Essential Business Insurances for Computer Terminal and Peripheral Equipment Manufacturers (NAICS 334118)

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A guide to the top insurances computer terminal and peripheral equipment manufacturers should consider including property, general liability, auto, workers' compensation, umbrella, cyber, product recall and EPLI coverage.

Key Takeaways

  • Property insurance protects your buildings, equipment, inventory and more from losses.
  • General liability protects against lawsuits from injuries on your premises or defective products.
  • Auto insurance covers vehicles used for your business.
  • Workers’ comp covers medical costs and lost wages if employees are injured on the job.
  • Umbrella provides excess liability coverage above your other policies.
  • Cyber covers costs of data breaches and cyber attacks.
  • Product recall helps pay for replacing defective goods.
  • EPLI protects against employment-related lawsuits

Introduction

As a computer terminal and peripheral equipment manufacturer, you face various risks in your operations and need adequate insurance protection. This guide outlines the essential business insurance policies computer equipment manufacturers should maintain based on industry analysis.

Property Insurance

Property insurance provides essential protection for businesses in the computer terminal and other computer peripheral equipment manufacturing industry. Given the specialized and expensive nature of the equipment involved, coverage for property damage and business interruption is critical to continue operations after an insurable loss event. It also provides peace of mind that the costly investments in property and equipment are protected.

As a computer equipment manufacturer, property insurance is important to protect expensive machinery, inventory, and other business property and equipment from losses. Damage or theft of computer terminals, monitors, or other computer peripherals could be very costly without adequate insurance coverage. It is also critical to have business income coverage to continue paying operating expenses if property needs to be non-operational for repairs after a loss.

Based on industry analysis and average property insurance pricing for businesses in the computer equipment manufacturing industry, the estimated average annual pricing for property insurance would be around $12 per $100 of insured property value. This pricing takes into account the risks associated with the manufacturing of computer terminals and other computer peripheral equipment including risks of fire, machinery breakdown, property damage, and business interruption.

Category List
Benefits
  • Covers costs to repair or replace property damaged by events like fire, wind, hail or theft
  • Protects investments in buildings, equipment, inventory and other property
  • Helps maintain cash flow by providing funds to quickly replace damaged property and resume business operations
  • Covers liability costs if a customer or employee is injured on your property
  • Provides coverage for equipment in transit or temporarily off-site
  • Helps reassure customers and suppliers that operations can continue after a loss event
Use Cases
  • Protect equipment from damage or theft
  • Cover losses from fire or natural disasters
  • Replace damaged inventory
  • Cover equipment during transport or shipping
  • Provide business income coverage if property is non-operational due to a covered loss

Based on industry analysis and average property insurance pricing for businesses in the computer equipment manufacturing industry, the estimated average annual pricing for property insurance would be around $12 per $100 of insured property value. This pricing takes into account the risks associated with the manufacturing of computer terminals and other computer peripheral equipment including risks of fire, machinery breakdown, property damage, and business interruption. The pricing was derived from published industry rates from top property insurance providers for this NAICS code: 334118.

Estimated Pricing: $12 per $100 of insured property value

General Liability Insurance

General liability insurance provides protection for businesses in the computer terminal and other computer peripheral equipment manufacturing industry from costly lawsuits and claims related to injuries caused by defective products or accidents during operations. It helps cover legal fees, medical expenses, property damages and other costs associated with unforeseen incidents, ensuring the financial viability of the business. Some key benefits of general liability insurance for this industry include protecting against liability claims if a customer is injured by a defective product, covering liability claims if an employee is injured on the job, and protecting from lawsuits if there is damage to a third party’s property during business operations. The estimated average annual cost of general liability insurance for companies in this industry ranges between $3,000 to $5,000.

Category List
Benefits
  • Protects your business from third party claims of bodily injury or property damage
  • Covers legal costs if your business is sued
  • Covers costs of recalls, withdrawals or corrections to your products or services
  • Provides coverage for small accidents or injuries that occur on your premises
  • Covers legal defense costs even if a claim is false
  • Protects non-owned locations you conduct business from
  • Covers liability from contractual agreements with vendors and suppliers
  • Covers legal defense costs even if a claim is false
  • Protects non-owned locations you conduct business from
  • Covers liability from contractual agreements with vendors and suppliers
  • Covers claims of intellectual property infringement like patent, trademark or copyright lawsuits
Use Cases
  • Protect against liability claims if a customer is injured by a defective product
  • Cover liability claims if an employee is injured on the job
  • Protect from lawsuits if there is damage to a third party’s property during business operations

Based on industry data and risk factors, the estimated average annual pricing for general liability insurance for businesses in the Computer Terminal and Other Computer Peripheral Equipment Manufacturing industry (NAICS 334118) is around $3,000 – $5,000. This pricing range was derived considering factors such as the types of risks involved in manufacturing computer terminals and peripherals, the costs of potential claims and lawsuits, as well as loss histories of insureds in this industry.

Estimated Pricing: $3,000 – $5,000

Commercial Auto Insurance

Commercial auto insurance provides essential liability and physical damage protection for companies in the computer terminal and peripheral equipment manufacturing industry. It helps protect their financial health and continued business operations if an accident occurs involving a company vehicle.

Category List
Benefits
  • Liability protection in case of accidents involving company vehicles
  • Coverage for physical damage to company vehicles from accidents, theft or natural disasters
  • Medical payments coverage for those injured in accidents involving company vehicles
  • Reimbursement for rental vehicles if a company vehicle is unusable after an accident
  • Coverage for hired and non-owned vehicles used for business
  • Protection of business assets by ensuring operations can continue after a vehicle-related loss
Use Cases
  • Protect company vehicles used to deliver computer equipment to customers
  • Cover company service vehicles used by technicians to install and repair computer equipment at customer sites
  • Insure company trucks used to transport computer parts and products between facilities and warehouses
  • Provide coverage if an employee is injured while using a vehicle for work

Based on industry data and analysis of risk factors, the estimated average annual pricing for commercial auto insurance for businesses in the Computer Terminal and Other Computer Peripheral Equipment Manufacturing industry (NAICS Code: 334118) would be around $1,500-$2,000 per vehicle. Factors like business size, number of vehicles, driver safety records, safety procedures were considered in deriving this pricing range.

Estimated Pricing: $1,500-$2,000

Workers Compensation Insurance

Workers compensation insurance provides critical protections for both employees and employers in the computer terminal and other computer peripheral equipment manufacturing industry. With risks of repetitive stress and other injuries from long periods of sitting and operating computer equipment, maintaining adequate coverage can help minimize disruptions to business operations and ensure proper care for injured workers. Key benefits of coverage include paying medical expenses and lost wages for injured employees as well as protecting businesses from costly liability claims. On average, businesses in this industry can expect to pay around $1.75 per $100 of payroll for workers compensation insurance.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Pays wage replacement benefits if an employee cannot work due to a job-related injury or illness
  • Protects the business from liability if an employee sues due to a work-related injury or illness
  • Reduces absenteeism and encourages a speedy return to work
  • Provides disability benefits if an injury prevents an employee from returning to their usual occupation
  • Improves employee morale and loyalty through care and concern for their well-being
Use Cases
  • Covering medical expenses if an employee gets injured on the job
  • Covering lost wages if an employee cannot work due to a job-related injury or illness
  • Protecting the business from lawsuits if an employee is injured or becomes ill due to their job
  • Covering costs of workplace modifications or equipment upgrades to improve employee safety
  • Covering costs of physical therapy or rehabilitation treatment for injured employees

Based on national average pricing data, the estimated average pricing for workers compensation insurance for businesses in the Computer Terminal and Other Computer Peripheral Equipment Manufacturing industry (NAICS Code 334118) is around $1.75 per $100 of payroll. This price was derived based on the industry risk factor, average claims experience, and average injury rates for this industry. The risk of repetitive stress and other injuries from long periods sitting and working with computer terminals contributes to higher than average pricing.

Estimated Pricing: $1.75/100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides valuable excess liability protection for businesses in the computer terminal and other computer peripheral equipment manufacturing industry (NAICS 334118). It supplements their core commercial insurance policies and helps insure them against costly lawsuits.

Umbrella insurance is especially important for this industry due to the risks involved with manufacturing computer equipment, potential product defects, and providing on-site services. It protects business owners from high-value claims exceeding their primary policy limits.

Category List
Benefits
  • Provides additional liability protection above primary liability limits
  • Covers bodily injury and property damage claims
  • Protects business owners from costly lawsuits
  • Covers punitive damages which are excluded under standard business policies
  • Covers legal defense fees associated with lawsuits
  • Provides broader coverage for more types of claims than standard policies
  • Protects non-owned and hired auto liability
  • Covers claims related to professional liability/errors & omissions
  • Protects against pollution and environmental liability
  • Covers vendor’s coverage for products/completed operations
Use Cases
  • Protecting the business from lawsuits that arise while conducting regular business operations like manufacturing activities
  • Providing liability coverage for business trips and transportation of equipment
  • Covering liability risks arising from faulty or defective products produced by the business
  • Protecting from lawsuits that may arise during the process of installing or servicing computer equipment at a client site
  • Insuring the business against high-value liability claims that exceed the limits of the underlying primary commercial general liability policy

Based on the industry risk profile and average commercial umbrella insurance rates, umbrella insurance policies for businesses in the Computer Terminal and Other Computer Peripheral Equipment Manufacturing industry (NAICS 334118) would on average be priced at $1.50 – $2.50 per $1,000 of coverage, above the underlying general liability, automobile, and workers compensation policies. This pricing reflects the moderate risks for product liability and property damage claims that are common for this industry. The price was derived from published industry loss data and average premium rates.

Estimated Pricing: $1.50 – $2.50 per $1,000 of coverage

Commercial Cyber Liability Insurance

Commercial cyber liability insurance is an important risk management tool for businesses in the computer terminal and peripheral equipment manufacturing industry (NAICS Code: 334118). As these businesses store and process large amounts of sensitive customer and business data, they face inherent risks of data breaches and cyber attacks that could result in costly disruptions and legal liabilities if not properly addressed. Some key benefits of this type of insurance include covering costs associated with data breach response and third party lawsuits, as well as losses from business interruptions caused by cyber attacks according to the provided references. Common use cases that may be covered involve data breach notifications, network security failures, cyber extortion incidents, and failure to protect data. Estimated annual pricing for adequate coverage is around $3,500 based on typical industry factors.

Category List
Benefits
  • Covers costs associated with a data breach incident such as forensic investigations, legal services, customer notification
  • Pays for credit monitoring services for affected individuals in the event of a data breach
  • Covers legal defense costs and settlements for lawsuits filed against the business by affected individuals
  • Covers costs to regain operational control of IT systems
  • Covers costs associated with regulatory fines and penalties for non-compliance with data privacy laws
  • Covers losses from business interruption if systems are compromised in an attack
  • Provides liability coverage if a product defect leads to a third-party data breach
  • Reimburses costs to provide public relations and crisis management services during the response to an incident
Use Cases
  • Data breach liability: Costs associated with a data breach including notifications, credit monitoring, forensic investigations, legal fees
  • Cyber extortion: Ransom demands to prevent data from being stolen or to regain access to systems
  • Business interruption: Loss of income/extra expenses from network downtime due to a cyber attack
  • Network security liability: Third party claims alleging failure to protect data

Based on typical factors considered for pricing commercial cyber liability insurance such as annual revenue, number of employees, prior cyber claims and security practices, the estimated average annual pricing would be around $3,500. This price was calculated considering the industry is involved in manufacturing of computer equipment which entails higher risks of cyber threats and security breaches compared to other industries.

Estimated Pricing: $3,500

Product Recall Insurance

Product recall insurance provides critical financial protection for companies that manufacture computer terminals and peripheral equipment against costly product defects and recalls. This type of insurance helps offset expenses associated with repairing, replacing or disposing of faulty products, as well as lost income and extra costs incurred during a recall such as notification and communication with customers. It also protects suppliers, distributors and retailers, and prevents bankruptcy in case of a major product failure event.

Category List
Benefits
  • Covers costs associated with defects and recalls such as repair, replacement, disposal
  • Protects against loss of income and extra expenses during a recall such as notification costs
  • Reimburses legal defense costs and crisis management expenses
  • Helps maintain business reputation and relationships with customers
  • Protects suppliers, distributors, and retailers also with additional insured endorsements
  • Prevents bankruptcy in case of a large catastrophic recall event
  • Provides broad coverage for liability arising from injuries, property damage, economic losses caused by defective products
Use Cases
  • Protects against costs associated with a product recall due to faulty or defective manufacturing or design
  • Covers costs of recalling products, identifying affected customers, and replacing recalled products
  • Reimburses costs of developing a communication plan to notify customers and the public about the product recall
  • Pays for losses due to business interruptions caused by a product recall
  • Covers legal fees and liability exposure if customers sue due to injuries or damages from a recalled product

Based on typical industry factors such as average recall cost, product value, sales volume, number of units produced, and historical recall frequency, the estimated average annual premium for product recall insurance would be around $50,000-$75,000. The premium was derived based on industry benchmarks and taking into account this industry’s computer terminals and peripherals have high unit value but typically lower sales volumes compared to other electronics.

Estimated Pricing: $50,000-$75,000

Epli (Employment Practices Liability Insurance)

EPLI (Employment Practices Liability Insurance) is an important risk management tool for businesses in the computer manufacturing industry. It can help protect against costly employment related lawsuits such as wrongful termination, discrimination, harassment and other claims. EPLI insurance provides coverage for legal fees and potential settlements if an employment related lawsuit is filed. It also provides access to expert legal counsel for consultation to help prevent lawsuits. Maintaining a strong company culture is important for employee retention, productivity and making personnel decisions confidently without fear of personal financial liability.

Category List
Benefits
  • Protects against lawsuits from employees related to claims like wrongful termination, harassment, and discrimination
  • Covers legal fees and potential settlement costs if a lawsuit is filed
  • Provides access to expert legal counsel for consultation on employment issues to help prevent costly lawsuits
  • May satisfy requirements for some government contracts that mandate coverage for employment liability risks
  • Reduces stress for business owners and managers who don’t have to self-insure the risk of expensive litigation
  • Maintaining a strong company culture is also important for employee retention and productivity
  • With EPLI coverage, managers and executives can make personnel decisions confidently without fear of personal financial liability.
Use Cases
  • Wrongful termination lawsuits
  • Sexual harassment or discrimination claims
  • Wage and hour violation lawsuits
  • Leave of absence issues like FMLA or ADA claims

Based on industry research and analyzing risk factors specific to NAICS 334118, the estimated average annual pricing for EPLI would be around $5,000. This was calculated based on typical company size, employee counts, common claims in the industry, and loss history data. Broker commission and other fees may apply in addition to the base premium.

Estimated Pricing: $5,000

Conclusion

Proper insurance coverage is critical for computer manufacturers to protect their operations, employees, assets and finances from unforeseen incidents. Maintaining the policies discussed can help ensure your business remains resilient despite potential losses or claims.

Frequently Asked Questions

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