Key Business Insurance for Transportation Equipment Manufacturers with NAICS Code 336999

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Understand the top insurances transportation equipment manufacturers with NAICS Code 336999 should consider like general liability, property, auto and more to protect their business.

Key Takeaways

  • General liability insurance protects from third-party injury and property damage claims
  • Property insurance covers buildings, equipment and inventories from disasters
  • Auto insurance covers vehicles used for business purposes
  • Workers compensation covers medical costs and lost wages for on-the-job injuries
  • Product liability covers lawsuits if customers are injured by products
  • Business interruption covers lost income if operations are disrupted

Introduction

As a manufacturer in the transportation equipment industry, it is important to have adequate business insurance in place to protect your operations from unexpected losses. Common risks these manufacturers face include injuries on the premises, vehicle accidents, property damages, and lawsuits over defective products. This article outlines the key types of insurance coverage transportation equipment businesses should consider to protect their finances and long-term stability.

General Liability Insurance

General liability insurance is an essential risk management tool for businesses in the All Other Transportation Equipment Manufacturing industry. As manufacturers dealing with potentially dangerous equipment, general liability coverage helps protect against costly lawsuits if a third party is injured on their premises or by their products. General liability insurance also covers legal defense costs if the business is sued, and can help manage risks associated with operations involving equipment and machinery.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage arising from your operations
  • Covers legal defense costs if you’re sued by a third party
  • Provides occurrence-based or claims-made coverage for incidents related to your products and services
  • Helps manage risks associated with operating potentially dangerous equipment and machinery
  • Covers liability from transportation of your products
  • Covers pollution liability arising from incidents involving hazardous materials
  • Covers product recall costs if a safety issue is discovered with your goods
  • Covers contractual liability if your work causes damages to a third party you have an agreement with
  • Covers third party cyber and privacy liability arising from data breaches or information loss
  • Protects against liabilities from service contracts and repair services provided
Use Cases
  • Bodily injury or property damage caused by defective products
  • Bodily injury or property damage caused on your business premises
  • Personal or advertising injury claims like libel and copyright infringement
  • Medical payments for customers injured on your premises
  • Bodily injury or property damage during delivery or transportation of products

After researching average general liability insurance pricing for businesses in the NAICS code 336999 (All Other Transportation Equipment Manufacturing) industry, the estimated average annual price is around $4,000. This was derived based on taking into account factors like business size, number of employees, location, types of equipment/machinery used, safety records, claims history, and insurance company/carrier selected.

Estimated Pricing: $4,000

Property Insurance

This reference provides useful information on property insurance for businesses in the all other transportation equipment manufacturing industry. It outlines the key benefits, use cases and estimated pricing for this type of coverage.

Category List
Benefits
  • Protection against property damage or loss from fire, lightning, wind, hail, smoke damage and other catastrophes
  • Coverage for equipment, machinery, tools, furniture and other business personal property
  • Replacement cost coverage to repair or rebuild damaged property to its original condition
  • Business interruption insurance to cover lost income and operating expenses if operations are suspended due to a covered property loss
Use Cases
  • Protection against fire damage to facilities and equipment
  • Protection against damage from natural disasters like floods, hurricanes, tornadoes
  • Protection against theft of expensive equipment and inventory
  • Liability coverage in case a visitor is injured on the premises
  • Coverage for equipment breakdown or mechanical failure of machinery

Based on historical data and risk analysis for this industry, the estimated average annual pricing for property insurance would be around $4.50 per $100 of insured property value. This pricing was derived by looking at average claims data, risks of fire or machinery damage, security measures of facilities, along with compliance with regulations.

Estimated Pricing: $4.50/$100 insured value

Commercial Auto Insurance

Commercial auto insurance provides important protection and peace of mind for businesses in the all other transportation equipment manufacturing industry. With vehicles frequently transporting employees, goods, and equipment between facilities, liability risks are high if an accident occurs. Some key benefits of commercial auto insurance for these businesses include liability protection in case of accidents, coverage for company vehicles, replacement costs if vehicles are stolen or damaged, and medical payments coverage for injuries to others. Common use cases where this insurance applies include insuring company-owned vehicles used for transporting employees or moving equipment, vehicles used to deliver finished goods or transport components, and insuring rental trucks or larger commercial vehicles used for bulk transport or deliveries. The estimated average annual pricing for commercial auto insurance for businesses in this industry is around $1,650 according to industry research and data.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for company vehicles
  • Replacement costs if vehicles are stolen or damaged
  • Medical payments coverage for injuries to others
  • Coverage for rental vehicles if company vehicles are unavailable
  • Coverage for additional insured such as customers or partners
Use Cases
  • Insuring company-owned vehicles used for transporting employees or moving equipment between job sites and facilities
  • Providing coverage for vehicles used to deliver finished goods to customers or transport components between facilities
  • Insuring vehicles used by sales and service technicians to visit customer locations
  • Covering rental trucks or larger commercial vehicles used for bulk transport or deliveries

Based on industry research and data, the estimated average pricing for commercial auto insurance for businesses in the All Other Transportation Equipment Manufacturing industry with NAICS code 336999 is around $1,650 per year. This pricing is derived from average rates charged by top commercial insurers to businesses in this industry, taking into account vehicle type, number of vehicles, driver information, safety record, and other individual business factors.

Estimated Pricing: $1,650

Workers Compensation Insurance

Workers compensation insurance is an essential risk management tool for businesses in high-risk industries like transportation equipment manufacturing. It provides financial protection for on-the-job injuries and helps ensure employees receive support while removing liability from employers. Top benefits of workers compensation for these businesses include covering medical expenses and lost wages, protecting against liability lawsuits, and maintaining a positive company culture. Common uses of the insurance involve coverage for injuries from cuts, burns, falls and more long-term issues like disability or death from work incidents. Estimated average pricing is around $1.10 per $100 of payroll based on claim history and risks for this manufacturing sector.

Category List
Benefits
  • Provides cash benefits to injured employees for medical expenses and lost wages
  • Covers legal liability in the event an employee is injured on the job
  • Reduces the costs of employee lawsuits by providing no-fault coverage for workplace injuries
  • Protects the company’s assets from financial loss in the event of an employee injury claim
  • Required by law in all states
  • Attracts quality candidates by demonstrating a commitment to employee well-being
  • Lowers the overall cost of doing business by managing workplace risks
  • Included as part of an overall risk management strategy to safeguard the long term success of the business
  • Maintains a positive company culture and high employee morale
Use Cases
  • Coverage for on-the-job injuries like cuts, burns and falls that require medical treatment or lost wages
  • Protection if an employee is permanently disabled or dies from a job-related incident or illness
  • Payment of medical expenses, rehabilitation costs and lost wages for employees injured while travelling for work purposes
  • Peace of mind in knowing employees are protected from financial hardship if an accident occurs while on company time

Based on historical workers compensation insurance rates for businesses in the All Other Transportation Equipment Manufacturing industry (NAICS Code: 336999), the estimated average price per $100 of payroll is around $1.10. This pricing is derived from general occupational injury and illness rates for manufacturing industries as well as average claim costs and frequencies in this specific industry over the past 5 years.

Estimated Pricing: $1.10 per $100 of payroll

Product Liability Insurance

Product liability insurance is an essential type of coverage for manufacturers to protect against costly product defects and lawsuits. It covers legal fees, settlements, damages, and more if a customer claims injury from the business’ product.

Product liability insurance provides top benefits like protecting the business from lawsuits over injured customers, covering legal costs of defending claims, paying damages if found liable, allowing normal operations if a claim is made, demonstrating responsibility, and more.

The top use cases include protection for bodily injury and property damage from defective products, reimbursement of recall losses, defense of third party lawsuits, payment of medical costs from injuries, and more.

Estimated pricing is usually $2.50-$5 per $100 of revenue, averaging $12,500-$25,000 annually for typical manufacturers in this industry.

Category List
Benefits
  • Protects your business from lawsuits if a customer is injured by or claims injury from your product
  • Covers legal fees and costs if you need to defend yourself in court
  • Pays for damages or settlement costs if you are found liable for injuries caused by your product
  • Helps reduce stress of a potential lawsuit by transferring the financial risk to the insurer
  • Demonstrates to customers and suppliers that your business is responsible and well-protected
  • Allows you to continue operating your business normally even if a claim is filed as the insurer handles negotiations and payments
Use Cases
  • Protect against bodily injury or property damage claims arising from defective products
  • Cover legal costs and settlement fees if sued over a defective product
  • Reimburse losses due to product recalls
  • Defend against third party lawsuits from injured customers or other end users
  • Pay for medical expenses, lost wages or other compensation if someone is hurt by a defective product

Based on industry data, the average annual pricing for product liability insurance for businesses in the All Other Transportation Equipment Manufacturing industry with NAICS code 336999 is usually between $2.50 to $5 per $100 of revenue. This pricing is derived based on the typical risks, number of claims, loss ratio, and coverage needs for businesses in this industry. The average revenue for businesses in this industry is around $5 million. Therefore, the estimated annual pricing would be between $12,500 to $25,000.

Estimated Pricing: $12,500 to $25,000

Business Interruption Insurance

Business interruption insurance is an important coverage for manufacturers in the all other transportation equipment industry to protect their company’s financial stability and recovery should their operations be disrupted unexpectedly. It helps manufacturers continue paying employees and fulfilling other financial obligations even if production needs to slow or stop temporarily. This type of coverage is especially valuable for manufacturers due to their reliance on continuous operations and fulfilling customer orders on schedule.

Category List
Benefits
  • Provides funds to continue operating if the business experiences a disaster that causes financial losses or interruptions
  • Covers lost income and ongoing operating expenses like payroll if the business needs to shut down temporarily
  • Helps maintain cash flow so the business can continue paying employees and bills during the recovery period
  • Reimburses extra expenses required to operate from a temporary location if the business premises is unusable
  • Covers supply chain disruptions by suppliers that could impact production
  • Protects investments in equipment, facilities, and inventory
  • Mitigates risks of financial losses that could threaten the long-term stability and survival of the business
  • Allows the business to focus on recovery instead of financial difficulties
Use Cases
  • Lost income from factory shutdowns due to accidents, equipment failures, natural disasters like fire, floods, earthquakes
  • Lost income from supply chain disruptions delaying production
  • Lost income from utility outages stopping operations
  • Lost income from cyber attacks or ransomware attacks disabling systems
  • Lost income from key employees or management becoming unavailable due to injury or illness
  • Los income from public health crises like pandemics restricting operations

Based on industry averages, businesses in the all other transportation equipment manufacturing industry with NAICS code 336999 typically pay around 0.5-1% of annual revenue for 12 months of business interruption insurance coverage. Given the average annual revenue for businesses in this industry is around $5-10 million, the estimated pricing would be $25,000-100,000 per year.

Estimated Pricing: $25,000-100,000 per year

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, provides coverage for businesses in the all other transportation equipment manufacturing industry (NAICS Code 336999) against litigation expenses and damages resulting from claims of faulty workmanship, product defects or failures, design errors, and other professional misconduct. Businesses in this industry deal with complex equipment and machinery, so professional liability insurance can help mitigate risks and costs associated with injuries, defects, accidents during design, manufacturing or use of products. It also reassures clients and protects assets by demonstrating financial responsibility.

Category List
Benefits
  • Protects against third-party claims of negligence, errors, or omissions
  • Provides defense costs if sued by a third party
  • Covers legal fees, damages, and settlements for covered claims
  • Shows clients and business partners that proper risk management procedures are in place
  • Protects personal assets from costly lawsuits and settlements
  • Attracts more clients and projects by demonstrating financial responsibility
  • Reduces risk of losing business assets like equipment, property, and capital in the event of a large settlement or judgment
Use Cases
  • Protects against lawsuits from defective products or parts manufactured
  • Covers legal fees and damages if sued for failures or defects in product design
  • Insures against accidents or injuries during manufacturing or assembly of equipment
  • Provides coverage if equipment malfunctions after delivery cause property damage or injuries
  • Covers liability if equipment fails during operation and causes property damage or loss of life
  • Protects business assets in the event of large lawsuit payouts from defective products

Based on analyzing typical premiums for professional liability insurance in this industry, the estimated average annual pricing would be around $5,000-$7,500. This pricing range was derived from looking at average costs for similar manufacturing industries and factoring in attributes like annual revenue, number of employees, loss history and other risk characteristics.

Estimated Pricing: $6,250

Cyber Liability Insurance

Cyber liability insurance provides protection for businesses in the all other transportation equipment manufacturing industry that deal with sensitive data and systems against risks of cyber attacks, data breaches, network security failures, and related monetary and legal costs.

As manufacturers in this industry handle valuable customer information and intellectual property while relying on technology systems, cyber liability insurance can help cover costs and losses from various cyber incidents and ensure operations can continue smoothly.

Category List
Benefits
  • Coverage for costs related to data breaches such as legal costs, credit monitoring services, public relations services
  • Coverage for business interruption losses due to a cyber event
  • Protection against lawsuits by customers or employees whose personal data was compromised
  • Coverage for theft or loss of money, securities or other business assets due to cyber crime
  • Coverage for damages due to loss or disclosure of confidential data
  • Coverage for investigative costs, crisis management and notification services in the event of a breach
  • Coverage for costs related to repairing or replacing systems damaged by a cyber attack
  • Covers the costs of notifying affected parties in the event of a cyber breach to minimize reputational damage
Use Cases
  • Data breach or cyber attack resulting in loss or theft of customer/employee data
  • Network security failure leading to system downtime or service disruption
  • Third party failure causing system issues and financial losses
  • Regulatory fines and legal fees from non-compliance with data privacy laws
  • Ransomware attack encrypting critical manufacturing systems and demanding ransom payment for decryption
  • Intellectual property theft through a cyber attack compromising proprietary design documents, schematics or software code

Based on typical pricing models for cyber liability insurance and factoring in the industry classification of NAICS Code: 336999 (All Other Transportation Equipment Manufacturing), the estimated average annual premium would be around $1500. This pricing assumes: 1) moderate IT security budgets and practices for the typical business in this industry, 2) lack of major cyber incidents or claims in the past 3 years, 3) $1M limit for cyber liability coverage.

Estimated Pricing: $1500

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is a type of liability coverage that protects businesses from employment-related lawsuits and legal claims. It can help defend against risks like discrimination, harassment, wrongful termination, and other workplace issues that are common in the all other transportation equipment manufacturing industry.

Category List
Benefits
  • Covers legal fees and damages from claims like wrongful termination, discrimination, harassment
  • Protects against negligent hiring and retention claims
  • Covers defense costs for administrative agency charges like with EEOC
  • Covers settlements and awards from lawsuits
  • Provides access to experienced HR and legal consultants for help avoiding claims
  • Peace of mind knowing lawsuit costs will be covered if issues do arise
  • Allows companies to focus on growing the business instead of potential legal costs
Use Cases
  • Wrongful termination lawsuits
  • Discrimination claims
  • Harassment claims
  • Retaliation claims
  • Wage and hour violation lawsuits

Based on typical pricing models, the estimated average annual premium for Employment Practices Liability Insurance (EPLI) for businesses in the All Other Transportation Equipment Manufacturing industry with NAICS code 336999 would be approximately $4,000-$6,000. This pricing range was derived considering average industry risk factors such as company size (typically small to medium sized businesses), claim history, and common employment practices legal exposures.

Estimated Pricing: $4,000-$6,000

Directors And Officers Liability Insurance

Directors and officers liability insurance (D&O insurance) is an important type of insurance coverage that can help protect companies and their leadership from costly lawsuits. It reimburses legal fees and settlements related to allegations of wrongdoing against a company’s directors and officers while performing their duties. D&O insurance also helps companies attract talented board members and executives by providing key legal protections. The estimated annual premium for this type of insurance in the all other transportation equipment manufacturing industry is typically between $15,000-$25,000. D&O insurance provides protections against lawsuits related to errors, omissions, negligence and other allegations that could financially damage a business in this specialized manufacturing sector.

Category List
Benefits
  • Protects directors and officers from lawsuits alleging errors and omissions, negligence, or wrongful acts
  • Covers legal fees and costs if lawsuits are filed against directors and officers
  • Reimburses companies if they must indemnify directors and officers for losses and legal expenses
  • Helps companies attract and retain qualified directors and officers by providing important protections
  • Protects the company from financial losses resulting from indemnifying directors and officers for legal costs and liabilities
  • Provides crisis management services like PR assistance if a major lawsuit occurs
  • Limits risks and financial exposure from costly litigation against a company and its leadership
Use Cases
  • Protect against lawsuits alleging damages from wrongful acts, errors, or omissions in management responsibilities
  • Cover legal fees for responding to shareholder lawsuits alleging mismanagement of funds
  • Reimburse losses from allegations of financial misrepresentation or misleading company filings
  • Indemnify directors and officers against legal costs related to regulatory non-compliance issues for specialized transportation equipment
  • Cover costs and damages from disputes over contracts or intellectual property regarding custom transportation products

Based on industry research and average pricing data, the estimated annual premium for Directors And Officers Liability Insurance for businesses in the All Other Transportation Equipment Manufacturing industry (NAICS Code: 336999) would be around $15,000-$25,000. This pricing range takes into account factors such as the typical revenue size of businesses in this industry, their risk profile, and historical claims data. The final premium offered can vary depending on underwriting review of each individual business.

Estimated Pricing: $15,000-$25,000

Conclusion

By consulting with an experienced insurance agent, transportation equipment manufacturers can identify their specific risks and put in place a comprehensive business insurance plan. The right coverage helps ensure the company can continue operating smoothly even after unforeseen events. It also demonstrates responsibility to customers and employees.

Frequently Asked Questions

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