Key Takeaways
- General liability insurance protects against lawsuits from injuries on premises or defective products
- Property insurance covers property, equipment, inventory from losses like fire or natural disasters
- Product liability insurance covers lawsuits if products cause injuries or property damage
- Commercial auto insurance protects commercial vehicles and hired/non-owned vehicles
- Workers compensation covers medical and lost wages for employee injuries on the job
- Environmental impairment liability covers clean up and costs from pollution incidents
- Commercial umbrella provides excess liability coverage above underlying policies
Introduction
Businesses in the petroleum lubricating oil and grease manufacturing industry face significant risks due to the hazardous nature of their operations and products. This guide covers the top business insurance policies these companies should have in place to protect their assets, mitigate risks and ensure business continuity even if serious incidents occur.
General Liability Insurance
General liability insurance is an important risk management tool for businesses in the petroleum, lubricating oil, and grease manufacturing industry. It helps protect them from costly lawsuits and ensures their ability to continue operating successfully in the event of incidents and claims.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average pricing data, general liability insurance for businesses in the petroleum lubricating oil and grease manufacturing industry (NAICS Code: 324191) is estimated to be around $5,000 – $10,000 annually. This pricing is derived considering factors such as the hazardous nature of operations involving petroleum products, potential risks of environmental contamination and pollution, as well as industry risk factors and claim histories.
Estimated Pricing: $5,000 – $10,000
Property Insurance
Property insurance is an important risk management tool for businesses in the petroleum lubricating oil and grease manufacturing industry. It provides financial protection for their facilities, equipment, inventory, and other property from losses due to unforeseen events like fires, explosions, natural disasters, and more. It also covers loss of business income if operations need to be suspended for repairs following a covered event. With specialized and expensive equipment required, property insurance is crucial to allow these businesses to continue operating and recover financially after covered losses. The estimated average annual pricing also provides context for the cost of this important coverage.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and average claims, the estimated average annual property insurance pricing for businesses in the Petroleum Lubricating Oil and Grease Manufacturing industry (NAICS 324191) would be around $2.50 per $100 of insured assets. This price factors in the risks associated with combustible materials, large specialized equipment, and potential for chemical spills or fires in the manufacturing process.
Estimated Pricing: $2.50/$100 of insured assets
Product Liability Insurance
Product liability insurance protects businesses that manufacture petroleum lubricating oils and greases from costly lawsuits if defects in their products cause property damage, injuries, fires, explosions or environmental pollution. It covers legal fees and claim settlements, allowing companies to focus on operations rather than risks. Some key uses of product liability insurance for these businesses include defending against claims of defective products that result in injuries or property damage, covering costs of product recalls, and protecting from environmental risks associated with chemicals used in manufacturing. The average estimated pricing for product liability insurance for these businesses is around $1.50 per $100 of gross revenue.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research, the average estimated pricing for product liability insurance for businesses in the petroleum lubricating oil and grease manufacturing industry with NAICS code 324191 is around $1.50 per $100 of gross revenue. This pricing is derived based on the hazardous nature of the products being manufactured in this industry and historical loss data.
Estimated Pricing: $1.50 per $100 of gross revenue
Commercial Automobile Insurance
‘Commercial automobile insurance provides crucial coverage for businesses in the petroleum lubricating oil and grease manufacturing industry. It protects companies from financial risks associated with vehicle accidents and transports. This type of insurance also ensures replacements vehicle rentals if fleet vehicles need repairs.’
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and annual reports, the estimated average pricing for commercial automobile insurance for businesses in the petroleum lubricating oil and grease manufacturing industry (NAICS 324191) is around $2,500 per vehicle per year. This pricing takes into account factors like the risks associated with transporting flammable and potentially hazardous materials, the number of vehicles in the fleet, safety record and claims history of the business.
Estimated Pricing: $2,500
Workers Compensation Insurance
“Workers compensation insurance provides critical protections for both employees and employers in hazardous industries like petroleum product manufacturing. It ensures employees receive support if injuries occur on the job while also shielding businesses from costly liability issues. This reference outlines the key benefits, use cases and estimated pricing for workers comp insurance for petroleum lubricating oil and grease manufacturing businesses. Specifically, it details the top benefits like covering medical expenses and lost wages, top uses cases involving injuries from machinery or chemicals, and provides an estimated annual premium rate around $5.80 per $100 of payroll.”
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on research of average workers compensation insurance rates for NAICS code 324191 (Petroleum Lubricating Oil and Grease Manufacturing), the estimated annual premium would be around $5.80 per $100 of payroll. This rate is derived from rate tables published by the National Council on Compensation Insurance (NCCI) which is a leading provider of workers compensation insurance rates and risk information.
Estimated Pricing: $5.80 per $100 of payroll
Environmental Impairment Liability Insurance
Environmental impairment liability insurance provides important risk protection for petroleum lubricating oil and grease manufacturing businesses. This type of insurance covers costs associated with environmental incidents, cleanup obligations, and liability claims resulting from pollution. It also protects these businesses from compliance issues with environmental regulations and investigates unknown pre-existing contamination issues. Pricing for this type of insurance is usually in the range of $15,000 to $25,000 annually for medium sized companies in this industry, based on risk factors like revenue, number of facilities/tanks, past environmental incidents, spill prevention measures, and more.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical risk factors for this industry such as potential oil spills and contamination, annual pollution insurance pricing for medium sized companies in this industry is usually in the range of $15,000 to $25,000 per year. The pricing is often calculated based on factors like annual revenue, number of facilities/tanks, past environmental incidents or compliance issues, and spill prevention measures in place.
Estimated Pricing: $20,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable excess liability protection for businesses in the petroleum lubricating oil and grease manufacturing industry. This industry faces significant risks from potential accidents, spills, fires or other incidents involving flammable and hazardous materials that could result in costly lawsuits.
Umbrella insurance helps protect companies in this industry from large liability claims by providing coverage over the limits of the underlying policies like commercial general liability. It also covers certain risks not included in standard policies like pollution incidents and environmental damage. Umbrella policies are especially important for these companies due to the liability risks involved with handling and transporting flammable and potentially hazardous materials.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical commercial umbrella insurance rates for businesses in the petroleum lubricating oil and grease manufacturing industry, the estimated average annual pricing would be $5,000 – $10,000. Rates are heavily dependent on factors like total revenue, number of employees, loss history, and safety procedures/certifications. For a mid-sized company in this industry with $10-50M in annual revenue, 50 employees, and a decent safety record, an estimated price would be $7,500/year.
Estimated Pricing: $7,500/year
Conclusion
Proper insurance coverage is essential for petroleum lubricating oil and grease manufacturers to shield their business from potential large financial losses. The insurance policies outlined here help protect operations, property, vehicles, employees and the company from costly lawsuits while ensuring the ability to continue operating smoothly despite incidents. Consult with an experienced insurance agent to obtain the recommended coverage types at competitive pricing tailored for each business.