A Guide to Essential Business Insurance Coverage for Totalizing Fluid Meter and Counting Device Manufacturers

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This article covers the top insurances a business in the totalizing fluid meter and counting device manufacturing industry should consider including general liability, property, workers comp, commercial auto and more.

Key Takeaways

  • General liability insurance protects against claims from injuries on your premises or damages to third-party property.
  • Property insurance covers costs to repair or replace buildings, machinery, inventory and other property if damaged.
  • Workers compensation covers medical expenses and lost wages if an employee gets injured on the job.
  • Commercial auto provides liability protection and coverage for vehicles used for business.
  • Umbrella insurance protects assets from large liability claims exceeding primary limits.
  • Professional liability protects from lawsuits due to product defects or errors and omissions.

Introduction

As a manufacturer in the totalizing fluid meter and counting device industry, there are several key types of business insurance coverage to consider to help protect your operations and assets. This article examines the top insurance policies a business in this field should evaluate including general liability, property, workers compensation, commercial auto, umbrella and professional liability insurance.

General Liability Insurance

General liability insurance is an important policy for manufacturers like those in NAICS code 334514. It helps protect the business from costly lawsuits and claims that could arise from accidents, injuries, or damages related to operations. It also insures the business against liability issues from equipment malfunctions during manufacturing, defective products after purchase, and incidents on company property.

Category List
Benefits
  • Protects your business from costs arising from injuries on your premises or damages to third-party property
  • Covers legal fees and expenses if a client sues your business
  • Provides coverage if your defective products or faulty work cause bodily injuries or property damage
  • Protects your business assets from being seized to pay for liability claims or lawsuits
  • Covers your business in the event of slip-and-fall accidents or other incidents on your property
  • Covers pollution claims and clean-up costs if hazardous materials are accidentally released on your property
  • Provides liability protection during the testing and installation of new products
  • Covers claims arising from the malfunction of installed products years after purchase
Use Cases
  • Protect against bodily injury or property damage claims from defective products
  • Cover legal costs and damages from slip and fall accidents on business property
  • Insure against liabilities from equipment or facility malfunctions
  • Provide coverage for accidents involving delivery or transportation of goods

Based on industry data and risk factors, the estimated average annual pricing for general liability insurance for businesses in the NAICS 334514 industry is around $3,500. This pricing was derived based on the industry average total payroll of around $4 million and 10 employees. General liability insurance pricing is usually calculated based on payroll, number of employees, and past claims/losses of the business and industry.

Estimated Pricing: $3,500

Property Insurance

Property insurance is an essential risk management tool for manufacturing businesses. It provides coverage to repair or replace property in the event of losses from covered causes like fire, storms or equipment damage/failure, ensuring business operations face minimal disruption. Some key benefits of property insurance for manufacturers include protecting facilities, machinery, inventory and more from financial loss due to property damage or destruction, reimbursing replacement costs if property is destroyed, and providing liability coverage if someone gets injured on the business premises. The average cost for property insurance for fluid meter and device manufacturers is around $2.50 per $100 of insured value.

Category List
Benefits
  • Protection against property damage or loss
  • Replacement costs if property is destroyed
  • Liability coverage in case someone is injured on your property
  • Coverage for equipment breakdown or failure
  • Protection for off-premises property such as equipment used at client sites
Use Cases
  • Protect manufacturing facilities and equipment from damages caused by fire, explosions, storms and other disasters
  • Cover damages and losses to inventory such as finished goods and raw materials from covered perils
  • Replace lost business personal property such as furniture, fixtures, office equipment if damaged
  • Provide funds to pay extra expenses needed to continue operations during repair/replacement period such as rental costs for temporary locations and equipment

Based on industry data, the average property insurance pricing for businesses in the Totalizing Fluid Meter and Counting Device Manufacturing industry with NAICS Code 334514 is around $2.50 per $100 of insured value. This pricing is derived from typical property coverages including equipment breakdown, general property forms, and business income/extra expense considerations. Key factors influencing the pricing include the manufacturing nature of the business operations as well as property values including machinery, equipment, and inventory.

Estimated Pricing: $2.50 per $100 of insured value

Workers Compensation Insurance

Workers compensation insurance serves a vital role for both businesses and employees in hazardous industries like manufacturing. It helps ensure employees receive support if injured on the job, while also protecting companies from costly lawsuits. Some key benefits of workers compensation insurance for manufacturers include covering medical expenses and lost wages for work-related injuries, complying with state laws, protecting against liability claims, demonstrating your commitment to safety and employee well-being, and covering cumulative injuries that can develop over time such as hearing loss from noise exposure.

Category List
Benefits
  • Covers medical expenses if an employee gets injured or becomes ill due to work
  • Provides benefits that replace some of an injured employee’s lost wages
  • Protects your business from lawsuits if an employee is injured or becomes ill on the job
  • Required by law in most states
  • Lowers other types of insurance premiums like general liability
  • Demonstrates your commitment to employee safety and well-being
  • Improves employee morale and loyalty by demonstrating you care about their wellbeing
Use Cases
  • Protecting against liability claims if an employee is injured on the job
  • Covering medical expenses, lost wages, rehabilitation, and other costs if an employee suffers a work-related injury or illness
  • Ensuring compliance with state workers compensation laws
  • Covering hearing loss or other cumulative injuries that develop over time from exposure to noise in a manufacturing setting

Based on industry data and average claims, the estimated average pricing for workers compensation insurance for businesses in the Totalizing Fluid Meter and Counting Device Manufacturing industry with NAICS code 334514 is around $2.35 per $100 of payroll. This price was calculated based on the industry risk rate of $1.30 per $100 of payroll and average company modifiter of 1.81. The risk rate reflects the above average injury rates for this manufacturing industry and the company modifier captures loss history for an average risk company in this industry.

Estimated Pricing: $2.35/100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability coverage for businesses in manufacturing industries. It protects against risks that exceed primary policy limits from lawsuits and claims related to operations, products, property damage and other exposures. Umbrella insurance also covers legal defense costs for large liability claims, protects assets, and provides inflation protection for rising costs over time. Key benefits for manufacturers include protection for product defects, malfunctions, installation issues, and risks from the manufacturing process. Common uses are for risks above commercial general liability limits, large liability claims, and exposures like pollution liability or professional liability not covered by other policies. Estimated pricing is $1,500-$2,500 annually for $1 million in coverage, increasing proportionally for higher limits up to $7,500-$12,500 for $5 million.

Category List
Benefits
  • Protects assets from large liability claims and lawsuits that exceed primary insurance limits
  • Provides additional liability coverage above primary insurance limits
  • Covers injuries to employees or the general public that occur on or off premises
  • Covers damage or loss of proprietary information and intellectual property
  • Covers legal defense costs associated with covered claims
  • Covers liability associated with equipment, tool, or product failures
  • Protects against rising inflation costs over time since policy limits increase automatically each year
  • Reduces financial risk and enhances competitiveness by demonstrating financial strength and responsibility to customers
  • Covers liability associated with equipment, tool, or product failures
  • Protects against rising inflation costs over time since policy limits increase automatically each year
Use Cases
  • To provide additional liability coverage above the limits of the underlying commercial general liability policy
  • To protect against large liability claims exceeding primary policy limits from product liability, cyber liability, property damage, or other risks
  • To protect against risks not covered by commercial general liability policies such as pollution liability or professional liability
  • To provide protection for the costs of defending against large liability lawsuits which can exceed primary policy limits

Based on average risks and claims data for this industry, umbrella insurance pricing would fall between $1.50 to $2.50 per $100 of coverage. With minimum coverage amounts of $1 million, pricing could range from $1,500 to $2,500 annually. Higher coverage amounts up to $5 million could increase pricing proportionately up to $7,500 to $12,500 annually. Pricing is also affected by factors such as loss history, employee headcounts, and revenues.

Estimated Pricing: $1,500 to $2,500 annually for $1 million coverage

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses in the totalizing fluid meter and counting device manufacturing industry (NAICS 334514) against lawsuits stemming from negligence or errors related to their products or services. It covers legal fees and damages that may arise from product defects, design failures, breach of contract, and other liabilities. This type of insurance provides important coverage for common risks faced by these manufacturers, such as product defects, design errors, failure to meet performance standards, and cybersecurity incidents. It helps ensure businesses can continue operations and attract investors, even if faced with costly third-party claims or lawsuits. The estimated average annual cost for a professional liability policy in this industry is $5,000-$10,000.

Category List
Benefits
  • Protects from lawsuits due to product defects
  • Covers legal defense costs if sued
  • Protects company reputation and brand
  • Mandatory for some contracts/partnerships
  • Covers costs of product recalls
  • Provides peace of mind to continue operations
  • Mitigates risk of closure due to lawsuits
  • Helps attract potential investors and reassure current ones
  • Required by many professional associations and certifying bodies
Use Cases
  • Protection against errors and omissions in design and manufacturing
  • Protection against product defects that cause property damage or bodily injury to third parties
  • Protection against failure to perform contracted services to the required standards
  • Protection against infringement of intellectual property rights like patents, trademarks or copyrights
  • Protection against cyber liabilities such as data breaches, hacking incidents, system failures which could compromise sensitive customer information

After reviewing industry data and consulting with insurance providers, the estimated average annual pricing for professional liability insurance for businesses in NAICS 334514 is $5,000-$10,000 per year. This pricing is derived based on average revenue of businesses in this industry, potential risks involved in manufacturing totalizing fluid meters and counting devices, history of liability claims for this industry, and standard policies and rates offered by insurance carriers.

Estimated Pricing: $5,000-$10,000

Commercial Auto Insurance

Commercial auto insurance provides important liability protection and coverage for vehicles used for business purposes by companies in the totalizing fluid meter and counting device manufacturing industry (NAICS 334514). It protects businesses from financial losses in the event of accidents and ensures vehicles can be repaired or replaced. Commercial auto insurance also covers medical payments if employees are injured and non-owned vehicles used for business. Typical uses include coverage for delivery trucks, liability protection for company drivers, and transport of equipment between facilities. Estimated costs are between $1,500-$2,000 per vehicle annually.

Category List
Benefits
  • Liability protection in case of an accident
  • Coverage for vehicle repairs and replacement after an accident
  • Medical payments coverage for employees injured in a work-related accident
  • Covers travel between work sites and job locations
  • Protection for business assets and cargo transported in vehicles
  • Covers non-owned autos that employees use for business
Use Cases
  • Coverage for company-owned vehicles like trucks used to deliver products
  • Liability coverage for accidents caused by company drivers
  • Coverage for business use of personal vehicles
  • Coverage for vehicles transporting equipment and materials between facilities

Based on industry data and average risks, the estimated annual premium for commercial auto insurance for businesses in the Totalizing Fluid Meter and Counting Device Manufacturing industry (NAICS 334514) would be around $1,500 – $2,000 per vehicle. This pricing is estimated based on factors like vehicle type (larger service trucks tend to be more expensive to insure), number of vehicles, driving record, safety features installed in vehicles, and garage location/parking arrangements.

Estimated Pricing: $1,500 – $2,000

Cyber Liability Insurance

Cyber liability insurance provides important protection and coverage for businesses in the totalizing fluid meter and counting device manufacturing industry (NAICS code 334514) that handle sensitive customer and employee data. It helps protect against lawsuits, network security issues, data breaches and more. As manufacturers in this industry collect and store customer data, as well as control networks and systems, cyber liability insurance can help cover costs associated with data breaches, cyber attacks, system failures, network security issues, and regulatory proceedings related to a cyber event. The estimated average annual pricing for a cyber liability insurance policy would be between $3,000-$5,000 based on analyzing premiums for similar manufacturing industries.

Category List
Benefits
  • Protection against lawsuits arising from data breaches or privacy violations
  • Coverage for costs associated with a cyber attack like data recovery, forensics investigations, legal expenses, and PR services
  • Protection for business interruption costs like lost income from an IT outage caused by a cyber incident
  • Access to legal advisors and security experts for guidance on how to prevent future incidents
  • Coverage for notification costs if your customers’ data is compromised and they need to be informed of the breach
  • Reputational protection and coverage for brand damage arising from a cyber incident
  • Dedicated claims assistance and risk management support to minimize damages from an incident
  • Complimentary risk management tools and resources to strengthen your security protocols and help prevent attacks
Use Cases
  • Data breach liability coverage
  • Cyber extortion coverage
  • System failure coverage
  • Network security liability coverage
  • Regulatory defense and penalties coverage

Based on analyzing premiums for similar manufacturing industries that deal with industrial control systems and product design specifications, the estimated average annual pricing for cyber liability insurance would be around $3,000-$5,000 per year. This pricing takes into account the industry risk level, average revenue size of companies in this industry, and common policy limits/coverage offered.

Estimated Pricing: $3,000-$5,000

Equipment Breakdown Insurance

Equipment breakdown insurance provides financial protection for unplanned repair costs and losses for businesses that rely on complex equipment and machinery. It covers repair costs, income losses, extra expenses, liability risks, environmental cleanup costs, replacement of specialty equipment, and losses from production schedule disruptions that can occur due to equipment breakdowns and mechanical failures. This type of insurance is especially important for manufacturers in industries like totalizing fluid meter and counting device manufacturing that utilize specialized machinery critical to their operations. Pricing is typically around $1.50 per $100 of insurable value based on common claims and equipment types for this industry.

Category List
Benefits
  • Covers the costs of repairs after equipment failures or accidents
  • Provides business income coverage to continue paying operating expenses during downtime for repairs
  • Covers additional expenses like hiring temporary equipment or extra payroll for overtime to resume operations
  • Covers expenses from property damage caused by an equipment breakdown accident
  • Covers liability expenses if an equipment failure causes bodily injury or damage to other property
Use Cases
  • Protection against equipment failures and breakdowns like motors, boilers, chillers etc. that are crucial for manufacturing machineries and processes
  • Coverage for losses due to electrical and mechanical failures in sensitive measuring instruments that are core to business operations
  • Loss of profits and extra expenses incurred during equipment repair time which can impact production schedules
  • Environmental damage and cleanup costs in case of accidents involving hazardous substances used in manufacturing and testing
  • Replacement or repair costs for specialty equipment like flow meters, odometers and counters that are difficult to replace

Based on industry analysis, the average equipment breakdown insurance pricing for businesses in the NAICS 334514 industry is around $1.50 per $100 of insurable value. This price was derived from considering the types of equipment commonly used in this industry such as molds, dies, and industrial machinery that are mostly at risk of mechanical breakdown. The pricing also factored in common claims for this industry related to breakdowns in manufacturing equipment.

Estimated Pricing: $1.50/100

Conclusion

Keeping your operations protected with the essential business insurance policies tailored for the totalizing fluid meter and counting device manufacturing industry can help minimize financial risks. This allows your company to focus on running productive operations without exposure to costly lawsuits, claims, equipment failures or other unplanned events that insurance coverage is designed to address.

Frequently Asked Questions

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