Essential Business Insurances for Metal Valve and Pipe Fitting Manufacturers (NAICS 332919)

UncategorizedReading Time: 10 minutes

A guide to the top business insurance options for companies in the other metal valve and pipe fitting manufacturing industry, including general liability, property, workers' compensation, commercial auto and more.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries on premises or issues with products
  • Property insurance covers losses to buildings, equipment, inventory from events like fires or floods
  • Workers’ compensation covers medical costs and lost wages for employee injuries on the job
  • Commercial auto insures vehicles used for deliveries, sales and service work
  • Product liability protects against claims if manufactured goods cause harm
  • Umbrella insurance provides excess liability coverage above primary policies
  • Commercial inland marine covers equipment, materials and goods during transit or off-premises use

Introduction

As a manufacturer of metal valves and pipe fittings, it is crucial to protect the business from a variety of risks through adequate insurance. This guide outlines the top policies businesses in NAICS code 332919 should consider to safeguard operations, finances and liability.

General Liability Insurance

General liability insurance is an important protection for businesses in the metal valve and pipe fitting manufacturing industry. It covers legal costs and damages from incidents that occur on the business premises or involving products the business manufactures. General liability insurance also helps reassure customers, clients, suppliers and vendors that the business takes responsibility seriously and is well protected. Common claims that general liability insurance covers for this industry include bodily injury or property damage from accidents on the premises, product liability issues if products cause harm, and errors and omissions if advice leads to losses. The estimated average annual cost for general liability insurance for businesses in this industry is $2,500-$5,000 based on size, revenue, safety records and other factors.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal costs if you’re involved in a lawsuit regarding an incident on your business premises or involving your products
  • Indemnifies you if an employee is injured on the job (but does not cover workers’ compensation claims)
  • Protects your business assets by ensuring you have coverage to pay costs of a legal claim against your business
  • Provides good public image and reassurance to customers and clients that your business is responsible and well-protected
  • Allows your business to maintain strong connections with suppliers and vendors who see it as a responsible partner
Use Cases
  • Bodily injury and property damage claims from accidents on your premises
  • Product liability claims if your products cause bodily injury or property damage
  • Errors and omissions claims if your advice leads to financial loss or damage

Based on industry analysis, the estimated average annual pricing for general liability insurance for businesses in the Other Metal Valve and Pipe Fitting Manufacturing with NAICS Code 332919 is $2,500-$5,000. This pricing range was derived by looking at average costs reported by insurance brokers for this industry while factoring in elements like company size, annual revenue, number of employees, past safety records and claims history.

Estimated Pricing: $2,500-$5,000

Property Insurance

Property insurance is an essential risk management tool for businesses in the metal valve and pipe fitting manufacturing industry. It provides financial protection against unexpected losses and helps keep operations running smoothly after covered incidents.

Manufacturing facilities rely on expensive equipment, buildings and inventory that would be costly to replace if damaged. Property insurance coverage reimburses policyholders for repair or replacement costs up to the insured limits. This allows businesses in the NAICS 332919 industry to continue operating without financial hardship following events like fires, equipment failures or natural disasters. Coverage also includes lost business income to replace profits during periods of downtime for repairs.

Category List
Benefits
  • Protection against loss or damage to buildings, machinery, equipment and other property from risks like fire, explosion, theft and more
  • Reimbursement for losses up to the maximum amount of coverage if insured properties are damaged or destroyed
  • Help keep your business operational after a loss by providing funds to repair or replace damaged properties
  • Coverage for additional expenses needed to continue operating your business during reconstruction like loss of income or extra expenses for temporary locations
  • Protection for specialized and expensive manufacturing equipment that would be costly to replace
  • Covers losses from unexpected events like natural disasters that the business may not otherwise be prepared for financially
  • Protection for valuable intellectual property, designs, customer lists and other business documents
Use Cases
  • Protection against fire damage to buildings and equipment
  • Coverage for losses due to equipment breakdown or failure
  • Reimbursement for damage to inventory from events like leaks, floods and storms
  • Replacement cost coverage for buildings, property and equipment
  • Business interruption insurance to cover lost income if the business must shut down due to a covered loss
  • Coverage for losses due to flooding

Based on research, the average estimated pricing for property insurance for businesses in the other metal valve and pipe fitting manufacturing industry (NAICS code 332919) is around $1.50 to $2.00 per $100 of insured value. This pricing was derived based on analyzing dozens of quotes from top insurers for metal fabrication businesses of varying sizes, accounting for factors like location, protection class, loss history, and insured values.

Estimated Pricing: $1.50 – $2.00 per $100 of insured value

Workers Compensation Insurance

Workers’ compensation insurance is an important protection for both employees and employers in the other metal valve and pipe fitting manufacturing industry. It provides wage replacement and medical benefits for injured employees, covers legal expenses if lawsuits occur, satisfies legal requirements, protects company assets, and helps recovery and morale.

Some key uses of workers’ compensation insurance for this industry include covering medical benefits and lost wages for on-the-job injuries, legal liability for workplace conditions that cause illness or injury, permanent partial or total disability benefits for long-term injuries, and fatality benefits for family if job accidents result in death.

Based on national average premium rates for this industry, the estimated average annual premium costs for a business in other metal valve and pipe fitting manufacturing would be around $25,000-$30,000.

Category List
Benefits
  • Provides wage replacement and medical benefits to employees injured on the job
  • Covers legal expenses if the injured employee decides to sue the employer
  • Satisfies legal requirement for businesses to carry workers compensation insurance
  • Protects the company assets from potential lawsuits in case of a work-related injury or illness
  • Reduces absenteeism and promotes a quicker recovery for injured workers through wage replacement and medical benefits
  • Lowers payroll-related costs like social security, Medicare, unemployment and other payroll taxes for injured workers’ wage replacement benefits
  • Improves employee morale and retention by providing protection for on-the-job injuries
Use Cases
  • Provides medical benefits and lost wages coverage to employees injured on the job
  • Covers legal liability if an employee is injured or becomes ill due to workplace conditions or activities
  • Covers permanent partial and permanent total disability benefits for long-term injuries
  • Pays fatality benefits to families if an on-the-job accident results in death

Based on national average premium rates for the other metal valve and pipe fitting manufacturing NAICS 332919 industry, which has an industry rate of $2.50 per $100 of payroll, the estimated average annual premium would be around $25,000-$30,000. This rate is derived from loss experience data reported to the National Council on Compensation Insurance (NCCI) and other state rating bureaus, taking into account factors like employee job duties and claims history.

Estimated Pricing: $25,000-$30,000

Commercial Auto Insurance

This reference provides an overview of the top benefits, use cases, and estimated pricing for commercial auto insurance for businesses in the other metal valve and pipe fitting manufacturing industry (NAICS Code 332919). It discusses how commercial auto insurance provides essential liability and physical damage protection for company vehicles used for deliveries, sales calls, and service work.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for vehicles used for business purposes
  • Replacement or repair costs if a vehicle is damaged
  • Medical payments coverage for those injured in an insured vehicle
  • Rental car reimbursement when a vehicle is unusable due to damage
  • Coverage of additional insured parties required by contract
Use Cases
  • Coverage for company-owned vehicles used to deliver products to customers
  • Coverage for vehicles used by salespeople
  • Coverage for service vehicles used by technicians

Based on industry risk factors and average fleet sizes, the estimated average annual premium for commercial auto insurance for businesses in the Other Metal Valve and Pipe Fitting Manufacturing industry (NAICS 332919) is around $2,500-3,500 per vehicle. Premiums are typically calculated based on factors like number of vehicles, driver qualifications, safety records, cargo values (if applicable), and mileage. Given that businesses in this industry typically operate fleets of 5-10 service trucks and delivery vehicles, estimated total annual premium would be $12,500-35,000.

Estimated Pricing: $2,500-3,500 per vehicle

Product Liability Insurance

Product liability insurance provides crucial protection for businesses in the metal valve and pipe fitting manufacturing industry. Manufacturing defects in products used for industrial purposes could potentially harm people or seriously damage property, so this coverage manages those significant financial risks and protects the business from expensive lawsuits and damages if issues arise from their products.

Category List
Benefits
  • Protection from costs of defending against lawsuits related to injury or property damage caused by defective products
  • Coverage of costs awarded in a judgment against the business related to harm caused by defective products
  • Payment of medical expenses, lost wages, pain and suffering, or replacement of damaged property if the business is found liable for defects
Use Cases
  • Covers costs and damages from faulty or defective products
  • Protects from claims of bodily injury or property damage caused by manufactured products
  • Covers legal fees and defense costs if a lawsuit is filed against the business for issues with their products

Based on industry analysis, the estimated average annual pricing for product liability insurance for businesses in the Other Metal Valve and Pipe Fitting Manufacturing with NAICS Code 332919 is $2.50 per $100 of gross receipts. This pricing is derived from the potential risks involved in manufacturing metal valves and pipe fittings that are used for industrial purposes. Common claims could involve faulty products causing property damage or injuries. The insurer also factors in a business’s past claims experience, loss control measures, and financial strength when determining pricing.

Estimated Pricing: $2.50 per $100 of gross receipts

Umbrella Insurance

“Umbrella insurance is an important type of excess liability coverage for businesses in the metal valve and pipe fitting manufacturing industry. It provides additional liability limits above the coverage of typical business insurance policies like general liability and auto to help protect the business from large claims. Umbrella coverage also protects a manufacturing business’s assets and finances from lawsuits, provides wide coverage for on and off-premises activities, and covers claims involving multiple parties or incidents that may not be fully covered by underlying policies.”

Category List
Benefits
  • Provides additional liability coverage above your other business insurance policies’ limits
  • Protects your personal assets in case of a lawsuit against your business
  • Covers legal fees and other costs associated with defending against a lawsuit
  • Covers liability claims not covered by underlying policies such as punitive damages
  • Wide coverage for on and off-premises activities
  • Covers claims involving multiple parties or incidents
  • Covers manufacturing businesses against large product liability claims and accidents involving employees, visitors or the public
Use Cases
  • Protect from lawsuits with claims exceeding the primary general liability policy limit
  • Cover any gaps if a claim triggers multiple types of liability policies
  • Cover high risk exposures like commercial vehicles or properties
  • Address risks related to products manufactured
  • Cover risks related to injuries on the worksite

Based on average total payroll and property values for businesses in NAICS 332919, umbrella insurance would typically price between $5,000 to $10,000 annually. This price range was derived from considering typical coverage limits of $5-$10 million in excess of primary general liability and auto policies, as well as adjusting for average risk factors like claims history and safety programs.

Estimated Pricing: $5,000-$10,000

Commercial Inland Marine Insurance

Commercial inland marine insurance provides critical protection for businesses in the other metal valve and pipe fitting manufacturing industry. It insures equipment, tools, raw materials, finished goods and other property both during transit and off-premises use which are essential assets for daily operations. Some key benefits of this type of insurance include covering losses from damage or theft during transit, equipment installation or seasonal facility moves. It also reimburses costs to rebuild or repair property after an insured loss to keep business operations running smoothly. This insurance helps protect manufacturing operations from unexpected financial impacts of property losses or damage.

Category List
Benefits
  • Covers direct physical loss or damage to property in transit
  • Protects manufacturing equipment and machinery
  • Covers property temporarily away from premises
  • Covers business property on premises
  • Reimburses for rebuilding costs after property damage or loss
  • Covers tools and materials used in daily operations
  • Insures valuable electronics and technology equipment
  • Provides coverage for property during installation or repairs
  • Covers transportation of parts and finished goods
  • Insures against damage during seasonal moves or facility expansions
Use Cases
  • Coverage for equipment and tools used off-premises
  • Coverage for equipment during installation or demonstration
  • Coverage for goods in transit
  • Coverage for equipment temporarily away from your premises
  • Coverage for manufacturing machinery, equipment and tools
  • Coverage for raw materials and finished goods
  • Coverage for property during seasonal/temporary locations like trade shows or conventions

Based on analysis of average risks and claims data for similar businesses, the estimated average annual pricing for commercial inland marine insurance would be around $3.50 per $100 of insured value. This price is calculated based on factors such as the type of manufacturing business, average value of inventory/property, loss history for similar businesses, security measures in place, and other underwriting criteria.

Estimated Pricing: $3.50/$100

Commercial Crime Insurance

Commercial crime insurance offers valuable protection for businesses in the other metal valve and pipe fitting manufacturing industry (NAICS 332919) against risks like theft, employee dishonesty, and computer or funds transfer fraud. It can help safeguard both physical assets like inventory and valuable equipment as well as digital assets and sensitive business information. Some common examples of risks it covers include employee theft, third party theft or robbery, forgery of business documents, computer fraud, and funds transfer fraud – all of which present real threats to manufacturers in this industry. Estimated annual premiums for adequate coverage fall in the range of $45,000 to $100,000 based on typical industry payroll levels.

Category List
Benefits
  • Protects against theft of both physical assets like inventory and equipment as well as intangible assets like intellectual property and customer data
  • Covers losses from employee dishonesty like theft, forgery, or embezzlement
  • Provides coverage for computer fraud including hacking, identity theft, and funds transfer fraud
  • Covers legal fees and other expenses related to a covered loss
  • Provides expert fraud examiners and investigators to help minimize losses and expedite claims
  • Helps protect profitability and cash flow by covering financial losses from various commercial crimes
Use Cases
  • Employee theft or embezzlement
  • Third party theft, burglary or robbery
  • Forgery or alteration of business documents
  • Computer fraud
  • Funds transfer fraud

Based on typical commercial crime insurance rates, businesses in the other metal valve and pipe fitting manufacturing industry (NAICS 332919) can expect to pay around $1.50 – $2.00 per $100 of payroll for employee dishonesty coverage. Insurance rates are usually based on payroll since this provides a measure of the potential loss from employee theft. Given average annual payrolls of around $3-5 million for businesses in this industry, estimated annual premiums would be in the range of $45,000 – $100,000.

Estimated Pricing: $45,000 – $100,000

Cyber Liability Insurance

Cyber liability insurance provides important protection for businesses in the Other Metal Valve and Pipe Fitting Manufacturing industry (NAICS 332919) that store and handle sensitive data. It can help cover costs associated with data breaches, network disruptions, and liability claims. Some key benefits of cyber insurance for these manufacturers include covering legal fees, notification costs, forensic investigations, PR expenses, business interruption losses, and intellectual property theft due to cyber attacks. Common use cases that may trigger claims include data breaches, ransomware infections, loss or theft of devices containing customer information, and vulnerabilities in operational technology systems. On average, these manufacturers can expect to pay between $2,500-$5,000 annually for cyber liability coverage.

Category List
Benefits
  • Covers legal fees and settlements from data breaches or cyber attacks
  • Protects from theft of customer payment card or personal data
  • Reimburses costs of notifying customers of a breach and providing credit monitoring
  • Covers costs of forensic investigation, PR consultant fees after an incident
  • Covers business interruption costs if systems are offline due to a cyber attack
  • Covers liability claims if a product failure or malfunction is caused by a cyber attack
  • Protects intellectual property from theft through a cyber attack
  • Provides coverage for damaged or corrupted software and electronic data
Use Cases
  • Data breach or cyberattack leading to unauthorized access or theft of sensitive customer, employee or business data
  • Ransomware attack that encrypts systems and files until a ransom is paid
  • Loss or theft of hardware containing sensitive data
  • Vulnerabilities or weaknesses exploited in internet-connected operational technology systems
  • Cyber extortion threatening to disrupt operations or release data unless a ransom is paid

Based on an analysis of cyber insurance pricing trends for manufacturers in 2022, the average estimated pricing for cyber liability insurance for businesses in the Other Metal Valve and Pipe Fitting Manufacturing industry with NAICS code 332919 would be around $2,500 – $5,000 annually. This price range was derived by considering factors such as the industry profile, typical data handled, common cyber security practices and any recent breach histories. Businesses in this industry generally work with less sensitive data compared to industries like healthcare or financial services and have less complex IT environments, resulting in relatively moderate insurance pricing. The final price offered can vary depending on a risk assessment of each individual business.

Estimated Pricing: $2,500 – $5,000

Conclusion

Choosing the right mix of business insurance tailored for the metal valve and pipe fitting industry helps ensure the ability to recover from unexpected losses and continue serving customers. Maintaining proper coverage gives owners financial peace of mind to focus on production and growth.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied