Top Business Insurance Considerations for Unlaminated Plastics Film and Sheet Manufacturers (NAICS Code 326113)

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Learn about the key insurances unlaminated plastics film and sheet manufacturers should consider including general liability, property, workers' compensation and more.

Key Takeaways

  • Consider general liability, property, workers’ compensation and business interruption insurance
  • Evaluate product liability, directors and officers, cyber liability and umbrella policies
  • Review estimated insurance costs based on industry specifics

Introduction

As an unlaminated plastics film and sheet manufacturer, protecting your business from risks is essential. Several types of insurance can help shield you from financial losses and allow your business to withstand incidents. This guide examines the top insurances for this industry.

General Liability Insurance

General liability insurance protects plastics film and sheet manufacturers from financial loss due to legal claims of bodily injury and property damage to others. It covers costs associated with accidents on the premises, injuries from defective products, errors and omissions, and pollution liability. Top benefits of this type of insurance for businesses in this industry include covering legal costs if a customer is injured, costs if property is damaged, lawsuits, and defense costs even if claims are false. It also insures against pollution and environmental risks, provides monetary protection to continue operating after lawsuits, and covers liability from defects in products. Common use cases involve bodily injury or property damage claims from accidents on the premises, product liability claims if the films or sheets cause property damage or bodily injury, and errors and omissions claims if inadequate design advice leads to property damage. Estimated annual pricing for this industry ranges from $10,000-$15,000 based on typical insurance factors.

Category List
Benefits
  • Covers legal costs if a customer is injured
  • Covers costs if property is damaged
  • Protects from lawsuits
  • Covers defense costs even if claims are false
  • Covers other liability risks specific to the industry
  • Insures against pollution and environmental risks
  • Provides monetary protection to continue operating after lawsuits
  • Covers liability from defects in products
Use Cases
  • Bodily injury or property damage claims from accidents on the premises
  • Product liability claims if the films or sheets cause property damage or bodily injury
  • Errors and omissions claims if inadequate design advice leads to property damage
  • Pollution liability if hazardous materials are discharged into the environment

Based on typical factors considered such as number of employees, annual sales/revenue, past claims experience, safety record and prevention strategies, the estimated average annual pricing for general liability insurance for businesses in the unlaminated plastics film and sheet manufacturing industry (NAICS 326113) would be around $10,000-$15,000. This pricing was derived from available industry data and benchmark analyses of similar manufacturing industries with comparable risk profiles.

Estimated Pricing: $10,000-$15,000

Property Insurance

Property insurance provides crucial protection for manufacturers in the unlaminated plastics film and sheet industry by insuring their valuable production facilities and equipment against losses from fire, storms, equipment malfunctions and other insured events so they can continue operating smoothly.

Category List
Benefits
  • Covers property damage and losses
  • Protects assets like equipment, facilities, inventory
  • Covers losses from fire, explosion, wind damage
  • Provides financial security to continue operations after insured loss event
  • Replaces or repairs damaged property to pre-loss condition
  • Covers extra expenses to continue operations during property repairs
  • Protects investments and supports continuity of operations
Use Cases
  • Coverage for buildings and machinery
  • Coverage for stock and inventory
  • Protection from fire damage
  • Protection from equipment breakdown
  • Flood and other natural disaster coverage

Based on industry data, the estimated average annual pricing for property insurance for businesses in the Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing industry with NAICS code 326113 is $3.50 per $100 of insured value. This pricing is derived from considering factors such as the type of facility, materials used, safety practices, past claims, and risk level of the industry. The price is subject to change based on individual business risk assessment.

Estimated Pricing: $3.50 per $100 of insured value

Workers Compensation Insurance

Workers compensation insurance provides important protections and benefits for businesses in industries like unlaminated plastics film and sheet manufacturing that involve risks of workplace injuries. It ensures employees receive medical care and lost wages if hurt on the job while removing liability from employers. common uses of workers comp insurance for this industry include coverage for injuries from machinery, chemicals, lifting and falls, as well as medical expenses and wage replacement when injuries occur. The estimated average annual cost is $2.50 per $100 of payroll. Workers compensation insurance also improves productivity and morale by promoting a positive work culture that shows care for employee safety and well-being.

Category List
Benefits
  • Covers medical expenses if an employee gets injured or becomes ill due to their job
  • Provides wage replacement if an employee cannot work due to a work-related injury or illness
  • Protects the business from lawsuits if an employee is injured while on the job
  • Reduces absenteeism and increases productivity by providing incentives for employees to return to work after recovering from injuries
  • Promotes a positive company culture and improves employee morale by showing you care about their safety and well-being
  • Saves money on liability costs in the long run compared to paying for injuries out of pocket
Use Cases
  • Coverage for on-the-job injuries
  • Medical expenses coverage for work-related accidents or illnesses
  • Wage replacement for time off due to a work-related injury or illness
  • Liability protection if an employee is injured on the job and decides to sue the employer

Based on industry data and risk factors, the average estimated annual workers compensation insurance pricing for this industry is around $2.50 per $100 of payroll. This pricing was derived based on accident histories and risk level associated with plastic film and sheet manufacturing processes.

Estimated Pricing: $2.50/$100 of payroll

Business Interruption Insurance

Business interruption insurance provides critical financial protection for businesses operating in the unlaminated plastics film and sheet manufacturing industry by reimbursing losses from unavoidable interruptions to normal business operations. It covers a variety of unplanned events like fires, equipment failures, supply chain issues, personnel problems, infectious disease outbreaks, and natural disasters that could disrupt production and cash flow. Policies typically reimburse lost profits to help keep the business solvent during the recovery period. Premiums are competitively priced at around 1-2% of total insurable property values, inventory, and projected income.

Category List
Benefits
  • Provides funds to continue operations if property is damaged
  • Covers loss of income if business needs to shut down temporarily
  • Protects cash flow if business operations are disrupted
  • Covers additional expenses to get business back up and running after an interruption
  • Insures against spoilage of raw materials or finished goods after an incident
  • Helps stabilize cash flow and finances during recovery period
  • Reimburses lost profits so the business can stay afloat during downtime
Use Cases
  • Loss of property due to fire, explosion or natural disaster
  • Business closure due to utility/equipment failures
  • Loss of suppliers/contractors due to their own business interruption
  • Loss of key employees/personnel due to injury, illness or other reasons
  • Loss of premises/property due to infectious diseases

Based on typical pricing models, business interruption insurance for unlaminated plastics film and sheet manufacturing would be priced at around 1-2% of the total insurable value. Given the high replacement costs of manufacturing equipment, ongoing inventory, and interruptions to revenue streams, insurers usually charge in the range of 1-2% of property values, inventory, and projected profits as the annual premium. For a mid-sized manufacturer in this industry, that would equal around $50,000-$100,000 per year.

Estimated Pricing: $50,000-$100,000

Product Liability Insurance

Product liability insurance provides crucial protection for businesses that manufacture products by covering costs associated with injuries, property damage or failure caused by defective products. It prevents financial ruin from lawsuits and helps ensure a manufacturer’s long term survival.

As an unlaminated plastics film and sheet manufacturer, there are risks associated with defects in products that could harm others. Product liability insurance helps protect the balance sheet from these types of risks by covering lawsuits, legal fees, medical expenses, property repairs and other costs in situations where the films and sheets cause harm due to defects.

Based on industry standards, product liability insurance for unlaminated plastics film and sheet manufacturers averages around $2.50 per $100 of gross receipts, with a $2,500 minimum premium. This pricing accounts for factors like raw materials, machinery, product lines, sales volume and claims history.

Category List
Benefits
  • Protects your business from financial losses due to product-related injuries, property damage or failure to perform as intended
  • Covers legal defense costs if a product liability lawsuit is filed against your business
  • Peace of mind knowing you have coverage in place should an incident occur
  • Helps maintain positive customer relationships and trust in your brand
  • May be required by some vendors or customers as a condition of doing business with them
  • Provides the financial resources to recall a defective product if necessary
  • Demonstrates to stakeholders that you take product safety seriously
Use Cases
  • Protect against lawsuits if the plastic films and sheets manufactured are defective and cause property damage or bodily injury
  • Cover costs of legal defense and potential damages if customers claim the plastic films and sheets failed prematurely or did not perform as specified
  • Provide coverage if the plastic films and sheets accidentally catch fire or release hazardous chemicals that harm people or the environment

Based on industry standards, the average pricing for product liability insurance for businesses in the unlaminated plastics film and sheet manufacturing industry (NAICS 326113) is around $2.50 per $100 of gross receipts, with a minimum premium of $2500. This pricing is derived by looking at risk factors such as the raw materials involved, machinery used, number of product lines, sales volume, and claims history of the industry overall.

Estimated Pricing: $2.50/$100 gross receipts, $2500 minimum

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides important protection for executives and board members of businesses in the unlaminated plastics film and sheet manufacturing industry. It covers legal expenses and damages from lawsuits resulting from failures or errors in leadership duties. D&O insurance also helps companies attract qualified directors and officers by providing them liability protection. Additionally, it reimburses companies for financial losses due to indemnifying executives. D&O insurance protects leaders from personal liability and helps ensure companies are protected in case of claims or regulatory investigations related to wrongdoings.

Category List
Benefits
  • Protects directors and officers from financial losses due to legal claims
  • Covers legal fees and other costs associated with lawsuits
  • Helps companies attract and retain qualified directors and officers
  • Indemnifies executives for unintentional errors or omissions while performing duties in good faith
  • Covers defense costs even if allegations turn out to be groundless
  • Protects the company’s reputation in the event of a lawsuit
  • Provides peace of mind for policyholders
Use Cases
  • Protection against claims alleging breach of fiduciary duty by directors and officers
  • Coverage for allegations of wrongful acts such as negligent oversight or mismanagement
  • Defense costs for regulatory investigations and inquiries against the company or its directors and officers
  • Liability protection for claims of harassment, discrimination, or wrongful termination

Based on industry research, the average pricing for Directors And Officers Liability Insurance for businesses in the Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing industry with NAICS Code 326113 is around $5,000 – $10,000 per year. The pricing is dependent on factors like the company’s annual revenue, number of employees, claims history, and leadership team. For a typical small to mid-sized business in this industry, the estimated annual premium would be around $7,500.

Estimated Pricing: $7,500

Cyber Liability Insurance

Cyber liability insurance provides important protection for businesses in the unlaminated plastics film and sheet manufacturing industry that handle sensitive customer data. It can help cover costs related to data breaches, network disruptions, legal fees, fines and more. As manufacturers collect and store commercial customer information, cyber policies help offset expenses from responding to incidents and recovering from cyber attacks or privacy issues. Based on typical industry characteristics, the estimated average annual premium for a policy would be $3,500. Cyber insurance can protect manufacturers from a variety of risks they may face due to the sensitive commercial data they collect and store.

Category List
Benefits
  • Covers expenses related to data breaches
  • Pays for legal fees and settlements related to cybersecurity incidents
  • Covers regulatory fines and penalties from breach notifications
  • Covers costs of forensic investigations and credit monitoring following breach
  • Protects revenue and reputation in the event of an outage from a cyber attack
  • Provides access to cybersecurity experts, lawyers and consultants in the event of incident
  • Helps businesses remain compliant with data privacy regulations like GDPR and CCPA
Use Cases
  • Data breach or cyber attack resulting in unauthorized access or theft of sensitive customer or employee data
  • Losses from business interruption due to a system outage or network security incident
  • Regulatory fines and legal expenses from failure to safeguard private data
  • Costs to provide credit monitoring, identity theft protection or other remedies in the event of a data breach
  • Cyber extortion and ransomware attacks

Based on the typical characteristics of businesses in the Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing industry (NAICS 326113), the estimated average annual premium for a cyber liability insurance policy would be $3,500. This estimate was derived by considering average industry revenues of around $10-20 million and 10-50 employees. Larger businesses could expect slightly higher premiums while smaller operations would see lower prices.

Estimated Pricing: $3,500

Umbrella Insurance

“Umbrella insurance provides additional liability protection for businesses in high-risk industries like unlaminated plastics film and sheet manufacturing. It serves as a safety net if claims exceed primary insurance limits and also protects against lawsuits related to common risks for this type of business. Umbrella insurance is especially important for businesses in this industry due to the chemicals and equipment used potentially leading to accidents, injuries or property damage. It offers coverage above normal primary general liability insurance and protects both the business and its owners’ personal assets if an incident occurs. Pricing is typically $2-3 per $100 of gross revenue, with a minimum premium of $1,000. For businesses in this industry with average annual revenues of $5-10 million, umbrella insurance would cost around $10,000-30,000 per year.”

Category List
Benefits
  • Provides additional liability coverage above your primary insurance limits
  • Increases total coverage amount to protect against large claims or lawsuits
  • Covers liabilities from multiple insurance policies under one umbrella
  • Covers legal defense costs if you are sued and allegations are made against you
  • Provides liability protection for property you own, like buildings and vehicles used for work purposes
  • Covers incidents involving non-owned vehicles used for business purposes
  • Protects personal assets of business owners if the business is sued
Use Cases
  • Protect against claims exceeding primary general liability insurance limits
  • Cover risks not included under normal primary general liability insurance policies
  • Cover incidents related to employment practices, discrimination and other legal matters
  • Offer additional liability protection for property damage or bodily injuries from accidents
  • Provide coverage related to transportation incidents like loading/unloading accidents

Based on average payroll and revenue for businesses in NAICS 326113, umbrella insurance pricing is typically $2-3 per $100 of gross revenue, with a minimum premium of $1,000. Given industry averages of $5-10M in annual revenue, umbrella insurance for these businesses would be in the range of $10,000-30,000 per year.

Estimated Pricing: $10,000-30,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides important protections for businesses in industries like unlaminated plastics film and sheet manufacturing. EPLI can help defend against costly lawsuits related to how a business hires, manages and terminates employees. It also reimburses legal defense fees when allegations are made. Common claims in this industry include injuries from manufacturing equipment, allegations of unsafe working conditions, and potential discrimination or harassment issues from employees working closely together. EPLI may also provide legal support and compensation for lawsuits involving issues such as violations of labor laws around overtime pay, breaks and other matters. EPLI can cost between $5,000-$7,000 annually on average for companies in this industry.

Category List
Benefits
  • Covers legal costs if sued for wrongful termination, discrimination, harassment, or other employment practices lawsuits
  • Protects business from financial losses due to employee allegations or legal claims
  • Limits personal liability for business owners and executives if accused of wrongdoing
  • Reimburses defense costs even if the allegations against the business are unfounded
  • Provides access to experienced legal counsel approved by the insurer
  • Helps retain existing employees and attract new talent with stronger employee protection policies
  • Reduces stress for management knowing insurance will help cover significant legal fees
Use Cases
  • Defense against wrongful termination lawsuits
  • Defense against discrimination or harassment claims
  • Defense against lawsuits regarding issues like workplace safety, disability, family leave
  • Coverage for lawsuits over misclassification of employees as contractors or temporary workers
  • Legal support and compensation for claims regarding violations of labor laws like overtime pay, rest breaks, meal periods

Based on typical risk factors for this industry such as number of employees, average payroll, potential discrimination and harassment lawsuits, the estimated average annual premium for Employment Practices Liability Insurance would be around $5,000-$7,000. This price range was estimated using premium calculators from several large insurance carriers factoring in companies in this industry typically having 50-150 employees.

Estimated Pricing: $5,000-$7,000

Conclusion

Proper insurance coverage provides peace of mind and protects the long-term viability of your manufacturing operations. Consult with an agent to evaluate your individual risks and determine the best policies to safeguard your business from unexpected liabilities and costs.

Frequently Asked Questions

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