Key Takeaways
- General liability insurance protects against lawsuits from injuries on your property or claims over defective products
- Property insurance covers costs to repair or replace facilities and equipment damaged by fires, floods and other disasters
- Workers’ compensation fulfills legal requirements by providing benefits to employees injured on the job
- Product liability shields your business from claims over injuries caused by defective manufactured goods
- Commercial auto covers risks of employee driving for business needs like deliveries
- Umbrella liability provides additional protection above primary policies’ limits
- Business interruption protects lost income and extra expenses if operations are disrupted
Introduction
Custom roll forming companies that manufacture custom metal components face various risks in their operations. Proper insurance coverage helps protect the business financially against costly losses. This article covers the top business insurance needs for companies in the custom roll forming industry with NAICS code 332114.
General Liability Insurance
General liability insurance is a crucial risk management tool for custom roll forming businesses. It protects the business from financial losses due to accidents, injuries, or lawsuits related to company operations. Having general liability coverage provides peace of mind knowing the business is protected from costly claims. The estimated average annual cost for general liability insurance for custom roll forming businesses is around $3,000 – $5,000 according to industry analysis. Common risks for custom roll forming businesses include injuries from operating machinery, property damage from equipment malfunctions, and liability from defects in custom rolled products.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis and historical pricing data, the estimated average annual cost for general liability insurance for custom roll forming businesses (NAICS 332114) is around $3,000 – $5,000 per year. Factors that may impact the actual price include number of employees, total annual revenue/payroll, property values, any past claims or losses, and optional policy enhancements. The price provided is intended to be used for budgeting purposes and the actual quoted price from insurance carriers may vary.
Estimated Pricing: $3,000 – $5,000
Property Insurance
Property insurance provides vital protection for a custom roll forming business’ facilities, equipment, inventory and operations by covering costs from unexpected property damage or loss due to events such as fire, storms, accidents, and more.
It outlines the top benefits of having coverage like replacing lost income if the facility shuts down and protecting the business from lawsuits if anyone is injured on the property. The use cases highlight key risks for the industry like fire damage to machinery and theft of expensive equipment. Lastly, it provides an estimated pricing range for businesses in this industry.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry averages, property insurance for custom roll forming businesses with NAICS code 332114 is typically priced between $1.50 to $3.00 per $100 of insured property value. This pricing is derived from considering the machinery and equipment used in custom roll forming manufacturing processes which can be expensive to replace or repair. Also factoring in are risks like fire hazards when working with metal.
Estimated Pricing: $2.25/100
Workers’ Compensation Insurance
Workers’ compensation insurance provides essential coverage for custom roll forming businesses operating heavy machinery by ensuring employees receive timely medical care and lost wages if injured on the job, while protecting the company from expensive liability lawsuits. It allows companies to foster a strong safety culture, improves productivity and staff retention over the long run. Maintaining coverage also fulfills legal requirements in most states and averages $1.50 per $100 of payroll for the industry.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average workers’ compensation insurance rate for the custom roll forming industry with NAICS code 332114 is approximately $1.50 per $100 of payroll. This rate is calculated by insurance companies based on the risk level and loss history for this particular industry. With an average annual payroll of $500,000, the estimated annual premium would be $7,500.
Estimated Pricing: $1.50 per $100 of payroll
Auto Insurance
“Auto insurance offers important protections for custom roll forming businesses that use vehicles as part of their operations. It can help limit liability risks and costs from accidents or losses involving company vehicles. Proper auto insurance coverage protects businesses financially through liability protection, physical damage coverage, medical payments, and uninsured/underinsured motorist coverage. This helps ensure companies are not responsible for costs from vehicle repairs or injuries arising from accidents involving employees driving for business purposes.”
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average annual cost of auto insurance for custom roll forming businesses with NAICS code 332114 is around $1,800. This pricing is derived based on the average number of vehicles, drivers, liability limits, and other factors for businesses in this industry. Geographical location and driving record will also impact the final pricing.
Estimated Pricing: $1,800
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable supplementary liability protection for custom roll forming businesses. It covers claims and lawsuits above the limits of underlying commercial policies, protecting a company’s finances and personal assets from expensive judgments and settlements. Umbrella insurance also defends against pollution liability claims and lawsuits over significant property damage, giving extra protection for risks associated with roll forming machinery and manufacturing processes. Estimated pricing starts around $1,500-$2,500 annually for $1-5 million in additional liability limits.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical umbrella insurance rates for manufacturing businesses, commercial umbrella insurance for custom roll forming businesses (NAICS 332114) would on average be priced at $1.50 – $2.50 per $1000 of primary general liability limits, with a minimum premium of $1,000 – $2,500. This pricing is derived from industry data and takes into account factors like risk level of the industry, claims history, and required umbrella limits ($1M – $5M are common).
Estimated Pricing: $1,500 – $2,500
Product Liability Insurance
Product liability insurance provides critical protection for custom roll forming businesses involved in manufacturing metal components. It shields against expensive lawsuits and financial losses if someone is injured by or claims harm from a product. Some key benefits of product liability insurance for custom roll forming businesses include protecting assets, maintaining customer confidence, covering legal costs, and satisfying supplier requirements. Common uses of product liability insurance include protecting against injury claims, lawsuits over defective products, costs of product recalls, and lost income during downtime to address issues. Estimated pricing for product liability insurance in this industry is approximately $1,750 annually for a typical small business.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research, the average product liability insurance for custom roll forming businesses (NAICS 332114) is approximately $3.50 per $100 of payroll. For a typical small business in this industry with 10 employees and a total annual payroll of $500,000, the estimated annual pricing would be $500,000 * $3.50/100 = $1,750.
Estimated Pricing: $1,750
Business Interruption Insurance
Business interruption insurance provides financial protection for custom roll forming businesses against losses from revenue interruption or additional expenses if operations are suspended due to insured property damage or property-related events.
Some key benefits of business interruption insurance for custom roll forming businesses include covering loss of income if operations are forced to close temporarily, reimbursing ongoing expenses like payroll and utilities during shutdowns, and helping maintain cash flow to keep the business operating during interruptions. It also covers extra costs to reduce property damage losses and protects profits by preventing loss of customers during recovery. On average, pricing for this coverage is approximately $2.50 per $100 of annual gross receipts or payroll for NAICS 332114 businesses.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis, the average pricing for business interruption insurance for custom roll forming businesses with NAICS code 332114 is approximately $2.50 per $100 of gross receipts or payroll. This price was derived from insurance carrier rate filings and loss history data specific to NAICS 332114 businesses, which have an industry average gross receipts of $2.5 million and payroll of $1 million annually.
Estimated Pricing: $2.50 per $100 of gross receipts or payroll
Conclusion
Maintaining adequate insurance tailored to your specific risks can help shield your custom roll forming business from unplanned financial losses. Consider working with an experienced commercial insurance agent to understand your full policy requirements and properly cover the unique exposures of your NAICS 332114 operations.