Key Takeaways
- Consider general liability insurance to protect against third-party claims from injuries on your premises or from defective products
- Get property insurance to cover damage or theft of equipment, inventory, vehicles and other business property
- Carry workers’ compensation insurance as required by law to cover medical costs and lost wages for injured employees
- Purchase commercial auto insurance if you use vehicles for business to insure liability and physical damage risks
- Look into business interruption insurance to cover operating expenses if disasters force a temporary shutdown
Introduction
As a business in the millwork and flooring industry, there are several essential business insurance policies you should carry to protect your assets and limit financial risks. This article outlines the top insurance options businesses in NAICS 321918 should consider along with key benefits, use cases and estimated pricing.
General Liability Insurance
“General liability insurance provides protection for businesses in the other millwork and flooring industry against expenses from third-party claims of bodily injury, property damage and other liabilities that may occur on their premises or arise out of their operations. As businesses in the other millwork and flooring industry often have customers visiting sites and receive deliveries/installations, there are risks of accidental injuries, property damage, or defects that could lead to expensive lawsuits without adequate general liability coverage. General liability insurance is an important risk management tool for companies in the other millwork and flooring NAICS code of 321918, as it protects them from a variety of liability claims and lawsuits that could threaten the financial viability of their operations.”
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Based on research, the average general liability insurance pricing for businesses in the 321918 Other Millwork (including Flooring) industry is around $1,500 – $2,500 per year. Premiums are typically calculated based on factors such as annual revenue, number of employees, loss history, and risk level of the operations. For a typical business in this category with $1 million in annual revenue and 10 employees, an estimated annual premium would be around $1,800.
Estimated Pricing: $1,800
Property Insurance
Property insurance is an important coverage for millwork and flooring businesses to protect their investments. It provides financial protection against losses from damage to property like equipment, inventory, buildings and more. In addition, it offers business income protection if the business has to temporarily shut down due to a covered loss. It also covers equipment, inventory and vehicles while in transit or at other locations besides the primary premises.
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Based on industry data and typical property insurance pricing models, the estimated average annual property insurance pricing for businesses in the NAICS 321918 (Other Millwork including Flooring) industry would be around $3.50 per $100 of insured property value. This pricing takes into account factors like the risks associated with woodworking equipment and facilities, inventory of finished and unfinished goods that could be damaged, as well as claims history for similar businesses. It was calculated by taking the typical industry base rates and adjusting them based on the property values and business operations for an average business in this NAICS code industry.
Estimated Pricing: $3.50 per $100 of insured property value
Workers’ Compensation Insurance
“Workers’ compensation insurance provides important benefits and protections for businesses in industries like millwork and flooring. It ensures injured employees are cared for while also shielding employers from costly lawsuits. Common features, use cases, and estimated pricing for this industry are described below.”
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Based on data from the National Council on Compensation Insurance (NCCI), the estimated average workers’ compensation insurance pricing for businesses in the Other Millwork (including Flooring) industry with NAICS Code 321918 is around $2.50 per $100 of payroll. This pricing is derived from analyzing historical workers’ compensation loss data and risk factors specific to this industry such as potential hazards from woodworking machinery and materials. Generally, pricing may fluctuate slightly based on individual company’s risk profile, payroll amount, safety practices, and claims experience.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance provides important liability and physical damage protection for businesses in the other millwork and flooring industry that rely on company vehicles to transport materials, tools, crews and products. It helps protect against financial losses from accidents and claims. The estimated annual pricing for a business in this industry with an average fleet size of 5 vehicles would be around $1,500, though the actual price can vary depending on individual business factors. Common benefits of commercial auto insurance for these types of businesses include liability protection, physical damage coverage, medical payments coverage, and coverage for additional business property and equipment being transported. Top use cases where this insurance applies include covering damage to company vehicles, providing liability protection in accidents, covering medical bills if employees are injured while using a vehicle for work, and insuring equipment or tools hauled in vehicles.
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Based on industry data and average risks, the estimated annual pricing for commercial auto insurance for businesses in the Other Millwork (including Flooring) industry with NAICS code 321918 would be around $1,500. This price is derived from considering average fleet sizes of around 5 vehicles on average for these businesses, primarily made up of trucks, vans and work vehicles. Risk factors like cargo, mileage, driver history are averaged in. The price can vary based on individual business specifics.
Estimated Pricing: $1,500
Business Interruption Insurance
Business interruption insurance protects the income and finances of businesses in the millwork and flooring industry if disasters or interruptions force temporary closures. It covers ongoing expenses, lost profits, and helps avoid layoffs or permanent closure during repairs or disruptions. Some key benefits and uses cases include protecting cash flow from fire damage, equipment breakdowns, supply issues, natural disasters, power outages, and labor disputes. Premiums average around $2,500 annually for businesses in this industry.
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Based on factors like revenue, payroll, and other assets, the estimated average pricing for business interruption insurance for businesses in the Other Millwork (including Flooring) industry with NAICS Code 321918 would be around $2,500 per year. This price was calculated based on industry benchmarks where typical premium rates are around 0.75-1.5% of covered revenues or payroll.
Estimated Pricing: $2,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides additional protection for businesses in industries like millwork and flooring by covering liability claims above the standard primary policy limits.
Umbrella insurance augments underlying commercial general liability and auto policies to help protect against costly lawsuits from injuries occurring on premises or during product delivery and installation. It also provides liability coverage for claims related to use of subcontractors and temporary/leased employees. Umbrella policies help ensure business assets remain protected if a major lawsuit arises and exceeds normal liability coverage amounts.
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Based on typical commercial insurance pricing models, businesses in the Other Millwork (including Flooring) NAICS 321918 industry would on average pay between $1.50 – $2.50 per $1,000 of coverage for commercial umbrella insurance. This pricing is derived considering the industry risk level is medium, average revenue and payroll. It provides additional liability protection above the primary general liability limits.
Estimated Pricing: $1.50 – $2.50 per $1,000 of coverage
Product Liability Insurance
Product liability insurance provides essential financial protection and peace of mind for businesses in the millwork and flooring industry. It covers any liability claims, legal costs and damages if customers are injured by defective products. It also builds trust with customers and opens doors to larger business opportunities. Having product liability insurance is especially important as flooring and millwork products go into homes and buildings, so any defects or injuries from installation or long-term use could result in costly legal claims. Product liability insurance helps protect against lawsuits related to issues like mold growth, slip and fall accidents, or injuries caused by defects in raw materials – all of which are risks for this type of industry.
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Based on industry analysis and average pricing data, product liability insurance for businesses in the Other Millwork (including Flooring) industry (NAICS 321918) typically costs between $1.50 to $2.50 per $100 of receipts. For a business with $5 million in annual receipts, its estimated annual product liability insurance premium would be $7,500 to $12,500.
Estimated Pricing: $7,500 to $12,500
Professional Liability Insurance
“Professional liability insurance, also known as errors and omissions insurance, protects businesses in the millwork and flooring industry from costly lawsuits and claims related to negligent acts, errors, or omissions. It is an important coverage for companies in this industry to have in place. According to the reference, it covers legal costs, protects from third party claims, averages $2,500 annually for businesses in this industry, and is crucial to remain profitable and protect one’s livelihood in this field.”
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Based on industry research, the estimated average annual pricing for professional liability insurance for businesses in the Other Millwork (including Flooring) industry with NAICS code 321918 is $2,500. This price was derived by taking the average premium rates for millwork contractors and flooring installers/finishers and factoring in the typical revenue size of companies in this industry. The final price also includes various risks and loss experience data specific to this industry.
Estimated Pricing: $2,500
Conclusion
In summary, protecting your business with the right insurance coverage is vital for any company in the millwork and flooring industry. General liability, property, workers’ compensation, commercial auto and business interruption policies are critical to maintain. Carefully choosing coverage amounts and consulting with an agent can help ensure your business is financially protected from unforeseen losses.