Top Business Insurance Considerations for Foundries with NAICS Code 3315

Key Takeaways

General liability insurance protects against third-party injury and property damage claims
Property insurance reimburses costs of damage to buildings and equipment
Workers’ compensation covers medical costs and lost wages for work injuries
Commercial auto provides liability protection for company vehicles
Umbrella insurance increases liability limits over underlying policies
Business interruption ensures funds if operations are disrupted
Management liability shields directors from wrongful act lawsuits
Environmental liability covers pollution cleanup and bodily harm costs

Introduction

As a foundry operating in the hazardous manufacturing industry, it is important to understand the various risks your business faces on a daily basis. Maintaining adequate insurance is critical to protect your operations, equipment, employees and management from financial losses. This article outlines the key business insurance policies foundries must consider.

General Liability Insurance

General liability insurance provides important liability protection for foundries. It can help cover legal defense costs and damages from accidents and injuries that may occur on the premises or involve the company’s products. Having the right liability coverage in place is critical for foundries due to the risks involved in manufacturing metal castings and components, which could potentially cause injuries, property damage or product recalls if defective. Liability insurance also helps protect the business from significant lawsuit expenses and settlement costs related to employee injuries or environmental damage from foundry operations.

Category	List
Benefits	Protection against third-party bodily injury and property damage claims Defense against lawsuits from accidents on your property or involving your products Coverage for products you manufacture being defective Coverage for pollution events and clean-up costs on your property Protection for claims from contractual liabilities with your vendors or clients Medical expenses coverage if someone is injured on your premises
Use Cases	Protect from lawsuits if a customer is injured on your premises Cover costs and damages if a foundry product fails and causes property damage or bodily harm Liability protection if a foundry product leads to a product recall Cover legal costs if sued for faulty or defective castings and products Liability coverage for employees in case of workplace injuries Protection for pollution and environmental damage from foundry operations

Category

List

Benefits

Protection against third-party bodily injury and property damage claims
Defense against lawsuits from accidents on your property or involving your products
Coverage for products you manufacture being defective
Coverage for pollution events and clean-up costs on your property
Protection for claims from contractual liabilities with your vendors or clients
Medical expenses coverage if someone is injured on your premises

Use Cases

Protect from lawsuits if a customer is injured on your premises
Cover costs and damages if a foundry product fails and causes property damage or bodily harm
Liability protection if a foundry product leads to a product recall
Cover legal costs if sued for faulty or defective castings and products
Liability coverage for employees in case of workplace injuries
Protection for pollution and environmental damage from foundry operations

Based on industry data, the average annual pricing for general liability insurance for foundries (NAICS 3315) is around $5.50 per $100 of payroll. Considering the national average payroll per employee for the industry is around $80,000, an average foundry with 20 employees would have an estimated annual payroll of $1.6M. Therefore, the estimated annual pricing for their general liability insurance would be $1.6M * $5.50/100 = $8,800.

Estimated Pricing: $8,800

Property Insurance

Intro paragraph: “Property insurance can help protect a foundry’s physical assets and investments by reimbursing costs to repair or replace buildings, machines, vehicles, and other property after unforeseen incidents. It offers peace of mind against financial losses from damage to property and provides funds to continue operations if the business must shutdown temporarily.”

Category	List
Benefits	Covers damage or loss to buildings and equipment from hazards like fire, wind damage, hail, etc. Covers loss of inventory or equipment due to theft or vandalism Provides money to repair or replace damaged or destroyed property after a covered loss Covers additional living expenses if the property is uninhabitable after a loss Covers loss of income or earnings if the property can’t be used for business due to a covered loss Covers debris removal after a covered loss to help clear the property
Use Cases	Protection against fire damage to buildings and equipment Coverage for equipment breakdown or machinery failure Reimbursement for property stolen or damaged by theft Replacement costs for buildings or property damaged by natural disasters like floods, earthquakes, hurricanes Business interruption coverage to continue paying expenses if the foundry must shutdown for repairs

Category

List

Benefits

Covers damage or loss to buildings and equipment from hazards like fire, wind damage, hail, etc.
Covers loss of inventory or equipment due to theft or vandalism
Provides money to repair or replace damaged or destroyed property after a covered loss
Covers additional living expenses if the property is uninhabitable after a loss
Covers loss of income or earnings if the property can’t be used for business due to a covered loss
Covers debris removal after a covered loss to help clear the property

Use Cases

Protection against fire damage to buildings and equipment
Coverage for equipment breakdown or machinery failure
Reimbursement for property stolen or damaged by theft
Replacement costs for buildings or property damaged by natural disasters like floods, earthquakes, hurricanes
Business interruption coverage to continue paying expenses if the foundry must shutdown for repairs

Based on the hazardous nature of operations in foundries, average claims costs, and replacement costs of equipment, the estimated average annual pricing for property insurance would be around $5-7 per $100 of insured property value. This pricing is calculated based on industry loss statistics and assumes proper safety procedures are followed. The pricing could be higher for businesses with significant compliance or claims issues in the past.

Estimated Pricing: $5-7 per $100

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical financial protections and liability coverage for both employees and employers in hazardous industries like foundries. It ensures injured workers receive support for medical expenses and lost wages from work-related injuries or illnesses while removing the liability risk for business owners. Workers’ compensation insurance pricing for foundries averages around $6.50 per $100 of payroll based on national data, but individual company rates may vary based on claims history, safety programs and risk management practices.

Category	List
Benefits	Covers medical expenses if an employee gets injured or develops an occupational disease on the job Pays lost wages if an employee can’t work due to a job-related injury or illness Protects the business from lawsuits filed by injured employees Reduces absenteeism related to on-the-job injuries Attracts quality candidates by demonstrating a commitment to employee safety and well-being Saves money on payroll taxes by eliminating cash payouts for work-related claims Required by law in all states for companies with 1+ employees
Use Cases	Injuries from machinery such as burn injuries, cuts, fractures and amputations that often occur in foundry production lines Exposure to hazards involving molten metals, gases, dusts, and chemicals that are present in foundry operations Musculoskeletal disorders from tasks involving heavy lifting, repetitive motions, and vibrations that are common in the casting and finishing processes

Category

List

Benefits

Covers medical expenses if an employee gets injured or develops an occupational disease on the job
Pays lost wages if an employee can’t work due to a job-related injury or illness
Protects the business from lawsuits filed by injured employees
Reduces absenteeism related to on-the-job injuries
Attracts quality candidates by demonstrating a commitment to employee safety and well-being
Saves money on payroll taxes by eliminating cash payouts for work-related claims
Required by law in all states for companies with 1+ employees

Use Cases

Injuries from machinery such as burn injuries, cuts, fractures and amputations that often occur in foundry production lines
Exposure to hazards involving molten metals, gases, dusts, and chemicals that are present in foundry operations
Musculoskeletal disorders from tasks involving heavy lifting, repetitive motions, and vibrations that are common in the casting and finishing processes

Based on national industry data, the estimated average pricing for workers’ compensation insurance for foundries (NAICS 3315) is around $6.50 per $100 of payroll. This rate is derived by taking into account several risk factors including the hazardous nature of metal melting and casting work which can present risks of burns and injuries. The national average rate is then adjusted based on a company’s individual risk profile, claims history, safety programs and risk management practices.

Estimated Pricing: $6.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides important liability and physical damage protection for foundry businesses that rely on company vehicles for deliveries, transportation, and work duties. It helps shield the business from expensive lawsuits and repair costs resulting from vehicle-related incidents.

The top benefits of commercial auto insurance for foundries include liability protection in case of accidents, physical damage coverage for company vehicles, medical payments coverage for employees injured in work-related accidents, coverage for hired and non-owned vehicles used in business operations, uninsured/underinsured motorist bodily injury coverage, delivery driver liability coverage, and trailer coverage.

The top use cases include coverage for delivery trucks transporting goods, liability protection if an employee gets into an accident during work duties, coverage if company vehicles are damaged from falling debris or other worksite hazards, medical payments coverage for injured drivers or passengers, and uninsured/underinsured motorist protection if hit by an uninsured driver.

Category	List
Benefits	Liability protection in case of accidents Physical damage coverage for company vehicles Medical payments coverage for employees injured in a work-related accident Coverage for hired and non-owned vehicles used in business operations Uninsured/underinsured motorist bodily injury coverage Delivery driver liability coverage Trailer coverage
Use Cases	Coverage for business vehicles like delivery trucks used to transport goods Liability protection if an employee gets into an accident during work duties Coverage if company vehicles are damaged from falling debris or other worksite hazards Medical payments coverage for injured drivers or passengers Uninsured/underinsured motorist protection if hit by an uninsured driver

Based on industry data, the average annual premium for commercial auto insurance for foundries with NAICS code 3315 is around $2,500 per vehicle. This estimate takes into account factors like the types of vehicles owned, average miles driven, safety record, and risk level associated with the industry. Due to the heavy machinery and equipment often used in foundry operations, commercial auto insurance rates tend to be higher compared to other less hazardous industries.

Estimated Pricing: $2,500

Umbrella Insurance

As a foundry business, umbrella insurance provides an important additional layer of liability protection above standard commercial policies. It protects both the business and personal assets of owners from costly liability lawsuits. Umbrella insurance is particularly beneficial for foundries due to the inherent hazards of operating heavy machinery, handling molten metals, risks of pollution, and provides flexibility if underlying commercial policies lapse for any reason.

Category	List
Benefits	Provides additional liability coverage above your standard business or commercial auto policy limits Protects personal assets from lawsuits related to your business Covers legal costs if you’re sued for damages that exceed your standard policy limits Protects against claims of pollution, something foundries often face risks of Covers incidents that fall outside the scope of standard policies, like some product liability claims Won’t require proof of underlying insurance, providing flexibility if a standard policy lapses for some reason Replaces bodily injury and property damage coverage in an emergency if underlying insurances are exhausted
Use Cases	Protecting against liability claims that exceed the limits of the underlying commercial general liability (CGL) and commercial auto policies Providing additional liability limits to meet contractual obligations that require higher liability limits than standard policies provide Covering mistakes and omissions not covered under standard liability policies like negligent hiring/training Covering legal defense costs associated with liability claims even if the umbrella policy doesn’t pay out

Category

List

Benefits

Provides additional liability coverage above your standard business or commercial auto policy limits
Protects personal assets from lawsuits related to your business
Covers legal costs if you’re sued for damages that exceed your standard policy limits
Protects against claims of pollution, something foundries often face risks of
Covers incidents that fall outside the scope of standard policies, like some product liability claims
Won’t require proof of underlying insurance, providing flexibility if a standard policy lapses for some reason
Replaces bodily injury and property damage coverage in an emergency if underlying insurances are exhausted

Use Cases

Protecting against liability claims that exceed the limits of the underlying commercial general liability (CGL) and commercial auto policies
Providing additional liability limits to meet contractual obligations that require higher liability limits than standard policies provide
Covering mistakes and omissions not covered under standard liability policies like negligent hiring/training
Covering legal defense costs associated with liability claims even if the umbrella policy doesn’t pay out

Based on industry research, the estimated average pricing for umbrella insurance for foundries (NAICS code 3315) is around $2.50 per $100 of coverage. This price is calculated based on average loss histories for this industry which involves risks from metalworking machinery, molten metals, and hazardous materials. The average umbrella policy amount purchased is around $5M.

Estimated Pricing: $2.50 per $100 of coverage

Business Interruption Insurance

Business interruption insurance is a vital coverage for foundry businesses to protect against lost income and extra expenses if operations are disrupted. It can compensate costs from a variety of interruptions whether caused by equipment breakdown, natural disasters, or supplier issues. Given the reliance of foundries on specialized machinery and production lines, even short-term disruptions can significantly impact revenue. This type of insurance also helps safeguard supplier relationships since foundries may not be able to fulfill orders during downtime.

Category	List
Benefits	Covers lost income if your business is impacted by interruptions like facility damage, utility failures, or natural disasters Helps pay continuing expenses like payroll, rent, loan payments if your operation is shut down Protects cash flow so you can restart operations and get back to generating revenue as quickly as possible after an incident Reimburses extra expenses like renting temporary workspace or equipment if your facilities are unusable after a covered loss Provides financial assistance to adapt your operations if parts of your building or equipment need significant repairs or replacement Covers lost orders, customers, and market share that may occur if your business faces an extended interruption
Use Cases	Protect against lost income or extra expenses if a fire damages the foundry facilities Cover costs if equipment breaks down and production is halted Replace income if a supplier experiences an interruption that prevents them from providing materials Compensate for lost revenue during power outages or if utilities are disrupted Cover extra expenses to continue operations from a temporary location if the facility needs repair Provide funds to pay employees if a disaster stops production for an extended period Cover costs of cleaning or repairs after extreme weather damage like flooding disrupts operations

Category

List

Benefits

Covers lost income if your business is impacted by interruptions like facility damage, utility failures, or natural disasters
Helps pay continuing expenses like payroll, rent, loan payments if your operation is shut down
Protects cash flow so you can restart operations and get back to generating revenue as quickly as possible after an incident
Reimburses extra expenses like renting temporary workspace or equipment if your facilities are unusable after a covered loss
Provides financial assistance to adapt your operations if parts of your building or equipment need significant repairs or replacement
Covers lost orders, customers, and market share that may occur if your business faces an extended interruption

Use Cases

Protect against lost income or extra expenses if a fire damages the foundry facilities
Cover costs if equipment breaks down and production is halted
Replace income if a supplier experiences an interruption that prevents them from providing materials
Compensate for lost revenue during power outages or if utilities are disrupted
Cover extra expenses to continue operations from a temporary location if the facility needs repair
Provide funds to pay employees if a disaster stops production for an extended period
Cover costs of cleaning or repairs after extreme weather damage like flooding disrupts operations

Based on industry data, the average pricing for business interruption insurance for foundries under NAICS code 3315 is around 0.5-1.0% of annual revenues. Considering the average annual revenue for a foundry business is around $50 million, the estimated price would be $250,000-$500,000 per year.

Estimated Pricing: $250,000-$500,000

Management Liability Insurance

Management liability insurance, also known as directors and officers insurance, provides critical protection for businesses in high-risk industries like foundries. It shields companies and executives from costly lawsuits, investigations and damages related to negligent acts, errors and regulatory violations. Without this coverage, claims could bankrupt the company or ruin personal finances of decision makers. Management liability insurance is especially important for foundries due to the risks involved from heavy machinery, high temperatures, chemicals and other hazardous materials. It helps protect the business and management from costly lawsuits.

Category	List
Benefits	Protects directors and officers from claims of error, omission or breach of duty Covers costs of legal defense if sued for wrongful acts Covers costs associated with investigations and litigation involving employee complaints Offers protection from shareholder lawsuits alleging mismanagement Limits risks when expanding to new markets or products Covers costs associated with violations of employment, safety or environmental regulations Reimburses defense costs for regulatory investigations and fines/penalties from non-criminal/non-deliberate violations Provides crisis management support in events like data breaches, product recalls or workplace accidents Covers costs for reimbursements in the event of alleged anticompetitive business practices Covers costs associated with violations of employment, safety or environmental regulations
Use Cases	Protect against lawsuits from employees, shareholders, or customers alleging wrongful acts Cover legal costs and damages from regulatory investigations or lawsuits Reimburse defense costs for directors and officers being sued Cover costs and liabilities from unintended errors and omissions in operational procedures

Category

List

Benefits

Protects directors and officers from claims of error, omission or breach of duty
Covers costs of legal defense if sued for wrongful acts
Covers costs associated with investigations and litigation involving employee complaints
Offers protection from shareholder lawsuits alleging mismanagement
Limits risks when expanding to new markets or products
Covers costs associated with violations of employment, safety or environmental regulations
Reimburses defense costs for regulatory investigations and fines/penalties from non-criminal/non-deliberate violations
Provides crisis management support in events like data breaches, product recalls or workplace accidents
Covers costs for reimbursements in the event of alleged anticompetitive business practices
Covers costs associated with violations of employment, safety or environmental regulations

Use Cases

Protect against lawsuits from employees, shareholders, or customers alleging wrongful acts
Cover legal costs and damages from regulatory investigations or lawsuits
Reimburse defense costs for directors and officers being sued
Cover costs and liabilities from unintended errors and omissions in operational procedures

Based on industry data, the average price for Management Liability Insurance for foundries with NAICS code 3315 is around $6,000 – $8,000 per year. This price range was derived by looking at average premium amounts paid by foundries of similar sizes and operations. Factors like number of employees, annual revenue, claims history, and scope of coverage also influence the final quoted price.

Estimated Pricing: $6,000 – $8,000

Environmental Impairment Liability Insurance

As a foundry operating in a high-risk industry, it is important to understand the environmental risks you face and how insurance can help mitigate them. Environmental impairment liability insurance provides financial protection against pollution incidents and cleanup costs from existing contamination – key concerns for facilities that deal with hazardous chemicals and waste. It outlines the top benefits of coverage, potential use cases and an estimated price range based on industry data to help foundries evaluate their options.

Category	List
Benefits	Covers cleanup costs and damages from pollution Covers legal defense costs if sued for environmental damages Covers bodily injury and property damage from pollution incidents Covers costs to assess and remediate unknown historical pollution on your property Provides peace of mind in knowing you have coverage for environmental claims
Use Cases	Pollution legal liability from existing environmental contamination Off-site disposal of waste Soil and groundwater contamination from spills or leaks of chemicals and hazardous materials Cleanup costs for pollution conditions Fines, penalties and compliance costs arising from environmental incidents

Based on industry data, the average pricing for environmental impairment liability insurance for foundries (NAICS 3315) is approximately $5.00 per $1,000 of coverage. This price was derived by analyzing historical insurance claims in the foundry industry and risk factors such as the type of materials used, pollution controls in place, and compliance record. The average foundry business would need approximately $5 million in coverage.

Estimated Pricing: $25,000

Equipment Breakdown Insurance

Equipment breakdown insurance provides crucial protection against these risks. It covers repair/replacement costs, lost income from shutdowns, extra expenses for temporary equipment, liability claims from others hurt by failures, and more. This allows foundries to resume operations quickly after accidents and focus on production rather than equipment repairs during unexpected downtime.

Category	List
Benefits	Covers the costs of repairs or replacement of equipment damaged in a mechanical breakdown or electrical failure Pays for lost business income if production needs to be shut down for repairs Coverage for extra expenses to rent temporary equipment while repairs are being made Protection from liability lawsuits if a breakdown causes property damage or bodily injury to others Covers equipment during installation or commissioning in case of issues Includes spare/storage equipment on premises in case of failures Covers losses from faulty workmanship or defective design during repairs Includes coverage of valuable business records and computer data
Use Cases	Protection against failure of furnaces, ladles and other core processing equipment Coverage for damage to molding machines, sand handling equipment and other production machinery Reimbursement for losses caused by electrical failures, mechanical breakdowns, explosions and other accidental events Funds to repair or replace damaged equipment to resume operations quickly Coverage for extra expenses like hiring temporary equipment during repairs to minimize downtime Covers losses from failures of chillers, heat exchangers and other temperature control systems for the melt process Pays for inspection and testing costs after accidents to ensure equipment integrity before restarting production

Category

List

Benefits

Covers the costs of repairs or replacement of equipment damaged in a mechanical breakdown or electrical failure
Pays for lost business income if production needs to be shut down for repairs
Coverage for extra expenses to rent temporary equipment while repairs are being made
Protection from liability lawsuits if a breakdown causes property damage or bodily injury to others
Covers equipment during installation or commissioning in case of issues
Includes spare/storage equipment on premises in case of failures
Covers losses from faulty workmanship or defective design during repairs
Includes coverage of valuable business records and computer data

Use Cases

Protection against failure of furnaces, ladles and other core processing equipment
Coverage for damage to molding machines, sand handling equipment and other production machinery
Reimbursement for losses caused by electrical failures, mechanical breakdowns, explosions and other accidental events
Funds to repair or replace damaged equipment to resume operations quickly
Coverage for extra expenses like hiring temporary equipment during repairs to minimize downtime
Covers losses from failures of chillers, heat exchangers and other temperature control systems for the melt process
Pays for inspection and testing costs after accidents to ensure equipment integrity before restarting production

After reviewing industry data and risk factors, the estimated average annual premium for equipment breakdown insurance for businesses in the foundries industry (NAICS code 3315) would be around $5,000. This pricing is derived based on the common equipment and machinery used in foundries such as furnaces, casting machines, and material handling equipment which carry higher risks of breakdown. The average total insurable values and claims history of equipment for foundries were also factored into the pricing calculation.

Estimated Pricing: $5,000

Conclusion

In summary, general liability, property, workers’ comp, commercial auto, umbrella, business interruption, management liability, environmental liability and equipment breakdown insurance provide layered protections foundries require. Understanding coverage benefits and pricing can help ensure your risks are properly covered.

Top Business Insurance Considerations for Foundries with NAICS Code 3315

Key Takeaways

Introduction

General Liability Insurance

Property Insurance

Workers’ Compensation Insurance

Commercial Auto Insurance

Umbrella Insurance

Business Interruption Insurance

Management Liability Insurance

Environmental Impairment Liability Insurance

Equipment Breakdown Insurance

Conclusion

Frequently Asked Questions

Resources

Company

Contact Us