Essential Business Insurances for Metalworking Machinery Manufacturing Businesses with NAICS Code 3335

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A breakdown of the top insurances metalworking machinery manufacturers need to protect their business, employees, assets and customers from risks.

Key Takeaways

  • Workers’ compensation insurance is required by law to cover work-related injuries
  • General liability insurance protects against lawsuits from third parties and customers
  • Property insurance covers costs to repair or replace buildings and equipment
  • Commercial auto insurance insures vehicles used for business
  • Umbrella insurance provides additional liability coverage above primary policies

Introduction

As a metalworking machinery manufacturing business operating heavy equipment and machinery, certain key insurance policies are essential to protect the business from risks and minimize financial losses in the event of an accident, injury or loss related to operations.

Workers’ Compensation Insurance

Workers’ compensation insurance provides businesses in the metalworking machinery manufacturing industry crucial coverage for costly medical expenses and lost wages from job-related injuries and illnesses. It also protects employers from expensive liability lawsuits. Here are the key benefits and use cases for this industry:

Top Benefits of Workers’ Compensation Insurance:
– Covers medical expenses and lost wages for employee injuries
– Protects the business from lawsuits in the event of an injury
– Required by law in all states for businesses with 1 or more employees
– Reduces absenteeism and turnover from job-related injuries
– Improves employee morale and loyalty through injury protection
– Can result in lower insurance costs through safety incentives and ratings

Top Use Cases of Workers’ Compensation Insurance:
– Cuts, lacerations, and puncture wounds from handling metal parts and working with industrial machinery
– Repetitive stress injuries and musculoskeletal disorders from operating and maintaining equipment
– Hearing loss from long-term exposure to loud machinery noise
– Dust inhalation and respiratory illness from metals and other materials
– Burns from welding, soldering or working near hot surfaces
– Crush injuries or amputations from accidents involving large or heavy equipment

Category List
Benefits
  • Covers medical expenses and lost wages for employee injuries
  • Protects the business from lawsuits in the event of an injury
  • Required by law in all states for businesses with 1 or more employees
  • Reduces absenteeism and turnover from job-related injuries
  • Improves employee morale and loyalty through injury protection
  • Can result in lower insurance costs through safety incentives and ratings
Use Cases
  • Cuts, lacerations, and puncture wounds from handling metal parts and working with industrial machinery
  • Repetitive stress injuries and musculoskeletal disorders from operating and maintaining equipment
  • Hearing loss from long-term exposure to loud machinery noise
  • Dust inhalation and respiratory illness from metals and other materials
  • Burns from welding, soldering or working near hot surfaces
  • Crush injuries or amputations from accidents involving large or heavy equipment

Based on national industry data, the average workers’ compensation insurance rate for NAICS Code 3335 (Metalworking Machinery Manufacturing) is roughly $2.50 per $100 of payroll. This rate is derived from analyzing historical claims and payroll data for similar businesses and factoring in risk factors like workplace safety programs and employee demographics. For a small to mid-sized metalworking machinery manufacturer with an annual payroll of $5 million, their estimated annual workers’ compensation insurance premium would be around $125,000 ($2.50 x $5,000,000 / $100).

Estimated Pricing: $125,000

General Liability Insurance

General liability insurance is an important protection for metalworking machinery manufacturing businesses. It covers claims resulting from injuries to the public or damage to their property from machinery, operations, or products.

The top benefits of general liability insurance for metalworking machinery manufacturing businesses include covering bodily injury and property damage claims from customers and third parties, protecting against lawsuits from injuries or accidents on business premises, covering temporary premises like construction sites or office spaces that are rented, covering products after they leave the facility, and providing defense costs if a lawsuit is filed against the business.

Category List
Benefits
  • Covers bodily injury & property damage claims from customers & third parties
  • Protects against lawsuits from injuries or accidents on your premises
  • Covers temporary premises like construction sites or office spaces you rent
  • Covers your products after they leave your facility
  • Provides defense costs if a lawsuit is filed against your business
  • Covers pollution and environmental damage claims
  • Protects your business assets from being seized to pay for lawsuits
  • Covers incidents that happen away from your premises, like during delivery or installation of machinery
Use Cases
  • Protects the business from claims of bodily injury or property damage from defective or dangerous products
  • Covers liability claims if a customer is injured while using or operating metalworking machinery
  • Provides coverage if a visitor to the manufacturing facility slips and falls or has an accident on the premises
  • Insures the business if a delivery driver is in an accident while delivering or transporting metalworking machinery
  • Covers lawsuits from employees who are injured during the manufacturing process

Based on industry data and average claims, the estimated annual pricing for general liability insurance for businesses in the metalworking machinery manufacturing industry with NAICS code 3335 is around $3.50 – $5.00 per $100 of payroll. This price range was derived from national insurance rates taking into account the risks associated with metalworking activities like operating machinery and the potential for injuries. The actual price a business is quoted may vary depending on individual underwriting factors.

Estimated Pricing: $3.50 – $5.00 per $100 of payroll

Property Insurance

Property insurance provides important financial protection for businesses in the metalworking machinery manufacturing industry. Damage to expensive equipment, facilities or inventory could significantly impact operations and profits without proper coverage. Additional coverages like business interruption insurance can reimburse lost income if repairs cause temporary shutdowns, helping a company stay financially stable after an insured loss. Property insurance acts as a safeguard against catastrophic losses, covering specialized equipment, buildings and other physical assets that would be very costly to replace.

Category List
Benefits
  • Covers repair or replacement costs if equipment or buildings are damaged
  • Protects against losses from fire, storms, electrical issues, vandalism and more
  • Reimburses lost income if operations need to shut down temporarily for repairs
  • Covers extra expenses like temporary rentals if your facilities are unusable
  • Provides coverage for supplies and materials you have on site if damaged
  • Insures specialized equipment that would be costly to replace
  • Covers debris removal and property clean up after a covered loss
Use Cases
  • Protection against damage or theft of machinery and equipment
  • Coverage for buildings and property
  • Reimbursement for lost revenue if machines are down
  • Replacement cost coverage for inventory
  • Protection against losses from fires, floods or other natural disasters
  • Coverage for equipment being transported or shipped

Based on typical commercial property insurance rates, businesses in this industry can expect to pay on average around $3.50 per $100 of insured assets. This rate takes into account factors like the risks involved in metalworking machinery manufacturing such as machinery breakage or damage. Using industry data that pegs the average assets of businesses in this NAICS code at around $5 million, the estimated annual property insurance premium would be around $17,500.

Estimated Pricing: $17,500

Commercial Auto Insurance

Commercial auto insurance is an important coverage for metalworking machinery manufacturers to protect their business vehicles used to transport heavy equipment and materials. It can help cover legal liabilities and repair costs in the event of an accident. The estimated annual pricing for commercial auto insurance for businesses in this industry is around $1,500 per vehicle. Commercial auto insurance provides key benefits like coverage of medical expenses, uninsured motorist protection, and income loss for these types of businesses.

Category List
Benefits
  • Covers legal liability if your vehicle is involved in an accident
  • Covers medical expenses for those injured in an accident involving your vehicle
  • Covers repairs or replacement of your vehicle if it’s damaged in an accident
  • Covers loss of income or use if a vehicle is damaged or stolen
  • Covers uninsured/underinsured motorist bodily injury for employees
  • Covers towing and labor costs if a vehicle breaks down
Use Cases
  • Covering company-owned vehicles like trucks used to deliver heavy equipment
  • Insuring commercial vehicles used by sales representatives
  • Providing liability protection if a vehicle is involved in an accident while conducting business
  • Repairing or replacing delivery vehicles if damaged on the job

Based on industry averages, the estimated annual pricing for commercial auto insurance for businesses in the metalworking machinery manufacturing industry with NAICS code 3335 is around $1,500 per vehicle. This estimate was derived considering factors like the risk level of the industry, average number of commercial vehicles used, claims experience of similar businesses, and requirements from insurance regulators.

Estimated Pricing: $1,500

Commercial Umbrella Insurance

“Commercial umbrella insurance is an important supplemental insurance policy for businesses in the metalworking machinery manufacturing industry. It provides liability protection above the standard commercial policies to help protect against risks from machinery defects or accidents. Umbrella insurance is particularly useful for this industry given the potentially serious bodily injury and property damage that could result from failures in large machinery or manufacturing equipment.”

Category List
Benefits
  • Provides additional liability coverage above the limits of your standard business insurance policies
  • Protects your assets if a lawsuit exceeds your primary liability policy limits
  • Covers liability claims not included in your standard business insurance policies
  • Covers legal fees associated with defending against covered liability claims
Use Cases
  • Providing additional liability limits above the limits of the underlying commercial general liability, auto liability, and employer’s liability policies.
  • Protecting assets from large jury awards or settlement payments in liability lawsuits.
  • Covering punitive damages which are excluded on most general liability policies.
  • Covering ‘failure to warn’ product liability claims that allege a manufacturer did not adequately warn about potential risks of a product.

Based on average commercial umbrella insurance rates for businesses in the metalworking machinery manufacturing industry (NAICS 3335), the estimated annual premium would be around $2,500. Rates are typically calculated based on factors like payroll, property values, and underlying general liability limits. Given the machinery and equipment involved in this industry, rates tend to be higher to account for the risks of machinery-related accidents. This price was estimated assuming the business has $1-5 million in annual revenues, no major losses in the past 5 years, and underlying general liability limits of $1 million.

Estimated Pricing: $2,500

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, protects corporate leaders from personal liability resulting from lawsuits related to their roles and responsibilities within the company. It reimburses legal fees and settlements or judgments if a director or officer is sued for alleged wrongdoings or errors that occurred while conducting business for the organization. This coverage is especially important for manufacturing industries like metalworking machinery that face risks from complex product development, defective equipment claims, and liability issues.

Category List
Benefits
  • Protects directors and officers from personal liability in the event of a lawsuit against the company
  • Covers legal costs if a suit is filed against directors and officers for wrongful acts
  • Helps attract and retain qualified directors and officers by reducing personal financial risk
  • Protects company assets by ensuring legal costs are paid by insurance instead of coming out of company funds
  • Covers claims brought by regulatory agencies for improper business practices
  • Reimburses defense costs even if allegations turn out to be groundless
  • Provides crisis management services to help mitigate reputational damage
  • Covers claims brought by regulatory agencies for improper business practices
Use Cases
  • Protect directors and officers from allegations of errors, omissions or negligent acts
  • Provide coverage for defense costs if a lawsuit is brought against directors or officers
  • Cover legal fees and settlements/judgments resulting from shareholder claims
  • Reimburse loss resulting from claims made against an insured for wrongful acts
  • Protect against claims of faulty or defective machinery or product failures

Based on historical pricing data, the average annual premium for Directors And Officers Liability Insurance for businesses in the metalworking machinery manufacturing industry with NAICS code 3335 is around $7,500. This pricing is derived from considering factors such as the company’s annual revenue, number of employees, claims history, and risk profile.

Estimated Pricing: $7,500

Product Liability Insurance

Product liability insurance provides critical protection for machinery manufacturers like metalworking businesses. It covers legal expenses, damages, defense costs if sued over product defects and injuries caused by machinery. It also reassures customers and helps reduce risks to the business. Typical costs for product liability insurance for metalworking machinery manufacturing businesses is around $2.50 per $100 of gross receipts.

Category List
Benefits
  • Covers legal expenses if sued for product defects
  • Pays damage awards or settlements if found liable for injuries
  • Protects business assets like equipment, property and savings
  • Demonstrates financial responsibility to customers and clients
  • Helps reduce risk of losing clients and future business due to lawsuits
  • Provides peace of mind in knowing the company is protected from large financial losses
Use Cases
  • Protection against claims of bodily injury or property damage caused by defective products
  • Coverage for legal costs associated with product liability lawsuits
  • Reimbursement of recall and retrofit costs if a product needs to be repaired or replaced
  • Coverage for legal defense if sued over an allegedly defective product, even if the claims may be groundless

Based on industry data, the average price for product liability insurance for metalworking machinery manufacturing businesses with NAICS code 3335 is around $2.50 per $100 of gross receipts. This price is derived considering risk factors such as the dangerous moving parts in metalworking machinery that could cause injury. The insurance rate may vary slightly based on a company’s specific accident history, safety practices and other risk factors.

Estimated Pricing: $2.50 per $100 of gross receipts

Business Income/Extra Expense Insurance

Business income/extra expense insurance is an important type of coverage for metalworking machinery manufacturers due to the nature of their operations. This insurance helps protect business owners from financial losses if their property is damaged or they experience other incidents that disrupt manufacturing processes. It covers costs to continue paying expenses and helps minimize losses of income or profits during downtime for repairs. By keeping cash flows stable, this insurance allows business owners to avoid layoffs of employees during temporary disruptions.

Category List
Benefits
  • Provides coverage to continue operating your business if property is damaged
  • Covers additional costs needed to keep your business running if you can’t operate like usual
  • Helps pay fixed operating expenses like rent, loan payments, payroll during downtime
  • Coverage for loss of revenue/profits if operations are interrupted by a covered peril
  • Protects your business’ cash flow if unexpected costs or loss of income occurs
  • Allows you to avoid layoffs of employees during periods of lost business
  • Covers infrastructure repairs or replacement in events of mechanical breakdown, fire, flooding etc.
Use Cases
  • Loss of revenue/income if the business has to temporarily shut down operations due to property damage from events like fire, storms, etc.
  • Additional expenses like renting temporary space, extra costs for temporary employees if the business has to relocate during building repairs
  • Loss of revenue if key equipment is damaged and not operational until repairs are made
  • Extra costs for things like hiring security, transporting inventory during renovations if the facility is impacted

Based on industry data and average claims, the estimated pricing for Business Income/Extra Expense Insurance for businesses in the metalworking machinery manufacturing industry with NAICS code 3335 would be around $3.50-$4.50 per $100 of gross earnings. This pricing takes into account factors like the risks associated with manufacturing processes, equipment repairs/replacement costs, past claims made, limits & deductibles purchased.

Estimated Pricing: $3.50-$4.50/100 of gross earnings

Commercial Crime Insurance

Commercial crime insurance provides important coverage for businesses in the metalworking machinery manufacturing industry. It protects against losses from employee theft, cybercrime, vendor fraud, inventory theft, theft of valuable metals or equipment, and fraud risks due to the nature of their operations and assets.

Category List
Benefits
  • Provides coverage for employee dishonesty including theft, forgery, or fraud
  • Covers third party cybercrime like hacking or ransomware
  • Protects against vendor or supplier fraud
  • Reimburses costs related to audits, investigations and legal fees if a claim occurred
  • Covers losses from financial crimes like credit card fraud or money laundering
  • Includes coverage for theft or embezzlement by outside parties like contractors or vendors
  • Helps maintain business continuity in the event of a covered crime or loss
Use Cases
  • Employee theft
  • Third party theft
  • Money and securities theft
  • Computer and funds transfer fraud
  • Forgery and counterfeiting
  • Inventory theft

Based on industry analysis, the average pricing for commercial crime insurance for businesses in the metalworking machinery manufacturing industry (NAICS 3335) is around $1.50 per $100 of payroll. This rate is derived from national insurance rate filings and loss data for businesses in this industry with similar risk profiles. The pricing takes into account factors such as employee theft exposure, types of machinery/equipment on premises, security measures in place, and company loss history if available.

Estimated Pricing: $1.50/100 of payroll

Conclusion

Having the right insurance tailored to the risks of the metalworking machinery manufacturing industry gives business owners financial protection and peace of mind. Understanding the types of insurance needed and their benefits allows manufacturers to make informed choices to safeguard their operations, employees and bottom line.

Frequently Asked Questions

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