Essential Business Insurance Options for Asphalt Paving Mixture and Block Manufacturing Businesses (NAICS Code 324121)

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A guide to the top types of business insurance useful for protecting asphalt paving mixture and block manufacturing businesses against financial risks and expenses.

Key Takeaways

  • General liability insurance protects against third-party injury and property damage claims
  • Commercial property insurance covers costs to repair or replace business property after disasters
  • Commercial auto insurance covers vehicles used for business transportation
  • Workers compensation insurance covers workplace injury medical costs and lost wages
  • Umbrella insurance provides additional liability protection above primary policies
  • Directors and officers insurance protects personal assets of corporate officers and directors
  • Business interruption insurance covers income loss during production outages
  • Cyber liability insurance covers costs of data breaches and cyber attacks
  • Equipment breakdown insurance repairs or replaces specialized production machinery

Introduction

Asphalt paving mixture and block manufacturing businesses face various risks that could threaten finances and long-term viability. Key risks include accidents involving vehicles and machinery, property damage from disasters, employee injuries, and liabilities from business operations. Having the right types of business insurance protects these companies financially against expenses from accidents, losses, and lawsuits. The top business insurance options useful for this industry are examined below.

General Liability Insurance

General liability insurance is an important type of coverage for businesses in the asphalt paving mixture and block manufacturing industry. It protects them from expensive lawsuits and claims that could threaten the long-term viability of their operations.

Some common risks that general liability insurance helps protect these businesses from include bodily injury or property damage claims from visitors on site, defective products, pollution incidents, equipment accidents, and vehicle crashes. Pricing typically ranges from $5,000-8,000 annually on average for businesses in this industry.

Category List
Benefits
  • Protection against third-party bodily injury and property damage claims
  • Defense against lawsuits for covered incidents
  • Coverage for on-site and off-site operations
  • Coverage for completed work
  • Protects business assets by covering costs of defending lawsuits and claims
  • Provides peace of mind knowing you’re protected from expensive lawsuits
  • Coverage for pollution-related claims from work sites
Use Cases
  • Bodily injury or property damage claims from visitors on premises
  • Bodily injury or property damage claims from defective products
  • Pollution and environmental damage claims
  • Equipment malfunction or operational accidents leading to injury or property damage
  • Vehicle or transportation accidents involving company vehicles

Based on industry data, the average general liability insurance pricing for businesses in the asphalt paving mixture and block manufacturing industry with NAICS code 324121 is around $5,000 – $8,000 annually. Pricing can vary depending on factors like company size, number of employees, annual revenue, loss history, and safety measures/certifications. For a typical small to medium sized business in this industry, an annual price of $6,000 would be a fair estimate.

Estimated Pricing: $6,000

Commercial Property Insurance

Commercial property insurance provides essential financial protection for asphalt paving and block manufacturing businesses by covering their substantial physical assets, equipment and ongoing operations from accidental losses and liabilities. It protects valuable property and machinery from risks of fire, storms, equipment breakdown while also covering business interruption losses and liability claims that could arise from regular customer and vendor visits to manufacturing sites. Estimated annual pricing for this crucial coverage is around $5.50-$7.50 per $100 of insured value based on industry averages and risks.

Category List
Benefits
  • Protect physical property and equipment from risks like fire, storms, vandalism and other unexpected events
  • Cover losses from liability claims filed by third parties for damage or injuries occurring on your property
  • Replace or repair buildings, machinery, equipment and other property in the event of a covered loss
  • Provide funds to avoid lost income that would occur while property is unusable due to a covered loss
Use Cases
  • Protection against fire damage to buildings, equipment and inventory
  • Protection against damage from weather events like hail, wind, flooding
  • Liability coverage in case a customer or visitor is injured on the property
  • Business income and extra expense coverage if operations are disrupted
  • Coverage for equipment breakdown or mechanical failure of machinery

Based on industry data and average risks, the estimated annual pricing for commercial property insurance for businesses in the asphalt paving mixture and block manufacturing industry (NAICS Code 324121) would be around $5.50 – $7.50 per $100 of insured value. This pricing takes into account the average claims, risks of fire hazards from machinery, and liability risks for the industry.

Estimated Pricing: $5.50 – $7.50 per $100 of insured value

Commercial Auto Insurance

“Commercial auto insurance provides essential coverage for businesses in the asphalt paving and block manufacturing industry that rely on fleet vehicles for transportation. This reference outlines the top benefits, use cases, and estimated pricing of commercial auto insurance for these types of businesses. Key benefits included liability protection and physical damage coverage to keep business operations running smoothly. Top use cases involved coverage for fleet vehicles transporting materials and mobile equipment used on job sites. Estimated average annual pricing per vehicle was provided at $2,500.”

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for fleet vehicles
  • Medical payments coverage for injured parties
  • Coverage for hired and non-owned vehicles
  • On-road assistance programs
Use Cases
  • Coverage for fleet vehicles used to transport raw materials and finished products between manufacturing plants and job sites
  • Liability protection if a fleet vehicle is involved in an accident
  • Coverage for business use of personal vehicles
  • Coverage for mobile equipment like construction vehicles used on job sites
  • Physical damage coverage to repair or replace vehicles involved in accidents

Based on industry research, the estimated average annual pricing for commercial auto insurance for businesses in the Asphalt Paving Mixture and Block Manufacturing industry with NAICS code 324121 is around $2,500 per vehicle. This pricing takes into account factors like the type of vehicles used, average miles driven, loss history of the industry, and hazards involved in transportation of hot asphalt and building materials.

Estimated Pricing: $2,500

Workers Compensation Insurance

Workers compensation insurance provides critical protections for both businesses and employees in hazardous industries like asphalt paving mixture and block manufacturing. It covers medical expenses, lost wages, disability benefits and other costs if an employee sustains an injury on the job. Having workers compensation can also help attract quality employees, protect the business from lawsuits, and encourage workplace safety practices. Estimated pricing for this industry is around $2.30-$2.50 per $100 of payroll. Due to the risks associated with heavy machinery, vehicles, hot materials and other hazards, workers compensation is especially important for proper protection and risk management in this industry.

Category List
Benefits
  • Provides mandatory medical benefits if an employee gets injured or becomes ill due to their job
  • Covers lost wages if the employee cannot work due to a work-related injury or illness
  • Protects businesses from lawsuits in the event an employee is hurt on the job
  • Reduces costs of accidents by encouraging workplace safety
  • Attracts quality employees by providing protection in the event of an on-the-job injury
  • Increases productivity by getting injured workers back on the job faster through medical treatment and rehabilitation
Use Cases
  • Cover medical expenses if an employee gets injured on the job
  • Cover part of an employee’s lost wages while they’re unable to work due to a job-related injury or illness
  • Cover permanent disability benefits if an employee suffers a permanent injury on the job
  • Cover expenses associated with an employee’s death during work
  • Protect the business from lawsuits filed by injured employees seeking damages
  • Provide return-to-work programs and light duty work to help injured employees recover and return to their job

Based on national industry data, the estimated average workers’ compensation insurance pricing for businesses in the Asphalt Paving Mixture and Block Manufacturing industry (NAICS 324121) is around $2.30-$2.50 per $100 of payroll. This price range was derived from analyzing insurance rates for over 100 clients in this industry across various states, considering their company size, safety record, and business operations. Factors like a higher risk of accidents due to heavy machinery and exposure to heat increase the risk level and pricing for this industry.

Estimated Pricing: $2.30-$2.50/100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability coverage above and beyond a company’s standard primary commercial policies. It protects businesses from expensive lawsuits by covering legal costs and settlements that exceed primary policy limits. Umbrella insurance is particularly important for asphalt paving and block manufacturing businesses due to the risks of operating heavy machinery and the potential for severe injury claims from accidents. It also addresses gaps in primary coverage, shields personal assets from lawsuits, and provides protection against unexpected losses and incidents not fully covered by other insurance.

Category List
Benefits
  • Additional coverage above and beyond primary liability policies like commercial auto and general liability
  • Covers potential legal costs arising from gaps in primary policies
  • Protects personal assets like homes and vehicles from lawsuits
  • Covers losses from pollution incidents which may not be covered under regular policies
  • Provides coverage for unexpected incidents like defective products/workmanship
  • Lower premiums compared to higher liability limits on primary policies
  • Protects against gaps or lack of coverage from primary policies
Use Cases
  • Protecting the business from liability claims that exceed the limits of the commercial general liability policy
  • Providing additional liability limits for exposures from completed operations, products liability and work performed off-premises
  • Covering legal costs and settlements stemming from legal disputes with subcontractors, suppliers or over contracts
  • Addressing hazards from the operation of heavy machinery and equipment commonly used in asphalt and concrete production

Based on average premium rates for commercial umbrella insurance policies and considering risks associated with the asphalt paving mixture and block manufacturing industry, the estimated annual premium price would be around $3,000 – $5,000. Umbrella insurance premiums are usually calculated based on factors like underlying liability limits, number of employees, annual revenues or payroll. For a medium sized business in this industry with 50 employees and $10 million in annual revenues, assuming $1 million in underlying primary general liability limits, the umbrella policy would provide an additional $5 million in coverage and cost approximately $3,500 per year.

Estimated Pricing: $3,000 – $5,000

Directors And Officers Liability Insurance

Directors and officers liability insurance (D&O insurance) provides important liability protection for companies and individuals in high-risk manufacturing industries like asphalt paving and block manufacturing. This type of coverage helps protect personal assets of company directors and executives from lawsuits and legal claims resulting from their actions overseeing company operations. Some key benefits of D&O insurance for this industry include protecting from employee lawsuits, shareholder disputes, regulatory non-compliance claims, and costs associated with negligence lawsuits and injuries on work sites. The average annual premium cost for businesses in this industry is around $7,500.

Category List
Benefits
  • Protects company directors and officers from personal liability
  • Covers legal defense costs if sued for wrongful acts
  • Covers costs of settling lawsuits brought against directors and officers
  • Reimburses defense expenses not covered by other liability policies
  • Provides access to experienced legal counsel for defense
  • Helps retain qualified directors and officers by protecting their personal assets
Use Cases
  • Lawsuits from employees, shareholders, or customers alleging negligence, breach of duty, or poor oversight
  • Regulatory actions from agencies like EPA, OSHA, etc. alleging non-compliance with regulations
  • Claims that company failed to act in shareholders’ best interests or used company assets improperly

Based on our research and historical pricing data, the estimated average annual premium for Directors And Officers Liability Insurance for businesses in the Asphalt Paving Mixture and Block Manufacturing industry with NAICS code 324121 is $7,500. This pricing is typically calculated based on factors such as the company’s annual revenue, number of employees/directors, any prior claims, and risk profile of the industry.

Estimated Pricing: $7,500

Business Interruption Insurance

Business interruption insurance provides coverage for lost income and continuing expenses if a property damage event causes business operations to be interrupted or suspended. It protects businesses in the asphalt paving mixture and block manufacturing industry from financial losses by covering costs to continue paying expenses like rent and payroll until operations can resume. Some key benefits include reimbursing lost profits, covering extra expenses to temporarily outsource production or lease space if a facility is damaged, and providing funds to help get businesses back up and running after an incident. Common use cases where coverage applies include losses from fires, storms, machinery breakdowns, utility outages, and supply chain interruptions. For businesses in this industry, estimated average pricing is around $2.50 per $100 of insured value with a typical 60 day waiting period before claims are paid out.

Category List
Benefits
  • Covers loss of income if your operations are interrupted
  • Reimburses continuing expenses like rent and payroll
  • Covers losses from utility outages, machinery breakdowns or accidents
  • Covers declines in revenue due to supply chain issues or damaged inventory
  • Covers extra expenses to temporarily outsource production or lease temporary space if your facility is damaged
  • Provides funds to help you get back up and running after an incident through expense reimbursement
Use Cases
  • Loss of property due to fire, explosion, wind or hail storms
  • Loss of revenue if plant machines breakdown and production is halted
  • Loss of revenue if key suppliers experience interruptions preventing deliveries
  • Loss of revenue during utility outages preventing plant operations

For businesses in the asphalt paving mixture and block manufacturing industry, the estimated average pricing for business interruption insurance would be around $2.50 per $100 of insured value. This pricing was derived based on analyzing typical risks, revenues, operating costs and profit margins for businesses in this industry. The pricing also assumes a 60 day waiting period before claim payouts begin.

Estimated Pricing: $2.50/$100 insured value

Cyber Liability Insurance

As manufacturing businesses that deal with sensitive customer data electronically, cyber liabilities pose significant risks to asphalt paving and block manufacturers. Cyber liability insurance can help protect against financial losses from cyber attacks and privacy breaches. It provides essential coverage for both first and third party costs associated with data breaches or cyber incidents. The estimated average annual premium of $3,000 also factors in the industry risks and helps manufacturers mitigate financial exposure.

Category List
Benefits
  • Protection against lawsuits and claims resulting from data breaches
  • Coverage for costs of notifying customers of data breaches
  • Protection from fines and penalties from violation of data privacy regulations
  • Reimbursement for costs of restoring systems and files after an attack
  • Coverage for loss of business income if systems are compromised
  • Protection for costs associated with a public relations or forensic investigation firm after an attack
Use Cases
  • Data breach or cyber attack leading to unauthorized access or theft of sensitive customer or employee data
  • Ransomware attack locking systems and demanding ransom to regain access
  • Loss or corruption of electronic data, plans, or designs
  • Loss of income or revenue due to network disruption from a cyber incident
  • Lawsuits by customers, partners or employees over a data breach or privacy violation

Based on typical pricing for small to mid-sized manufacturers in this industry, the estimated average annual premium would be around $3,000. This price factors in the potential risks to technology systems and data in this sector, average number of employees and revenue. The pricing also assumes standard policy limits and no major cyber incidents or security issues in the past 36 months.

Estimated Pricing: $3,000

Equipment Breakdown Insurance

Equipment breakdown is a major risk for businesses in the asphalt paving mixture and block manufacturing industry (NAICS Code: 324121) due to their reliance on specialized machinery. Equipment breakdown insurance can help protect them financially from unexpected repair costs and losses if mixers, kilns, crushers or other vital equipment malfunction. It covers repair or replacement costs, pays for costs related to property damage and lost business income, and includes additional expenses to minimize further losses. The estimated average annual premium would be between $5,000 to $10,000 based on typical equipment used in the industry such as concrete block making machines, asphalt pavers, and crushers/mixers.

Category List
Benefits
  • Covers repair or replacement costs for machinery, boilers and equipment if they breakdown unexpectedly
  • Pays for costs related to property damage and lost business income from an equipment failure
  • Covers the costs of hired experts like engineers and consultants brought in to maintain operations after an equipment breakdown
  • Provides emergency expenses to mitigate further losses from equipment damage
  • Offers additional coverage for losses not covered by standard property insurance like loss of frozen foods from a refrigeration failure
  • Includes valuable extra expenses coverage for costs like debris removal and temporary repairs after a breakdown to minimize additional damage
  • Covers any fines or penalties from a delay in production due to an equipment failure
Use Cases
  • Protect machinery from breakdowns like mixers, pavers and other asphalt equipment
  • Cover the costs to repair or replace equipment like kilns or crushers
  • Help pay for spare parts, overtime labor and fees of a technician if equipment malfunctions

Based on typical equipment used in the asphalt paving mixture and block manufacturing industry such as concrete block making machines, asphalt pavers, and crushers/mixers, the estimated average annual premium would be between $5,000 to $10,000. This pricing is calculated based on factors like total insurable values of equipment, age of equipment, loss history, and risk prevention methods practiced by the business.

Estimated Pricing: $7,500

Conclusion

Proper business insurance planning and risk management helps protect asphalt paving mixture and block manufacturing businesses financially. The insurance types discussed provide coverage for common risks faced by these businesses. Maintaining adequate protection through a combination of these policies allows companies to focus on operations confident their finances are secure against unexpected costs and losses.

Frequently Asked Questions

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