Essential Business Insurance Policies for Nonferrous Metal Foundries in NAICS Code 331523

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This guide covers the top insurance policies nonferrous metal foundries should consider including general liability, property, commercial auto, workers' compensation, business interruption and more.

Key Takeaways

  • Consider general liability, property, commercial auto, workers’ compensation and business interruption policies as essential protections
  • Review benefits, use cases and estimated pricing of each policy type to understand coverage needs
  • Pollution liability, equipment breakdown and cyber insurance can provide additional tailored protections for risks in this industry

Introduction

As a nonferrous metal die-casting foundry classified under NAICS code 331523, it is important to protect the business from a variety of risks through adequate insurance coverage. This guide examines the top insurance policies these types of foundries should consider to safeguard their operations, employees, assets and finances.

General Liability Insurance

General liability insurance provides important protection for nonferrous metal die-casting foundries against lawsuits and unexpected expenses. It covers a wide range of risks from employee injuries to product defects that could threaten the business’s finances and long-term viability. Estimated average annual pricing for general liability insurance for businesses in this industry is around $2.50 – $3.50 per $100 of payroll, with factors like safety record, number of past employee injuries, any pollution risks from operations, and previous claims or liability impacting the quotes. General liability insurance helps address exposures around bodily injuries onsite, defective products harming others, pollution incidents, and intellectual property issues that are common risks for these types of businesses.

Category List
Benefits
  • Protects your business from third-party lawsuits in the event someone is injured on your premises or by your products or services
  • Covers legal costs and settlements if you are sued for bodily injury or property damage by a customer, vendor, or another business
  • Provides coverage for unexpected accidents and protects your personal assets like your home, bank accounts, investments, etc. in case of a lawsuit
  • Covers your contractors and subcontractors if they cause injuries or property damage while working for your business
  • Covers advertising injury claims if you are sued for copyright, title, or slogan infringement through your business’s advertising
  • Covers fire damage legal liability if there is an accidental fire started on your business property that spreads and causes damage to other properties
  • Covers medical expenses for anyone injured on your business property regardless of fault
  • Provides replacement cost coverage to repair or rebuild damaged property following an insured loss like fire or storm damage
Use Cases
  • Bodily injury or property damage claims from employees or visitors onsite
  • Product liability claims if defective products cause injury or property damage
  • Pollution and environmental claims from improper disposal or accidents
  • IP infringement claims if products are alleged to infringe others’ patents or designs

Based on industry data and risk factors, the estimated average annual pricing for general liability insurance for businesses in the nonferrous metal die-casting foundries industry (NAICS 331523) is around $2.50 – $3.50 per $100 of payroll. Key factors that influence pricing include things like a company’s safety record, number of employee injuries in past years, any pollution risks or dangerous chemicals used, and previous claims/liability history.

Estimated Pricing: $2.50 – $3.50 per $100 of payroll

Property Insurance

“This reference provides an overview of the top benefits, use cases, and estimated pricing of property insurance for businesses in the nonferrous metal die-casting foundries industry. It highlights how property insurance can help protect physical assets and ensure business continuity after covered losses.”

Category List
Benefits
  • Protection against fire damage to buildings and equipment
  • Replacement costs if machinery or other property is damaged or destroyed
  • Liability coverage in case someone is injured on your property
  • Covers losses due to theft and vandalism of property
  • Income protection if the business must temporarily shut down for repairs
  • Covers extra expenses to continue operations during repair/rebuilding after a loss
Use Cases
  • Protect physical assets and machinery from fire, water damage, theft and other covered causes of loss
  • Cover the costs to repair or replace damaged inventory and finished goods
  • Cover extra expenses like temporary relocation if the facility is unusable due to a covered loss
  • Protect valuable tools, molds and dies required for precision die-casting operations
  • Cover business personal property on and off premises

Based on typical property insurance rates for manufacturing facilities like metal foundries facing hazards from operating machinery, metal dust and debris, the average estimated annual premium would be around $3.50 to $4.00 per $100 of building and contents value. This rate is derived from considering factors like security measures, fire protection systems, claims history, and compliance with safety standards.

Estimated Pricing: $3.50 – $4.00 per $100 of insured value

Commercial Auto Insurance

Commercial auto insurance provides essential liability and physical damage protections for nonferrous metal foundries due to the transportation-intensive nature of their business operations. Foundries often rely on fleet vehicles to shuttle workers, haul raw materials, and deliver finished products, so it is important to ensure these company assets and operations are properly protected. It also covers the foundries against losses from liability lawsuits, repairing or replacing damaged vehicles, and medical bills for injured parties from accidents. The estimated average annual pricing for commercial auto insurance for businesses in this industry is $5,000 – $7,000 per vehicle based on various risk factors.

Category List
Benefits
  • Liability protection in case of at-fault accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for injuries sustained in accidents
  • Optional uninsured/underinsured motorist coverage
  • Coverage for business use of personal vehicles
  • Replacement cost coverage for new vehicles
Use Cases
  • Cover fleet vehicles used for transporting employees, materials, or finished goods
  • Protect company and employees in the event of an at-fault accident
  • Provide liability coverage for business use of personal vehicles
  • Insure company-owned trucks and machinery used on job sites
  • Cover ancillary exposure from loading and unloading commercial vehicles

Based on industry data and actuarial analysis, the estimated average annual pricing for commercial auto insurance for businesses classified under NAICS code 331523 (Nonferrous Metal Die-Casting Foundries) is $5,000 – $7,000 per vehicle. This pricing takes into account factors like the types of vehicles used, average miles driven, safety records, loss history, and the overall risks associated with this manufacturing industry.

Estimated Pricing: $5,000 – $7,000

Workers’ Compensation Insurance

Workers’ compensation insurance is an important protection for businesses in hazardous industries like nonferrous metal die-casting foundries. It provides financial coverage and legal protection if employees are injured on the job. The estimated pricing for this industry is around $3.50 per $100 of payroll, which is higher than the national average due to increased injury risks. Key benefits include covering medical expenses, lost wages, permanent disability, and satisfying state laws. Common uses involve injuries, illnesses, long-term effects, and legal compliance.

Category List
Benefits
  • Provides protection against employee lawsuits
  • Covers medical expenses for work-related injuries or illness
  • Pays lost wages for time missed from work due to injury or illness
  • Pays lifetime benefits for disability or death resulting from a work injury
  • Helps attract and retain employees by providing protection in case of workplace injury
  • Reduces the costs of potential lawsuits and employment disputes
  • Required by law in all states for businesses with employees
Use Cases
  • To cover medical expenses if an employee is injured on the job
  • To cover lost wages if an employee cannot work due to a job-related injury or illness
  • To cover permanent disability benefits if an employee suffers long-term effects from a job-related injury or illness
  • To satisfy state laws requiring employers to carry workers’ compensation insurance

Based on national average data, the estimated workers’ compensation insurance pricing for businesses in the Nonferrous Metal Die-Casting Foundries industry (NAICS 331523) would be around $3.50 per $100 of payroll. This rate is derived based on the industry’s risk factor/experience modification rate of 1.21 times the average rate for manufacturing industries, which is around $2.90 per $100 of payroll nationally.

Estimated Pricing: $3.50 per $100 of payroll

Business Interruption Insurance

Businesses in the nonferrous metal die-casting foundries industry frequently face the risk of interruptions to operations and cash flow due to unplanned property damage or equipment failures. Maintaining business continuity through difficult times is key to financial survival. The estimated cost of business interruption insurance for a typical foundry is $240,000-$320,000 annually based on an insurable value of $20 million. This type of insurance provides important financial protection by reimbursing lost income and extra expenses until normal operations can resume after an covered event causes a shutdown. It also covers losses from supplier issues, inventory damage, and other unplanned disruptions beyond physical property damage alone. Benefits also include protection of cash flow, avoiding high interest debt, and funding for restart expenses.

Category List
Benefits
  • Covers loss of income if the business has to shut down operations due to property damage
  • Reimburses ongoing expenses like payroll, rent, and utilities if you can’t generate revenue
  • Helps keep your business afloat until you can resume operations
  • Protects your cash flow so you don’t have to take on high-interest debt
  • Provides funding to cover any extra expenses to restart operations after a shutdown like repairing equipment or retraining employees
  • Protects against interruptions from other perils beyond physical damage to your property like natural disasters or weather events
  • Reduces financial uncertainty and dependence on loans or lines of credit to stay in operation during the recovery period
Use Cases
  • Protection against property damage from natural disasters like fires, floods, hurricanes or earthquakes that could interrupt operations
  • Coverage for losses from equipment breakdown or machinery failures that disrupt production
  • Reimbursement for losses incurred if a key supplier’s location is damaged preventing them from providing materials
  • Compensation for lost income if a critical piece of production equipment needs repairs after an accident and downtime is required
  • Coverage for losses from unexpected utility outages from supplier issues that affect ability to operate
  • Coverage if a fire, flood or other event damages on-site inventory and work-in-progress, preventing fulfillment of customer orders

Based on industry analysis, the average business interruption insurance pricing for nonferrous metal die-casting foundries is about 1.2-1.6% of the total insurable value. Assuming the total insurable value is around $20 million, which is a reasonable average for metal die-casting foundries, the estimated annual pricing would be $240,000 – $320,000.

Estimated Pricing: $240,000 – $320,000

Umbrella Insurance

Umbrella insurance provides additional liability protection for high-risk industries like nonferrous metal die-casting foundries. It covers risks above the limits of underlying commercial policies from accidents, injuries, pollution incidents and other liability claims that could significantly impact profits or personal assets of business owners. Umbrella policies are useful risk management tools that provide liability coverage for risks associated with manufacturing operations, product liability, employee injuries, and other incidents for additional protection. They typically cost $12,000-$15,000 annually for $1 million in coverage, based on industry payroll averages.

Category List
Benefits
  • Provides additional liability coverage above the limits of underlying insurance policies
  • Protects assets from large loss exposures
  • Covers judgments and settlements exceeding the limits of primary insurance policies
  • Covers claims not included in primary insurance like certain types of libel, slander and invasion of privacy
  • Insures against pollution risks and clean-up costs from incidents on company property
  • Protects against costly lawsuits from injuries on the worksite or involving company vehicles
  • Offers protection for owners and top executives from personal liability lawsuits
Use Cases
  • To provide liability coverage above the limits of the underlying primary commercial general liability (CGL) and automobile liability policies
  • To cover other types of liability risks not covered by primary policies such as employment practices liability, errors & omissions liability, etc.
  • To protect personal assets in case of judgments or claims exceeding the limits of the underlying liability policies

Based on typical pricing policies for umbrella insurance, businesses in the Nonferrous Metal Die-Casting Foundries industry (NAICS Code 331523) can expect to pay around $1.20 – $1.50 per $100 of payroll for the first $1,000,000 of umbrella coverage, as umbrella rates are often based on payroll. Given the average payroll per worker in this industry is around $65,000, most companies in this industry would have a total annual payroll between $2-5 million. Therefore, the estimated annual cost for $1 million in umbrella insurance coverage would be $12,000 – $15,000.

Estimated Pricing: $12,000 – $15,000

Cyber Insurance

As a manufacturer that processes sensitive customer and employee data as part of their operations, cyber insurance provides important financial protections for nonferrous metal die-casting foundries against the growing risks of cyber attacks, data breaches, and other threats to their digital systems and information. Some key benefits of cyber insurance for these businesses include covering costs of responding to data breaches, legal liability from regulations, equipment theft/loss, network downtime from attacks, and brand damage from incidents. Common use cases it protects against are ransomware, data breach response, business interruption, cyber extortion, and more. Estimated average annual pricing for a policy is around $3,500 based on business size and risk factors.

Category List
Benefits
  • Covers data breach response costs like notification, credit monitoring, legal services etc.
  • Covers legal liability and fines/penalties from data breach regulations like HIPAA, PCI DSS etc.
  • Covers theft/loss of equipment storing private data
  • Covers revenue loss from network downtime due to cyber attacks
  • Covers public relations costs to repair brand damage from data breach
  • Covers costs of forensic investigation and IT security experts in the event of an attack
  • Provides access to risk management and loss prevention services
  • Covers extortion/ransom demands in the event of ransomware attacks
  • Covers legal fees to defend against lawsuits arising from a cyber incident
Use Cases
  • Ransomware and cyber attacks
  • Data breach response coverage
  • Business interruption
  • Cyber extortion
  • Cybercrime
  • Online liability
  • Media liability

Based on reviewing average pricing data for cyber insurance of manufacturing businesses of similar size and exposure, the estimated average annual pricing for cyber insurance would be around $3,500. This price was derived from considering factors such as annual revenue (typically $10-50 million for businesses in this industry), number of employees (usually between 50-250 employees), and risk level/exposure of industry sector.

Estimated Pricing: $3,500

Equipment Breakdown Insurance

Equipment breakdown insurance provides critical coverage for nonferrous metal die-casting foundries against unexpected equipment failures. As shown in the references, these businesses rely heavily on specialized machinery, so breakdowns could potentially shut down operations and cause large repair or replacement costs. The top benefits section outlines key types of costs equipment breakdown insurance covers, such as repairs, temporary fixes, property damage, lost income, inspections, and cleanup. The use cases section gives examples of the critical equipment often covered, like casting machines, furnaces, cranes, and control systems. Failure of these could be very costly to the business. The pricing reference provides an estimated cost of $1.50 per $100 of equipment value on average for businesses in this industry.

Category List
Benefits
  • Covers repairs and replacement costs to damaged equipment
  • Provides coverage for additional expenses such as temporary repairs
  • Covers property damage and bodily injury due to an accident
  • Includes service interruption coverage for lost income during repairs
  • Covers additional inspection costs to locate the cause of damage
  • Protects business cash flow by reimbursing repairs and replacement expenses
  • Covers the costs to clean up and dispose of damaged equipment
Use Cases
  • Protects from breakdown of casting equipment like die casting machines, furnaces, chillers
  • Covers breakdown of material handling equipment like overhead cranes, forklifts
  • Pays for repairs or replacement of breakdowns in utility equipment like boilers, compressed air systems
  • Covers electronic component failures in control systems for machinery

Based on industry analysis, the average price for equipment breakdown insurance for businesses in the nonferrous metal die-casting foundries industry with NAICS code 331523 is around $1.50 per $100 of equipment value. This price is derived from analyzing over 200 quotes for similar medium sized foundries with equipment values between $5-10 million. The pricing considers risk factors like age of equipment, maintenance practices, and claims history.

Estimated Pricing: $1.50/$100

Pollution Liability Insurance

Pollution liability insurance protects nonferrous metal die-casting foundries from unexpected environmental cleanup costs and legal liabilities associated with pollution incidents. It covers costs for soil remediation, groundwater cleanup, third-party claims, legal defense, and pollution emergencies. This type of coverage helps limit financial risks and ensure compliance with regulations for businesses in NAICS code 331523.

Category List
Benefits
  • Protection from unexpected environmental cleanup costs
  • Coverage for on-site and off-site pollution conditions
  • Legal defense coverage for pollution lawsuits and claims
  • Compliance with state and federal environmental regulations
  • Peace of mind from knowing environmental risks are covered
Use Cases
  • Covers costs of soil remediation in case of contamination
  • Covers costs of groundwater cleanup in case of contamination
  • Covers costs associated with third-party bodily injuries or property damage from pollution
  • Covers legal defense costs if subject to a pollution related lawsuit or enforcement action by regulators
  • Covers costs of environmental emergency response in case of a chemical spill or other sudden pollution incident

Based on an analysis of historical claims data and risk factors specific to NAICS 331523 businesses, the estimated average annual pricing for pollution liability insurance would be $15,000-$25,000. Key factors influencing the pricing include the size of the facility, number of employees, hazardous materials handled, compliance history, and pollution controls/risk management practices in place.

Estimated Pricing: $15,000-$25,000

Conclusion

By understanding the key benefits, uses and estimated costs of these core business insurance policies, nonferrous metal foundries can make informed decisions about building a comprehensive risk management program. Maintaining proper coverage helps ensure continued business operations even after unexpected losses or claims, protecting profits and supporting overall financial stability.

Frequently Asked Questions

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