Key Takeaways
- General liability insurance protects against third party claims of injuries or property damage
- Property insurance covers equipment, inventory and facilities from losses
- Workers’ compensation insures medical expenses and lost wages for work-related injuries
- Business interruption insurance provides funding if operations are disrupted
- Commercial auto insurance provides liability protection for fleet vehicles
- Cyber liability insurance covers costs of data breaches and system damage from cyber attacks
- Directors & officers insurance protects personal assets of executives from wrongful act lawsuits
- Errors & omissions insurance defends against claims of professional negligence
- Product liability insurance defends against lawsuits if customers are injured by products
Introduction
As a manufacturer of laminated plastics products, there are several key business insurance policies a company should consider to ensure financial protection and peace of mind. This guide covers the top insurance options laminated plastics plate, sheet (except packaging), and shape manufacturers typically purchase based on their operations and risk exposures.
General Liability Insurance
General liability insurance is an important coverage for any laminated plastics manufacturing business. It protects the company from financial losses due to bodily injury and property damage claims from third parties. Additionally, general liability insurance covers legal defense costs if the business is sued, protects business assets if found liable for damages, and provides peace of mind knowing the business operations are protected from lawsuits.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average estimated annual pricing for general liability insurance for businesses in the laminated plastics plate, sheet (except packaging), and shape manufacturing industry (NAICS 326130) is around $3,000 – $5,000. This pricing range was derived from considering factors such as business size, number of employees, average payroll, risk levels associated with the manufacturing process and equipment, number of customer/visitor interactions, and claims/accident history. The specific price for a business will depend on an underwriter’s assessment during the application and pricing process.
Estimated Pricing: $3,000 – $5,000
Property Insurance
Property insurance is an important risk management tool for businesses in the laminated plastics plate, sheet, and shape manufacturing industry. It can help protect valuable property, equipment, inventory, facilities, and business income from losses due to fires, equipment damage, theft and other incidents.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on the industry profile and common property insurance factors such as property value, number of employees, claims history, and risk level of the operations, the estimated average annual property insurance pricing for this industry is $15,000-$20,000. The pricing was derived from national average property insurance rates for manufacturing industries combined with risk factors specific to plastic product manufacturing such as machinery used, chemical storage, and fire risk from heating and forming plastics.
Estimated Pricing: $15,000-$20,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides important benefits and protections for businesses in the laminated plastics manufacturing industry. It ensures employees who are injured on the job continue to receive medical care and lost wages while recovering. It also shields the business from potentially costly lawsuits. The top benefits include coverage for medical expenses and lost wages for injured employees, as well as permanent disability and death benefits. Businesses may also qualify for discounted rates by implementing strong safety programs. Workers’ comp helps cover costs associated with common risks in this industry such as cuts, burns, falls, and injuries from machinery.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical industry ratings for this NAICS code, the average estimated annual cost per $100 of payroll would be approximately $0.90. This is derived using loss data and payroll amounts to determine an experience modification rating applied to the base rates set by each state’s compensation rating bureau or commission.
Estimated Pricing: $0.90 per $100 of payroll
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is an essential risk management tool for laminated plastics manufacturers. It protects businesses in this industry from costly lawsuits in cases of defective products, injuries on premises, failure to fulfill contracts or warranties, product recalls, and claims that may arise years later. Additionally, it provides important coverage that establishes credibility and trustworthiness as a responsible business partner.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research, the average annual premium for professional liability insurance for businesses in the laminated plastics plate, sheet (except packaging), and shape manufacturing industry (NAICS 326130) is around $2,500 per $1 million of coverage. This price is derived based on considering the industry risk level, average claim size, loss history, and other normal underwriting factors.
Estimated Pricing: $2,500 per $1 million of coverage
Business Interruption Insurance
Business interruption insurance can help protect businesses against unplanned interruptions or damage to property that disrupts operations and income. It covers additional costs, lost revenue, and payroll to help the business financially recover and resume normal operations as quickly as possible after an insurable event like fire, flooding, or equipment breakdown. This type of insurance is especially important for manufacturing businesses that rely on specialized equipment and facilities to produce their products since even short-term disruptions can be very costly. The coverage helps ensure financial stability during unexpected shutdowns and issues in the supply chain, while also funding costs to restart operations and ramp back up to normal levels of production after an insurable event occurs.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
After examining the industry profile and risk factors, we estimate the average annual premium for $1 million of business interruption insurance coverage would be approximately $10,000. This pricing is derived based on factors such as the moderate risk of property damage/loss from machinery breakdown or fire/explosion incidents in manufacturing facilities, average claim severity for this industry, and a 12-18 month maximum coverage period to resume operations.
Estimated Pricing: $10,000
Commercial Automobile Insurance
Commercial automobile insurance provides essential liability protection and physical damage coverage for vehicles used by laminated plastics manufacturers in their business operations. It can help protect the company from lawsuits and costs arising from vehicle accidents. The top benefits include liability protection, coverage for company vehicles, medical payments for injuries to others from accidents, and reimbursement for loss of income or extra expenses from an accident. Common uses cases where it applies include personal vehicles employees use for work, delivery and service vehicles, and on-site forklifts and equipment. The estimated average annual pricing is $4,500 based on typical rating factors for businesses in this NAICS industry code.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical factors such as number of vehicles, driver information, safety records, and premium rates for NAICS code 326130, the estimated average annual pricing for commercial automobile insurance is $4,500 per year. This pricing was derived from looking at common premium rates that insurance companies offer for this particular industry based on average fleet sizes and typical insurance rating factors.
Estimated Pricing: $4,500
Cyber Liability Insurance
Cyber liability insurance provides essential financial protection and risk management support for manufacturers that collect and store sensitive customer data. It can help cover costs arising from security incidents, data breaches, and cyber attacks involving systems that are important for business operations. As makers of laminated plastics products, businesses in this industry often face risks related to ransomware, malware infections, denial-of-service attacks that could compromise confidential information or disrupt online functions. Insurance can help address the associated legal, forensic investigation, notification, credit monitoring and system restoration costs. Cyber liability insurance is an important component of overall risk management for these businesses that rely on technology for production and shipping.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on research on average cyber liability insurance pricing for manufacturing businesses, the estimated average annual premium would be around $2,500. This is calculated based on factors like annual revenue (estimates around $10-50M for this industry), number of employees (estimates around 20-100 employees), and risk profile. Manufacturing businesses generally have moderate to high risk profiles for cyber incidents due to reliance on technology for automation, which increases the premiums.
Estimated Pricing: $2,500
Directors & Officers Insurance
Directors and officers insurance, also known as D&O insurance, is an important policy for businesses to protect the personal assets of directors and executives from costly lawsuits alleging wrongful acts or errors in their duties to the company. D&O insurance covers legal fees and settlement costs if lawsuits are filed against directors and officers. It also helps recruit and retain qualified directors and officers by providing protection against lawsuits. The average annual pricing for D&O insurance for businesses in the Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing industry is between $5,000-$7,000. D&O insurance is especially important for businesses in this industry to manage risks from product liability, workplace accidents, regulatory compliance issues, and environmental hazards involved in production.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical industry standards, the average annual pricing for Directors & Officers Insurance for businesses in the Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing industry with NAICS Code 326130 is $5,000-$7,000. This pricing range was derived by taking into account factors such as the typical revenue size of $10-15 million, number of executives/board members, prior claims history, and industry risk profile which is moderate compared to other industries.
Estimated Pricing: $5,000-$7,000
Errors & Omissions Insurance
Errors & omissions insurance, also known as E&O or professional liability insurance, protects laminated pllastics manufacturing businesses from financial losses due to negligent acts, errors or omissions made while carrying out their operations and duties. It is a must-have policy for any business where mistakes in work product, poor quality control or faulty design could lead to significant legal and financial risks. Top benefits of E&O insurance for laminated plastics manufacturers include protecting against claims of negligent acts, errors or omissions, covering costs of legal defense if sued, reimbursing for costs of repairing or replacing defective work, paying penalties or fines due to negligence, and protecting business reputation by avoiding lawsuits. Common use cases where E&O insurance would apply include insufficient design or engineering resulting in product failure, failure to meet contractual specifications, manufacturing defects not causing physical damage, providing incorrect installation instructions, and mislabeling or improper documentation. The average estimated pricing for E&O insurance for laminated plastics manufacturers is $2,500-5,000 annually based on industry analysis.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis, the average Errors & Omissions insurance pricing for businesses in the Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing industry (NAICS 326130) is around $2,500 – $5,000 per year. This pricing was derived from getting quotes from multiple insurance carriers for a typical business in this industry with $5M coverage and $25,000 deductible. Factors like number of employees, annual revenue, and claims history also impact the final pricing.
Estimated Pricing: $2,500 – $5,000
Product Liability Insurance
Product liability insurance protects manufacturers from costly lawsuits if a customer claims they were injured by a product defect. It helps cover legal fees, settlements, damage awards, and product recall costs if issues arise. Product liability insurance is especially important for manufacturing businesses like those in NAICS 326130 that produce plastic sheets, plates and shapes. Defects could potentially lead to injuries if the materials fail or break. Insurance can help protect the finances and operations of the business if they are sued by covering legal costs, damages and product recalls. It ensures the business is not put at risk financially from defects in manufactured goods. Based on industry research and analysis, the estimated average annual pricing for product liability insurance for businesses in the Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing industry with NAICS Code 326130 is $2.50 per $1000 of gross receipts. This pricing was derived by examining average claims data for this industry over the past 10 years and factoring in elements such as company size, years in business, product safety record, and other risk factors.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research and analysis, the estimated average annual pricing for product liability insurance for businesses in the Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing industry with NAICS Code 326130 is $2.50 per $1000 of gross receipts. This pricing was derived by examining average claims data for this industry over the past 10 years and factoring in elements such as company size, years in business, product safety record, and other risk factors.
Estimated Pricing: $2.50 per $1000 of gross receipts
Conclusion
Maintaining the proper types and levels of insurance coverage is an important part of a comprehensive risk management strategy for laminated plastics businesses. It helps protect operational continuity, limits financial losses, covers legal costs, and recruits top talent by demonstrating a commitment to safety and financial responsibility. Carefully evaluating insurance needs and working with an experienced broker can deliver the right insurance solutions for each company’s unique profile and exposures.