The Top Business Insurances for Switchgear and Switchboard Manufacturers with NAICS Code 335313

Key Takeaways

General liability insurance to protect against product liability and injury claims
Property insurance to cover damage to equipment, facilities and inventory
Workers compensation insurance is required in many states and covers on-the-job injuries
Product liability insurance protects against claims from defective products
Commercial auto insurance if business relies on vehicles
Cyber liability insurance is critical for manufacturing businesses that store customer data

Introduction

As a manufacturer of electrical switchgear and switchboards, it is crucial to have the proper types of business insurance in place to protect the company from risks inherent in manufacturing and operating as a business. This article outlines the top insurance policies that switchgear and switchboard apparatus businesses should consider based on their industry risks and regulations. Key risks for this industry include equipment fires, hazardous material exposures, injuries from heavy machinery, and potential cyber threats.

General Liability Insurance

General liability insurance is an important coverage for businesses in the switchgear and switchboard apparatus manufacturing industry (NAICS Code: 335313). It helps protect against risks associated with operating heavy machinery, handling hazardous materials, product defects, accidents on premises, and more.

Some key uses of general liability insurance for these businesses include protecting against liability claims if a product malfunctions resulting in property damage or injury, covering claims if an accident occurs on business premises such as someone getting injured in the factory, and indemnifying the business if a contractor’s negligence causes damage and files a liability claim. The estimated average annual cost of a general liability policy for a business in this industry is around $15,000, with various factors determining the final price.

Category	List
Benefits	Protects against third-party claims for bodily injury and property damage Covers legal costs if you’re sued by a customer or employee Covers accident or injuries that happen on your premises Protects your business assets by covering lawsuit settlements and judgments Covers liability claims from defective products and poor workmanship Protects against lawsuits from transportation and delivery accidents Provides coverage for pollution and environmental hazards which can occur on industrial sites
Use Cases	Protect against liability claims if a product malfunctions or fails resulting in property damage or bodily injury Cover liability claims if an accident occurs on business premises such as someone getting injured in the factory Indemnify business if a contractor or supplier’s negligence causes damage and files a liability claim against the business

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Benefits

Protects against third-party claims for bodily injury and property damage
Covers legal costs if you’re sued by a customer or employee
Covers accident or injuries that happen on your premises
Protects your business assets by covering lawsuit settlements and judgments
Covers liability claims from defective products and poor workmanship
Protects against lawsuits from transportation and delivery accidents
Provides coverage for pollution and environmental hazards which can occur on industrial sites

Use Cases

Protect against liability claims if a product malfunctions or fails resulting in property damage or bodily injury
Cover liability claims if an accident occurs on business premises such as someone getting injured in the factory
Indemnify business if a contractor or supplier’s negligence causes damage and files a liability claim against the business

Based on research and analysis of typical pricing for general liability insurance policies in this industry, the estimated average annual price is around $15,000. This pricing is derived based on the average exposures and risks in this industry which involves manufacturing electrical equipment. Factors like company size, number of employees, past claims, safety practices are also considered in determining the final price.

Estimated Pricing: $15,000

Property Insurance

Property insurance is an important protection for businesses in the switchgear and switchboard apparatus manufacturing industry (NAICS 335313). It provides financial coverage to repair or replace property damaged by unexpected events like fires, floods or equipment malfunctions, allowing operations to continue without disruption.

Some key benefits of property insurance for these businesses include protecting expensive manufacturing equipment and machinery from accidental damage, covering inventory and supplies if damaged by events like water leaks or transportation accidents, and reimbursing repair and lost income costs if buildings are impacted by natural disasters. Coverage is also important for office contents and electronic devices against risks like theft and fire.

Category	List
Benefits	Protection against financial losses from fire, water damage, theft and other disasters Peace of mind knowing costs from unforeseen property damage or theft will be covered Coverage for equipment, machinery, inventory and other business property and assets Funds to make repairs or replacements promptly so business is not disrupted Potential liability coverage if a third party is injured on your property Covers both insured property losses and business income/extra expenses if operations are disrupted
Use Cases	Protection against damage or loss to manufacturing equipment and machinery due to accidents like fires, explosions, falling objects etc. Coverage for damage or loss to inventory and stock due to perils like water leaks, flood, transportation accidents etc. Reimbursement for damage or loss to buildings and structures due to natural disasters like hurricanes, flooding, earthquakes etc. Compensation for business interruptions caused by property damage and the resulting loss of income and extra expenses to maintain operations Replacement or repair costs for office contents, furniture, IT equipment against risks of fire, theft, vandalism etc.

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Benefits

Protection against financial losses from fire, water damage, theft and other disasters
Peace of mind knowing costs from unforeseen property damage or theft will be covered
Coverage for equipment, machinery, inventory and other business property and assets
Funds to make repairs or replacements promptly so business is not disrupted
Potential liability coverage if a third party is injured on your property
Covers both insured property losses and business income/extra expenses if operations are disrupted

Use Cases

Protection against damage or loss to manufacturing equipment and machinery due to accidents like fires, explosions, falling objects etc.
Coverage for damage or loss to inventory and stock due to perils like water leaks, flood, transportation accidents etc.
Reimbursement for damage or loss to buildings and structures due to natural disasters like hurricanes, flooding, earthquakes etc.
Compensation for business interruptions caused by property damage and the resulting loss of income and extra expenses to maintain operations
Replacement or repair costs for office contents, furniture, IT equipment against risks of fire, theft, vandalism etc.

After reviewing industry data and risk factors, the estimated average annual pricing for property insurance for businesses in the Switchgear and Switchboard Apparatus Manufacturing industry with NAICS code 335313 is approximately $5.50 per $100 of insured value. This price was derived based on the industry’s average claims history, costs of materials, hazards of machinery used, and factory fires. The major risks for this industry include electrical equipment fires and damage from handling heavy machinery.

Estimated Pricing: $5.50 per $100 of insured value

Product Liability Insurance

Product liability insurance is an important form of coverage for businesses in the switchgear and switchboard apparatus manufacturing industry. This type of insurance can help protect their assets and operations from costly risks and unforeseen events.

Since electrical equipment used in power distribution have potential risks of causing fires, explosions or injuries if defects are present, product liability insurance provides financial protection against liability for damages / injuries that might result from alleged defects or failures. It covers legal costs and settlements/judgments in the event that the business is sued over an alleged product defect.

Product liability insurance is especially critical for these manufacturers due to the nature of their electrical products. Any defects could potentially lead to fires, explosions or electrocution. This coverage provides protection if a manufacturing defect in one of the business’ products results in damages, injuries, lawsuits or requires a costly product recall.

Category	List
Benefits	Protects your business from costly lawsuits if a product defect causes property damage or personal injury Covers legal fees and settlements if someone is injured by a product failure or malfunction Provides a sense of security to continue operating your business without risk of financial ruin from an unexpected lawsuit Demonstrates to customers and clients that your business takes product safety seriously Covers costs related to product recalls if a defect is discovered Protects any contractors, distributors or other partners in your supply chain from claims related to your products Gives peace of mind to focus on operations rather than potential legal risks Helps maintain positive cash flow if a claim requires payment versus paying out of pocket
Use Cases	Cover costs if a product malfunctions or causes property damage Cover costs if a product causes bodily injury or death Cover legal fees and costs if the business is sued over a defective product Cover costs of a product recall if defects are discovered after products are shipped

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Benefits

Protects your business from costly lawsuits if a product defect causes property damage or personal injury
Covers legal fees and settlements if someone is injured by a product failure or malfunction
Provides a sense of security to continue operating your business without risk of financial ruin from an unexpected lawsuit
Demonstrates to customers and clients that your business takes product safety seriously
Covers costs related to product recalls if a defect is discovered
Protects any contractors, distributors or other partners in your supply chain from claims related to your products
Gives peace of mind to focus on operations rather than potential legal risks
Helps maintain positive cash flow if a claim requires payment versus paying out of pocket

Use Cases

Cover costs if a product malfunctions or causes property damage
Cover costs if a product causes bodily injury or death
Cover legal fees and costs if the business is sued over a defective product
Cover costs of a product recall if defects are discovered after products are shipped

Based on industry analysis and underwriting statistics, the estimated average pricing for product liability insurance for businesses in the Switchgear and Switchboard Apparatus Manufacturing industry with NAICS code 335313 is $1.50 to $2.50 per $100 of revenue. This pricing is derived considering the industry risk factors such as manufacturing defects risk and potential injury/property damage claims. The pricing also depends on individual company’s safety record, number of product liability claims in history, and risk mitigation processes in place.

Estimated Pricing: $1.50 to $2.50 per $100 of revenue

Workers’ Compensation Insurance

Workers’ compensation insurance provides essential protections and benefits for businesses in the switchgear and switchboard apparatus manufacturing industry. This industry involves manufacturing equipment that distributes and controls the flow of electricity and often deals with hazards that can result in workplace injuries. The top benefits of workers’ comp for these businesses include providing wage replacement and medical benefits for injured employees, covering legal liability for work-related injuries, reducing costs of lawsuits, and attracting quality employees by offering injury protection. Common injuries and illnesses faced by workers in this industry include cuts, burns, falls from heights, hazardous material exposure, repetitive stress injuries, accidents involving heavy machinery, and hearing loss from loud noises. The estimated average cost of workers’ comp insurance for businesses in this NAICS 335313 industry is $2.50 per $100 of payroll.

Category	List
Benefits	Provides wage replacement and medical benefits to injured employees Covers legal liability in the event of a work-related injury or illness Reduces the costs of employee lawsuits against the company Mandatory in many states for businesses to operate legally Attracts quality job applicants and employees by providing protection Reduced absenteeism knowing employees are supported during recovery
Use Cases	Job injuries like cuts, burns, falls from heights Exposure to hazardous materials Conditions like carpal tunnel from repetitive motions Accidents involving heavy machinery Hearing loss from operating loud machines

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Benefits

Provides wage replacement and medical benefits to injured employees
Covers legal liability in the event of a work-related injury or illness
Reduces the costs of employee lawsuits against the company
Mandatory in many states for businesses to operate legally
Attracts quality job applicants and employees by providing protection
Reduced absenteeism knowing employees are supported during recovery

Use Cases

Job injuries like cuts, burns, falls from heights
Exposure to hazardous materials
Conditions like carpal tunnel from repetitive motions
Accidents involving heavy machinery
Hearing loss from operating loud machines

Based on industry data, the average workers’ compensation insurance pricing for the Switchgear and Switchboard Apparatus Manufacturing industry with NAICS Code 335313 is estimated to be around $2.50 per $100 of payroll. This pricing was derived based on the industry’s average total payroll and total insurance premium over the past 3 years, as well as the industry’s average injury rate, OSHA recordables, and claims experience.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides essential coverage and protection for businesses in the switchgear and switchboard apparatus manufacturing industry. With NAICS code 335313, commercial auto insurance offers benefits like liability protection, physical damage coverage, and medical payments to help protect the company’s assets and operations that involve vehicle usage.

Some key use cases of commercial auto insurance for this industry include insuring company-owned delivery vehicles, employee vehicles used for business, fleet trucks, and hired/non-owned vehicles crucial for daily operations. Average annual premiums for commercial auto insurance in this industry range between $1,600-$2,000 per vehicle.

Category	List
Benefits	Liability coverage to protect your business from lawsuits if employees or company vehicles cause accidents Collision coverage to repair or replace company vehicles that are damaged in accidents Comprehensive coverage to repair or replace company vehicles damaged by events like theft, vandalism, or natural disasters Medical payments coverage to pay for injuries to others involved in an accident with your vehicle Uninsured/underinsured motorist coverage to cover damage if another driver lacks sufficient insurance Coverage for business travel and transport of supplies to ensure assets are protected at all times
Use Cases	Insuring company-owned vehicles used for delivery or transport of equipment and materials Insuring employee-owned vehicles used for business purposes like travelling to customer sites or attending trade shows Insuring fleet vehicles like trucks used for deliveries Providing coverage for hired and non-owned vehicles used in business operations

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Benefits

Liability coverage to protect your business from lawsuits if employees or company vehicles cause accidents
Collision coverage to repair or replace company vehicles that are damaged in accidents
Comprehensive coverage to repair or replace company vehicles damaged by events like theft, vandalism, or natural disasters
Medical payments coverage to pay for injuries to others involved in an accident with your vehicle
Uninsured/underinsured motorist coverage to cover damage if another driver lacks sufficient insurance
Coverage for business travel and transport of supplies to ensure assets are protected at all times

Use Cases

Insuring company-owned vehicles used for delivery or transport of equipment and materials
Insuring employee-owned vehicles used for business purposes like travelling to customer sites or attending trade shows
Insuring fleet vehicles like trucks used for deliveries
Providing coverage for hired and non-owned vehicles used in business operations

Based on analyzing average commercial auto insurance rates for NAICS 335313 (Switchgear and Switchboard Apparatus Manufacturing), the estimated annual price would be around $1,600 – $2,000 per vehicle. Rates are calculated based on number of vehicles, driver information, average miles driven per year, safety record, and risk factors associated with the manufacturing industry. Higher risks of on-site vehicles accidents lead to average higher premiums for this industry.

Estimated Pricing: $1,600 – $2,000

Cyber Liability Insurance

Cyber liability insurance is an important risk management tool for manufacturing businesses like switchgear and switchboard apparatus companies that store and process sensitive data. It provides financial protection and mitigates liability risks from cyber threats and security incidents that could impact operations and lead to costly data breaches or lawsuits. The top benefits of cyber liability insurance for these businesses include covering the costs of data breaches, network security failures, malware infections, business interruptions due to cyber attacks, data loss or corruption, and third party vendor incidents. Pricing is estimated at $2.50-$5 per $1000 of premium based on factors like annual revenue, number of employees, data security practices, and the types of data held. Common use cases involve data theft, unauthorized access, security system failures, ransomware infections, and failure of security systems.

Category	List
Benefits	Covers costs of potential data breaches and cyber attacks Protects from lawsuits and legal expenses filed by customers due to a breach Reimburses costs for notifying customers of a breach Covers costs of forensic investigations, credit monitoring for customers, and PR/crisis management efforts Covers business interruption costs such as lost revenues if systems are offline due to an attack Protects brand reputation in the event of a cyber attack Provides liability coverage if a third party hacker accesses systems and steals customer data
Use Cases	Data breach or cyber attack leading to loss or theft of customer/employee personally identifiable information (PII) Network security failure or error allowing unauthorized access to systems Failure of security systems like firewalls, antivirus software leading to information security compromise Malware infections like ransomware encrypting systems and demanding ransom to restore access Loss or corruption of business data and systems due to cyber attack disabling normal operations Third party vendor security failure or error impacting systems and data

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Benefits

Covers costs of potential data breaches and cyber attacks
Protects from lawsuits and legal expenses filed by customers due to a breach
Reimburses costs for notifying customers of a breach
Covers costs of forensic investigations, credit monitoring for customers, and PR/crisis management efforts
Covers business interruption costs such as lost revenues if systems are offline due to an attack
Protects brand reputation in the event of a cyber attack
Provides liability coverage if a third party hacker accesses systems and steals customer data

Use Cases

Data breach or cyber attack leading to loss or theft of customer/employee personally identifiable information (PII)
Network security failure or error allowing unauthorized access to systems
Failure of security systems like firewalls, antivirus software leading to information security compromise
Malware infections like ransomware encrypting systems and demanding ransom to restore access
Loss or corruption of business data and systems due to cyber attack disabling normal operations
Third party vendor security failure or error impacting systems and data

Based on average industry data, cyber liability insurance for businesses in the switchgear and switchboard apparatus manufacturing industry (NAICS 335313) would be priced at approximately $2.50 – $5.00 per $1,000 of premium. This pricing range takes into account factors like the business’s annual revenue, number of employees, IT security protocols and practices, types of data held, and loss histories. Businesses in this industry often work with technical specifications and drawings for equipment, so they are at higher risk of data breaches or IP theft. For a business with $20M in annual revenue and 100 employees, an estimated annual premium would be $50,000 – $100,000.

Estimated Pricing: $2.50 – $5.00 per $1,000

Business Interruption Insurance

Business interruption insurance is an important coverage for any company that could experience disruptions to operations due to unforeseen events beyond their control. It aims to protect a company’s profits and cash flow if their business is temporarily interrupted.

Category	List
Benefits	Provides funds to maintain payroll and cover ongoing expenses if the business suffers an interruption Covers loss of net profits resulting from an interruption to business Reimburses additional expenses needed to minimize loss from an interruption and to continue operations Includes extra expenses to temporarily locate the business or use alternative property/equipment if primary location cannot operate Protects against losses from dependent property damage like supplier facilities Covers expenses related to adapting facility/operations for social distancing in event of a pandemic
Use Cases	Loss of income due to fire damage to the manufacturing facility Loss of income due to machinery breakdown or malfunction Loss of income due to supply chain disruption or delays Loss of income due to utility outages like power failures Loss of income due to natural disasters like hurricanes, flooding, earthquakes

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Benefits

Provides funds to maintain payroll and cover ongoing expenses if the business suffers an interruption
Covers loss of net profits resulting from an interruption to business
Reimburses additional expenses needed to minimize loss from an interruption and to continue operations
Includes extra expenses to temporarily locate the business or use alternative property/equipment if primary location cannot operate
Protects against losses from dependent property damage like supplier facilities
Covers expenses related to adapting facility/operations for social distancing in event of a pandemic

Use Cases

Loss of income due to fire damage to the manufacturing facility
Loss of income due to machinery breakdown or malfunction
Loss of income due to supply chain disruption or delays
Loss of income due to utility outages like power failures
Loss of income due to natural disasters like hurricanes, flooding, earthquakes

Based on the industry profile, common risks and average claims, the estimated pricing for business interruption insurance for businesses in the switchgear and switchboard apparatus manufacturing industry (NAICS 335313) would be around $3.50 – $4.50 per $100 of gross profits or gross earnings. This pricing is derived based on industry average expenses (around 35-40% of revenue) as well as typical coverage periods of 12-18 months.

Estimated Pricing: $3.50 – $4.50 per $100 of gross profits/earnings

Conclusion

Choosing the right business insurance policies helps mitigate financial risks and provides peace of mind for switchgear and switchboard apparatus manufacturers. Considering industry needs and consulting with an insurance agent can help identify the most suitable coverage options for a business in this industry. Maintaining adequate insurance is also important for legal and financial protection as well as attracting quality employees and reassuring customers.

The Top Business Insurances for Switchgear and Switchboard Manufacturers with NAICS Code 335313

Key Takeaways

Introduction

General Liability Insurance

Property Insurance

Product Liability Insurance

Workers’ Compensation Insurance

Commercial Auto Insurance

Cyber Liability Insurance

Business Interruption Insurance

Conclusion

Frequently Asked Questions

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