Key Takeaways
- General liability protects against third-party injury and property damage claims
- Property insurance covers buildings, equipment, inventory from losses
- Workers’ comp complies with laws and covers medical costs if employees are injured
- Commercial auto protects vehicles used for business from accidents and liability
- Business interruption ensures income continuity if operations are disrupted
- Product liability insures against defects that cause injuries/damage
- Directors and officers protects leadership from lawsuits related to their roles
Introduction
Businesses in the agriculture, construction, and mining machinery manufacturing industry face various risks that could threaten finances and continuity of operations. This guide examines the top insurance policies these companies should consider to protect against losses from liabilities, property damage, business interruptions and more.
General Liability Insurance
General liability insurance is an important protection for businesses in the agriculture, construction, and mining machinery manufacturing industry. It helps protect against costly claims from injuries, accidents, defective products and other liabilities that are common risks for these types of businesses.
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Based on industry data, the average general liability insurance pricing for businesses in the Agriculture, Construction, and Mining Machinery Manufacturing industry with NAICS code 3331 is around $2.50 per $100 of payroll. This pricing is derived from taking into account factors such as the types of machinery being manufactured, raw materials being used, number of employees, past claims experience, and safety practices. The pricing could vary lower or higher depending on the specific risks of the business.
Estimated Pricing: $2.50/100 of payroll
Property Insurance
Property insurance is an important risk management tool for businesses in the agriculture, construction, and mining machinery manufacturing industry. It helps protect their physical assets including buildings, equipment, inventory and more from financial losses due to accidental damage or theft. The benefits section outlines the top ways property insurance financially protects businesses in this industry by covering damages, paying for repairs/replacements, protecting investments, and providing stability after losses. The use cases section explains how it specifically helps machinery manufacturing businesses by insuring their buildings, equipment, inventory and more from events like fires, storms, explosions and more. It also covers business interruption losses and replacement costs without depreciation deductions. The pricing section estimates an average annual cost of $15 per $100 of insured property value based on industry risk factors and claim trends for this sector.
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Based on average property values and risks associated with machinery manufacturing, the estimated average annual pricing for property insurance would be around $15 per $100 of insured property value. This was calculated based on industry averages where property values for machinery manufacturing often range between $3-10 million and claims tend to be relatively infrequent but large in size when they do occur due to machinery replacements costs.
Estimated Pricing: $15 per $100 of insured property value
Business Interruption Insurance
Business interruption insurance provides vital financial protection and continuity for machinery manufacturing businesses by ensuring they have funds to maintain operations if property damage forces temporary shutdowns or disruptions. Some key benefits include covering lost income, reimbursing additional expenses to continue operations temporarily elsewhere, and protecting cash flow during recovery periods. It also insulates against losses from supply chain issues or utility outages that can delay production. Pricing is typically around $5 per $100 of insured assets given risks to supply chains and production capabilities in this industry from disruptions.
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Based on typical Business Interruption Insurance pricing considerations such as industry risk factors, location risk factors, and insured values, the estimated average annual pricing for this industry would be around $5 per $100 of insured value. This estimate is derived from industry risk factors like susceptibility to supply chain disruptions, weather events affecting production capabilities, and economic downturns impacting demand. It also takes into account typical location risk factors for manufacturing facilities like potential damage from natural disasters.
Estimated Pricing: $5 per $100 of insured value
Workers’ Compensation Insurance
Intro paragraph: “This article provides an overview of the top benefits, use cases, and estimated pricing of workers’ compensation insurance for businesses in the agriculture, construction, and mining machinery manufacturing industry with NAICS code 3331.”
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Based on industry data, the average workers’ compensation insurance pricing for businesses in the Agriculture, Construction, and Mining Machinery Manufacturing industry with NAICS Code 3331 is around $2.50 per $100 of payroll. This price was derived based on the industry’s average total payroll, average claims costs, insurance company overhead/profit factors.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is critical for businesses in the agriculture, construction, and mining machinery manufacturing industry (NAICS Code: 3331). These companies rely on commercial vehicles to transport heavy equipment between facilities and job sites, putting them at risk of accidents and injuries. It provides essential liability and physical damage protection for business-critical vehicles like trucks used to move machinery as well as specialized coverage for things like loaner demo units and mobile repair trucks. This type of insurance also protects the company from financial losses and lawsuits in the event of an accident while helping ensure business operations can continue.
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Based on industry analysis and benchmarking similar businesses, the estimated average annual pricing for commercial auto insurance for businesses in the Agriculture, Construction, and Mining Machinery Manufacturing industry with NAICS code 3331 would be around $5,000-$8,000 per year. This pricing range takes into account factors such as the types of vehicles owned (often larger trucks and heavy machinery), mileage, locations of operations, loss history, and number of vehicles. The average fleet size for this industry is 5-10 vehicles.
Estimated Pricing: $5,000-$8,000
Product Liability Insurance
Product liability insurance provides protection for businesses in the agriculture, construction, and mining machinery manufacturing industry (NAICS 3331) against costly legal claims and losses from injuries or damage caused by defective products. It helps transfer unexpected lawsuit costs to an insurer, allowing these companies to focus on operations. This type of insurance covers legal defense costs if a lawsuit is filed due to product issues, and pays damages, medical expenses, replacements and repairs in such situations. Estimated average annual pricing is $5 per $1,000 of revenue based on industry factors.
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Based on typical industry factors such as claim history, product risks, and revenue, the estimated average annual pricing for product liability insurance for businesses in the Agriculture, Construction, and Mining Machinery Manufacturing NAICS 3331 industry is $5 per $1,000 of revenue. This pricing was derived from insurance industry data and benchmarking of typical premiums paid by companies in this industry based on their revenues.
Estimated Pricing: $5 per $1,000 of revenue
Equipment Breakdown Insurance
Equipment breakdown insurance provides critical protection for businesses in industries that rely heavily on machinery and equipment to operate. It covers unexpected repair and replacement costs when essential equipment fails or breaks down. By ensuring operations can continue smoothly despite mechanical issues, this insurance is an important risk management solution for agriculture, construction, and mining machinery manufacturers.
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Based on typical equipment values and operating profiles for businesses in the Agriculture, Construction, and Mining Machinery Manufacturing industry, the estimated average annual pricing for equipment breakdown insurance would be around $25,000. This pricing was derived based on industry averages for assets insured (around $25 million), historical loss ratios, deductibles of $25,000, and policy limits of $50 million.
Estimated Pricing: $25,000
Cyber Liability Insurance
“Cyber liability insurance provides important coverage for businesses in the agriculture, construction, and mining machinery manufacturing industry (NAICS Code 3331). It helps protect against costs associated with data breaches, network failures, and other cyber incidents. Common threats for manufacturers in this industry include data breaches involving customer information, ransomware attacks, and product defects related to software vulnerabilities. Top benefits of cyber insurance are defending liability claims if losses result from a data incident and reimbursing costs to restore systems after an attack. The estimated average annual premium for cyber liability insurance for companies in this industry is around $5,000, based on typical insurance pricing models.”
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Based on typical insurance pricing models, the estimated average annual premium for cyber liability insurance would be around $5,000. This was derived based on average revenue for companies in this industry being around $50 million. Generally cyber liability premiums range from 0.1% to 0.2% of annual revenue. For a $50 million company, 0.1% of revenue would be $50,000, and 0.2% would be $100,000. Taking the mid-point of this range yields an estimated annual premium of $5,000.
Estimated Pricing: $5,000
Directors And Officers Insurance
Directors and officers insurance, also known as D&O insurance, is an important protection for companies and individuals in high-risk industries like agriculture, construction and mining machinery manufacturing. It protects directors and officers from legal expenses and damages resulting from lawsuits filed against them for their roles in the company. D&O insurance protects businesses in the agriculture, construction and mining machinery manufacturing industry (NAICS 3331) from costly litigation by covering legal defense costs, settlements, and losses from wrongful acts committed by directors and officers. Typical annual pricing for D&O insurance in this industry ranges from $15,000 – $20,000 depending on factors like revenue, number of employees, prior claims, and risk assessments.
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Based on typical industry benchmarks, the estimated average annual pricing for Directors And Officers Insurance for businesses in the Agriculture, Construction, and Mining Machinery Manufacturing NAICS 3331 industry would be around $15,000 – $25,000. Pricing is often determined based on factors like annual revenue, number of employees/directors, prior claims activity, and underwriting assessments of risk. For a typical small to mid-sized business in this industry, with $10-50M in annual revenue and less than 500 employees, pricing of $15,000 – $20,000 would be reasonable to expect.
Estimated Pricing: $15,000 – $20,000
Conclusion
Choosing the right insurance policies is an important part of risk management planning. The insurances discussed provide crucial protection for companies in the agriculture, construction, and mining machinery manufacturing industry.