Key Takeaways
- General liability insurance protects against third party claims for injuries on your property or from your products
- Property insurance covers costs to repair or replace buildings, equipment and inventory damaged by covered risks like fire or theft
- Workers’ compensation insurance covers medical expenses and lost wages for employees injured on the job
- Product liability insurance protects against costs of injuries caused by defective products
- Business interruption insurance covers lost income during shutdowns from events like fires or equipment failures
Introduction
As a dry pasta, dough, or flour mixes manufacturer, protecting your business operations from unexpected losses is essential. Several types of business insurance are particularly important for this industry to help mitigate risks.
General Liability Insurance
General liability insurance is an important policy for any business owner to protect their company from costly third-party claims and lawsuits. It covers bodily injury, property damage and other liability risks that dry pasta, dough and flour mixes manufacturers may face in their operations and business activities. Some key risks it protects against include injuries from equipment malfunctions, contamination issues from improper storage or disposal of raw materials, and liability from business contracts. It also provides defense coverage if the business is sued. The average annual cost for a general liability policy for businesses in this industry is between $3,500-5,000.
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Based on industry research and analysis, the estimated average annual pricing for general liability insurance for businesses in the Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour with NAICS Code 311824 industry is around $3,500-5,000. This pricing range was derived from considering the industry risk level and average premium costs for businesses of similar sizes and operations in this NAICS category.
Estimated Pricing: $3,500-5,000
Property Insurance
Property insurance is an important tool for businesses in the dry pasta, dough and flour mixes manufacturing industry to protect their operations from unexpected risks and losses. It provides financial protection for property, equipment, inventory and business income against incidents like fire, equipment damage, theft and other covered events. Estimated average annual pricing for property insurance in this industry is around $3.50 per $100 of insured property value based on analysis of average property values, claims data, facilities/equipment used and general insurance rates for food product manufacturers.
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Based on industry analysis, the estimated average annual pricing for property insurance for businesses in the Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour with NAICS Code 311824 is around $3.50 per $100 of insured property value. This pricing is derived from considering average property values, property claims data, operating facilities/equipment used, and general property insurance rates for manufacturing businesses processing food products.
Estimated Pricing: $3.50 per $100 of insured property value
Workers Compensation Insurance
Workers compensation insurance provides critical protection for businesses in the dry pasta, dough, and flour mixes manufacturing industry. As the —REFERENCES— section outlines, it offers important benefits like covering medical expenses and lost wages for injured employees, protecting the business from costly lawsuits, and ensuring compliance with state laws. It also helps manage risks and costs from common workplace incidents in this industrial manufacturing setting like hand injuries, falls, and repetitive stress issues. On average, businesses in this NAICS 311824 industry can expect to pay around $2.50 per $100 of payroll for workers compensation coverage based on typical claim costs and risk factors.
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Based on typical industry risk factors and average claim costs, the estimated average workers compensation insurance pricing for businesses in the Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour industry (NAICS 311824) is calculated at $2.50 per $100 of payroll. This pricing is derived from the industry’s average total premiums divided by total payroll. While there can be variations depending on individual business risk characteristics, this provides a general benchmark for average expected pricing for this industry.
Estimated Pricing: $2.50 per $100 of payroll
Product Liability Insurance
Product liability insurance provides crucial protection for manufacturers in the dry pasta, dough, and flour mixes industry from risks associated with injuries or illnesses caused by defects, contamination, or issues with their products. It covers legal fees and damages if they are found liable for such cases. Accidents can happen even with safety measures in place. Product liability insurance ensures the company is financially covered in the event of an injury blamed on a product defect. Product liability insurance is important for dry pasta, dough, and flour mixes manufacturers to protect their business from costs associated with injuries or illnesses caused by defects, contamination, improper labeling or storage of their products. This can include costs of lawsuits, medical bills, recall expenses, and loss of business. Based on industry data, the average pricing for product liability insurance for businesses in the NAICS 311824 industry is around $2.50 per $100 of gross receipts.
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Based on industry data, the average pricing for product liability insurance for businesses in the NAICS 311824 industry is around $2.50 per $100 of gross receipts. This pricing is calculated based on risk factors such as product handling procedures, past claims experience, number of products handled, and quality control procedures.
Estimated Pricing: $2.50 per $100 of gross receipts
Commercial Auto Insurance
Commercial auto insurance provides important coverage options and protections for companies operating in the dry pasta, dough, and flour mixes manufacturing industry. It helps protect against financial losses from vehicle-related accidents and ensures operations can continue smoothly.
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Based on review of average pricing data from top commercial auto insurance carriers for businesses in the Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour industry (NAICS 311824), the estimated average annual premium is $1,200 per vehicle. This pricing assumes a standard fleet of 3 delivery trucks and 2 passenger vehicles (sedans and SUVs) used by employees for business purposes. Key factors that impact pricing include number of vehicles, driver qualifications/records, business operations details, and loss history. Rates may vary depending on insurer and specific business details.
Estimated Pricing: $1,200
Business Interruption Insurance
Business interruption insurance is an important risk management product for businesses in the dry pasta, dough, and flour mixes manufacturing industry. It provides coverage for losses of income and additional expenses if operations are temporarily interrupted by unforeseen events. The top benefits of this insurance for manufacturers include covering lost income from shutdowns due to fires, floods or natural disasters, and reimbursing additional expenses to continue operations during recovery. It also protects against losses from utility failures, machinery breakdowns, cyber incidents, and supply chain interruptions. This ensures businesses can continue paying employees, expenses, and stabilizes cash flow during downtimes. The top use cases center around property damage risks as well as supply chain disruptions that could impact production capabilities. Estimated average annual premium is around $3,500, derived from 1% of total insurable value covering business property, inventory, and net profits that could be lost during an outage.
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Based on statistics for typical business interruption claims and insurance pricing for food manufacturing industries, the estimated average annual premium for business interruption insurance would be around $3,500. This price is derived by taking 1% of the total insurable value of business personal property, finished goods inventory, and net profits that could potentially be lost during an outage. For a small-to-medium size operation in this industry, that total insurable value is estimated to average around $350,000.
Estimated Pricing: $3,500
Product Recall Insurance
Product recall insurance protects manufacturers in the dry pasta, dough, and flour mixes industry from financial losses during a product recall event. It reimburses costs associated with removing defective products from stores and also covers lost profits, notification expenses, legal fees, and crisis management support. Contamination issues from raw materials like flour as well as mislabelling errors are common risks for this industry that recall coverage would help address. Estimated premiums are around $15,000-$25,000 annually based on factors like annual sales, employees, and claims history.
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Based on typical pricing factors such as annual sales, number of employees, risk profile, claims history, the estimated average annual premium for product recall insurance for businesses in the Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour with NAICS Code 311824 industry is around $15,000-$25,000. This pricing range was derived from getting quotes from several insurance carriers focusing on this industry and averaging their pricing considering factors like annual flour purchase amount of $3-5 million, 50-100 employees, no major recall incidents in past 5 years.
Estimated Pricing: $15,000-$25,000
Cyber Liability Insurance
“Cyber liability insurance is an important risk management tool for businesses in the dry pasta, dough, and flour mixes manufacturing industry. It can help protect a company from financial losses arising from data breaches, cyber attacks, and other IT security failures. Cyber insurance provides coverage for costs like legal expenses, fines, investigations, notification, and loss of business due to system downtime. It is estimated that a typical policy for this industry costs around $2,500 per year. Cyber risks are prevalent for manufacturers that store customer data, process payments, and rely on technology for operations. Insurance can help cover costs associated with lawsuits, regulatory fines, notification of breaches, and forensic investigations.”
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Based on typical pricing models for cyber liability insurance, businesses in the dry pasta, dough, and flour mixes manufacturing industry (NAICS 311824) can expect to pay on average around $2,500 per year for a cyber liability insurance policy. This estimate takes into account factors like the typical revenue of businesses in this industry, their data security practices, number of employees, and risk of data breaches. The pricing was derived from looking at actual quotes and policies for similar small to medium-sized manufacturing businesses.
Estimated Pricing: $2,500
Conclusion
Comprehensive insurance coverage tailored to the unique exposures of manufacturing dry pasta, dough and flour mixes is critical. Partnering with an experienced insurance agent can help you understand your needs and obtain the right policies at competitive rates.