Key Takeaways
- General liability insurance protects against third party injury and property damage claims
- Property insurance covers assets like equipment, inventory and buildings from losses
- Product liability insurance addresses costs of product defects causing harm
- Workers’ compensation covers employee injuries on the job
- Commercial auto insures vehicles used for business
- Cyber liability protects from data breaches and cyber attacks
- Commercial umbrella provides high liability limits
Introduction
As a manufacturer of metal kitchen products, it is important to identify and insure against risks that could financially impact your business operations. This article outlines the top business insurance considerations for companies in the NAICS 332215 industry.
General Liability Insurance
General liability insurance provides essential coverage for metal kitchen cookware, utensil, and cutlery manufacturers by protecting them against costly product liability claims, bodily injury claims, property damage claims, recalls, retrofits, and lawsuits that could arise from their manufacturing operations and sale of products. It covers legal defense expenses and damages they may be liable for from such incidents. Key risks for these manufacturers include injuries from sharp edges or surfaces on their products as well as potential issues from defective welding or other manufacturing defects that could lead to injuries or recalls. Pricing for general liability insurance is typically around $2.50 per $100 of the manufacturer’s payroll.
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Based on industry research, the average estimated annual pricing for general liability insurance for businesses in the metal kitchen cookware, utensil, cutlery, and flatware manufacturing industry (NAICS 332215) is around $2.50 per $100 of payroll. This pricing is derived based on national industry averages considering factors like types of products manufactured, market share, years in business, safety record and claims history.
Estimated Pricing: $2.50/$100 of payroll
Property Insurance
Property insurance provides crucial protection for metal kitchen cookware, utensil, cutlery, and flatware (except precious) manufacturing businesses in NAICS Code 332215 against losses from fires, storms, equipment failures, and other events by replacing damaged property and ensuring business continuity. Manufacturing facilities in this industry house expensive equipment, raw materials, and finished inventory, making property insurance critical to continue operations if facilities are damaged from accidents or natural disasters. Estimated average annual property insurance pricing for businesses in NAICS 332215 is around $2.50 per $100 of insured property values due to moderate risks from metal working processes.
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Based on typical property insurance pricing factors such as the type of industry, number of employees, total insured property values, claims history, and location, the estimated average annual property insurance pricing for businesses in the NAICS 332215 industry would be around $2.50 per $100 of insured property values. This industry generally has moderate risks due to the metal working processes but lower risks compared to other manufacturing industries. The price was calculated using an industry base rate of $1.75 per $100 with additional pricing factors for 150 employees and $5 million in insured property values.
Estimated Pricing: $2.50 per $100 of insured property values
Product Liability Insurance
“Product liability insurance is an important coverage for businesses in the metal kitchen cookware industry. It can help protect a company from costly lawsuits and liability claims if a customer is injured by or makes a claim regarding a defective product. This type of insurance also covers legal defense costs if a company is sued over an alleged product issue. Additionally, it provides peace of mind knowing costs associated with injuries, recalls and settlements would be addressed if an unexpected situation arises related to a product.”
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Based on industry research, the average annual pricing for product liability insurance for businesses in the NAICS 332215 industry is about $2.50 per $100 of gross receipts. This pricing assumes no major claims history. The pricing is typically calculated based on the business’s total gross receipts from the previous policy year. Higher receipts would mean a higher premium. No additional details seem needed.
Estimated Pricing: $2.50 per $100 of gross receipts
Workers’ Compensation Insurance
Workers’ compensation insurance provides crucial protections for both employees and employers in the hazardous metal kitchen manufacturing industry. On-the-job injuries are common given the dangers of activities like metal-cutting, welding, and handling heated materials. Having workers’ comp coverage ensures employees receive medical care and lost wages if injured, while shielding companies from costly liability claims. The average cost for workers’ comp insurance in this industry is estimated to be $2.50 per $100 of payroll.
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Based on industry averages, the estimated average pricing for workers’ compensation insurance for businesses in the Metal Kitchen Cookware, Utensil, Cutlery, and Flatware (except Precious) Manufacturing industry with NAICS Code 332215 is $2.50 per $100 of payroll. This pricing is derived based on analysis of payroll and claims data from insurance providers for this industry which shows an average frequency and severity of injuries that results in this estimated price point.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an essential risk management investment for metal kitchen cookware manufacturers (NAICS 332215). It provides coverage for vehicles used to transport raw materials and deliver finished goods, protecting the supply chain. It also insures employee vehicles used for business purposes and leased delivery vehicles. Commercial auto insurance helps manufacturers mitigate financial risks from vehicle-related accidents and prevents disruptions to business operations that rely on transportation of goods and services.
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Based on industry averages, businesses in NAICS 332215 (Metal Kitchen Cookware, Utensil, Cutlery, and Flatware Manufacturing) can expect to pay around $800-1200 annually per commercial vehicle for auto insurance. Rates are calculated based on factors like number of vehicles, year/make/model of vehicles, driver history, location, and claims history. As a manufacturer and distributor, this industry often has fleets of delivery vehicles which increases the overall pricing.
Estimated Pricing: $800-1200
Cyber Liability Insurance
Cyber liability insurance is an important policy for manufacturers in the metal kitchen cookware industry to protect themselves from the financial risks of data breaches and cyber attacks. As companies in this sector often collect and store customers’ personal information, a breach could be very costly without insurance to help cover related expenses. Some key benefits of cyber liability insurance for these businesses include covering legal fees, notification costs, credit monitoring services, lost income from downtime, and brand damage from public incidents. The top uses of this type of policy would be in response to issues like data theft, regulatory violations, lawsuits, and interruptions caused by cyber attacks. Estimated average annual premiums for manufacturers of this size are around $5,000.
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Based on typical pricing analysis for businesses in the manufacturing industry with average annual revenue between $5-10 million and approximately 50 employees, the estimated average annual premium for a cyber liability insurance policy would be around $5,000. This takes into account the company size, annual revenue, industry risk factors, and standard policy limits. The pricing is derived from aggregated insurance rate data and benchmarking among similar manufacturers.
Estimated Pricing: $5,000
Commercial Umbrella Insurance
This reference provides information about commercial umbrella insurance benefits, use cases and pricing estimates that are relevant for businesses in the metal kitchen cookware, utensil, cutlery, and flatware (except precious) manufacturing industry (NAICS Code 332215). It outlines the top benefits such as additional liability coverage above primary limits and legal defense cost protection. It also describes key use cases for umbrella insurance like protection from high limits of general liability, property damage and auto claims. Finally, it provides an estimated pricing range for businesses in this industry of $2.50 to $5.00 per $100 of gross receipts.
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Based on the industry risk factors such as manufacturing activities involving metal fabrication, stamping, bending and cutting, commercial umbrella insurance for businesses in this NAICS 332215 industry is typically priced between $2.50-$5.00 per $100 of gross receipts. This pricing is derived from the moderate risks of property damage or bodily injury claims from manufacturing equipment and processes.
Estimated Pricing: $2.50-$5.00/$100 of gross receipts
Conclusion
Proper insurance planning is critical for manufacturers to maintain business continuity and mitigate financial risks. Carefully evaluating coverage needs and working with an experienced broker can help ensure the right policies are in place to protect a company’s assets, employees, products and business model.