Essential Business Insurance for Wood Window and Door Manufacturers (NAICS 321911)

UncategorizedReading Time: 10 minutes

A guide to the top business insurances wood window and door manufacturers should consider including general liability, commercial property, workers compensation, commercial auto and more.

Key Takeaways

  • General liability insurance protects against claims of bodily injury or property damage from accidents on your premises or defective products.
  • Commercial property insurance covers buildings, equipment, inventory and lost income from disasters like fire or storms.
  • Workers compensation covers medical costs and lost wages for employee injuries sustained on the job.
  • Commercial auto insurance protects company vehicles used for deliveries, service calls and material transport.
  • A business owners policy consolidates multiple coverages into one affordable package.
  • Commercial umbrella insurance provides added liability protection above primary policies.

Introduction

As a wood window and door manufacturer, protecting your business operations, employees and finances from unexpected losses is critical. This guide outlines the top business insurance policies manufacturers in this industry should consider, including their key benefits and use cases.

General Liability Insurance

General liability insurance is an important type of commercial insurance for wood window and door manufacturers. It protects the business from costly lawsuits if a third party is injured on the property or by the products.

General liability insurance provides several key benefits for wood window and door manufacturers, such as protecting against third-party claims of bodily injury or property damage resulting from accidents on the premises or involving defective products. It also covers liability claims from on-premises accidents and injuries, legal fees if sued, faulty installation or workmanship claims. Having proper general liability coverage ensures claims are handled by the insurer rather than coming out of the business owner’s own pocket.

Category List
Benefits
  • Protects your business from third party claims of bodily injury or property damage
  • Covers liability claims from defective products
  • Covers liability claims from on-premises accidents and injuries
  • Covers lawyer fees and court costs if you are sued
  • Satisfies contract requirements if you work as a subcontractor
  • Covers liability claims from faulty installation if done by your company
  • Protects your business reputation in the event of a lawsuit
  • Provides peace of mind in knowing you have financial protection from lawsuits
Use Cases
  • Protects against third-party claims of bodily injury or property damage resulting from accidents on your premises or involving your defective products
  • Covers negligence claims if someone is injured by your product after installation
  • Covers claims from employees on work-related injuries that fall outside of your workers’ compensation coverage
  • Protects against lawsuits from faulty workmanship if an installation results in property damage to surrounding structures
  • Covers legal costs if you are sued over an incident on your property or involving your products

Based on industry data, the average general liability insurance pricing for businesses in the wood window and door manufacturing industry is around $2.50 – $3.00 per $100 of payroll. This takes into account the level of risk in this industry which involves woodworking machines and equipment that can cause bodily injuries. The pricing is also dependent on individual company’s risk characteristics such as claims/loss history, safety practices and certifications.

Estimated Pricing: $2.50 – $3.00/per $100 of payroll

Commercial Property Insurance

Commercial property insurance is an important protection for wood window and door manufacturers to safeguard their facilities, equipment, inventory and profits from losses. It provides coverage for a variety of risks like fire, storms, theft, equipment breakdown and more to help the business financially recover from disasters and continue operations.

Category List
Benefits
  • Protects buildings and equipment from damages caused by fire, storms, vandalism and other disasters
  • Covers liability if someone gets injured on your property
  • Reimburses lost income if the business has to close temporarily for repairs after a covered loss
  • Covers the costs of debris removal after a covered disaster like a fire or storm
  • Provides equipment breakdown coverage for failures or breakdowns of machines and electrical systems
  • Protects valuable inventory, raw materials and finished goods from disasters
Use Cases
  • Protect buildings and equipment from fire damage
  • Cover losses from theft of property or equipment
  • Provide coverage for damaged inventory
  • Replace lost business personal property like computers and furniture
  • Cover expenses if buildings need to be repaired or reconstructed
  • Reimburse lost business income if the facility cannot operate due to a covered loss

Based on industry data, the estimated average annual pricing for commercial property insurance for wood window and door manufacturing businesses with NAICS code 321911 is around $2.50 per $100 of insured value. This pricing is derived from considering factors such as the business size, number of employees, property values, claims history, security systems, and natural disaster risks for the geographic area.

Estimated Pricing: $2.50/$100 insured value

Workers Compensation Insurance

Workers compensation insurance provides important coverage for wood window and door manufacturing businesses. As the reference shows, this type of manufacturing involves risks like cuts, falls, and injuries from operating machinery. Workers comp helps protect employees and the business from costs related to workplace accidents. It covers medical expenses, lost wages, and protects the business from lawsuits if injuries occur on the job. The reference also provides examples of common injuries in this industry, such as those involving machinery, lifting, installations and repetitive stress, as well as estimated pricing information to help businesses determine their needs.

Category List
Benefits
  • Protects your business from lawsuits related to workplace injuries
  • Covers medical expenses and rehabilitation costs for injured employees
  • Pays lost wages for employees unable to work due to injury
  • Lowers other types of insurance costs like general liability
  • Ensures injured employees are covered right away
  • Saves money by grouping insurance coverage for all employees
  • Reduces absenteeism related to workplace injuries
  • Provides peace of mind in case of an unexpected workplace accident
Use Cases
  • Cover injuries and illnesses that occur on the job due to operating machinery such as saws, drills, sanders, and routers
  • Cover injuries from lifting, carrying, installing windows and doors
  • Cover slip-and-fall accidents that occur in the manufacturing facility
  • Cover injuries sustained from handling and moving lumber, glass, hardware
  • Cover repetitive stress injuries that develop over time such as carpal tunnel syndrome from repeated assembly tasks

Based on industry data, the estimated average pricing for workers compensation insurance for businesses in the wood window and door manufacturing (NAICS 321911) industry is around $2.50 per $100 of payroll. This price was derived from analyzing historical pricing and claims data for this industry which has a high risk level due to factors like working with heavy machinery and wood materials.

Estimated Pricing: $2.50/100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides critical liability protection and property coverage for businesses that utilize fleet vehicles as part of their operations. It shields companies financially from accidents and losses involving vehicles used for commercial purposes like deliveries, services, employee commute, and raw material transport.

Wood window and door manufacturers in particular rely on commercial auto insurance to mitigate risks associated with key business activities that involve vehicles, such as delivering finished products, servicing customer sites, transporting raw materials, and providing commute vehicles for certain employees.

Category List
Benefits
  • Liability protection in case of accidents involving company vehicles
  • Coverage for physical damage to company vehicles from accidents, theft or other perils
  • Medical payments coverage for employees injured in a covered accident
  • Reimbursement for legal defense costs if the business is sued following an accident
  • Coverage for rented or borrowed vehicles used for business purposes
  • Coverage extended to secondary vehicles such as trailer and heavy machinery
Use Cases
  • Delivery fleet vehicles – Insuring the trucks that deliver finished products to customers
  • Service vehicles – Insuring vehicles used by technicians to visit customer sites for installation or repairs
  • Employee commute vehicles – Some companies provide vehicles for employees to drive between worksites or to visit clients
  • Raw material transport vehicles – Insuring trucks that transport raw wood and other materials between suppliers and the manufacturing facility

Based on industry averages, the estimated average annual pricing for commercial auto insurance for businesses in the wood window and door manufacturing industry (NAICS Code 321911) is around $1,500 per vehicle. This pricing takes into account factors like the type of vehicles owned (e.g. trucks, vans), number of vehicles, driver qualifications, safety record, and coverage limits selected.

Estimated Pricing: $1,500

Business Owners Policy

A business owners policy (BOP) is a multipurpose commercial insurance product that provides coverage for property, general liability, business interruption and other potential losses. It offers wood window and door manufacturers a comprehensive package with important protections at an affordable rate.

Category List
Benefits
  • Property coverage to protect against losses from fire, theft or damage to buildings, equipment and inventory
  • General liability coverage to protect against lawsuits if a customer is injured on your property or by a product
  • Business interruption coverage to replace lost income if operations are disrupted
  • Equipment breakdown coverage to repair or replace equipment damaged by mechanical or electrical breakdown
  • Money and securities coverage to replace stolen cash, checks or other forms of payment
  • Employee dishonesty coverage to reimburse losses from employee theft
  • Cyber liability coverage to protect against costs from data breach response and lawsuits stemming from security failures
  • Auto coverage if business vehicles are used
  • Workers compensation insurance to cover employee injuries
Use Cases
  • Liability protection in case an employee or customer gets injured on your premises
  • Property coverage to repair or replace equipment, machines, buildings and other materials if damaged
  • Business interruption insurance to cover lost income if your business needs to shut down temporarily
  • Equipment breakdown coverage for machinery or mechanical systems that break down
  • Coverage for losses due to fire, wind damage, hail or other natural disasters

Based on industry data, the estimated average annual pricing for a business owners policy for wood window and door manufacturers (NAICS 321911) is around $3,500. This price factors in the manufacturing process which can involve heavy machinery, saws, lathes and other equipment that present higher liability risks. It also considers the wood products themselves as inventory which needs insuring. The final price will vary depending on individual business factors like number of employees, annual revenue/payroll, claims history, and risk management practices.

Estimated Pricing: $3,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides an extra layer of liability protection above a business’s primary insurance policies. It helps businesses in high-risk industries like wood window and door manufacturing manage risks from injuries, product liability, legal costs that exceed primary policy limits, liability exposures from completed operations and products that may be excluded from standard commercial general liability policies. Umbrella insurance also covers liabilities required by contracts, provides higher liability limits to protect business assets, and helps wood window and door manufacturers protect against claims that exceed the limits of underlying commercial general liability policies as well as risks from on-site and off-site operations.

Category List
Benefits
  • Provides additional liability protection above your primary insurance policies
  • Covers lawsuits involving multiple claims that exceed the limits of your underlying policies
  • Protects personal assets from litigation costs and potential legal judgments or settlements
  • Reduces risk for little additional premium
  • Provides continuous protection even if your primary policies expire
  • Covers punitive damages which are typically excluded on most primary liability policies
  • Protects against liability gaps or deficiencies in your primary policies
Use Cases
  • Protect against claims that exceed the limits of the underlying commercial general liability (CGL) policy
  • Supplemental liability protection for on-site and off-site operations like delivery and transportation
  • Cover liability exposures from completed operations and products that the standard CGL may exclude
  • Provide higher liability limits to protect significant business assets
  • Cover liabilities from contracts requiring additional insured status
  • Protect business owners and managers with coverage for claims of negligent hiring/supervision

Based on industry data, the average premium for a $1 million commercial umbrella insurance policy for wood window and door manufacturers is approximately $2,500 annually. Pricing is determined based on factors such as annual revenue, number of employees, claims history, and risk level associated with the type of industry/business operations.

Estimated Pricing: $2,500

Commercial Cyber Liability Insurance

“Cyber threats have become an increasing risk for all businesses, especially those in manufacturing industries that store sensitive customer data. Commercial cyber liability insurance can help protect manufacturers financially and reduce future risks:”

Category List
Benefits
  • Covers costs of responding to a cyber attack including legal defense, credit monitoring services, forensic investigations, etc.
  • Pays for liability from a data breach including lawsuits filed by affected customers, penalties from state privacy laws, credit card brand fines.
  • Covers business interruption expenses like lost income if a ransomware attack takes systems offline.
  • Protects public relations/reputational damage from negative publicity around a cyber breach.
  • Provides access to cybersecurity experts for best practices guidance and threat monitoring.
  • Reduces risk of financial losses beyond policy limits through risk engineering assessments and recommendations
Use Cases
  • Data breach involving customer, employee or supplier personal information
  • Ransomware attack or malware infection that encrypts or locks access to systems
  • Failure of security systems leading to unauthorized access to systems
  • Distributed denial-of-service (DDoS) attacks that disrupt online operations
  • Loss or theft of physical devices containing customer information
  • Third party liability claims alleging the business is responsible for a cyber attack or data breach impacting other organizations

Based on typical pricing factors such as annual revenue, number of employees, IT security protocols and past claims, the estimated average annual premium for commercial cyber liability insurance for businesses in this industry would be around $2,500. Cyber insurance premiums are usually calculated as a percentage of the total insured value, with an average rate of 1-5% being typical for small to medium sized manufacturers. Given the typical revenue and employee size of businesses in this industry, $2,500 represents around 1-3% of the total insured value and is in line with average market rates.

Estimated Pricing: $2,500

Commercial Inland Marine Insurance

Commercial inland marine insurance provides coverage for valuable business property and inventory when in transit or temporarily located off premises. It protects wood window and door manufacturers from financial losses caused by accidents, damages, delays or theft during transportation or at job sites.

This type of insurance is highly beneficial for wood window and door manufacturers as it protects raw materials, supplies, finished goods, tools and equipment when they are transported between facilities, to installation sites, and exported overseas. Without this coverage, transportation accidents or cargo theft could result in significant financial losses that impact business continuity and cash flow.

Category List
Benefits
  • Covers losses or damages to business property while in transit
  • Protects against the full range of transportation-related risks including accidents,cargo losses,and delays
  • Provides replacement cost value for covered property to help ensure you can replace damaged or stolen items
  • Covers both domestic and international shipments by land,sea,and air
  • Pays for extra expenses like re-routing if your shipment is delayed
  • Offers affordable premiums compared to the risk of an uninsured loss
  • Coverage can be easily customized to your business’s specific transportation needs
  • Protects your cash flow and business continuity in the event of a transportation loss or delay
Use Cases
  • Coverage for materials, supplies and goods in transit
  • Coverage for merchandise in storage
  • Coverage for business personal property like tools and equipment used off-premises
  • Coverage for property of others you are responsible for like installed windows and doors at jobsites
  • Coverage for equipment at temporary offshore locations like job sites

Based on industry data, the average pricing for commercial inland marine insurance for businesses in the wood window and door manufacturing industry with NAICS code 321911 is around $1.50 per $100 of insurable values. This price is derived considering risk factors such as the wood materials used, machinery involved in production, potential fire hazards, and cargo transportation needs for this industry.

Estimated Pricing: $1.50/100

Equipment Breakdown Insurance

Equipment breakdown is a major risk for wood window and door manufacturers due to their reliance on complex machinery. Equipment breakdown insurance provides protection against unexpected repair costs and lost income when production equipment breaks down. The top benefits of this coverage include paying for repairs, lost income during downtime, diagnostic costs to find the cause of failure, and replacing older equipment with new instead of used. Key use cases involve protection for woodworking machines, electrical components, lost profits during shutdowns, climate control systems, and backup equipment that supports manufacturing. On average, this type of insurance costs around $1.25 per $100 of insured equipment value based on the moderate risk profile of machinery typically used in this industry.

Category List
Benefits
  • Covers repair or replacement costs if equipment breaks down
  • Pays for equipment diagnostic costs to determine cause of failure
  • Covers additional expenses like lost income or extra costs during breakdown
  • Covers equipment damaged by electrical issues, mechanical breakdown, or collision
  • Covers equipment regardless of age or maintenance
  • Includes coverage for on-site and off-site equipment
  • Provides access to highly-skilled technicians for repairs
  • Features like upgraded replacement costs to get new equipment instead of used
  • Coverage for losses related to property damage, transportation, or spoiled goods
Use Cases
  • Protection against equipment breakdown and electrical damage for machinery like saws, lathes, drill presses, sanders used in woodworking
  • Coverage for electrical components of automated manufacturing equipment like robotic arms
  • Reimbursement for lost business income if production needs to shut down due to covered equipment failure
  • Repair or replacement cost for critical airflow, refrigeration or climate control systems
  • Coverage for on-site boilers or compressed air systems
  • Coverage of auxiliary equipment like generators, transformers or air conditioning units that support production

Based on industry data, the average estimated price for equipment breakdown insurance for businesses in the wood window and door manufacturing (NAICS 321911) industry is around $1.25 per $100 of insured equipment value. This pricing is derived based on the type of equipment used in this industry such as woodworking machines, CNC machines, lifts and forklifts which generally have moderate risk of breakdown. The price also factors in companies in this industry typically have multiple production lines and locations.

Estimated Pricing: $1.25/100 of equipment value

Conclusion

Proper insurance coverage provides stability and peace of mind, allowing wood window and door manufacturers to focus on growing their business. The references here outline the essential policies that help mitigate risks inherent in manufacturing operations and provide financial support should the unexpected occur.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied