Key Takeaways
- General liability insurance protects against lawsuits from injuries on your premises or defects in your products
- Commercial property insurance covers property losses from fire, flooding and other disasters
- Workers’ comp covers medical costs and lost wages for job-related injuries
- Commercial auto insures company vehicles and employee drivers
- Product liability covers claims of defective products harming customers
- Business interruption ensures continuity if property damage halts operations
- Cyber liability insurance covers costs of data breaches and security incidents
Introduction
As a ball and roller bearing manufacturer, it is crucial to protect your business from a variety of risks through insurance. This industry involves heavy machinery, hazardous materials and sensitive customer/supplier data, heightening various insurance needs. This article outlines the top business insurance policies ball and roller bearing businesses should consider, including their key benefits and estimated pricing. Maintaining proper coverage ensures your operations can continue smoothly despite unforeseen incidents.
General Liability Insurance
General liability insurance provides protection for businesses in the ball and roller bearing manufacturing industry (NAICS Code 332991) from costs associated with accidents, injuries, lawsuits, product defects, and pollution that may occur during regular operations. Given the risks of machinery use, potential for workplace injuries, and nature of manufacturing ball and roller bearings in this industry, general liability insurance helps limit financial exposure and provides peace of mind by covering legal costs and claims payouts from incidents both on-site and involving products.
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General liability insurance for businesses in the ball and roller bearing manufacturing industry (NAICS Code 332991) typically costs between $2-4 per $100 of payroll. With the average payroll for this industry being around $3 million, estimated general liability insurance pricing would be around $60,000 – $120,000 annually. This pricing is derived based on industry-specific risk factors such as machinery use and potential for workplace injuries.
Estimated Pricing: $60,000 – $120,000 annually
Commercial Property Insurance
Commercial property insurance is an essential risk management tool for ball and roller bearing manufacturing businesses. It protects their physical assets, inventory, operations, and liability exposures from financial losses due to property damage and other insured events.
Some key benefits of commercial property insurance for ball and roller bearing manufacturers include protection against property damage from fire, smoke, flooding and other events that could damage manufacturing equipment, inventory or facilities. It also provides liability coverage to protect against injuries on the business property. Business income coverage within the policy ensures businesses can continue operating if property requires repairs after a covered loss. Replacement cost coverage fully repairs or rebuilds damaged property to pre-loss condition.
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Based on typical industry factors like operating machinery, inventory value, and liability exposures, the estimated average annual pricing for commercial property insurance would be around $8-10 per $100 of insured property value. This was calculated based on ball and roller bearing manufacturers having higher than average machinery assets that require specialized coverage. Insured property values for companies in this industry commonly range from $5-20 million.
Estimated Pricing: $8-10 per $100 insured property value
Commercial Auto Insurance
Commercial auto insurance provides important liability protection and coverage for vehicles used in business operations. It ensures ball and roller bearing manufacturing companies are protected financially from accidents and have assistance for their commercial fleets.
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Based on industry data, the average annual commercial auto insurance premium for businesses in the ball and roller bearing manufacturing industry (NAICS 332991) is around $2,500 per vehicle. This pricing takes into account factors such as the types of vehicles owned/leased by the businesses (larger trucks are more expensive to insure), average miles driven, safety record, and number of drivers. The premium is calculated on a per vehicle basis.
Estimated Pricing: $2,500
Workers’ Compensation Insurance
“Workers’ compensation insurance provides essential benefits and protections for both employers and employees in the hazardous ball and roller bearing manufacturing industry. Injuries are common in manufacturing facilities due to heavy machinery, sharp tools, and hazardous materials. It covers medical expenses and lost wages for injured employees, protects employers from lawsuits, and has estimated average pricing of $3.15 per $100 of payroll for this industry. Common injuries in this industry include lacerations, amputations, crushing injuries, burns, and repetitive stress injuries.”
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Based on national averages, the estimated average pricing for workers’ compensation insurance for businesses in the ball and roller bearing manufacturing industry (NAICS 332991) would be around $3.15 per $100 of payroll. This industry has a higher than average risk level due to the machinery and equipment used in the manufacturing process. Factors such as company size, experience modification rating, safety records, and others would impact the final pricing.
Estimated Pricing: $3.15 per $100 of payroll
Business Interruption Insurance
Business interruption insurance provides coverage to reimburse losses and additional expenses when property damage interrupts business operations. It is an important policy for manufacturing companies like ball and roller bearing producers to maintain revenue and restart production if facilities are impacted by insured perils. Some key benefits of this insurance for 332991 NAICS code businesses include coverage for dependent property losses if suppliers’ properties are damaged and they cannot provide critical components, as well as coverage for non-damage events like utility interruptions or cyber incidents that halt operations. Common causes of business interruption for bearing manufacturers are fires, equipment failures, natural disasters, power outages, and supply chain issues. The estimated annual premium for a typical $5 million bearing manufacturer is around $17,500 based on industry analysis.
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Based on industry analysis, the average business interruption insurance pricing for ball and roller bearing manufacturing businesses with NAICS code 332991 is around 0.35% of the total amount of insurance. This is calculated based on factors such as the type of industry, historical claims data, potential hazards, and location. For a typical ball and roller bearing manufacturer with $5 million in tangible business personal property, the estimated annual premium would be $17,500.
Estimated Pricing: $17,500
Product Liability Insurance
Product liability insurance provides protection for manufacturing businesses against legal and financial risks from defective products that cause injuries, property damage, or recalls. It covers costs associated with lawsuits, medical expenses, lost wages, repairs or replacements due to product failures. This type of insurance gives manufacturers peace of mind in continuing operations by ensuring they have financial support if such unforeseen issues arise from the products they sell.
Bearing manufacturers in particular face risks if their products unexpectedly fail or malfunction, potentially leading to accidents causing injuries, property damage or other losses. Product liability insurance protects against claims in these situations and provides defense against related lawsuits. The average premium for businesses in the ball and roller bearing manufacturing industry is around $2.50 per $100 of annual gross receipts, based on risk levels and historical claims in the sector.
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Based on industry analysis, the average product liability insurance pricing for businesses in the ball and roller bearing manufacturing industry (NAICS Code: 332991) is around $2.50 per $100 of gross receipts. This pricing is derived from underwriter manual rates which take into account the risk level of the industry, historical loss experience, and average claim size. At the $2.50 rate, a company in this industry with $10 million in annual gross receipts would pay around $25,000 annually for their product liability insurance coverage.
Estimated Pricing: $2.50 per $100 of gross receipts
Cyber Liability Insurance
Cyber liability insurance offers important protection for ball and roller bearing manufacturers, who commonly handle sensitive customer and supplier data in their work. The top benefits and use cases shown provide an overview of how this type of insurance can help address many costs and risks associated with data security incidents. An estimated annual cost of $3,500 is also included, to give a sense of typical pricing for businesses in this industry.
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Based on average pricing data for manufacturing industries with similar risk profiles, cyber liability insurance for businesses in the ball and roller bearing manufacturing industry (NAICS 332991) would be approximately $3,500 per year. This pricing takes into account factors such as the sensitivity of customer data these businesses may handle, potential risks from product defects, average payroll and revenue for businesses in this industry, and historical cyber insurance claims data.
Estimated Pricing: $3,500
Directors And Officers Liability Insurance
Directors and officers liability insurance (D&O insurance) is an important policy for companies in the ball and roller bearing manufacturing industry (NAICS Code 332991) to protect themselves and their leadership from costly lawsuits. It provides defenses for legal costs and covers settlements if the executives are found liable for alleged wrongdoings. The top benefits, use cases, estimated pricing, importance, and how it attracts qualified leadership and provides peace of mind for company executives for this industry are outlined below. D&O insurance can help attract qualified directors and officers to serve on the board knowing they have liability protection. It also provides peace of mind for company leaders knowing they won’t be at financial risk from expensive legal claims.
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Based on market research and statistics, the average pricing for Directors And Officers Liability Insurance for businesses in the Ball and Roller Bearing Manufacturing industry with NAICS Code 332991 is around $5,000-$10,000 annually. Pricing depends on factors like the size of the company (number of employees and annual revenue), location, claims history, and policy limits. Larger companies will generally pay more due to higher risk and needing higher policy limits. Companies with a history of claims or in high risk locations will also see higher rates. The price range provided is for a typical small to mid-sized bearing manufacturer.
Estimated Pricing: $5,000-$10,000
Conclusion
In summary, general liability, commercial property, workers’ compensation, commercial auto, product liability, cyber liability, business interruption and directors & officers insurance provide core protection for ball and roller bearing manufacturers. Business owners should review policy coverage limits and add appropriate endorsements to ensure their insurance policies adequately meet the specific risks of this industry. Understanding the top benefits and risks covered by each policy type can help business owners make informed decisions to safeguard their operations and finances against unplanned losses.