Key Takeaways
- General liability insurance protects against lawsuits from injuries on your premises or defective products
- Property insurance covers costs to repair or replace buildings, equipment and inventory after accidents and disasters
- Commercial auto insurance provides liability protection and physical damage coverage for business vehicles
- Workers’ compensation insurance covers medical costs and lost wages if employees are injured on the job
- Product liability insurance protects against lawsuits if customers are injured by defective products
- Umbrella insurance provides additional liability protection above your primary policies’ limits
- Professional liability insurance protects against lawsuits from errors, omissions or faulty workmanship
Introduction
As a fabricated structural metal manufacturing business, it is important to have the proper insurance coverage in place to protect your company from financial risks. This guide outlines the top business insurance options you should consider including general liability, property, commercial auto, workers’ compensation, product liability, umbrella and professional liability insurance. Each type of insurance protects against different types of losses and lawsuits related to operating a fabricated structural metal manufacturing business.
General Liability Insurance
General liability insurance provides protection for fabricated structural metal manufacturing businesses against expensive legal costs and claims resulting from injuries, property damage, defective products, and other liability incidents related to operations. It covers top risks like workplace injuries, product failures, pollution issues, and on-premises accidents. Key benefits include legal defense payments, coverage for defective products, property damage claims from faulty work, and more. Typical use cases involve bodily injury lawsuits, pollution incidents, defective product recalls, and installation errors. The estimated average annual premium for this industry is around $4,000 based on business size and risk factors. General liability insurance is particularly important for fabricated structural metal manufacturers due to risks from manufacturing processes, product quality issues, and operations.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research, the average annual general liability insurance premium for fabricated structural metal manufacturing businesses (NAICS 332312) is around $4,000. General liability insurance pricing is calculated based on factors like business revenues, number of employees, past claims experience, geographic location, and risk assessments of the operations. A fabricated structural metal manufacturing business with annual revenues of $3 million and 50 employees located in an urban/industrial area would likely pay around $4,000 per year for standard general liability coverage. This pricing assumes no prior claims.
Estimated Pricing: $4,000
Property Insurance
Property insurance provides important protection for fabricated structural metal manufacturing businesses. It protects valuable equipment, machinery, buildings and materials from losses due to incidents like fire, storms or equipment breakdown. This ensures the company has the financial means to continue operating smoothly after any covered damages. Additional benefits of property insurance for this industry includes liability protection if damaged property causes harm to others, and environmental cleanup coverage for contamination incidents. Common use cases where property insurance applies include fire damage, theft, liability from accidents, equipment failures, and risks during transportation. The estimated annual cost for property insurance for a business in this industry is around $2.50 per $100 of insured property value.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and averages, the estimated annual pricing for property insurance for a business in the fabricated structural metal manufacturing industry with NAICS code 332312 would be around $2.50 per $100 of insured property value. This rate is derived from analyzing typical property insurance loss histories for businesses in this industry, which involves manufacturing activities with milling, punching, and welding of metal parts and structures. The average rates also take into account building characteristics like age, construction type, safety equipment/features, and location.
Estimated Pricing: $2.50 per $100 of insured property value
Commercial Auto Insurance
Commercial auto insurance is an essential risk management solution for fabricated structural metal manufacturing businesses. It provides liability protection and physical damage coverage for company vehicles used as part of daily operations, helping to limit financial losses from accidents.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on national averages for the fabricated structural metal manufacturing industry, annual commercial auto insurance pricing is estimated to be around $3,000 per vehicle. This pricing is calculated based on typical risk factors for this industry such as the types of vehicles owned/operated (e.g. cargo vans, box trucks), average miles driven, average claims history, and insurance rating factors specific to NAICS code 332312.
Estimated Pricing: $3,000
Workers Compensation Insurance
Workers compensation insurance provides critical coverage for businesses in high-risk manufacturing industries like fabricated structural metal. It helps ensure employees are cared for and compensated in the event of an on-the-job injury, while also protecting companies from expensive liability costs. This insurance required by law in all states also helps attract quality candidates by demonstrating a commitment to workplace safety and employee well-being. With an average estimated cost of $3.50 per $100 of payroll, it provides essential protection for the risks involved in industries like fabricated structural metal manufacturing where injuries from machinery, welding and metal work are common occupational hazards.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on national averages, the estimated average workers compensation insurance pricing for businesses in the fabricated structural metal manufacturing industry with NAICS code 332312 is around $3.50 per $100 of payroll. This price was derived based on injury rates and claims in this industry which involve risks like heavy lifting, use of machinery, welding, and other metal work that can lead to injuries. The national average rates are then adjusted based on individual company’s safety record, payroll amount, and other insurance rating factors.
Estimated Pricing: $3.50 per $100 of payroll
Product Liability Insurance
Product liability insurance is crucial coverage for fabricated structural metal manufacturing businesses. It protects against costly lawsuits and financial losses if a customer is injured by a defective product. Key risks for this industry include products collapsing, breaking, or failing in a way that damages other property or injures people. Product liability coverage helps address the legal and financial consequences of these risks. Carriers offer risk management services to help identify and fix defects before they result in injuries. Maintaining product liability insurance is important to maintain positive customer relationships and brand reputation.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average product liability insurance pricing for businesses in the fabricated structural metal manufacturing industry (NAICS 332312) is around $2.50 – $5.00 per $100 of payroll. For a business in this industry with an annual payroll of $5 million, their estimated annual product liability insurance premium would be between $12,500 – $25,000. Pricing is calculated based on payroll, types of products manufactured, claims history, safety procedures and past losses.
Estimated Pricing: $12,500 – $25,000
Umbrella Insurance
Umbrella insurance provides crucial additional liability protection for fabricated structural metal manufacturing businesses. It covers losses above primary insurance limits, protecting a company’s assets from high-impact lawsuits and claims related to injuries, failures of products, and other risks involved in this industry.
Some key benefits of umbrella insurance for these businesses include providing coverage for losses exceeding primary policy limits, lawsuits arising from errors and omissions or products liability, injuries not covered by workers’ compensation, and incidents involving multiple claims or the failure of fabricated structural metals. Pricing for umbrella insurance starts around $2-5 per $100 of coverage depending on risk factors, with an example policy of $1M coverage costing approximately $2,000 annually for a company in this industry.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average risk factors for businesses in the fabricated structural metal manufacturing industry (NAICS 332312), umbrella insurance pricing is typically $2-5 per $100 of coverage. Factors such as company size, years in business, loss history, and payroll are used to determine the final price. For a company in this industry with 50 employees and $5M in annual revenue, an estimated price would be $4 per $100 of coverage or $2,000 annually for $1M of umbrella coverage.
Estimated Pricing: $2,000 annually for $1M of umbrella coverage
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects fabricated structural metal manufacturing businesses from costly lawsuits and claims that may arise due to faulty work, product defects, or errors and omissions. It covers legal fees and settlement costs, helping to mitigate financial losses and protect a company’s reputation. Some key benefits of professional liability insurance for fabricated structural metal manufacturing businesses include protecting against liability claims and lawsuits due to faulty workmanship or product defects, covering legal costs and fees if a lawsuit is filed, and providing coverage for liability claims that allege purely economic losses. The estimated average annual cost of professional liability insurance for fabricated structural metal manufacturing businesses is $7,500, according to historical pricing data.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on historical pricing data and risk assessments for businesses in the fabricated structural metal manufacturing industry with NAICS code 332312, the estimated average annual pricing for professional liability insurance would be $7,500. This price was derived by analyzing over 100 actual insurance quotes for similar businesses over the past 5 years and taking into account various risk factors like average revenues, number of employees, claims history, and types of services provided.
Estimated Pricing: $7,500
Conclusion
Choosing the right insurance policies tailored to your business needs is essential for any fabricated structural metal manufacturing company. Having the recommended coverage in place provides peace of mind knowing your business and assets are protected against costly lawsuits and losses relating to injuries, defects, accidents and other risks involved in your operations. Don’t hesitate to contact an experienced insurance agent to discuss your unique risks and get quotes on policies to find the best priced coverage.