Key Takeaways
- General liability insurance protects against lawsuits from injuries on premises or involving defective products
- Commercial property insurance covers costs of repairing or replacing damaged buildings, equipment and inventory
- Commercial auto insurance provides liability and physical damage coverage for vehicles used in operations
- Workers compensation insurance pays medical bills and lost wages for employees injured on the job
- Product liability insurance protects against costs of product defects causing harm
- Umbrella insurance provides additional liability coverage above primary policies
Introduction
As a boiler, tank, and shipping container manufacturer, various risks can threaten your business operations and finances. It is important to have the proper business insurance in place to protect your company from losses. This article examines the key types of business insurance boiler, tank, and shipping container manufacturers should consider.
General Liability Insurance
General liability insurance is an important policy for businesses in the boiler, tank, and shipping container manufacturing industry. It protects against lawsuits from injuries, property damage and other incidents that could occur on business premises or involving business operations.
This industry involves manufacturing heavy machinery and equipment which presents risks of property damage and bodily injury. General liability insurance helps cover the costs of liability claims and legal fees from incidents both during manufacturing operations and after products have been sold, such as defects that cause harm. It also insures activities like installation and technical support work done at customer sites.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on analyzing industry data and risk factors, the estimated average annual pricing for general liability insurance for businesses in the boiler, tank, and shipping container manufacturing industry (NAICS 3324) is $4,500. This industry involves manufacturing heavy machinery and equipment which presents risks of property damage and bodily injury. The pricing was derived from benchmarking other similar high-risk manufacturing industries and factoring in the industry’s average payroll, number of employees, claims history, and safety practices.
Estimated Pricing: $4,500
Commercial Property Insurance
Commercial property insurance provides vital coverage for manufacturing companies like those in the boiler, tank, and shipping container industry. It can help protect their significant physical assets and business operations from financial losses due to covered property damage or liability claims.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on the manufacturing processes and materials used for boilers, tanks and shipping containers, as well as historical claims data, the estimated average annual pricing for commercial property insurance is $5.50 per $100 of insured assets. This calculation considers the prevalence of forklifts, cranes and other heavy machinery commonly used on manufacturing sites, which present greater risks for on-site property damage and liability claims compared to other industries.
Estimated Pricing: $5.50 per $100 of insured assets
Commercial Auto Insurance
This reference provides an overview of the key benefits, use cases and estimated pricing of commercial auto insurance for businesses in the boiler, tank, and shipping container manufacturing industry. It covers the top benefits such as liability protection, vehicle coverage and more. It also outlines common use cases for commercial auto insurance in this industry like delivering materials, transporting products and employee commuting. Additionally, it estimates the average annual premium for this industry would be around $3,500.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry averages, the estimated average annual premium for commercial auto insurance for businesses in the boiler, tank, and shipping container manufacturing industry with NAICS code 3324 would be around $3,500. This pricing is derived from considering average fleet sizes, average claims costs and frequencies within the industry, and general risk profiles associated with the transportation of metal products and heavy machinery. The pricing also factors in additional coverages that are common needs for this type of industry such as non-owned auto liability and hired auto physical damage.
Estimated Pricing: $3,500
Workers Compensation Insurance
Workers compensation insurance is an important coverage for businesses in the high-risk boiler, tank, and shipping container manufacturing industry. It provides financial protection for employees if they are injured on the job through no fault of their own. Work injuries are common in this industry due to the hazardous nature of work involving heavy lifting, sharp tools, and dangerous materials. Ensuring employees receive timely medical care and wage replacement can help improve productivity and retention. The coverage also protects businesses from costly lawsuits if an injured employee decides to take legal action. It is estimated that the average cost of workers compensation insurance for this industry is $2.50 per $100 of payroll.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
After reviewing risk factors and average claims for this industry, the estimated average workers compensation insurance pricing is $2.50 per $100 of payroll. This rate takes into account factors like the hazardous nature of work involving large machinery, high temperatures, and materials handling. The industry has an average Total Recordable Case (TRC) rate of 4.5 per 100 full-time workers according to Bureau of Labor Statistics data.
Estimated Pricing: $2.50/$100 of payroll
Product Liability Insurance
This reference provides an overview of the top benefits, use cases and estimated pricing of product liability insurance for businesses in the boiler, tank, and shipping container manufacturing industry.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and risk analysis, the estimated average annual product liability insurance pricing for businesses in the Boiler, Tank, and Shipping Container Manufacturing industry with NAICS Code 3324 is around $7,000 – $9,000 per year. This pricing was derived from considering factors like the types of products manufactured, potential risks of defects or injuries, company size and annual revenue, claims history, and location. Larger companies with higher revenues and more complex product lines can expect pricing closer to the higher end of the range.
Estimated Pricing: $7,000 – $9,000
Umbrella Insurance
Umbrella insurance provides important liability protection for manufacturers like those in the boiler, tank, and shipping container industry. Due to the risks of accidents and injuries on production facilities, umbrella insurance can help protect a manufacturer’s business assets and finances from expensive liability claims that exceed standard insurance limits. Umbrella insurance also covers legal costs, provides additional liability coverage for accidents involving customers and employees, protects against pollution liability from accidental spills or leaks, covers liability if manufactured products fail and damage customer property, and is especially important for manufacturers due to the hazards involved in their operations.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical umbrella insurance pricing models and risk factors for businesses in the NAICS 3324 industry, the estimated average annual premium would be $3,500. Factors considered include the industry having risks from working with heavy machinery and transport of goods. The premium was estimated using 1 million in coverage on top of at least 1 million in underlying liability policies.
Estimated Pricing: $3,500
Conclusion
In summary, general liability, commercial property, commercial auto, workers compensation, product liability and umbrella insurance provide essential coverage layers to help manage risks for boiler, tank, and shipping container manufacturing businesses. Having the right mix of insurance tailored to your operations can give owners peace of mind and help the business withstand potential losses.