A Guide to Essential Business Insurance for Manufacturing Companies with NAICS Code 3399

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This guide covers the top insurance policies businesses in the other miscellaneous manufacturing industry (NAICS 3399) should consider including general liability, property, commercial auto, workers' comp, professional liability and more.

Key Takeaways

  • General liability insurance protects against claims of bodily injury and property damage from operations or products
  • Property insurance covers costs to repair or rebuild facilities and assets damaged by disasters
  • Commercial auto insurance provides liability and physical damage coverage for business vehicles
  • Workers’ compensation covers medical expenses and lost wages for work injuries
  • Professional liability protects against lawsuits related to defects, negligence or errors

Introduction

Businesses in the other miscellaneous manufacturing industry (NAICS code 3399) face various risks that business insurance can help mitigate. As manufacturers dealing with complex equipment and processes, protection is needed for property, vehicles, employees and liability. This guide outlines the top insurance policies these businesses should consider.

General Liability Insurance

This reference provides an overview of general liability insurance for businesses in the NAICS 3399 industry, known as other miscellaneous manufacturing. It highlights the key benefits, uses cases, and estimated pricing for this important type of commercial insurance.

General liability insurance protects manufacturers from costly claims by covering injuries, property damage and lawsuits that may arise from operations or products. It is crucial for risk management. Common use cases center around people getting hurt on premises, products causing harm, and pollution from hazardous waste. The annual cost for coverage is around $2,500 on average.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury and property damage
  • Covers claims that arise from your products or completed work
  • Covers on-premises liability claims like slips and falls
  • Provides necessary coverage for contractors and subcontractors
Use Cases
  • Bodily injury or property damage claims from employees or customers
  • Product liability claims if a product malfunctions or causes harm
  • Lawsuits from third parties claiming injury or damage on your premises
  • Pollution liability if hazardous materials are improperly disposed of

Based on typical pricing models, the estimated average annual cost for general liability insurance for businesses in the other miscellaneous manufacturing industry (NAICS code 3399) would be around $2,500. This was calculated based on factors like annual revenue, number of employees, types of products/services, claims history and risk level.

Estimated Pricing: $2,500

Property Insurance

Property insurance provides critical financial protection for businesses in the miscellaneous manufacturing industry. It helps cover costs of rebuilding facilities and lost income if disasters damage essential property and disrupt operations.

Category List
Benefits
  • Protection against property damage or loss from events like fire, storms, theft or vandalism
  • Reimbursement for repairs or reconstruction of damaged or destroyed buildings and assets
  • Replacement cost coverage to repair or rebuild damaged property to its original condition
  • Business income/extra expense coverage to offset costs if operations are interrupted by a covered loss
  • Equipment breakdown coverage to repair or replace machines and systems damaged by mechanical breakdown or electrical failure
  • Coverage for valuable business records and documents in the event of a loss
  • Provides peace of mind knowing your assets and livelihood are financially protected
Use Cases
  • Protection against fire damage to facilities and equipment
  • Protection against damage from storms like hurricanes, hail or floods
  • Protection against theft or vandalism of equipment and inventory
  • Coverage for equipment breakdown like machinery failures or electrical damage
  • Replacement value coverage to fully repair or rebuild facilities after a loss

After reviewing typical property insurance pricing factors such as location, building size and construction, inventory value, protection class, etc. for businesses in the Other Miscellaneous Manufacturing NAICS Code 3399 Industry, the estimated average annual property insurance price would be around $5,000. This price was calculated based on the industry having manufacturing facilities of around 20,000 square feet on average, with an inventory valued at $2 million. The facilities are usually in light industrial areas with protection class of 5.

Estimated Pricing: $5,000

Commercial Auto Insurance

Commercial auto insurance provides essential protection for businesses that operate vehicles for business purposes. It covers legal liabilities, physical damage, medical expenses and other essential protection that companies in the other miscellaneous manufacturing industry rely on to transport goods and limit financial risk.

Category List
Benefits
  • Liability protection against claims from accidents
  • Physical damage coverage for vehicles owned by the business
  • Medical payments coverage for those injured in an accident involving a company vehicle
  • Replacement cost coverage to repair or replace a vehicle after an accident
  • Coverage for business items being transported in a vehicle
  • Coverage for additional insured parties like employees
  • Coverage for rental reimbursement if a vehicle is unavailable due to damage
Use Cases
  • Coverage for commercial vehicles like trucks used to transport raw materials or finished goods
  • Liability coverage in case an employee of the company gets into an accident while driving a company vehicle
  • Collision coverage to repair or replace a company vehicle if it’s damaged in an accident
  • Medical payments coverage for injured parties in an accident involving a company vehicle

Based on national industry averages, businesses in the Other Miscellaneous Manufacturing industry (NAICS code 3399) would pay on average around $2,500 annually per vehicle for commercial auto insurance. This pricing was derived based on factors such as the business operations, number of employees and vehicles, loss history, safety protocols, and driver qualifications.

Estimated Pricing: $2,500

Workers’ Compensation Insurance

This reference provides useful information about workers’ compensation insurance for businesses classified under NAICS code 3399 (Other Miscellaneous Manufacturing). It outlines the top benefits, use cases, and estimated pricing for these types of businesses to have workers’ comp coverage. It also discusses how work-related injuries and accidents are common risks in manufacturing, and how workers’ compensation ensures employees receive support while protecting businesses from costly legal claims.

Category List
Benefits
  • Covers medical expenses for work-related injuries and illnesses for employees
  • Provides wage replacement for employees who cannot work due to a work injury or illness
  • Protects businesses from costly lawsuits related to on-the-job injuries or illnesses
  • Reduces absenteeism and promotions quick recovery for injured workers
  • Required by law in all states for businesses with 1+ employees
  • Can save money versus paying for injuries out-of-pocket
  • Improves employee morale and retention by caring for their health and financial security
Use Cases
  • Cover costs associated with workplace injuries like medical expenses and lost wages
  • Protect the business from lawsuits if an employee is injured on the job
  • Meet licensing and regulatory requirements for certain industries and locations
  • Promote a safe work environment and culture

Based on data from the National Council on Compensation Insurance, the estimated average workers’ compensation insurance rate for the Other Miscellaneous Manufacturing industry with NAICS code 3399 is $1.65 per $100 of payroll. This rate was derived by taking the average rate for all manufacturing industries and adjusting it based on the risk level of NAICS code 3399, which involves manufacturing of a variety of miscellaneous products that can be considered of medium risk.

Estimated Pricing: $1.65/100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects businesses in industries like other miscellaneous manufacturing from costly claims and lawsuits related to errors or negligence. It covers legal expenses and damages if the business is found liable for defects, injuries, or other issues that may arise.

Some key uses of professional liability insurance for other miscellaneous manufacturing businesses include protection against product liability claims, intellectual property lawsuits, workplace injury claims, and regulatory actions. Maintaining this coverage allows these businesses to avoid risks to their assets and continued operations. The average cost for this insurance is around $3,500 annually for businesses in this industry with revenues of $5-10 million and 5-50 employees.

Category List
Benefits
  • Protects your business from damages and claims in the event of a lawsuit
  • Covers legal fees related to defending claims
  • Protects personal assets if your business is sued and found liable
  • Provides liability protection for errors and omissions
  • Maintains positive customer and client relationships by reassuring them your business is protected
  • Covers claims that may arise from faulty workmanship or defective products
  • Protects against regulatory actions and fines from government agencies
  • Allows your business to continue operating in the event of a lawsuit by covering legal costs and damages
  • Reduces stress of facing potential lawsuits and liability issues as a business owner
Use Cases
  • Protection against lawsuits from customers who claim defective or improperly manufactured goods caused property damage, bodily injury or other losses
  • Coverage for legal costs and damages awarded in lawsuits alleging intellectual property infringement from use of patented processes or designs in manufacturing
  • Defense against liability claims from employees injured during manufacturing work or alleging workplace illnesses from exposure to manufacturing materials and processes
  • Indemnification for legal expenses and judgments in lawsuits alleging negligent oversight or safety protocol failures led to injuries or damage during manufacturing

Based on industry research, the average pricing for professional liability insurance for businesses in the Other Miscellaneous Manufacturing industry with NAICS Code 3399 is $3,500 per year. This pricing was derived by analyzing insurance quotes from top carriers for businesses in this industry with revenues between $5-10 million and 5-50 employees. The pricing takes into account the level of risk associated with manufacturing processes and risk of product liability claims that are common in this industry.

Estimated Pricing: $3,500

Product Liability Insurance

Product liability insurance provides essential protection for manufacturers and businesses in the miscellaneous manufacturing industry from costly lawsuits and losses due to defects in their products. It covers legal fees, recalls, third party claims, and loss of profits to keep businesses operating smoothly despite unforeseen issues. The average premium for product liability insurance for businesses in NAICS code 3399 is around $2.50 per $100 of receipts, taking into account factors like product types, safety practices, claims history, and quality control processes. Product liability insurance reassures customers and partners that companies take product safety seriously and stand behind the quality of their goods.

Category List
Benefits
  • Protects your business against expensive legal fees and settlements if your products are found to cause injuries or property damage
  • Covers costs associated with product recalls if issues are found with your products
  • Shows customers and vendors that you stand behind the safety and quality of your products
  • Reduces risks to the financial stability of your business by capping costs associated with claims
  • Covers legal defense costs if you are sued for damages by a customer or third party
  • Provides compensation for those injured by defective products, avoiding damage to your reputation
  • Insures against unforeseen issues and reduces financial uncertainties for planning business operations
Use Cases
  • Protects against claims of bodily injury or property damage caused by defects in the company’s products
  • Covers legal costs like lawyer fees if the company is sued for a defective product
  • Provides coverage if a product recall is necessary due to safety issues found in the product
  • Indemnifies claims from third parties who are injured by products
  • Covers loss of income/profits during a product recall to overhaul defective items

Based on industry data, the average price for product liability insurance for businesses in the NAICS code 3399 (Other Miscellaneous Manufacturing) industry is around $2.50 per $100 of receipts. This price is derived from considering factors such as the types of products manufactured, safety practices, past claims experience, and quality control processes of typical businesses in this industry.

Estimated Pricing: $2.50 per $100 of receipts

Cyber Liability Insurance

Cyber liability insurance provides important coverage for businesses in the “other miscellaneous manufacturing” industry (NAICS 3399) that handle sensitive customer information. It can help cover costs related to data breaches, cyber attacks, and other network security incidents. Specifically, it protects against legal fees, notification expenses, forensic investigations, income loss, and more. The estimated average annual premium is around $2,500 based on industry factors like revenue, security practices, and more. Cyber liability insurance is especially valuable for manufacturers in this category due to risks of breaches and attacks that could result in notifications costs, regulatory fines, third-party claims, loss of business, and ransomware payments.

Category List
Benefits
  • Covers legal fees and costs to defend a civil lawsuit from a data breach or cyberattack
  • Reimburses the costs to notify customers of a breach and provide credit monitoring
  • Covers loss of income or extra expenses from a network outage or cyberattack
  • Pays for costs to restore or rebuild systems and data after an attack or breach
  • Covers cyber extortion demands like ransomware if hackers encrypt systems for payment
  • Covers liability claims if a third party like a vendor suffers a breach involving a businesses data
  • Provides access to legal advisors and forensic investigators in the event of a breach or attack
Use Cases
  • Data breach response and notification costs
  • Regulatory fines and penalties
  • Third-party liability claims for data theft or loss
  • First-party costs for data recovery, forensic investigations, credit monitoring
  • Loss of business/income due to network downtime from cyber attacks
  • Ransomware payments in the event of a ransomware attack locking company systems

Based on average figures from top cyber liability insurance providers, the estimated average annual premium for businesses in the Other Miscellaneous Manufacturing industry (NAICS 3399) is around $2,500. This price factors in the industry profile, average revenue, number of employees, and common cyber security practices. Premiums may be lower for businesses with strong security controls and higher for those with outdated systems or unsecured networks.

Estimated Pricing: $2,500

Equipment Breakdown Insurance

This reference provides information about equipment breakdown insurance for businesses in the other miscellaneous manufacturing NAICS code 3399 industry. It covers the top benefits, use cases and estimated pricing for this type of insurance. The reference details the key advantages of this coverage, such as repairing or replacing damaged equipment and covering related business losses. It also examines common scenarios where the insurance can help, like protecting against mechanical failures or accidents involving manufacturing machinery. Estimated pricing rates per $100 of insured equipment value are given too. This is a comprehensive reference on equipment breakdown insurance tailored for businesses in the miscellaneous manufacturing sector.

Category List
Benefits
  • Covers repairs or replacement of equipment damaged by electrical or mechanical breakdown or boiler explosion
  • Provides coverage for business income losses due to an equipment breakdown
  • Covers costs to modify, repair or replace damaged equipment to comply with current codes or industry safety standards
  • Covers expenses for experts like engineers and contractors to investigate and restore equipment
  • Includes coverage for spoilage of raw materials or inventory in process due to an equipment breakdown
  • Offers additional coverages like water damage, ammonia contamination and damaged stock
  • Covers expenses associated with temporary repairs and equipment rental needed for business continuity
Use Cases
  • Protect manufacturing equipment like boilers, air conditioning units, ventilation and cooling systems from unexpected mechanical and electrical failures
  • Provide coverage for losses from equipment failures that damage the equipment itself as well as other property and lost business income that results
  • Cover the costs of repairs or replacement of equipment damaged in a mechanical breakdown accident
  • Indemnify losses from equipment accidents involving objects falling into equipment during operations
  • Protect against liability claims from any bodily injury or property damage to third parties resulting from an equipment accident on premises

Based on typical equipment breakdown insurance pricing models, businesses in the ‘Other Miscellaneous Manufacturing’ NAICS code 3399 industry would on average pay around $1.50 – $2.00 per $100 of equipment value insured annually. This price range was estimated considering factors like the types of manufacturing equipment commonly used in this industry, average equipment values, loss histories, and risk levels associated with various equipment.

Estimated Pricing: $1.50-2.00/100 equipment value

Commercial Umbrella Insurance

Commercial umbrella insurance provides crucial additional liability protection for businesses in the other miscellaneous manufacturing industry. It protects against costly lawsuits above the normal commercial general liability limits and covers gaps in regular business coverage. Additional paragraphs could include more details on the top benefits, use cases and estimated pricing for umbrella insurance specifically for businesses in the NAICS code 3399 industry as provided in the reference details.

Category List
Benefits
  • Provides additional liability protection above your commercial general liability and auto liability limits
  • Protects your personal assets from lawsuits and liability claims
  • Covers legal costs and settlements above your underlying limits
  • Covers gaps in your existing commercial insurance policies
  • Provides liability protection for new ventures or expansions your business may undertake
  • Covers negligent acts of independent contractors working on your behalf
Use Cases
  • Protecting against expensive lawsuits from customer injuries on premises or defects in manufactured products
  • Providing additional liability limits above the primary general liability or other liability policies
  • Covering risks not included in regular business insurance like pollution liability and intellectual property risks
  • Protecting against risks of recalls, returns or replacements of defective manufactured goods
  • Providing sufficient liability protection for transportation of goods by company vehicles

Based on typical pricing models, businesses in the NAICS 3399 (Other Miscellaneous Manufacturing) industry can expect to pay between $2-$5 per $1,000 of umbrella insurance coverage, above their commercial general liability limits, such as $1 million. Factors such as number of employees, annual revenue/sales, loss history, and types of manufacturing processes would influence the actual quoted premium. Therefore, an estimated annual price for a $1 million umbrella policy for a mid-sized business in this industry would be $3,000-$7,500.

Estimated Pricing: $3,000-$7,500

Conclusion

Maintaining comprehensive business insurance tailored to the needs of the other miscellaneous manufacturing industry is essential for risk management and compliance. The policies discussed provide critical financial protection and peace of mind for operations.

Frequently Asked Questions

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