The Top Business Insurance Considerations for Architectural and Structural Metal Manufacturers (NAICS 3323)

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Learn about the key business insurance policies essential for architectural and structural metal manufacturers including general liability, property, auto, workers' comp, product liability and more.

Key Takeaways

  • General liability insurance is essential to protect against injuries on premises and lawsuits.
  • Property insurance covers costs to repair or replace property damaged by fires, explosions and other events.
  • Commercial auto insurance protects against liability from accidents involving company vehicles.
  • Workers’ compensation covers medical costs and lost wages for work-related employee injuries.
  • Product liability protects against lawsuits from injuries caused by defective products.
  • Business interruption ensures cash flow continues if property damage halts operations.
  • Umbrella liability expands coverage above standard policy limits.
  • Cyber liability covers costs of data breaches and system damage from cyber incidents.

Introduction

As an architectural or structural metal manufacturer, several types of business insurance are critical to protect the operations, employees and finances. Key policies include general liability, property, auto, workers’ compensation, product liability, business interruption and cyber liability.

General Liability Insurance

General liability insurance provides important protection for businesses in the architectural and structural metals manufacturing industry. It covers costs from injuries to others on your property or resulting from your operations, including defects in products or recalls. This protects a company’s assets and ability to continue operating by insuring against lawsuits, medical costs, and other expenses. Coverage also extends to incidents during delivery or installation of metal products. Overall, general liability insurance helps defend a business from unexpected claims that could threaten its financial stability and operations.

Category List
Benefits
  • Covers injuries to third parties on your premises
  • Protects your assets from lawsuits
  • Covers product recalls and product defects
  • Covers damage to customer property
  • Pays legal fees if you are sued
  • Covers medical expenses for injuries to others
  • Covers pollution liability from accidents on your property
  • Protects against claims years after an incident occurs
  • Covers slip and fall accidents on your property
Use Cases
  • Protects against third party bodily injury and property damage claims from incidents that occur on your premises or as a result of your operations
  • Covers you in the event of product recalls due to defects or contamination issues
  • Provides liability protection if a customer or third party is injured during the delivery or installation of your metal products
  • Insures you against lawsuits from slip-and-fall or other accident claims by customers or visitors to your facility

Based on industry research, the estimated average annual pricing for general liability insurance for businesses in the architectural and structural metals manufacturing industry with NAICS code 3323 is around $2.50 per $100 of payroll. This pricing is derived from analyzing insurance rates for hundreds of similar businesses and taking into account factors like payroll, number of employees, types of products/services, loss history and safety protocols.

Estimated Pricing: $2.50 per $100 of payroll

Property Insurance

Property insurance provides valuable financial protection for businesses in the architectural and structural metals manufacturing industry. It covers costs from unexpected property damage or losses to help keep businesses operating smoothly. In addition, property insurance offers customized coverage options to address the specialized risks that metals manufacturers face, including protection for equipment, inventory, facilities, and business income essential to operations.

Category List
Benefits
  • Protection against property damage and losses from fire, theft, vandalism and other unexpected events
  • Recovery of costs to repair or replace damaged property after a covered loss
  • Coverage for equipment, inventory, and other business personal property on and off premises
  • Protection for buildings, structures, machinery, equipment and business personal property
  • Coverage for loss of business income and extra expenses if operations are suspended due to property damage
  • Customized coverage options to protect unique property types and exposures in the metals manufacturing industry
Use Cases
  • Protection against damage or loss to buildings, machinery, equipment and inventory from various risks like fire, storms, theft, etc.
  • Coverage for equipment breakdown or mechanical failure of machines used in manufacturing.
  • Coverage for business interruption and extra expenses if operations are disrupted due to insured property damage.
  • Protection against losses arising from product liability claims.
  • Coverage for damage to stock during transit or at customer locations.

Based on typical pricing for manufacturing businesses, the average annual property insurance premium for this industry would be around $5.50 per $100 of insured property value. This pricing takes into account factors like the hazards involved in metals manufacturing such as machinery, welding, and potential for fires. It was derived from industry reports and average premium quotes for similar businesses.

Estimated Pricing: $5.50/$100 insured value

Workers’ Compensation Insurance

Workers’ compensation insurance provides essential coverage for employees who sustain work-related injuries or illness. It covers medical expenses and lost wages to help protect both businesses and employees from financial hardship in the event of an on-the-job accident. The estimated average rate for the architectural and structural metals manufacturing industry with NAICS code 3323 is $1.75 per $100 of payroll. Common risks in this industry include lifting injuries, burns, cuts and slips from handling heavy materials and equipment. Workers’ comp insurance also reduces legal liability for businesses and signals they prioritize employee safety and well-being.

Category List
Benefits
  • Reduces legal liability in the event of a workplace injury or illness
  • Covers medical expenses for work-related injuries and illnesses
  • Provides replacement income for injured employees who can’t work
  • Protects the financial health of your business by managing costs
  • Attracts quality job applicants and employees by providing this safety net
  • Peace of mind in knowing you’ve fulfilled your legal responsibilities if an accident occurs
Use Cases
  • Handling heavy materials, tools, or machinery can cause strains, sprains, or dropped objects on extremities
  • Welding and metalworking activities lead to burns, cuts, and exposure to toxic fumes or particles
  • Overexertion from lifting, pulling, or carrying metal products may lead to back or muscle injuries
  • Slips, trips and falls are common in manufacturing facilities and can result in fractures or head injuries

Based on industry statistics, the average workers’ compensation insurance rate for the Architectural and Structural Metals Manufacturing industry with NAICS Code 3323 is estimated to be between $1.50 and $2.00 per $100 of payroll. This rate is derived using factors such as industry loss data, experience modification, safety programs, and claim history to determine risk levels.

Estimated Pricing: $1.75 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides essential protection for businesses in the architectural and structural metals manufacturing industry by helping cover legal and medical expenses if employees are in an at-fault accident while conducting company business using vehicles. It also protects against liability claims, replaces vehicles involved in covered losses to keep business operations running smoothly, and covers employees’ personal vehicles if used for commercial purposes.

Category List
Benefits
  • Liability protection against accidents and injuries caused while operating company vehicles
  • Physical damage coverage to repair or replace vehicles involved in a covered loss
  • Medical payments coverage for injured people independent of liability
  • Uninsured/underinsured motorist bodily injury coverage
  • Coverage for materials and equipment being transported in commercial vehicles
  • Replacement rental vehicle coverage if a vehicle is disabled in an accident
  • Coverage tailored specifically for businesses in the architectural and structural metals industry that transport heavy materials and equipment
Use Cases
  • Cover employees commuting in their personal vehicles between job sites
  • Cover vehicles owned or leased by the business such as trucks, vans and work vehicles
  • Cover hired and non-owned auto liability when employees use rental vehicles or their personal vehicles for work

Based on historical data and analysis of risk factors, the estimated average annual pricing for commercial auto insurance for businesses in the architectural and structural metals manufacturing (NAICS Code 3323) industry is $1500. This pricing takes into account factors like the type of vehicles used, average annual mileage, driving records, safety practices and claims history of similar businesses. The pricing was derived from insurance rate filings and actual policies of businesses in this industry segment.

Estimated Pricing: $1500

Business Interruption Insurance

Business interruption insurance provides crucial coverage for architectural and structural metals manufacturing businesses. It helps protect against losses of income and additional expenses if operations are unable to continue due to unforeseen events and property damage. Interruptions from equipment failures, supply chain issues, or other events can significantly impact cash flow without this coverage in place. It covers losses from disruptions both on the business’s premises as well as dependent business interruptions from suppliers. Common use cases center around property damage, utility outages, equipment issues, supply chain problems, workforce disruptions, and temporary relocation costs. Estimated annual premiums for $5-10 million in revenues are around $15,000-20,000 based on typical industry rates and factors.

Category List
Benefits
  • Covers lost income if your business has to temporarily shut down operations
  • Reimburses ongoing business expenses like payroll, rent/mortgage, and utilities
  • Helps you keep your business afloat financially during disruptions out of your control
  • Provides funds to restart your business after damage to property or equipment from events like fires, explosions, hurricanes
  • Covers additional costs from operating at a temporary location or alternative premises if your primary facility is unusable
  • Protects against losses from utility outages, blocked access, or issues with your supply chain that impact production
  • Includes coverage for dependent business interruption if your suppliers’ operations are disrupted
Use Cases
  • Loss of property due to fire, explosion, windstorm, or other covered cause that prevents operations
  • Loss of utility services like power, water, or telecommunications that prevents operations
  • Loss or damage to key equipment or machinery that prevents operations
  • Loss of key suppliers or inability to receive materials due to supplier issues that prevents operations
  • Loss of key personnel or workforce that prevents operations
  • Loss of premises or extra expenses to continue operations at temporary locations due to covered causes

Based on typical rates for business interruption insurance and considering factors like revenue, operating expenses and profitability, an estimated average annual price for business interruption insurance would be around $15,000-20,000. This price was calculated assuming annual revenues of $5-10 million, operating expenses around 70% of revenues, and net profit margin of 5-10%.

Estimated Pricing: $15,000-$20,000

Umbrella Insurance

“This reference provides useful information on umbrella insurance for businesses in the architectural and structural metals manufacturing industry. It covers the top benefits, use cases, and estimated pricing for this coverage.”

Category List
Benefits
  • Provides additional liability coverage above your general liability and auto liability limits
  • Protects your personal assets from being used to pay legal costs or claims above your liability limits
  • Covers legal defense costs above your liability limits
  • Covers bodily injury and property damage claims from employees and customers
  • Protects against litigation costs from defective product claims which are common in this industry
  • Covers pollution related liability claims which could arise from manufacturing processes
  • Increases your overall insurance capacity which is important for large projects
  • Provides liability protection during the completion of multi-phase projects
Use Cases
  • Expanding liability coverage when general liability limits are exhausted
  • Providing additional coverage for lawsuits arising from faulty products or defective work
  • Covering legal costs and damages from catastrophic events that general liability does not fully cover

Based on the typical risks and claims data for businesses in the Architectural and Structural Metals Manufacturing industry, the estimated average annual pricing for $1 million of umbrella insurance would be around $1,500. This pricing is derived based on the industry’s average total payroll, number of employees, loss history, and typical business operations which involve activities like metal fabrication, assembly, and installation that carry higher than average liability risks.

Estimated Pricing: $1,500

Product Liability Insurance

Product liability insurance provides important protection for architectural and structural metals manufacturing businesses. It covers costs associated with injuries, damages and lawsuits that could occur from defective products.

Given the risk of injuries or property damage from defective building products and metals, product liability insurance is essential for these types of companies. It protects their finances and operations from the high costs of accidents, claims and litigation related to product failures or defects.

Category List
Benefits
  • Covers legal costs if a customer is injured by a defective product
  • Pays damages if the customer wins a product liability lawsuit
  • Protects business assets like equipment, property and bank accounts from lawsuits
  • Provides defense for business if a lawsuit is filed, even if the claims later turn out to be groundless
  • Helps maintain business reputation in the event of a product-related accident or injury
  • Reduces stress of potential financial liability from product defects or failures
Use Cases
  • Covers legal costs if a customer is injured by a faulty product
  • Pays damage claims if a defective product causes property damage
  • Protects the company if a building collapse is caused by a failure of their structural metal products
  • Covers lost wages and medical bills if an employee is injured during manufacturing due to defective equipment
  • Pays claims and legal fees if the company is sued due to a defective product
  • Covers recall and replacement costs of defective products that need to be removed from installed buildings

Based on industry research, the estimated average annual pricing for product liability insurance for businesses in the architectural and structural metals manufacturing industry (NAICS Code: 3323) is around $2.50 per $100 of gross sales. This price was derived based on risk factors such as types of products manufactured, quality control procedures, loss history, and compliance with safety standards.

Estimated Pricing: $2.50 per $100 of gross sales

Cyber Liability Insurance

As a manufacturer in the architectural and structural metals industry, cyber attacks pose significant risks to business operations and customer data. Cyber liability insurance helps protect against the costs of privacy breaches, system outages, and legal actions that could otherwise damage profits or trust in the brand. Some key benefits of coverage include response to data incidents, data restoration support, third party liability protection, reputational management support during cyber crises. Average annual premiums for a small to mid-sized business in this industry are estimated around $5,000 based on firm size and security practices.

Category List
Benefits
  • Covers costs of a data breach investigation and notification
  • Covers legal fees and defense costs in the event of a cyberattack
  • Covers costs of restoring and recovering data and systems
  • Covers loss of income or extra expenses resulting from a system outage
  • Covers penalties and fines from a data breach
  • Covers liability claims from customers if their data is compromised
  • Covers costs of credit monitoring services for affected customers after a breach
  • Protects brand reputation in the event of cyber incident damaging public trust
  • Provides access to legal and forensic experts in the event of an incident
Use Cases
  • Data breach involving customer and employee personal information
  • Ransomware attack that shuts down operations
  • Costs associated with a privacy breach investigation and reporting
  • Third party liability if a supplier or vendor suffers a breach involving your data
  • Reputational damage from a cyber attack

Based on typical pricing for small to medium sized businesses in the architectural and structural metals manufacturing industry with annual revenues between $5-10M, the estimated average annual premium for a cyber liability insurance policy would be around $5,000. This pricing was derived by looking at industry benchmarks and taking into account factors like the company size, annual revenues, number of employees, security practices and loss history.

Estimated Pricing: $5,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) protects businesses in the architectural and structural metals manufacturing industry (NAICS Code 3323) from costly lawsuits related to employee issues. It covers legal fees and damages for wrongful termination, discrimination, sexual harassment, and other workplace claims. EPLI also helps limit liability exposure and reduce financial and reputational risks associated with employee litigation. Common risks that EPLI helps protect against for this industry include workplace injuries, violation of safety procedures, and lawsuits due to violations of labor laws and regulations. Pricing for EPLI is estimated on average between $3,000-$5,000 annually based on company size, payroll, benefits offered, and claims history.

Category List
Benefits
  • Covers legal fees and damages for wrongful termination, discrimination, sexual harassment, and other workplace lawsuits
  • Protects from costs of defending against lawsuits whether claims have merit or not
  • Provides access to expert legal advice to help review human resources practices and policies to minimize risk
  • Limits liability exposure for businesses by negotiating settlements instead of costly legal battles
  • Helps attract and retain top talent by demonstrating a commitment to employee welfare
  • Reduces financial and reputational risks associated with costly employee litigation
Use Cases
  • Wrongful termination or wrongful discharge lawsuits
  • Discrimination lawsuits (e.g. based on race, gender, age, disability etc.)
  • Harassment or hostile work environment lawsuits
  • Failure to promote or demote lawsuits
  • Retaliation lawsuits

Based on typical risks and exposure for businesses in the architectural and structural metals manufacturing industry, the estimated average annual pricing for employment practices liability insurance would be between $3,000 to $5,000. Pricing is usually determined based on factors like number of employees, annual payroll, types of benefits offered, history of any previous claims or lawsuits, and types of operations. For a mid-sized company in this industry with 100 employees and $10 million in annual payroll, an estimated price would be $4,250 per year.

Estimated Pricing: $3,000-$5,000

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, provides protection for architectural and structural metals manufacturing businesses against claims alleging negligent acts, errors and omissions. It covers legal fees and pays claims or settlements related to damages caused by faulty or defective work. Coverage also includes protection for losses due to delays, incorrect installation, and failures of structural components that result in injuries or property damage. This type of insurance helps protect a business’s assets, maintains good client relationships, and demonstrates financial responsibility in the industry.

Category List
Benefits
  • Protects your business from claims of negligence, errors and omissions
  • Covers legal fees and expenses if a claim or lawsuit is brought against your business
  • Provides coverage for damage or injury caused by faulty workmanship or product defects
  • Protects business assets by ensuring claims are paid out by the insurer rather than coming out of pocket
  • Maintains positive client relationships by reassuring them that claims will be covered
  • Reduces stress of potential claims and lawsuits by transferring the financial risk to the insurer
  • Shows clients and potential clients that the business is responsible and well protected
  • Reputational protection by demonstrating financial responsibility through insurance protection
Use Cases
  • Protection against lawsuits from faulty or defective products or services
  • Protection if a customer is injured by equipment or materials provided by the business
  • Protection against lawsuits from delays, errors or omissions in contractual duties
  • Protection against lawsuits from incorrect installation of products or materials
  • Protection if a building collapses or fails due to faulty structural metal products

Based on typical factors such as annual revenue, number of employees, loss history and risk exposures, the estimated average annual pricing for professional liability insurance for businesses in the Architectural and Structural Metals Manufacturing with NAICS Code 3323 is between $5,000 to $10,000 per year. This pricing was derived from obtaining quotes from multiple insurers for this industry and size of businesses.

Estimated Pricing: $5,000 – $10,000

Conclusion

Proper insurance coverage helps minimize financial risks for architectural and structural metal companies. The reference provides an overview of top policies critical for this industry as well as estimated pricing information to assist in insurance planning and budgeting decisions.

Frequently Asked Questions

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