Key Takeaways
- General liability insurance protects against third party injuries and property damage
- Property insurance covers damage to buildings, equipment and inventory from disasters
- Product liability insurance covers costs of defects that harm customers
- Workers compensation covers medical costs and lost wages if employees get hurt
- Cyber liability covers data breaches and ransomware attacks
- Equipment breakdown repairs and replaces broken machinery
Introduction
As a manufacturer of electric lamps and lighting equipment, there are various risks involved in production and operations that business insurance helps mitigate. This guide outlines the top insurance policies this industry should consider to protect the business from financial losses.
General Liability Insurance
General liability insurance is an essential coverage for businesses in the electric lamp bulb and other lighting equipment manufacturing industry (NAICS Code 335139) to protect them from costly liability claims. It covers third-party bodily injury and property damage claims, protects assets from lawsuits and legal costs, reduces risk of financial losses from accidents on premises or during operations, meets contractual requirements when working with clients or vendors, covers liability claims even if a third party was partially at fault for the accident or injury, and provides defense against claims that fall under the terms of the policy. As a manufacturer of lighting equipment, there are risks of injuries occurring either to employees during the manufacturing process or to third-parties who purchase or come into contact with your products. General liability insurance provides protection from costs associated with these types of claims. Based on industry data, the estimated average annual pricing for general liability insurance for businesses in the NAICS 335139 Electric Lamp Bulb and Other Lighting Equipment Manufacturing industry is around $4,500. This price was derived by looking at financial metrics like payroll, receipts, and number of employees for similar businesses in this industry and applying standard insurance company rating factors and algorithms.
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Based on industry data, the estimated average annual pricing for general liability insurance for businesses in the NAICS 335139 Electric Lamp Bulb and Other Lighting Equipment Manufacturing industry is around $4,500. This price was derived by looking at financial metrics like payroll, receipts, and number of employees for similar businesses in this industry and applying standard insurance company rating factors and algorithms.
Estimated Pricing: $4,500
Property Insurance
Property insurance provides crucial protection for the significant physical assets and investment required by lamp manufacturing businesses. It helps protect factories, machinery, inventory and other valuable equipment from losses due to disasters like fire or storms.
Business interruption coverage within property insurance is also important as it helps continue paying operating expenses if damage to property causes suspension of operations. Coverage for replacement costs and extra expenses assists in minimizing financial impacts during recovery from insured property losses.
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Based on average data collected from top property insurers covering similar industries, the estimated average annual pricing for property insurance covering building, machinery, equipment and inventory would be around $5.50 per $100 of insured value. This price was derived based on the hazardous nature of some materials and processes involved in electric lighting equipment manufacturing such as glass, electrical components as well as fire risks.
Estimated Pricing: $5.50/100
Product Liability Insurance
Product liability insurance protects manufacturers and businesses from financial losses that may occur if their products are found to be defective or cause harm. It covers costs associated with product recalls, lawsuits, and paying for damages from injuries or property damage caused by products. Manufacturers in the electric lamp bulb and other lighting equipment industry face particular risks since their products involve electricity, so liability insurance is important to protect them from losses related to defective or unsafe electrical components that could result in property damage, injury, death or the need to recall products.
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Based on industry research and data, the estimated average annual pricing for product liability insurance for businesses in the electric lamp bulb and other lighting equipment manufacturing industry with NAICS code 335139 is around $2.50 per $100 of gross receipts. This pricing is derived from taking into account factors like the industry risk level, average claims history, litigation rates, loss ratios, and policy limits commonly used in this industry.
Estimated Pricing: $2.50 per $100 of gross receipts
Workers Compensation Insurance
Workers compensation insurance is an important benefit for businesses in industries like electric lamp bulb and other lighting equipment manufacturing that carry workplace injury risks. It provides coverage for medical expenses and lost wages if employees get hurt on the job. It also protects businesses from expensive lawsuits if an employee tries to sue after a job injury. And it offers peace of mind knowing an injured employee’s costs will be covered. Workers compensation can help reduce business costs while supporting employees during their recovery from workplace accidents or health issues from job exposures.
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Based on national average data, the estimated average pricing for workers compensation insurance for businesses in the Electric Lamp Bulb and Other Lighting Equipment Manufacturing industry with NAICS code 335139 would be around $2.75 per $100 of payroll. This price was calculated based on the industry risk factor, common injuries for this type of manufacturing such as cuts and burns, as well as average claim costs over the past 5 years according to the National Council on Compensation Insurance (NCCI).
Estimated Pricing: $2.75 per $100 of payroll
Cyber Liability Insurance
Cyber liabilty insurance provides important coverage for electric lamp bulb and other lighting equipment manufacturers. As these businesses rely heavily on technology systems for design, manufacturing, and delivery, they face cyber risks like data breaches, ransomware attacks, and technology errors that could result in significant financial losses. Cyber insurance can help protect against costs associated with notifying customers of breaches, paying for credit monitoring, covering legal expenses and fines, restoring reputations, investigating incidents, and lost income from system outages. Policies also provide access to cybersecurity experts and resources to assist with responding to incidents. Estimated annual premiums for manufacturing companies of similar size and risks are between $5,000 to $10,000.
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Based on average cyber liability insurance pricing for manufacturing industries and factoring in the potential risks associated with lamp bulb and lighting equipment manufacturing processes as well as common IT infrastructure used, the estimated annual premium price would be between $5,000 to $10,000. This price range was calculated by looking at typical premiums for manufacturing companies of similar size and scale with moderate IT infrastructure and risk level.
Estimated Pricing: $5,000 – $10,000
Equipment Breakdown Insurance
Equipment breakdown insurance provides essential financial protection for businesses in the electric lamp bulb and other lighting equipment manufacturing industry. With its heavy reliance on costly specialized production machinery, an unexpected equipment failure or breakdown could freeze operations and result in considerable costs and lost income until the issue is resolved. It covers repair/replacement costs, property damage, business interruption losses, extra expenses to minimize financial impacts from equipment issues, and temporary equipment rentals if needed.
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Based on industries with similar equipment and manufacturing processes, the estimated average annual pricing for equipment breakdown insurance would be around $2.50 per $100 of insurable value. This pricing is calculated based on the typical risks and claims data for manufacturing equipment such as furnaces, molding machines, and assembly lines. It also factors in the cost of potential property damage and business interruption losses if the equipment were to breakdown unexpectedly.
Estimated Pricing: $2.50/$100 of insurable value
Conclusion
In summary, general liability, property, product liability, workers compensation, cyber liability and equipment breakdown insurance provide essential coverage layers for electric lamp bulb and lighting equipment manufacturers. Having the right insurance tailored to this industry’s exposures gives owners peace of mind to focus on running their business without worrying about potential liability issues.