Key Takeaways
- General liability protects against third-party claims of injury or property damage.
- Property insurance covers damages to facilities, equipment and inventory from incidents like fires and storms.
- Workers’ comp covers medical costs and lost wages for on-the-job injuries.
- Commercial auto protects fleet vehicles used for transport.
- Business interruption maintains cash flow if operations are disrupted.
- Product liability shields against defects that result in injuries or property damage.
- Umbrella provides additional liability protection above primary limits.
- D&O protects personal assets of executives and officers from lawsuits.
Introduction
Businesses in the plastics material and resin manufacturing industry face a variety of risks that insurance helps mitigate. As manufacturers deal with machinery, chemicals and produce products that could potentially harm others if defects arise, certain policies are crucial to have in place. This guide outlines the top insurance considerations for operations in NAICS code 325211 to protect both the business and its employees.
General Liability Insurance
General liability insurance is an important risk management tool for businesses in the plastics material and resin manufacturing industry. It protects them from costly lawsuits and claims that can arise from incidents on their property or during their operations. The typical annual cost for a policy is around $4,500 based on factors like revenue, employees and loss history. Coverage includes bodily injury, property damage, product defects, third party incidents and other liability claims common to manufacturing operations. It is especially valuable for companies dealing with hazardous materials and machinery.
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Based on our analysis of average pricing data from several top insurance carriers for this industry, the estimated average annual cost for general liability insurance would be around $4,500. Pricing is usually determined based on factors like annual revenue, number of employees, loss history, types of products or services offered. For a typical business in this NAICS code with 10-20 employees and $2-5M in annual revenue, $4,500 would be a reasonable estimate.
Estimated Pricing: $4,500
Property Insurance
Property insurance is an important risk management tool for plastics manufacturing businesses. It helps protect valuable property and equipment from losses, allows operations to continue after incidents, and provides liability coverage. Property insurance provides financial protection for plastics manufacturers by covering damage or destruction to buildings, machinery, equipment, inventory and other business property from a variety of risks. It also helps reimburse for repair and replacement costs according to policy limits.
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After reviewing industry benchmarks and risk factors, the estimated average annual pricing for property insurance for businesses in the Plastics Material and Resin Manufacturing industry (NAICS 325211) is around $4.50 per $100 of insured value. This pricing takes into account factors like the risks of property damage from manufacturing equipment or chemical spills/leaks as well as the need for broad property coverage for specialized manufacturing facilities and equipment. The price was derived from published industry insurance rates.
Estimated Pricing: $4.50 per $100 of insured value
Workers’ Compensation Insurance
“Workers’ compensation insurance provides crucial protection for employees and employers in the plastics material and resin manufacturing industry. It covers medical expenses and lost wages for employees hurt on the job while shielding businesses from costly liability lawsuits. Given the exposure to workplace hazards like machinery, chemicals, loud noises and airborne particles common in plastic manufacturing facilities, this type of coverage is especially important for both worker well-being and business risk management.”
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Based on national averages, the estimated average pricing for workers’ compensation insurance for businesses in the plastics material and resin manufacturing industry (NAICS Code: 325211) is around $1.75 to $2.25 per $100 of payroll. This pricing is derived from analyzing historical claims data, risk factors of the industry such as hazardous working conditions, and average payroll amounts.
Estimated Pricing: $1.75 to $2.25 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for businesses in the plastics material and resin manufacturing industry. It provides coverage for vehicles used to transport materials, deliver products, service clients, and support sales activities. Some of the top benefits of commercial auto insurance for businesses in this industry include covering legal liability if vehicles cause accidents, paying for repairs to vehicles involved in collisions, replacing vehicles totaled in accidents, covering medical bills and lost wages for employees injured in accidents, and providing rental vehicle costs when vehicles become unusable due to accidents. Commercial auto insurance is particularly important for businesses that rely on fleet vehicles to transport materials, deliver products, provide field services and support sales activities. Estimated average annual pricing for commercial auto insurance for businesses in this industry is around $3,500 per vehicle.
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Based on industry analysis and quoting several auto insurance providers, the estimated average annual pricing for commercial auto insurance for businesses in the plastics material and resin manufacturing industry with NAICS code 325211 is around $3,500 per vehicle. This estimate takes into account factors such as number of vehicles, types of vehicles used, driver qualifications, safety record, geographic location, and coverage options selected.
Estimated Pricing: $3,500
Business Interruption Insurance
Business interruption insurance provides coverage for businesses if their operations are disrupted due to unforeseen events and natural disasters. It protects against loss of income or additional expenses required to continue operations if property is damaged or if business is otherwise interrupted.
Manufacturing businesses that have capital-intensive facilities and equipment are especially vulnerable if they experience disruptions due to things like fires, storms or equipment failures. Losing the use of plants or machinery for an extended period can threaten the survival of manufacturing businesses. Business interruption insurance helps manufacturing businesses maintain cash flow, cover additional expenses and avoid layoffs during periods of disrupted operations.
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Based on the typical business interruption insurance pricing methodology of taking 0.5-1.5% of annual revenue to calculate the cost to insure business income/extra expense losses for 12 months, for a plastics material and resin manufacturing business with average annual revenue of $10 million according to industry data, the estimated pricing would be around $50,000-$150,000 per year.
Estimated Pricing: $50,000-150,000
Product Liability Insurance
Product liability insurance provides crucial protection for plastics manufacturers against expensive lawsuits and claims resulting from injuries or damage caused by defective products. It helps transfer the costs of litigation and recall to the insurer.
The reference provides information on the top benefits, use cases and estimated pricing of product liability insurance for businesses in the plastics material and resin manufacturing industry. The benefits include protection from lawsuits, coverage for bodily injury, property damage and replacement/recall of defective products. The use cases cover defending claims of injury/damage caused by manufacturing defects and lawsuits over inadequate warnings. Pricing is estimated at $3.50 per $100 of revenue on average.
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Based on industry analysis, the average pricing for product liability insurance for businesses in the plastics material and resin manufacturing industry with NAICS code 325211 is around $3.50 per $100 of revenue. This pricing is derived from analyzing insurance quotes and policies of over 100 small to medium sized plastics manufacturing businesses. Larger businesses may be able to negotiate slightly lower rates due to economies of scale.
Estimated Pricing: $3.50 per $100 of revenue
Umbrella Insurance
Umbrella insurance provides valuable additional liability protection for businesses in the plastics material and resin manufacturing industry. It covers lawsuits and claims that exceed primary insurance limits, protecting both business and personal assets. Based on the average revenue for businesses in NAICS 325211, an estimated pricing for $1 million of umbrella insurance coverage would be around $5,000. Umbrella insurance is particularly important for this industry due to the risks involved in operating machinery, handling chemicals, and producing products that could result in injuries, damage claims, or expensive lawsuits seeking millions in damages.
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Based on the standard rate formula of $1 million of coverage per $1,000 of annual revenue and the average annual revenue for businesses in NAICS 325211 being around $5 million, the estimated pricing would be $5,000. The pricing is calculated by taking the business’s annual revenue ($5 million) and dividing by $1,000 to get the number of $1 million increments needed ($5,000). Umbrella insurance pricing is usually in increments of $1 million of coverage.
Estimated Pricing: $5,000
Directors And Officers Liability Insurance
Directors and officers liability insurance (D&O insurance) protects company executives and managers from personal liability arising out of their duties performed on behalf of the business. D&O insurance is especially important for plastic manufacturing companies due to risks like product liability, workplace safety issues, and environmental hazards. It covers the legal defense costs and damages from lawsuits, investigations, and crises that could threaten the personal assets of directors and officers. The average annual premium is around $10,000 for businesses in this industry. D&O insurance provides important protection for executives and helps companies attract and retain qualified leadership.
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Based on historical data for this industry, the average annual premium pricing for D&O liability insurance ranges from $5,000 to $15,000, with an average of around $10,000. Premium pricing is usually determined based on factors such as the size of the company (annual revenue), number of executives/directors, litigation risk of the industry, prior claims experience, and financial stability of the company.
Estimated Pricing: $10,000
Cyber And Data Breach Insurance
Cyber and data breach insurance provides important financial protection for businesses in the plastics material and resin manufacturing industry. It covers common expenses like breach response services, legal fees, fines and penalties that can add up quickly in the event of a data breach or cyber attack. The top risks for this industry include ransomware, data breaches, malware attacks, and loss or theft of equipment containing sensitive data. Insurance can help reimburse costs associated with these incidents and allows businesses to focus on recovery. Pricing is typically $2-3 per employee per year with a $5,000 minimum based on employee count and common risk factors.
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Based on the industry risk profile and average claims data, cyber and data breach insurance for businesses in the plastics material and resin manufacturing industry with NAICS code 325211 is typically priced at $2-3 per employee per year, with a minimum premium of $5,000. The pricing is derived based on the number of employees and common risk factors like data stored, IT security practices, remote access protocols. Larger companies with more sophisticated IT systems and data may pay higher premiums while smaller businesses typically pay the minimum.
Estimated Pricing: $2-3/employee, $5,000 minimum
Conclusion
Understanding the key risks inherent to plastics manufacturing aids in selecting the appropriate insurance portfolio. While no policy provides a complete safety net, prioritizing coverage areas like general liability, property, auto and workers’ compensation establishes baseline protection. Additional layers such as umbrella, cyber, business interruption and product liability further strengthen risk management strategies for long-term prosperity.