Key Business Insurance for Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding – NAICS 331491

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Learn about top insurance policies businesses in NAICS code 331491 nonferrous metal manufacturing industry should consider including general liability, property, auto, workers' compensation and more.

Key Takeaways

  • General liability insurance protects against third party claims for injuries on your property or from defects in products or services.
  • Property insurance covers costs to repair or replace buildings, equipment and inventory damaged by events like fires, storms or theft.
  • Workers’ compensation insurance provides medical care and wage replacement for injured employees while protecting the business from lawsuits over job injuries.
  • Product liability insurance defends against claims over defects that cause injuries or damages.
  • Commercial auto insurance protects against liabilities and repairs company vehicles.

Introduction

Businesses involved in nonferrous metal rolling, drawing and extruding manufacturing face various risks that could threaten operations and finances if not properly insured. This article outlines the top insurance policies nonferrous metal NAICS 331491 businesses should consider to protect against losses.

General Liability Insurance

General liability insurance protects businesses in the nonferrous metal rolling, drawing and extruding industry from financial losses resulting from claims alleging bodily injury, property damage, or personal and advertising injury caused by their operations, premises or products. It is essential risk management for these businesses to manage costs from potential lawsuits over accidents and injuries. Coverage includes defense costs and settlements if the business is found legally liable for a claim.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal costs if you’re sued by a customer or employee for an accident on your property
  • Protects your business assets by covering settlement costs and judgments if found legally liable
  • Satisfies contractual requirements from customers or suppliers who require proof of insurance coverage
  • Provides risk management strategies and loss control services to help prevent future claims
  • Covers liability from defects in your products or errors in your services
  • Insures your business for pollution and environmental liability claims from accidents
  • Protects independent contractors and temporary/seasonal employees working on your site
  • Insures you against claims that may arise from your work at a customer’s premises
Use Cases
  • Bodily injury or property damage claims from accidents on the premises
  • Product liability claims if defective products cause bodily injury or property damage
  • Pollution liability if hazardous materials are dispersed
  • Defense costs if a claim is filed against the business

Based on average rates for metal working industries, the estimated annual pricing for general liability insurance for businesses in NAICS code 331491 is $2.50 per $100 of payroll. This rate is calculated based on industry loss data and risk factors such as machinery used, product handled, and safety record. For a business in this industry with an annual payroll of $1,000,000, the estimated annual general liability insurance premium would be $25,000.

Estimated Pricing: $25,000

Property Insurance

Property insurance provides important financial protection for businesses in the nonferrous metal rolling, drawing, and extruding industry. It can help ensure continuity of operations after a covered loss event by providing funds to repair or replace damaged property, inventory, equipment, and personal property. This is critical as the industry involves hazardous processes and expensive equipment that could be damaged by common risks like fires or machinery malfunctions inherent to metal manufacturing. Insurance can also help minimize disruptions to business activities by replacing lost assets.

Category List
Benefits
  • Protection against financial losses from damages, losses, or destruction of physical property and equipment from risks like fire, theft, or natural disasters
  • Replacement or repair costs for buildings, machinery, equipment, vehicles, inventory, and other property
  • Business interruption coverage to continue paying operating expenses if the business must temporarily shut down due to a covered loss
  • Coverage for valuable equipment and technology used in manufacturing processes
  • Peace of mind knowing your investment is protected from unforeseen incidents
Use Cases
  • Protect manufacturing equipment and machinery from damage
  • Cover buildings and facility structures from fires, natural disasters, and other risks
  • Provide coverage for on-site inventory and supplies in case of theft or damage
  • Replace lost business personal property like computers and office equipment

Based on typical pricing models for property insurance, which take into account factors like property value, location, loss history, and risk of the industry, the estimated average annual pricing for property insurance for businesses in NAICS code 331491 would be around $12 per $100 of insured property value. This industry involves rolling, drawing, and extruding of nonferrous metals which can be hazardous if not handled properly and there is also risk of damage to expensive machinery. An average facility in this industry may have $5 million of property exposure, so their estimated annual premium would be $60,000.

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

Workers’ Compensation Insurance

Workers’ compensation insurance is an important protection for businesses in industries like Nonferrous Metal Rolling, Drawing, and Extruding that involve risks of workplace injuries. It provides medical, lost wage, and liability benefits for injured employees while shielding employers from costly lawsuits. The estimated average cost for this industry is around $3 per $100 of payroll.

Category List
Benefits
  • Protects employers from liability in the event of a workplace injury or illness
  • Provides immediate medical treatment and wage replacement for injured workers
  • Ensures injured employees receive lost wages and medical benefits in a timely manner without litigation
  • Reduces costs of legal disputes and settlements over injury claims
  • Prevents long-term lost productivity and replacement costs for injured workers who are unable to work
  • Maintains a positive company reputation by caring for injured employee needs
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
  • Liability protection if an employee sues for damages from a job-related injury or illness

Based on industry data and risk factors, the estimated average pricing for workers’ compensation insurance for businesses in the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding with NAICS Code 331491 is around $3.00 per $100 of payroll. This industry has higher risk of workplace accidents due to heavy machinery and equipment used in metal working processes. The pricing is also affected by company size, past claims experience, and safety measures implemented by each individual business.

Estimated Pricing: $3.00/$100 of payroll

Product Liability Insurance

Product liability insurance provides crucial protection for businesses in the nonferrous metal rolling industry against costly losses from defective products. It covers legal fees, damages, medical costs, and more that could result from product defects, recalls, or lawsuits over product issues. Manufacturers of metal products in this industry face risks of defects that have the potential to cause property damage, bodily injury, interrupt operations, or result in lawsuits if customers claim illnesses. This type of insurance would defend the business against lawsuits over product issues, reimburse losses from interruptions during claims, and provides peace of mind knowing the financial risks of defects are covered.

Category List
Benefits
  • Protection against losses and damages caused by defective products
  • Defense and settlements against product liability lawsuits
  • Coverage for bodily injury or property damage claims from customers
  • Public relations support in the event of a product recall
  • Reimbursement of medical expenses for injured customers or employees
  • Coverage for business interruption losses if a product issue halts operations
  • Peace of mind knowing the financial risks of defects are covered
Use Cases
  • Defective products causing property damage or bodily injury
  • Product recalls requiring costs to notify customers and retrieve products
  • Lawsuits from customers claiming illnesses or injuries from products
  • Loss of business/income during involuntary business interruption due to covered liability claim
  • Legal defense costs if sued for product defects even if claims aregroundless

Based on industry data, the average price for product liability insurance for businesses in the Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding industry with NAICS code 331491 is around $2.50 per $100 of payroll. This price is calculated based on industry risk factors such as the types of products manufactured as well as past claims data for similar businesses.

Estimated Pricing: $2.50/$100 of payroll

Commercial Auto Insurance

Commercial auto insurance plays an important role for businesses in the nonferrous metal rolling, drawing, and extruding industry. It provides essential liability and physical damage protection for company vehicles transporting raw materials, finished goods, maintaining equipment and more. It also protects the business from expensive lawsuits in case of accidents involving commercial vehicles used for business purposes. And it repairs or replaces vehicles if they are damaged. The estimated average annual cost for commercial auto insurance would be around $2,500-$5,000 per vehicle based on risks and exposures for this NAICS industry.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for employees
Use Cases
  • Delivery vehicles transporting raw materials and finished goods between facilities and customer locations
  • Employee vehicles used for business purposes like sales calls and site visits
  • Service vehicles used to maintain and repair equipment
  • Loading and unloading vehicles at warehouse and production facilities

Based on the typical risks and exposures for businesses in the NAICS 331491 industry, the estimated average annual cost for commercial auto insurance would be around $2,500-$5,000 per vehicle. This pricing considers factors like the types of vehicles used (often larger trucks for transporting materials), mileage, markets served, driving records, and safety practices. The price is derived from analyzing industry reports and insurance rates for similar businesses handling industrial materials and equipment.

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

Business Interruption Insurance

Business interruption insurance provides coverage for manufacturers when unexpected events cause disruptions to business operations and halts production. It helps protect against losses in income and extra costs during downtime by reimbursing fixed expenses and lost profits until the business can resume normal operations.

Common risks that could disrupt production for nonferrous metal rolling, drawing, and extruding manufacturers include damage to equipment or facilities from events like fires or floods, utility outages preventing operations, and supply chain issues delaying delivery of materials. This type of insurance covers losses from these kinds of unforeseen production stoppages.

Category List
Benefits
  • Provides coverage for lost income if your business suffers an interruption
  • Covers losses from events such as fires, floods, earthquakes and other disasters
  • Reimburses fixed operating expenses like rent and utilities if you cannot operate
  • Helps maintain cash flow if your revenue stream is disrupted
  • Covers extra expenses like temporary relocation costs if your facilities are damaged
  • Covers losses from utility outages or disruptions to your supply chain
  • Provides funds to restart your business and meet costs until operations resume
  • Covers losses from product recalls or contamination issues
Use Cases
  • Fire or water damage at the manufacturing facility halting operations
  • Equipment failure or breakdown stopping production lines
  • Utility outage (power, water) causing downtime
  • Supply chain disruption preventing delivery of raw materials
  • Loss of key customers reducing incoming orders and revenue
  • Cyber attacks or IT failures disabling systems and computers

Based on typical factors such as revenue, payroll, property values, location, loss history, and risk management practices, the estimated average annual price for business interruption insurance would be around $7,500. This pricing was derived from analyzing industry data and insurance rates for similar manufacturing industries that work with metals.

Estimated Pricing: $7,500

Cyber Liability Insurance

As cyber threats continue to grow, cyber liability insurance provides critical protection for businesses in the nonferrous metal industry against risks like data breaches, ransomware attacks, and costs associated with incident response and third party liability claims. As manufacturers in this industry often store sensitive customer and business information digitally, they face risks from data breaches, attacks, and theft. Cyber liability insurance can help cover costs associated with respondong to incidents, paying ransoms, notifying affected parties, and defending against legal claims from affected customers or partners. Based on typical pricing models for cyber liability insurance, businesses in this industry would on average pay between $2,000-$5,000 annually for a cyber liability policy. Rates are determined based on factors like annual revenue, number of employees, IT security practices and history of cyber incidents. For a small to mid-sized business in this industry with under $10M in annual revenue and less than 100 employees, and no major cyber claims history, the estimated price would be around $3,000 per year.

Category List
Benefits
  • Covers legal defense costs and expenses if sued for a privacy breach or data loss
  • Compensates for costs to notify customers of a breach and provide credit monitoring
  • Pays for forensic investigation and remediation after an incident
  • Covers theft of customer payment card or banking information
  • Compensates for lost business income due to network outage from an attack
Use Cases
  • Data breach or cyber attack leading to loss of customer data
  • Ransomware attack resulting in downtime and ransom demand
  • Third party liability if supplier or vendor systems are compromised
  • Loss of intellectual property through cyber theft
  • Costs of compliance with state data breach notification laws

Based on typical pricing models for cyber liability insurance, businesses in this industry would on average pay between $2,000-$5,000 annually for a cyber liability insurance policy. Rates are determined based on factors like annual revenue, number of employees, IT security practices and history of cyber incidents. For a small to mid-sized business in this industry with under $10M in annual revenue and less than 100 employees, and no major cyber claims history, the estimated price would be around $3,000 per year.

Estimated Pricing: $3,000

Equipment Breakdown Insurance

Equipment breakdown insurance provides critical protection for businesses in the nonferrous metal rolling, drawing, and extruding industry that rely heavily on expensive machinery. A breakdown could result in high repair costs as well as lost income during downtime, so this insurance helps mitigate financial risks. This type of insurance is especially important for protecting against the financial impacts of breakdowns involving key equipment in this industry, such as rolling mills, furnaces, drawing machinery, and extruding presses. It also helps cover investigation costs to determine the root causes of failures.

Category List
Benefits
  • Covers repair or replacement costs from equipment breakdown or failure
  • Covers loss of income and extra expenses due to equipment downtime
  • Covers property damage due to equipment failures
  • Covers investigation costs to determine cause of failure
Use Cases
  • Breakdown of rolling mills
  • Breakdown of furnaces
  • Breakdown of drawing machinery
  • Breakdown of extruding presses

Based on analysis of premium rates charged for typical equipment breakdown policies covering manufacturers in this industry, the estimated average annual premium would be around $15,000. Rates are determined based on factors like total insurable values, historic equipment repair costs, risk control practices, and claim histories. Nonferrous metal manufacturing typically involves heavy industrial machinery which leads to higher exposure levels and rates.

Estimated Pricing: $15,000

Conclusion

Proper insurance planning is critical for nonferrous metal manufacturing businesses to manage risks and keep operations running smoothly. By understanding common exposures and choosing quality coverage, companies in this industry can focus on their core business activities with greater financial security and peace of mind.

Frequently Asked Questions

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