Top Business Insurance Needs for Malt Manufacturing Businesses with NAICS Code 311213

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A guide on the key business insurance policies and coverages important for malt manufacturing businesses to protect their operations and finances including general liability, property, commercial auto and workers' compensation.

Key Takeaways

  • General liability insurance protects against third-party lawsuits and product liability claims
  • Property insurance covers damage to buildings, equipment and inventory from events like fires and floods
  • Commercial auto insurance provides liability coverage for vehicles used in delivery operations
  • Workers’ compensation covers medical costs and lost wages for on-the-job employee injuries
  • Business interruption insurance replaces lost income if operations are disrupted by insured events
  • Employment practices liability protects against employee lawsuits over discrimination and wrongful termination claims
  • Cyber liability covers costs of data breaches and network outages like forensic investigations and notifications
  • Product liability insurance pays legal defense costs and damages for injuries caused by defective products

Introduction

As a malt manufacturing business, there are several important types of business insurance to consider to protect operations from risks inherent in manufacturing and distribution activities. Key policies provide coverage for property, vehicles, employees, income, liability and more.

General Liability Insurance

General liability insurance is an essential protection policy for businesses operating in the malt manufacturing industry. It provides coverage for accidents and incidents that could result in costly lawsuits if injuries, illnesses or property damages occur due to the business operations. Some key benefits of general liability insurance for malt manufacturing businesses include protection against third-party lawsuits, coverage for product defects or contamination issues, and financial protection from pollution incidents and equipment malfunctions during the manufacturing process. Pricing is estimated between $3.50 to $5.00 per $100 of payroll on average based on industry risk factors.

Category List
Benefits
  • Protection against third-party lawsuits if a customer is injured on your premises
  • Coverage if your product or service causes property damage
  • Defense against claims that fall outside the scope of your other insurance policies
  • Peace of mind knowing you have financial protection
  • Reimbursement of medical expenses if a customer is injured by your product or on your property
  • Coverage for damages to leased property or equipment
  • Coverage of legal fees and court costs if a lawsuit is filed against your business
Use Cases
  • Protection against third-party property damage and bodily injury claims from incidents that occur on the business premises or during business operations
  • Coverage of legal defense costs if faced with a lawsuit from an accidental injury or damage incident
  • Indemnification for accidental product contamination or product defects leading to injury or illness
  • Protection against liability claims from equipment malfunctions or failures during manufacturing
  • Coverage for pollution incidents and clean-up costs on the business property

Based on average premium rates obtained from major insurers, the estimated average annual pricing for general liability insurance for businesses in the malt manufacturing industry with NAICS code 311213 is $3.50 – $5.00 per $100 of payroll. This pricing was derived based on the industry risk factors such as use of equipment/machinery, risk of product defects, and likelihood of injuries in the manufacturing process.

Estimated Pricing: $3.50 – $5.00 per $100 of payroll

Property Insurance

Property insurance is an important policy for malt manufacturing businesses to protect against financial losses from unexpected property damage or theft. It covers the facilities, machinery, inventory and other physical assets that are crucial for continuing operations. Without coverage, property losses like fire or equipment breakdown could cripple a company’s finances and disrupt business operations. Property insurance provides funds to repair or replace damaged property so businesses can get back up and running.

Category List
Benefits
  • Protects against property damage or theft due to events like fire, explosion, falling objects, windstorms, hail, etc.
  • Covers equipment breakdown or machinery damage
  • Provides business income protection if operations are temporarily suspended due to a covered property loss
  • Covers extra expenses to minimize losses from suspension of business after a covered loss
  • Covers property used off-premises like equipment used at customer locations
  • Protects newly acquired buildings and equipment at existing locations
  • Covers debris removal after a covered loss to speed up restoration
  • Covers flood and earthquake damage depending on policy options
Use Cases
  • Protection against fire and smoke damage to buildings and equipment
  • Coverage for loss or damages to buildings, machinery, and stock due to events like floods, earthquakes, and other natural disasters
  • Liability coverage in case a customer or third party suffers injury or property damage on the business premises

Based on industry data, the average property insurance premium for malt manufacturing businesses is around $2.50 per $100 of insured value. For a typical malt manufacturing facility with $5 million in insured property values, the estimated annual property insurance premium would be $125,000 ($2.50 per $100 x $5,000,000). Pricing can vary depending on loss history, safety measures, and other risk factors specific to each business.

Estimated Pricing: $125,000

Commercial Auto Insurance

As a malt manufacturing business, commercial auto insurance provides essential liability protection and coverage for vehicle-related incidents that are common in transportation and delivery operations. It shields the business from costs associated with at-fault accidents and ensures employees and customers are cared for if an incident occurs while using a company vehicle. Commercial auto insurance can help protect the business financially in various transportation-related incidents involving delivery vehicles, employee vehicles, and damage to company vehicles.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for vehicle repairs from accidents and incidents
  • Medical payments for injured parties
  • Uninsured/underinsured motorist bodily injury coverage
  • Replacement cost coverage to replace a totaled vehicle
  • Transportation expenses if a vehicle is in the shop for repairs
  • Coverage for cargo or equipment transported in vehicles
Use Cases
  • Cover liability from accidents involving delivery vehicles transporting malt
  • Cover medical expenses and lost wages from injuries to employees using company vehicles
  • Repair or replace company vehicles damaged in accidents

Based on industry data, the average pricing for commercial auto insurance for businesses in the malt manufacturing industry with NAICS code 311213 is around $1,200 per vehicle per year. This pricing takes into account factors like the types of vehicles used, average miles driven, safety records, etc. Van/truck fleets for transportation of goods tend to be on the higher end while sedans/SUVs for senior staff tend to be on the lower end.

Estimated Pricing: $1,200

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical protections for both employees and employers in high-risk industries like malt manufacturing. This type of insurance helps address the costs of on-the-job injuries and accidents that could otherwise severely impact a business’s finances and operations. It ensures medical expenses and lost wages are covered if an accident occurs while promoting faster recovery and return to work for injured employees. Businesses also avoid expensive liability claims and litigation while rewarding safe workplace practices. Workers’ compensation is essential for malt manufacturing given the risks involved with operating heavy machinery and equipment as well as lifting and moving heavy materials.

Category List
Benefits
  • Provides coverage for employee injuries on the job
  • Covers medical expenses for workplace injuries or accidents
  • Covers partial salary replacement for injured workers
  • Protects the business from lawsuits if an employee is injured on the job
  • Reduces absenteeism and promotes a faster return to work for injured employees
  • Required by law in most states for businesses with employees
  • Premium discounts for businesses with strong safety programs and records
Use Cases
  • Protecting against injuries sustained from operating heavy machinery and equipment like milling machines, kilns and drying equipment
  • Covering costs of on-the-job accidents like slips, trips and falls that could occur when handling bags of grain, barley or malt
  • Providing wage replacement and medical benefits if an employee suffers permanent disability or loss of life from a work-related accident

Based on industry data from the National Council on Compensation Insurance (NCCI), the estimated average workers’ compensation insurance pricing for the Malt Manufacturing industry (NAICS Code: 311213) is around $2.50 per $100 of payroll. This estimate is derived from the industry loss cost multiplier of 1.35 set by the NCCI for this particular industry code. The pricing is subject to adjustment based on individual business factors such as claim history, safety programs/policies, and employee risk exposures.

Estimated Pricing: $2.50 per $100 of payroll

Business Interruption Insurance

“Business interruption insurance provides protection for businesses like Malt Manufacturing against losses from unexpected interruptions to operations. It aims to safeguard a business’s income or revenue stream if property damage, natural disasters, utility issues, or other events cause operations to temporarily cease. Top benefits of this insurance for Malt Manufacturing include covering payroll, operating expenses, additional resuming costs, and losses from supply chain disruptions during recovery. Common use cases where it applies include income losses from events like fires, equipment failures, utility outages, raw material shortages, product spoilage, and business premises access issues.”

Category List
Benefits
  • Protects lost income if your business operations are disrupted due to property damage
  • Covers operating expenses like payroll and utility bills if business operations are temporarily shut down
  • Reimburses additional costs associated with resuming operations after property damage or disaster
  • Offers funding to relocate your business to a temporary location if your facility is unusable
  • Covers losses from disruptions to your supply chain if key vendors experience an insurable event
  • Provides access to capital or lines of credit to help maintain business stability during the recovery phase
  • Reduces financial stress during recovery so you can focus on getting your business back up and running
Use Cases
  • Loss of income due to property damage from fire or natural disaster
  • Loss of income due to equipment failure, machinery damage or breakdown
  • Loss of income due to utility/supplier failure, such as power outage, water supply issues
  • Loss of income due to inability to obtain raw materials or ingredients needed for manufacturing
  • Loss of income due to spoilage of raw materials or finished inventory due to equipment malfunction or event outside the company’s control
  • Loss of income due to contamination of raw materials or finished products that makes them unusable and must be disposed of
  • Loss of income due to inability to access the business premises or manufacturing facility due to an insured peril such as flooding

Based on research, the estimated average pricing for Business Interruption Insurance for businesses in the Malt Manufacturing industry with NAICS Code 311213 is around $1.50 per $100 of gross receipts. This pricing is calculated based on the industry risk profile, historical claims data, and typical business operations. Malt Manufacturing involves equipment, facilities, and processes that could incur damages from events such as machinery breakdown, fire, or natural disasters which may lead to business interruptions. The pricing also factors in a typical coverage period of 12 months.

Estimated Pricing: $1.50 per $100 of gross receipts

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides critical coverage for malt manufacturing businesses to protect against financial losses from common workplace claims and lawsuits. The top benefits of EPLI for malt manufacturing businesses include reimbursement for legal defense costs, compensation for losses from lawsuits, and access to risk management services. Common EPLI use cases facing these businesses involve wrongful termination, harassment, wage violations, and injury claims. Estimated annual EPLI premiums for businesses in this industry range from $5,000-7,000 based on payroll, employees and revenue.

Category List
Benefits
  • Protection from lawsuits alleging wrongful termination, discrimination, harassment, or other workplace claims
  • Reimbursement for legal defense costs such as attorney fees if a claim is filed
  • Compensation for back pay, lost wages, job reinstatement and other awards if a lawsuit is lost
  • Coverage for lawsuits arising from incidents that occurred prior to the start of the policy (retroactive coverage)
  • Access to loss prevention services and training to help reduce the risk of future claims
  • Potential discount on annual premiums for implementing recommended risk management practices
  • Coverage for third-party claims such as claims filed by outside individuals or regulators like EEOC or NLRB
Use Cases
  • Wrongful termination lawsuits
  • Sexual harassment or discrimination claims
  • Workplace injury lawsuits
  • Wage and hour violation claims such as unpaid overtime
  • Violation of family medical leave or other employee leave laws

Based on average payroll and revenue for businesses in the Malt Manufacturing industry with NAICS Code 311213, the estimated annual pricing for Employment Practices Liability Insurance would be around $5,000 – $7,000. Premiums are typically calculated based on payroll and number of employees. Larger businesses in this industry with 50+ employees and $10M+ in annual revenue would see pricing closer to $7,000 while smaller businesses with less than 50 employees and under $10M in revenue would see pricing around $5,000.

Estimated Pricing: $5,000 – $7,000

Cyber Liability Insurance

Cyber liability insurance is an important risk management tool for malt manufacturing businesses. It can help protect the business financially in the event of a cyber incident like a data breach, network outage, or cyber attack. Since malt manufacturing businesses often store sensitive customer data, a data breach could be very costly and damageable. Cyber liability insurance provides coverage for costs associated with a breach like notifications, credit monitoring, legal expenses, forensic investigations, and more. It also covers lost income from network outages and liability claims if data is compromised due to negligence. Estimated average annual premium for cyber liability insurance for a malt manufacturing business is around $3,000 based on industry data, which can help ensure business continuity after a cyber incident.

Category List
Benefits
  • Covers costs of a data breach including notification, credit monitoring, legal expenses, etc.
  • Protects from liability lawsuits in the event customers sue over a data breach
  • Covers business interruption costs if systems are down due to a cyber attack
  • Includes costs to hire PR firms or call centers in the event of a breach
  • Covers forensic investigation and cyber extortion expenses
  • Reimburses for stolen funds in the event of cyber theft
  • Covers repair or replacement costs for equipment damaged by a cyber attack
Use Cases
  • Data breach response coverages like forensic investigation costs, legal costs, notification costs
  • Regulatory fines and penalties from a data breach
  • Loss of income due to a network outage from a cyber attack
  • Liability from failure to safeguard customer or employee data
  • Reimbursement for stolen funds from online fraud or email phishing scams

Based on average pricing data for cyber liability insurance for manufacturing industries, the estimated average annual premium for a business in the malt manufacturing industry (NAICS Code: 311213) would be around $3,000. This pricing assumes the business has average cyber security controls and practices in place. Larger businesses or those with known cyber risks may see higher pricing.

Estimated Pricing: $3,000

Product Liability Insurance

As a businesses in the malt manufacturing industry, product liability insurance is important to have in place. It can help protect your business from costly lawsuits and financial damages if customers are accidentally harmed by defects in your manufactured products.

Some key benefits of product liability insurance for malt manufacturers include protecting against legal costs from injury claims, payments if found legally responsible for damages, and coverage for expensive product recalls if safety issues arise. Estimated pricing is around $3.50 per $1000 of gross receipts based on industry risk data. Having this coverage in place can provide peace of mind for any unforeseen issues that may occur outside of your direct control but impact customers downstream.

Category List
Benefits
  • Protects against lawsuits if customers are injured by products
  • Covers legal fees and settlements if sued
  • Provides compensation for injuries if found legally responsible
Use Cases
  • Covers legal costs if a customer claims their product caused injury or damage
  • Pays damages if the business is found legally responsible for defective products that harmed someone
  • Protects the business from costs of a product recall if a safety issue is discovered

Based on data from rating agencies, the estimated average annual pricing for product liability insurance for businesses in the malt manufacturing industry with NAICS code 311213 is around $3.50 per $1000 of gross receipts. This pricing is derived from analyzing historical claims data in the industry which shows a moderate level of risk. The largest factors considered are the potential risks from manufacturing processes as well as the nature of products being malt which is then further processed and consumed.

Estimated Pricing: $3.50 per $1000 of gross receipts

Conclusion

In summary, general liability, property, auto, workers’ comp, business interruption, EPLI, cyber and product liability insurance are invaluable risk management tools for malt manufacturing businesses. Having the right insurance policies in place can help ensure the financial stability and continuity of operations after unexpected events and claims.

Frequently Asked Questions

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