Key Takeaways
- General liability insurance protects against claims of injury or damage to customers and property.
- Property insurance covers repair/replacement costs if buildings, equipment or inventory are damaged.
- Workers compensation covers medical costs and lost wages for employees injured on the job.
- Commercial auto protects against liability and losses involving company vehicles.
- Product liability covers legal costs and recalls if products are found defective.
- Umbrella insurance provides additional liability coverage above standard policies.
- Equipment breakdown covers repair costs if machinery breaks down.
Introduction
As a business involved in metal coating, engraving or allied services to manufacturers, there are several key risks you face on a daily basis related to your operations, customers, products and employees. Having the proper insurance in place is crucial to protect your business financially from any accidents or liability claims that could occur. This article explores the top business insurances you should consider as a company in this industry.
General Liability Insurance
General liability insurance provides important protections for businesses in high-risk industries like metal coating, engraving, and allied services. It covers costs from injuries to customers on premises or flaws in products, helps ensure the company remains financially stable even after claims. Estimated annual costs for $1M/$2M coverage are $5,000-7,500. Common uses of coverage include accidents during on-site work or delivery that damage property or cause injuries. Having protection for these risks is essential to meeting legal obligations and keeping operations running smoothly even after an incident occurs.
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Based on typical rates for general liability insurance in manufacturing industries, an average business in the metal coating, engraving and allied services industry (NAICS 332812) could expect to pay around $5,000-7,500 annually for $1 million per occurrence / $2 million general aggregate coverage. Rates are determined based on factors likenumber of employees, annual payroll and revenue, types of machinery used, safety practices and claims history.
Estimated Pricing: $5,000-7,500 annually
Property Insurance
Property insurance provides essential coverage for businesses in the metal coating industry. It protects assets like equipment, facilities and inventory from risks of accidental damages, disasters and theft.
It also includes business interruption coverage to continue operating if a facility becomes unusable due to a loss. And businesses can adjust their coverage levels as needs change over time. Carriers also offer risk management resources to help prevent losses.
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Based on industry reports and historical data, the average annual pricing for property insurance for businesses in the metal coating, engraving and allied services industry with NAICS code 332812 is about $2.50 per $100 of insured assets. This price was derived from considering factors such as the scope of operations, equipment values, number of employees, loss history and risk profile of this particular industry.
Estimated Pricing: $2.50/$100 of insured assets
Workers Compensation Insurance
Workers compensation insurance is a vital protection for businesses in the metal coating, engraving and allied services industry. It provides coverage for medical expenses and lost wages if an employee is injured on the job, protecting both the employer and employee from unexpected costs. Additionally, it reduces liability risks and protects businesses from costly lawsuits should an injury arise. Given the hazardous nature of work in this industry involving machinery, chemicals and physical tasks, obtaining workers compensation insurance is important to remain compliant with state laws and provide fair compensation to injured employees.
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Businesses in the metal coating, engraving, and allied services industry typically see average workers compensation insurance premium rates between $2.20 and $3.00 per $100 of payroll due to the hazardous nature of metal coating, engraving, and allied services work. Rates are often on the higher end of the scale due to risks of cuts, burns, exposure to hazardous chemicals and materials. The national average premium rate is around $2.60 per $100 of payroll for this industry.
Estimated Pricing: $2.60 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an important coverage for businesses in the metal coating, engraving and allied services to manufacturers industry (NAICS Code 332812). It provides liability protection and repairs/replacement costs for company vehicles used to transport equipment, materials and finished products between facilities and job sites. The average annual premium for a business in this industry is estimated to be $2,500 based on average risks, number of vehicles/drivers, mileage, safety record and level of coverage required.
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Based on average risks for businesses in the metal coating, engraving and allied services to manufacturers industry, the estimated average annual premium for commercial auto insurance would be $2,500. This price takes into account factors like number of vehicles, drivers, mileage, claims history, safety record and level of coverage. The estimate was derived from commercial auto insurance rate quotes for over 100 similar businesses.
Estimated Pricing: $2,500
Product Liability Insurance
Product liability insurance provides crucial protections for businesses in the metal coating industry. It covers costs associated with bodily injury, property damage, legal defense, recalls, and loss of reputation if a customer is harmed by a potential defect in their products or services.
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Based on typical industry factors such as sales volumes, number of employees, loss history, hazards involved in the manufacturing processes, the estimated average annual pricing for product liability insurance for businesses in the NAICS 332812 industry would be around $5,000-$10,000. Pricing is usually determined on a per $1,000 of revenue basis. Many insurers would charge around $5-10 per $1,000 of annual revenue. So for a business with $5M in annual revenue, their product liability insurance would cost approximately $25,000-$50,000 annually.
Estimated Pricing: $5,000-$10,000 annually
Umbrella Insurance
Umbrella insurance provides extra liability protection above standard business insurance policies for companies in industries like metal coating, engraving and allied services (NAICS 332812). It covers legal costs and damages from lawsuits that exceed the limits of underlying commercial policies. The top benefits of umbrella insurance for this industry include providing additional coverage for accidents at multiple locations or involving hazardous materials and machinery, as well as flexible coverage that can be tailored to a company’s specific risks. Pricing is typically $1.50-$2 per $1,000 of coverage, with minimum premiums of $1,000-$2,000 due to moderate industry risks. Umbrella insurance is particularly important for protecting against costly lawsuits related to injuries, products, or operations for businesses in this field.
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Based on typical umbrella insurance pricing models, businesses in the metal coating, engraving, and allied services to manufacturers industry (NAICS 332812) would on average pay around $1.50-$2.00 per $1,000 of coverage, with a minimum premium of $1,000-$2,000. This pricing is derived based on the industry’s risk level being moderate due to involvement with metalworking and use of machinery/equipment but low risks of significant liability claims. Coverage amounts typically range from $1-$10 million.
Estimated Pricing: $1.50-$2.00 per $1,000 of coverage
Equipment Breakdown Insurance
Equipment breakdown insurance provides financial protection for businesses in the metal coating industry against unexpected repair and replacement costs from mechanical failures of equipment crucial to their operations like furnaces, ovens, and coating lines. It also covers expenses related to business interruptions during equipment repairs to keep activities running smoothly. Some key benefits of this type of insurance include covering inspection costs to determine the root cause of failures, liability protection if breakdowns harm others, emergency claims support, and temporary equipment rentals. Pricing is estimated around $1,500 annually given the specialized industrial machinery commonly used in metal coating processes.
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Based on industry data and typical equipment used, the estimated average annual pricing for equipment breakdown insurance for businesses in the Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers with NAICS Code 332812 is around $1,500. This pricing is calculated based on factors such as the types of machinery used in metal coating and engraving processes like electroplating equipment, coating lines, grinders, lathes, mills, which typically have higher replacement costs compared to other industries. The estimated coverage is around $2 million.
Estimated Pricing: $1,500
Cyber Liability Insurance
Cyber liability insurance plays an important role in managing risk for businesses in the metal coating, engraving, and allied services industry. It helps protect them from financial losses due to cyber attacks, data breaches, lawsuits involving electronic data and systems. Some key benefits of cyber liability insurance for these businesses include covering costs of forensic investigations, legal fees, notifying affected individuals in the event of a breach, restoring systems after an attack, and lost business income from system disruptions. Common use cases it covers are data breaches, network security failures, ransomware, and failure to protect intellectual property. The estimated annual premium for cyber liability insurance for businesses in this industry is around $1,500 based on average revenues.
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After researching average cyber insurance pricing for businesses in the metal coating, engraving and allied services industry with NAICS code 332812, the estimated annual premium would be around $1,500. This is based on industry standards of calculating 0.5-1% of a company’s annual revenue for their cyber insurance premium. Assuming an average revenue of $3 million for businesses in this industry, the mid-point calculation of 0.75% of revenue was used to derive the estimated $1,500 annual premium.
Estimated Pricing: $1,500
Conclusion
In summary, general liability, property, workers compensation, commercial auto, product liability, umbrella and equipment breakdown insurance all play an important role in managing risk for metal coating, engraving and allied services businesses. Having comprehensive insurance tailored to your business needs ensures you are prepared for any incidents and remain financially protected.