Key Takeaways
- General liability insurance protects against costs of lawsuits and claims from injuries or property damage
- Property insurance reimburses costs of property repairs, replacements and lost income from disruptions
- Workers’ compensation covers medical costs and lost wages for employees injured on the job
- Commercial auto insurance provides liability protection and physical damage coverage for fleet vehicles
- Business interruption insurance covers lost revenue and expenses during operations disruptions
- Cyber liability insurance covers costs of data breaches, cyber attacks and privacy violations
- Commercial umbrella insurance provides additional liability protection above primary limits
Introduction
Businesses in the metal and mineral merchant wholesalers industry with NAICS Code 4235 deal with inherent risks associated with transporting and handling heavy materials. Various types of insurance are needed to protect the business operations, property, employees and revenue streams against losses.
General Liability Insurance
General liability insurance is an important policy for businesses in the metal and mineral merchant wholesaler industry. It provides protection from liability claims and lawsuits that could significantly hurt the finances and operations of the business.
Some key benefits of general liability insurance for these businesses include covering costs of negligence claims, third-party property damage, defending against lawsuits, satisfying vendor/customer requirements, and separating business from personal liability. It also insures common risks like product storage/handling, loading/unloading shipments, and security/theft issues.
Common uses of general liability insurance for metal/mineral wholesalers include coverage for injuries to customers, product liability, loading/unloading damage, errors/omissions advice, pollution/environmental damage, off-site operations, and contractual obligations.
The estimated annual premium for $1M/$2M general liability coverage is typically $2,000-$4,000 depending on factors like revenue, employees, risk controls, and claims history. For a wholesaler with $10M revenue, 30 employees, good practices, and no recent claims, the estimated premium would be $3,000.
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Based on historical pricing data for general liability insurance, metal and mineral (except petroleum) merchant wholesalers typically pay between $2,000 to $4,000 per year for $1M/$2M general liability coverage. Premiums are influenced by factors like annual revenue, number of employees, quality of risk management practices, claims history, and liability exposure. For a wholesaler in this industry with $10M in annual revenue, 30 employees, no recent claims, and average risk controls, an estimated annual premium would be $3,000.
Estimated Pricing: $3,000
Property Insurance
This reference provides an overview of top benefits, use cases and estimated pricing of property insurance for businesses in the metal and mineral (except petroleum) merchant wholesalers industry with NAICS code 4235. It explains how property insurance offers financial protection against property damages and losses from events like fires, storms or other disasters. It also covers costs of property repairs, replacements, lost income during business interruptions and expenses if operations are disrupted. The use cases highlight key risks for this industry like fire damages, water damages, theft, vandalism, weather events and how insurance protects against them. The estimated average annual pricing of $15,000 for property insurance is also provided based on industry research and average property values and risks for this industry.
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Based on industry research and analysis of average property values and risks for businesses in NAICS Code 4235, the estimated average annual pricing for property insurance would be around $15,000. This price was derived from taking the national average property values for wholesale operations of this type (usually $5-10M range) and applying typical industry rates of 0.15-0.25% of insured values.
Estimated Pricing: $15,000
Business Interruption Insurance
Business interruption insurance provides coverage to protect businesses from income losses and additional costs that occur when business operations are unexpectedly interrupted or suspended due to an insured property loss or damage. It can help businesses in the metals and minerals industry stabilize cash flows and maintain business continuity when faced with disruptive events.
Business interruption insurance is especially important for businesses in the metal and mineral wholesale industry as their facilities and operations could be impacted by hazards inherent to production such as machinery breakdowns or supply chain disruptions. This coverage helps ensure they have funds to sustain payroll, taxes and loan payments during downtime to restart operations promptly after an incident. It also protects a company’s reputation and customer relationships by allowing continuous service even during recovery from insured incidents.
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Based on industry averages, businesses in the Metal and Mineral (except Petroleum) Merchant Wholesalers industry typically pay between 1-2% of their annual revenues for Business Interruption Insurance. Assuming an average annual revenue of $5 million for businesses in this industry, the estimated price would be $50,000-$100,000 per year.
Estimated Pricing: $50,000-$100,000
Cyber Liability Insurance
Cyber liability insurance provides important financial protections for businesses in the metal and mineral merchant wholesaler industry against growing risks from data breaches, hacking incidents, network disruptions and privacy regulations. It covers costs associated with responding to cyber attacks, privacy violations, system repair/downtime and legal liabilities. Some key benefits of cyber liability insurance for these businesses include covering expenses related to notifying individuals of breaches, investigating incidents, legal/compliance costs, fines/penalties, lost income from interruptions and damage to systems. Common threats it addresses are cyber theft, ransomware, network outages and third party claims. The estimated average annual premium for $1 million in coverage is around $4,000 based on industry risk factors.
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Based on the industry profile and typical risks, the average annual premium for a $1M cyber liability insurance policy for businesses in the Metal and Mineral (except Petroleum) Merchant Wholesalers with NAICS Code: 4235 Industry is estimated to be around $4,000. This estimate was derived from considering factors such as the average revenue size of businesses in this industry, common cybersecurity practices, vulnerability to data breaches and ransomware attacks, litigation and compliance risks.
Estimated Pricing: $4,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides important financial protection and peace of mind for businesses in the metal and mineral wholesale industry. Injuries can easily occur in warehouses and distribution centers due to heavy lifting, operating machinery, and other hazards. Workers’ comp helps ensure employees receive timely medical care without impacting the company’s bottom line.
Workers’ compensation insurance is especially important for businesses in the metal and mineral wholesaling industry given the nature of the work involves operating heavy machinery, lifting heavy loads, working with hazardous materials, and other potentially dangerous tasks. It ensures employees are taken care of if an accident occurs and protects the business from costly legal fees and settlements if sued by an injured worker.
Based on national industry data, the average workers’ compensation insurance rate for businesses in the Metal and Mineral (except Petroleum) Merchant Wholesalers industry is approximately $1.25 per $100 of payroll. This rate was calculated using industry-specific loss data and takes into account factors like company size, safety programs, claims history, and job roles. The rate may be higher or lower depending on a specific company’s risk profile and loss experience.
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Based on national industry data, the average workers’ compensation insurance rate for businesses in the Metal and Mineral (except Petroleum) Merchant Wholesalers industry is approximately $1.25 per $100 of payroll. This rate was calculated using industry-specific loss data and takes into account factors like company size, safety programs, claims history, and job roles. The rate may be higher or lower depending on a specific company’s risk profile and loss experience.
Estimated Pricing: $1.25 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance offers essential protection for businesses in the metal and mineral wholesaling industry that rely on vehicles to transport heavy and valuable materials between suppliers and customers. It provides liability coverage to protect from financial losses in the event of accidents while goods are being transported. In addition to liability coverage, it also offers physical damage coverage for fleet vehicles, medical payments coverage for injuries, uninsured/underinsured motorist coverage, cargo coverage, and replacement cost coverage for new vehicles. Common use cases where these coverages apply include liability for commercial vehicles used to transport goods, collision coverage for fleet vehicles involved in transporting material, comprehensive coverage for company-owned vehicles used by employees, and medical payments coverage for injuries to passengers in company vehicles. Estimated average annual pricing for commercial auto insurance for a business in this industry with 5 vehicles is around $7,500 based on factors like industry risk level, number of vehicles, driver histories, coverages, and deductibles.
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Based on industry data and average risks, the estimated annual pricing for commercial auto insurance for a business in the Metal and Mineral (except Petroleum) Merchant Wholesalers industry with 5 vehicles would be around $7,500. This estimate was derived by taking into account factors such as industry risk level, number of vehicles, driver histories, coverages, and deductibles.
Estimated Pricing: $7,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides an additional layer of liability protection above standard business insurance for companies in the metal and mineral merchant wholesaler industry. It protects these businesses from expensive lawsuits by covering costs that exceed primary policy limits. Umbrella insurance also helps protect businesses’ assets from financial loss in cases where liability claims are major. Commercial umbrella insurance typically costs around $1,500 for companies in this industry.
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Based on industry data, the average pricing for a commercial umbrella insurance policy for businesses in the Metal and Mineral (except Petroleum) Merchant Wholesalers industry with NAICS Code 4235 is $1,500. This pricing was derived based on considering average sales volumes, number of employees, loss history, and other risk factors for businesses in this industry.
Estimated Pricing: $1,500
Conclusion
Choosing the right business insurance package is important for companies in the metal and mineral wholesaling industry to manage risks and stay financially protected. The insurance needs summarized in this article help ensure business continuity and resilience against disruptions that could impact revenue and liabilities.