manufacturer, ensuring the proper types of business insurance coverage is crucial to protect the financial health and stability of the company. This industry faces inherent risks due to operating complex machinery, manufacturing mechanical components, transporting heavy equipment, and potential product defects that could lead to injury or property damage claims down the line. Having the right insurance policies in place provides peace of mind and safeguards the business from financial ruin if the unexpected occurs.
General Liability Insurance
General liability insurance is a crucial coverage for fluid power valve and hose fitting manufacturing businesses. It protects against lawsuits and claims that may arise from product defects or workplace accidents.
General liability insurance provides important protections for businesses in the fluid power valve and hose fitting manufacturing industry. It can cover costs associated with bodily injury, property damage, legal defense, and more that may result from the nature of products and work conducted. Pricing for general liability insurance for these types of manufacturing businesses typically ranges from $10,000 to $15,000 annually based on factors like sales revenue and number of employees.
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Based on research of typical general liability insurance pricing for manufacturing businesses classified under NAICS 332912 Fluid Power Valve and Hose Fitting Manufacturing, the estimated average annual premium would be around $10,000-$15,000. Pricing is usually determined based on various risk factors like annual sales revenue, number of employees, past claims experience. For a small to medium sized business in this industry with $5-10 million in annual sales and 50-100 employees, general liability insurance would on average cost in the range of $10,000-$15,000 per year.
Estimated Pricing: $10,000-$15,000
Property Insurance
Property insurance provides coverage to protect physical assets and property from financial losses for businesses in the fluid power valve and hose fitting manufacturing industry. It reimburses costs to repair or replace damaged buildings, machinery, inventory and other property from risks like fires, floods, and more. It also pays for loss of income if business needs to shut down temporarily for repairs.
On average, the estimated annual premium for property insurance for businesses in this industry would be around $3.50 per $100 of insured property value, which can vary depending on individual business risk characteristics.
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Based on average property insurance pricing data for manufacturing businesses, the estimated average annual property insurance premium for businesses in the NAICS 332912 Fluid Power Valve and Hose Fitting Manufacturing industry would be around $3.50 per $100 of insured property value. This pricing assumes average risk levels based on factors like claims history, safety procedures, security measures, and location. The final premium can vary depending on the individual business’ specific risk characteristics and underwriting by the insurance carrier.
Estimated Pricing: $3.50 per $100 of insured property value
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical financial protection and medical benefits for employees injured on the job in industries like fluid power valve and hose fitting manufacturing. It covers costs from workplace accidents and ensures employees receive support for recovery while protecting employers from costly liability lawsuits. Workers’ compensation also improves employee satisfaction and morale knowing they will be cared for if an injury occurs. The top benefits, use cases and estimated average pricing provided give insight into why this insurance is important for this industry and what it covers.
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Based on national industry averages, the estimated average pricing for workers’ compensation insurance for businesses in the Fluid Power Valve and Hose Fitting Manufacturing industry (NAICS 332912) is around $5.50 per $100 of payroll. This estimate is derived from considering risk factors like industry injury rates, safety programs/OSHA ratings, job duties/hazards, company size/experience modifier, and historic loss data.
Estimated Pricing: $5.50
Product Liability Insurance
Product liability insurance provides crucial protection for businesses in the fluid power valve and hose fitting manufacturing industry. It covers costs of claims, lawsuits, product recalls, and reputation damage if a product is found to cause harm. Product liability insurance is especially important for this industry because components like valves and hoses are often part of larger machinery systems. Defects could lead to injuries, property damage, or more severe accidents and lawsuits if the overall system fails.
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Based on industry analysis, the average product liability insurance pricing for businesses in the Fluid Power Valve and Hose Fitting Manufacturing industry (NAICS 332912) is around $1.50 per $100 of gross receipts. This pricing is derived based on risk factors such as the manufacturing process of fluid power components which can potentially involve high pressure fluids/gases. The industry also has risks associated with equipment failures that may cause physical harm. Therefore a rate of $1.50 per $100 of gross receipts is a reasonable estimate for this industry.
Estimated Pricing: $1.50 per $100 of gross receipts
Commercial Auto Insurance
Commercial auto insurance provides important liability protection and coverage for physical damage to vehicles for fluid power valve and hose fitting manufacturing businesses that use company-owned, non-owned, or hired vehicles for transporting parts, products, and employees as well as for sales, service, and delivery purposes. Estimated average annual pricing for commercial auto insurance covering vehicles in this industry is around $1,200 per vehicle based on typical commercial auto insurance rates. Commercial auto insurance helps protect fluid power valve and hose fitting manufacturing businesses financially from vehicle-related incidents and ensures properly insured protection for various business operations involving company vehicles.
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Based on typical commercial auto insurance rates for this industry, the estimated average annual pricing would be around $1,200 per vehicle. Premiums are usually calculated based on factors like number of vehicles, driver qualifications, years in business, safety record, location, etc. Given that this industry involves transporting mechanical components and equipment between factories and work sites, commercial vehicles are essential but also affect risk levels.
Estimated Pricing: $1,200
Business Income Insurance
Business income insurance, also known as business interruption insurance, provides valuable coverage for manufacturers if disasters interrupt operations or damage on-site property, halting production and revenue generation. It is an important policy for fluid power valve and hose fitting businesses to protect profits and cash flow during recovery from an insured event like fire or equipment breakdown that stops manufacturing. Top benefits of this coverage include paying ongoing expenses and stabilizing cash flow while the business focuses on getting back up and running after a disruption to operations. Coverage can also extend to off-site property damage and supply chain interruptions impacting the manufacturing process. Pricing is estimated at $8,000-15,000 annually for an average sized company in this industry based on gross receipts and other underwriting factors.
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Based on research of average premium rates for businesses in this industry, the estimated annual pricing for business income insurance would be in the range of $4-6 per $100 of gross receipts, with a minimum premium of around $2,000. This pricing is calculated based on factors like payroll, receipts, number of employees and past loss history specific to this industry. The average gross receipts for companies in this sector is around $2-5M, so for a company of average size, the estimated annual premium would be $8,000-15,000.
Estimated Pricing: $8,000-15,000
Cyber Liability Insurance
Cyber liability insurance is an important tool for fluid power valve and hose fitting manufacturers to protect their business from costly cyber incidents. It can help cover expenses related to data breaches, network outages, ransomware attacks, lawsuits, fines and penalties, investigation costs, customer notification expenses, and credit monitoring services after a breach. The average annual premium for a small to medium sized company in this industry is around $2,500.
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Based on industry research, the average cyber liability insurance pricing for companies in the Fluid Power Valve and Hose Fitting Manufacturing industry (NAICS 332912) tends to be around $2,500 per year. Pricing is determined based on factors such as annual revenue, number of employees, IT security practices and history of cyber incidents. For a small to medium size company in this industry with less than 100 employees and $10-50M in annual revenue, $2,500 per year would be a typical cost for standard cyber liability coverage.
Estimated Pricing: $2,500
Directors And Officers Insurance
Directors and officers play crucial roles in running businesses, yet also open themselves to liability risks related to their duties. Directors and officers insurance, commonly called D&O insurance, helps protect corporate leaders from these risks. D&O insurance is especially important for manufacturing businesses that face risks of product liability lawsuits, regulatory issues, and employment litigation. It provides strong protections and peace of mind for business leadership. Pricing for D&O insurance for manufacturing companies typically ranges from $5,000-$10,000 annually based on factors like revenue, employees, claims history, and risk profile.
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Based on typical pricing for small to medium sized manufacturing businesses, the estimated average annual premium for Directors And Officers Insurance would be around $5,000 – $10,000. Pricing can vary depending on factors like annual revenue, number of employees, claims history, and risk profile. For reference, the average revenue for businesses in NAICS 332912 industry is around $5 million.
Estimated Pricing: $5,000 – $10,000
Employment Practices Insurance
Employment practices insurance (EPLI) provides important protection for fluid power valve and hose fitting manufacturing businesses from costly lawsuits and settlements related to employment claims. It can help defend companies against issues such as wrongful termination, discrimination, harassment, wage/hour disputes, and other legal risks inherent in employer-employee relationships. Top benefits of EPLI for these businesses include coverage for legal defense costs, monetary settlements or judgements, protection of company reputation from disruptions, and indemnification of punitive damages. Common EPLI use cases faced by manufacturers in this industry involve termination disputes, workplace injury claims, and wage/hour lawsuits. The estimated annual premium for a company in this industry with $5 million payroll would be $62,500 – $100,000.
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Based on industry research, the average pricing for Employment Practices Insurance for businesses in the Fluid Power Valve and Hose Fitting Manufacturing industry (NAICS Code: 332912) is around $1.25 – $2.00 per $100 of payroll. This pricing is derived based on risk factors such as industry type, company size, experience modifications and claims history. For a company with $5 million annual payroll, the estimated annual premium would be $62,500 – $100,000.
Estimated Pricing: $62,500 – $100,000
Conclusion
In summary, the top 9 types of business insurance are essential for fluid power valve and hose fitting manufacturers to mitigate a variety of risks inherent to operating in this industry. Proper insurance coverage protects both business assets and the personal assets of directors and officers. It also ensures stability and financial viability long-term to withstand potential lawsuits, equipment failures, data breaches or other disasters that could disrupt operations.