Key Takeaways
- General liability insurance protects against lawsuits from injuries on your property or from your products.
- Property insurance covers costs to replace buildings and equipment if damaged.
- Workers’ compensation provides coverage for on-the-job injuries.
- Product liability shields your assets from lawsuits over defective products.
- Commercial auto covers vehicles used for business purposes.
Introduction
As a plastic profile manufacturer, business insurance is essential to protect your company from financial risks. Several key types of coverage can help shield your assets and ensure operations continue smoothly if incidents occur.
General Liability Insurance
General liability insurance provides essential coverage for manufacturing businesses like those in the unlaminated plastics profile shape industry. It protects the business from costly legal claims and lawsuits related to injuries, product defects, accidents and property damage that may occur onsite or involve their products and services.
Some key benefits of general liability insurance for these businesses include protecting against bodily injury and property damage claims from customers, covering legal fees and settlements for product liability claims if a manufactured product causes harm or injury, and providing defense against lawsuits alleging faulty workmanship or improper installation of products. The estimated average annual price for adequate general liability insurance for businesses in this industry is around $6,000.
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Based on industry data and risk factors, the estimated average annual price for general liability insurance for businesses in the unlaminated plastics profile shape manufacturing industry (NAICS 326121) is $5,000-7,000. Pricing depends on factors like annual revenue, number of employees, insurance history, safety practices. For an average company in this industry with $5M annual revenue and 50 employees, general liability insurance would likely be priced around $6,000 annually.
Estimated Pricing: $6,000
Property Insurance
‘Property insurance is an essential risk management tool for unlaminated plastics profile shape manufacturing businesses. It can help protect against financial losses from property damage or liability claims, ensuring the business can continue operating smoothly. Property insurance offers coverage for replacement costs if property is damaged by events like fire, theft or natural disasters. It also covers business interruption expenses to maintain payroll and operations if the property needs repair. Liability protection is another important component for these manufacturers.’
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Based on industry data and averages, the estimated annual pricing for property insurance for businesses in the NAICS 326121 (Unlaminated Plastics Profile Shape Manufacturing) industry would be around $4.50 per $100 of insured property value. This price was derived from analyzing typical property insurance rates for manufacturing businesses based on factors like business size, location, claims history, and risk level associated with the industry.
Estimated Pricing: $4.50 per $100 of insured property value
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protections for both employees and employers in the unlaminated plastics profile shape manufacturing industry. It ensures employees receive support if hurt on the job, covers their medical expenses and lost wages, and prevents businesses from facing expensive lawsuits or fines from job-related injuries. This type of insurance is essential for businesses in this industry due to factors like heavy machinery and chemical exposures that can potentially lead to on-the-job injuries. It also demonstrates a commitment to employee safety and well-being, helping companies attract and retain top talent.
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Based on the average industry risk level and typical payroll amount, the estimated average pricing for workers’ compensation insurance in this industry would be around $2.50 per $100 of payroll. This price was derived from industry risk factors published by the National Council on Compensation Insurance (NCCI) and typical insurance company rate filings. The industry has higher than average risk due to factors like heavy machinery and chemical exposures. Most companies in this industry can expect to pay between $2 and $3 per $100 of payroll.
Estimated Pricing: $2.50/$100 of payroll
Product Liability Insurance
Product liability insurance provides important protection for unlaminated plastics profile shape manufacturers against costly lawsuits stemming from injuries caused by defective products. It can help cover legal fees and settlements from compensation claims in case of injuries, in addition to protecting the business from financial ruin in major lawsuits. This type of insurance also covers costs associated with product recalls due to safety issues or defects. Common claims involve design flaws, inadequate instructions or failure to warn about potential risks. Pricing is estimated at $5,000-$10,000 annually based on factors like sales volume and quality control practices.
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Based on typical pricing guidelines for this type of manufacturing industry, the estimated average annual premium for product liability insurance would be around $5 to $10 per $1,000 of gross receipts, subject to a minimum premium of around $2,000. This pricing is calculated based on risk factors such as the types of plastics and shapes manufactured, quality control processes, claims history if any, and projected gross receipts.
Estimated Pricing: $5,000 to $10,000 annually
Commercial Auto Insurance
Commercial auto insurance provides essential risk management for companies in the unlaminated plastics profile shape manufacturing industry that rely on vehicles to transport materials, products and employees daily. By covering vehicles, liability, medical payments and more, it helps keep operations running smoothly and protects the business financially in the event of incidents while conducting business activities.
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Based on average data from top commercial auto insurance carriers, the estimated annual pricing for commercial auto insurance for a business in the Unlaminated Plastics Profile Shape Manufacturing industry with NAICS code 326121 would be around $3,000-$5,000. This pricing range takes into account factors like number of vehicles, types of vehicles, driver qualifications, insurance history, safety measures, and other business-specific factors. The final pricing would require an insurance quote to determine the actual price.
Estimated Pricing: $3,000-$5,000
Business Interruption Insurance
Business interruption insurance provides an important protection for manufacturing businesses by covering costs and lost income when operations are disrupted due to events like property damage, equipment breakdown, or natural disasters. It helps companies continue operating and avoids layoffs or ceasing operations during periods of disruption by reimbursing extra expenses to resume operations and lost profits until returning to normal levels. Top use cases in the unlaminated plastics profile shape manufacturing industry include losses from fire damage, equipment failures, natural disasters, power outages, and supply chain issues. Estimated annual premiums are $7,500-$10,000 based on 1-3% of average $2.5 million annual revenue in this NAICS 326121 industry.
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Based on typical rates for medium sized manufacturing businesses, business interruption insurance for this industry would be approximately $7,500-$10,000 per year. This pricing was derived based on 1-3% of gross revenue typically being used to calculate annual premiums for this type of insurance, assuming average annual revenue in this industry is around $2.5 million.
Estimated Pricing: $7,500-$10,000
Equipment Breakdown Insurance
Equipment breakdown insurance is an important type of coverage for manufacturing businesses that rely heavily on industrial machinery and equipment to produce their goods. It provides financial protection against unexpected equipment failures or breakdowns that could otherwise severely disrupt operations and cash flow.
The key benefits of equipment breakdown insurance include covering repair and replacement costs from equipment malfunctions, additional expenses from lost business income during breakdowns, costs of professional diagnosis and repairs, damage from power surges and other accidents, rental of temporary replacement equipment, and obsolete equipment upgrades due to advancing technology.
This type of insurance is especially valuable for unlaminated plastics profile shape manufacturers since their production depends on specialized equipment like plastic injection molding machines and extruders. An unexpected failure could result in costly downtime and losses. Coverage can help protect profits and cash flow by paying for repairs, temporary equipment hiring, and lost income during repair periods.
Based on typical industry factors, the estimated average annual premium for adequate equipment breakdown insurance for this industry is around $5,000. However, exact quotes may vary based on individual business risk profiles and underwriting considerations.
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Based on industry data and typical insurance pricing models, the estimated average annual premium for equipment breakdown insurance for businesses in the unlaminated plastics profile shape manufacturing industry (NAICS 326121) would be around $5,000. This price was derived by taking into account factors such as total insurable values of equipment, number of production lines, age of facilities, loss history, and risk management practices. Premiums may vary higher or lower depending on the specific risk profile and underwriting of each business.
Estimated Pricing: $5,000
Conclusion
Proper insurance planning is vital for plastic profile manufacturers. The top policies provide critical protections for your business, employees, customers and financial stability. Consult with an agent to determine the right coverage levels needed for your specific operations.