Key Takeaways
- General liability insurance protects from third party lawsuits and injuries on premises
- Property insurance covers property, equipment and inventory from losses
- Workers compensation covers medical costs and lost wages for work injuries
- Commercial auto insures vehicles used for business
- Product liability protects from claims over defective products
- Umbrella provides additional liability coverage above primary policies
- Business interruption covers losses during temporary shutdowns
Introduction
Businesses in the fastener, button, needle, and pin manufacturing industry face risks inherent to operating machinery and transporting materials and finished goods. Proper insurance plays a vital role in protecting manufacturers financially from unexpected events like injuries, property damage, vehicle accidents, and disruptions to operations. This guide outlines the key types of business insurance and considerations for companies in NAICS code 339993.
General Liability Insurance
General liability insurance provides essential protection for businesses in the fastener, button, needle, and pin manufacturing industry. It covers legal costs and damages if someone is accidentally hurt on the manufacturer’s premises or by their products.
Some key benefits of general liability insurance for manufacturers in this industry include protecting them from lawsuits if a customer is injured, covering medical costs if someone is hurt by their product, and providing coverage for property damage or pollution incidents. It also helps reduce financial risk from unexpected incidents. Estimated annual pricing for general liability insurance for manufacturers in this industry is around $2,500.
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Based on an analysis of typical general liability insurance rates for businesses in the fastener, button, needle, and pin manufacturing industry with NAICS code 339993, the estimated average annual pricing would be around $2,500. This pricing was derived by looking at several key factors including the business size, number of employees, annual revenue, geographic location, loss history, and specific operations. Rates can vary depending on individual business circumstances but generally fall within a range of $2,000 to $3,000 per year for most small to medium sized manufacturers in this industry.
Estimated Pricing: $2,500
Property Insurance
Property insurance provides financial protection for manufacturing businesses in the fastener, button, needle, and pin industry against unexpected property damage or theft. It ensures they can continue operating without financial ruin if their property or equipment is damaged or destroyed.
Manufacturing businesses in this industry require substantial investments in tools, machinery, raw materials and other property essential for operations. Property insurance safeguards these assets and provides coverage to repair or replace damaged property due to causes like fire, explosions or equipment breakdown. It also offers business interruption coverage to continue operations if property is temporarily unusable due to a covered loss.
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Based on industry analysis and considering factors such as the manufacturing process, machinery involved, and typical property values, the estimated average annual price for property insurance would be around $15,000. This estimate was derived from published industry insurance rates that take into account the costs to replace manufacturing equipment and facilities as well as potential risks from operating machinery.
Estimated Pricing: $15,000
Workers Compensation Insurance
Workers compensation insurance is essential for businesses in the fastener, button, needle, and pin manufacturing industry to protect employees and the company from financial risks associated with workplace injuries. This insurance covers costs like medical expenses and lost wages for injured workers while relieving the burden of liability lawsuits. It also supports employee rehabilitation and reduces turnover from workplace injuries. On average, businesses in this industry can expect to pay around $2.50 per $100 of payroll for workers compensation coverage.
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Based on industry analysis and data, the average estimated pricing for workers compensation insurance for businesses in the Fastener, Button, Needle, and Pin Manufacturing industry (NAICS 339993) is around $2.50 per $100 of payroll. This price was derived from analyzing historical claims data and risk factors for this industry, which showed an above average risk level due to activities involving sharp tools and machineries that can cause injuries.
Estimated Pricing: $2.50/100 of payroll
Product Liability Insurance
Product liability insurance protects manufacturers from financial risks associated with injuries or defects caused by their products. It covers legal costs, settlements, medical expenses, and lost income resulting from product-related claims and lawsuits.
The reference provides detailed information about the key benefits, use cases and estimated pricing of product liability insurance for businesses in the fastener, button, needle, and pin manufacturing industry (NAICS Code 339993). The benefits section outlines how it protects companies from expensive lawsuits, covers legal fees and settlements from claims, helps build trust, and provides peace of mind. The use cases explain how it can protect against lawsuits, cover costs of recalls, pay for injuries caused by products, and cover intellectual property issues. The pricing section estimates the average annual cost is between $4,000 to $6,000 based on company size and risk factors.
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Based on industry data and reports, the average annual pricing for product liability insurance for businesses in the NAICS code 339993 (Fastener, Button, Needle, and Pin Manufacturing) industry is around $4,000 – $6,000 per year. This price range was calculated based on factors such as company size, annual revenue, product types handled, past claims experience, and risk management practices. Companies with higher revenue, larger employee headcount, riskier product types, and past claims will likely pay closer to $6,000 while smaller companies with less risk factors may get it priced closer to $4,000.
Estimated Pricing: $4,000 – $6,000
Commercial Auto Insurance
‘Commercial auto insurance is an important coverage for fastener manufacturers to protect their business from financial losses. It provides coverage for essential transportation functions like delivering products, transporting materials, and client meetings. This type of insurance also helps cover legal expenses and medical bills in the event of an accident involving a company vehicle.’
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Based on industry data and trends, the estimated average annual pricing for commercial auto insurance for businesses in the Fastener, Button, Needle, and Pin Manufacturing industry with NAICS code 339993 is around $1,500-$2,000 per vehicle. This pricing takes into account factors like the types of vehicles used, average miles driven, driving records, coverage limits, deductibles selected, and loss history of the industry.
Estimated Pricing: $1,500-$2,000
Umbrella Insurance
Umbrella insurance provides additional liability protection for small manufacturers above standard auto and general liability policies. It protects businesses and personal assets from costly legal claims and lawsuits related to common risks in the fastener, button, needle and pin manufacturing industry. Some key benefits of umbrella insurance for these manufacturers include covering risks from defects in products, injuries on work sites, transportation incidents, pollution from industrial chemicals or solvents used in production, and legal costs if a lawsuit or claim is filed against the business.
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Based on industry data, the average price for umbrella insurance for businesses in NAICS code 339993 is $1,500 – $2,000 per year. This pricing is derived based on the risk level and average claims for this industry type. Businesses in manufacturing generally have higher risks and needs for umbrella policies due to the nature of manufacturing operations.
Estimated Pricing: $1,500 – $2,000
Commercial Inland Marine Insurance
Commercial inland marine insurance provides protection for goods and property of fastener, button, needle and pin manufacturers while in transit. It covers risks to inventory, equipment and vehicles used to transport materials between facilities and customers. In addition to covering losses during transit, this type of insurance also reimburses manufacturers for damaged inventory during loading and unloading at different locations. It protects the business from financial losses caused by transportation accidents or delays that could disrupt operations.
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Based on the average risks and values for this industry, the estimated average annual pricing for Commercial Inland Marine Insurance would be around $2,500. This price was calculated based on the typical property values (machinery, equipment, inventory) of around $2 million and the relatively low risk of this manufacturing process. Standard calculation would be $2 million property value x 1.25% rate = $25,000 premium. However, most insurers would offer a discounted rate to this industry of around 10% bringing the annual premium down to around $2,500.
Estimated Pricing: $2,500
Cyber Insurance
Cyber insurance provides valuable financial protection and expert guidance for businesses in the fastener, button, needle, and pin manufacturing industry. This industry often works with sensitive customer and employee data, making it important to have coverage for risks like data breaches, ransomware attacks, system outages, and liability issues. Having cyber insurance also connects manufacturers to experienced cybersecurity professionals who can help minimize damages from incidents and advise on improving defenses. Cyber policies can help cover costs associated with responding to and resolving incidents, paying ransom demands if needed, lost income if systems are down, and defending against third party liability if data is compromised.
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Based on the typical factors that insurance companies examine such as annual revenue, number of employees, past cyber security incidents, the estimated average annual pricing for a cyber insurance policy would be around $2,500. This was calculated based on businesses in this industry typically having annual revenues between $2-5 million and less than 50 employees. Since there is low risk of major cyber attacks or data breaches for businesses that manufacture and distribute fasteners, the pricing comes at the lower end of policies for similar small to mid-sized manufacturers.
Estimated Pricing: $2,500
Business Interruption Insurance
Business interruption insurance provides important financial protection for manufacturers against events that can cause temporary shutdowns or disruptions to operations. It compensates companies for losses in revenue and additional costs during periods where the business is unable to fully function due to covered events beyond their control.
Manufacturers in industries like fasteners, buttons, needles and pins rely on smooth operations and flawless production processes. Any unplanned shutdown or supply chain issues can significantly impact cash flow and cause losses, so business interruption coverage is especially critical for these businesses. It helps them weather financial storms and resume normal operations as quickly as possible when disruptions occur.
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Based on typical business interruption insurance pricing models, the average estimated cost for a manufacturer in this industry would be around $5 per $100 of insured value. This pricing is derived considering factors such as the company’s annual revenues, payroll expenses, fixed operating expenses, and profit margins. It also takes into account industry risk factors and the likelihood of interruptions for manufacturers of fasteners, buttons, needles and pins.
Estimated Pricing: $5 per $100 of insured value
Conclusion
Maintaining comprehensive insurance tailored to the fastener manufacturing industry helps protect a business’s assets, employees, revenues, and reputation. Working with a knowledgeable insurance agent allows companies to understand their specific risks and ensure proper coverage is in place. Well-planned insurance acts as a safety net, allowing manufacturers to focus on production and growth without worrying about financial ruin from unforeseen incidents.