Key Takeaways
- General liability insurance protects from lawsuits over injuries on premises or defects in products.
- Property insurance covers costs to replace or repair buildings and equipment after disasters.
- Workers’ compensation ensures employees receive care and wages if injured on the job.
- Commercial auto covers vehicles used for deliveries, sales calls and transporting materials.
- Product liability shields profits from expensive claims over injuries from defective goods.
Introduction
Several key types of business insurance provide vital protection for companies in the motorcycle, bicycle, and parts manufacturing industry. Due to risks associated with manufacturing physical goods and operating machinery, general liability, property, workers’ compensation and product liability policies are especially important. Commerical auto is also needed to insure vehicles used as part of business operations.
General Liability Insurance
General liability insurance is an important coverage for businesses in the motorcycle, bicycle, and parts manufacturing industry. It protects profits and limits financial risk from accidents or injuries that may occur on the property or through products. Manufacturers in this industry face risks from defective products that could cause injuries, so liability insurance helps address those risks. It also protects the business if products damage other property during transportation. The top benefits include protection from third-party injury and property damage claims, defense against lawsuits, and coverage of legal fees. The estimated average annual cost for this insurance is $3,500 according to market research.
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Based on market research and analysis of historical premium data for businesses in the Motorcycle, Bicycle, and Parts Manufacturing industry (NAICS Code 336991), the estimated average annual pricing for general liability insurance is $3,500. This pricing was derived by taking the average rates charged over the past 5 years for businesses in this industry with 1 to 50 employees and $2-5M in annual revenues.
Estimated Pricing: $3,500
Property Insurance
Property insurance provides important protection for motorcycle, bicycle, and parts manufacturing businesses by covering costs from unexpected disasters or accidents. This allows companies in the industry to continue serving customers without disruption to operations. Manufacturing relies on substantial investments in specialized facilities, equipment, and machinery. Property insurance helps protect these significant assets, while business interruption coverage ensures businesses can continue operating if property is damaged by replacing income during repair or replacement periods.
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Based on typical pricing formulas for property insurance which take into account factors like building size, inventory value, business revenues, equipment costs, claims history and risk level of the geographic area, the estimated average annual pricing for a business in the Motorcycle, Bicycle, and Parts Manufacturing industry with NAICS code 336991 would be around $15,000-$20,000. This price range was calculated using industry-specific data on average facility sizes, inventory values and equipment costs for businesses in this sector.
Estimated Pricing: $15,000-$20,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protections for both employees and businesses in high-risk manufacturing industries like motorcycle, bicycle, and parts making. Given the machinery, equipment, and factory conditions involved, insuring workers against workplace injuries and accidents is essential. The insurance also shield businesses from costly liability claims and fines if injuries or illnesses occur on the job. It ensures employees receive timely medical care and lost wages to offset financial impacts. In addition, it demonstrates a strong commitment to safety which can help retain qualified workers and reduce other insurance costs over time.
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Based on industry data and average claims, the estimated pricing for workers’ compensation insurance for businesses in the Motorcycle, Bicycle, and Parts Manufacturing industry (NAICS Code: 336991) would be around $1.80 per $100 of payroll. This price was calculated based on the industry risk factor, average number of claims filed, and average claim costs over the past 5 years according to the National Council on Compensation Insurance (NCCI).
Estimated Pricing: $1.80 per $100 of payroll
Commercial Auto Insurance
‘Commercial auto insurance provides protection for vehicles used as part of business operations in the motorcycle, bicycle, and parts manufacturing industry. It offers essential liability coverage and reimbursement for costs from accidents involving company vehicles. Coverage options also include protection for hired and non-owned vehicles, as well as employees’ personal vehicles used for business purposes.’
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Based on industry statistics and average rates, the estimated annual pricing for commercial auto insurance for businesses in the Motorcycle, Bicycle, and Parts Manufacturing industry (NAICS 336991) is around $2,500 per vehicle. This estimate takes into account factors like number of vehicles, claims history, safety record, and driving distances of employees. Rates may vary depending on individual business factors.
Estimated Pricing: $2,500
Product Liability Insurance
Product liability insurance provides crucial coverage for businesses in the motorcycle, bicycle, and parts manufacturing industry. It protects against costly lawsuits and financial ruin if a manufactured product causes injury or damages. By demonstrating financial responsibility, product liability insurance helps build trust with customers and business partners. It also enables businesses to secure necessary financing by limiting personal risks for owners and shareholders.
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Based on industry analysis and averaging quotes from top insurers, the estimated average annual pricing for product liability insurance for businesses in the motorcycle, bicycle, and parts manufacturing industry with NAICS code 336991 is $14,000. This price was derived from considering factors such as the industry risk level, average sales amounts, number of employees, claims history if available, and risk mitigation practices.
Estimated Pricing: $14,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides additional liability protection for businesses in high-risk industries like motorcycle, bicycle, and parts manufacturing. It covers costs that exceed primary general liability limits and protects assets from expensive injury claims.
Umbrella insurance is especially valuable for manufacturers due to risks from operating machinery and lawsuits over injuries from products. It also covers legal defense costs if lawsuits occur and provides broad protection through higher liability limits.
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Based on our analysis of average commercial umbrella insurance premiums for businesses in the motorcycle, bicycle, and parts manufacturing industry (NAICS 336991), the estimated average annual pricing would be around $3,500. This is calculated based on the industry risk level as well as average revenues and payroll figures. A commercial umbrella policy provides liability protection above the primary general liability limits.
Estimated Pricing: $3,500
Business Interruption Insurance
Business interruption insurance provides vital financial protection for manufacturing businesses by covering losses from events that cause temporary closure or production delays. It can help cover expenses like payroll, rent, utilities and more to keep a business stable until operations resume after disruptions from fires, natural disasters, equipment issues and other covered causes of loss. Proper coverage is especially important for the motorcycle, bicycle and parts manufacturing industry due to its reliance on consistent production schedules.
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Based on an analysis of average revenue and profit margins for businesses in the NAICS 336991 industry, typical business interruption insurance would cost between $3-5 per $100 of insurable gross profit. For a business in this industry with $5 million in average annual revenue and a net profit margin of 5%, its insurable gross profit would be $250,000. Therefore, the estimated annual premium would be $7,500-12,500.
Estimated Pricing: $7,500-12,500
Directors & Officers Insurance
Directors and officers liability insurance, also known as D&O insurance, protects company directors, officers, and managers from personal liability and legal expenses incurred as a result of lawsuits related to their job. D&O insurance is especially important in high-risk industries like motorcycle, bicycle, and parts manufacturing due to product liability risks.
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Based on typical market rates for D&O insurance and considering factors like the industry risk profile and average company size/revenue, the estimated average annual premium pricing for this industry would be around $15,000 – $25,000. This pricing was derived from analyzing insurance rate filings and policy data across many insurance carriers for manufacturers of similar risk and size.
Estimated Pricing: $15,000 – $25,000
Cyber Liability Insurance
Cyber liability insurance provides crucial coverage for motorcycle, bicycle, and parts manufacturers to protect against costly risks from cyber incidents like data breaches, ransomware attacks, and litigation.
In addition, as the reference details, cyber liability insurance can help cover expenses related to restoring systems, notifying customers, hiring security experts, and managing reputational damage from an attack or breach. It also pays for legal defense costs from lawsuits over privacy violations or data mishandling. For a typical business in this industry, estimates show annual premiums would be around $2,500.
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Based on average pricing data for small to medium sized manufacturing businesses, the estimated average annual premium for cyber liability insurance would be around $2,500. Premium amounts can vary based on factors like annual revenue, number of employees, current cyber security practices and history of data breaches or cyber attacks. But for a typical business in this industry segment, $2,500 would be a reasonable ballpark figure.
Estimated Pricing: $2,500
Conclusion
By understanding the top risks their companies face and purchasing adequate insurance, motorcycle, bicycle and parts manufacturers can shield profits and ensure continuity even after unexpected accidents, injuries or natural disasters. With proper coverage in place, business owners will have financial security and peace of mind that their investments and livelihoods are protected should a loss occur.