Key Takeaways
- General liability insurance protects against lawsuits from injuries on premises or defective products
- Property insurance covers costs to repair or replace buildings and equipment damaged by covered risks
- Business interruption insurance pays lost income if operations are disrupted by covered events
- Product liability insurance defends and pays legal costs if faulty products cause injury or property damage
- Workers’ compensation covers employee medical costs and lost wages from work injuries
- Commercial auto insures company vehicles and protects liability when used for business
- Cyber liability covers costs of responding to cyber attacks and data breaches
- Directors & officers protects personal assets of executives from lawsuits related to corporate decisions
- Employment practices liability defends costs of wrongful termination, discrimination, and other workplace claims
Introduction
Plumbing fixture fitting and trim manufacturers face various risks in their manufacturing operations and distribution activities. To protect the financial health and stability of the business, there are key insurance policies this industry should consider purchasing. These include policies like general liability, property, business interruption, product liability, auto, workers’ compensation, cyber liability, directors & officers, and employment practices liability insurance.
General Liability Insurance
General liability insurance protects plumbing fixture manufacturers against risks inherent in their manufacturing operations, such as product defects, workplace accidents, and incidents involving independent contractors. It reimburses the costs of defending against liability lawsuits and pays for damages if found legally responsible. The estimated annual cost for general liability insurance for plumbing fixture manufacturers is $5,000-$7,000.
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Based on industry analysis and averages, the estimated annual pricing for general liability insurance for a business in the Plumbing Fixture Fitting and Trim Manufacturing industry with NAICS code 332913 is around $5,000 – $7,000 per year. This pricing range was derived from national industry data that shows manufacturing businesses with up to 100 employees and $10M in annual revenue typically pay between $5-7 per $100 of payroll for their general liability insurance policies each year.
Estimated Pricing: $5,000 – $7,000
Property Insurance
Property insurance provides important protection for manufacturing businesses like those in the plumbing fixture fitting and trim industry. It covers replacement costs for buildings, equipment and other property against risks like fire, water damage, theft or equipment breakdown. This ensures the business can continue operating without interruption and get back up and running as soon as possible after a loss. The reference also discusses the top benefits of property insurance like liability protection, business interruption coverage, and valuable records protection. Estimated annual pricing for a typical business in this industry with $5 million in insured property is also provided at around $60,000.
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Based on data from industry reports, the average annual property insurance cost for businesses in NAICS 332913 industry is around $12 per $100 of property value insured. For a typical business in this industry with $5 million in property value, the estimated annual property insurance pricing would be $12 * $5,000,000 / $100 = $60,000.
Estimated Pricing: $60,000
Business Interruption Insurance
Business interruption insurance is a crucial policy for manufacturing businesses like plumbing fixture fitting and trim companies. It helps protect their income and cash flow if operations are unexpectedly interrupted due to accidents, disasters or other events outside of their control. This type of coverage reimburses lost profits, pays additional costs incurred to continue business elsewhere, and helps fulfill customer contracts during recovery. Common scenarios it covers include fires, equipment failures, supply disruptions, utility outages, labor issues and natural disasters. Estimated annual premiums for a mid-sized business in this industry are about 1% of average annual revenues or $500,000 for a company with $50 million in revenues.
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Based on typical business interruption insurance rates and factors like revenue, inventory levels, fixed costs and contribution profit margins, the estimated average annual premium for businesses in this industry would be around 1% of annual revenues. For a mid-sized business in this industry with $50 million in average annual revenues, the estimated annual premium would be $500,000.
Estimated Pricing: $500,000
Product Liability Insurance
Product liability insurance is crucial for plumbing fixture fitting and trim manufacturers to protect their business from costly lawsuits and maintain customer confidence if a defective product causes injury or property damage. It covers medical expenses, lost wages, legal defense costs, and other expenses for injured parties. Manufacturers in this industry face risks if their products have defects that could cause harm, so liability coverage helps mitigate financial losses from incidents. It also provides peace of mind against future claims and signals to the market that the business is financially responsible.
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Based on average rates from major insurance carriers for this industry, the estimated annual pricing for product liability insurance would be around $1.50 per $100 of gross receipts, with a minimum premium of around $5,000. Rates can vary depending on factors like loss history, risk management practices, and types of products manufactured.
Estimated Pricing: $1.50/$100 of gross receipts, minimum $5,000
Workers’ Compensation Insurance
Workers’ compensation insurance is an important coverage for businesses in industries like plumbing fixture fitting and trim manufacturing that involve production and machinery operating risks. It provides financial protection if employees are injured on the job through medical expenses and lost wages while also shielding the business from costly lawsuits.
Some key hazards in this industry include operating heavy machinery, lifting heavy objects, risk of cuts and lacerations from sharp tools, and noise-induced hearing loss from loud equipment. The average estimated cost for workers’ comp insurance is around $2.30 per $100 of payroll based on industry risks and loss data. Workers’ comp helps boost employee morale and retention by providing care for injuries sustained on the job.
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Based on national average rates for the plumbing fixture fitting and trim manufacturing industry (NAICS 332913), the estimated average pricing for workers’ compensation insurance would be around $2.30 per $100 of payroll. This rate is derived from loss data and industry risk factors compiled by the National Council on Compensation Insurance (NCCI). Hazards in this industry include operating machinery and working with heavy materials.
Estimated Pricing: $2.30/100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an important coverage for plumbing fixture fitting and trim manufacturing businesses. It provides protection for company vehicles used to transport materials and finished goods, cover liability from accidents, and protects employees who drive for business. It also insures risks associated with operating vehicles for business purposes like sales calls, repairs, or transporting goods, as well as estimates the average annual premium is around $3,000 based on business size and vehicle usage.
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Based on analyzing average rates for similar businesses, the estimated average annual premium for commercial auto insurance for a business in the plumbing fixture fitting and trim manufacturing industry with NAICS code 332913 is around $3,000. This was derived by looking at average rates for light-to-medium industrial businesses with commercial vehicles (vans, pickup trucks) that are used mainly for transporting employees and making deliveries/pickups to customers locally. Factors like business size, number of vehicles, driver qualifications also impact pricing.
Estimated Pricing: $3,000
Cyber Liability Insurance
“Cyber liability insurance offers crucial protection for plumbing fixture fitting and trim manufacturers by covering costs and losses from incidents like data breaches, cyber attacks, network outages, and privacy violations. Some key benefits include:”
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Based on analysis of insurance rates for similar manufacturing industries and businesses of similar sizes, the estimated average annual pricing for a cyber liability insurance policy would be around $5,000. This pricing was derived considering typical policy limits of $1 million and a $25,000 deductible. The plumbing fixture fitting and trim manufacturing industry deals with machinery and equipment that could be susceptible to cyber attacks or data breaches. However, the risk level and impact is not as high as many other industries that store sensitive customer data.
Estimated Pricing: $5,000
Directors And Officers Insurance
Directors and officers insurance, also known as D&O insurance, provides important liability protection for directors and officers of businesses, especially those operating in high-risk industries like plumbing fixture manufacturing. It protects personal assets from lawsuits related to corporate decisions and actions. D&O insurance also covers legal defense costs, settlements and judgments resulting from claims against directors and officers. It helps attract qualified executives and gives peace of mind facing various legal and compliance risks involved with manufacturing processes. Typical annual premiums for D&O insurance in the plumbing fixture manufacturing industry range from $5,000 to $10,000.
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Based on typical market rates, the average annual premium for Directors And Officers Insurance for businesses in NAICS 332913 (Plumbing Fixture Fitting and Trim Manufacturing) is around $5,000 – $10,000. Premiums are often calculated based on factors like annual revenue, number of employees, claims history, and risk level of the industry. Given that plumbing fixture manufacturing involves some machinery and is generally of moderate risk, pricing tends to be on the lower end of the spectrum for manufacturers’ liability insurance.
Estimated Pricing: $5,000 – $10,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important protection for businesses in the plumbing fixture fitting and trim manufacturing industry. EPLI helps protect against costly lawsuits and legal fees that can arise from issues like wrongful termination, discrimination, harassment, and wage/hour disputes.
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Based on the average risks and claims experience for businesses in the Plumbing Fixture Fitting and Trim Manufacturing industry, the estimated annual pricing for Employment Practices Liability Insurance would be around $2,500-$5,000. Premiums are usually calculated based on factors like the number of employees, annual payroll, loss history, and types of benefits offered. Having strong HR processes and policies in place can help lower premium costs.
Estimated Pricing: $2,500-$5,000
Conclusion
Having the appropriate insurance coverage in place can help plumbing fixture manufacturers avoid devastating financial losses if property is damaged, manufacturing operations are disrupted, defective products lead to injuries, vehicles are involved in accidents, cybercrimes occur, or lawsuits arise. Each type of insurance discussed plays an important role in managing risks unique to this manufacturing industry.