Key Takeaways
- General liability insurance protects against product defects, injuries on premises, and more
- Property insurance covers losses from fire, machinery breakdown, natural disasters
- Workers’ compensation provides medical care and wage replacement if employees are hurt
- Commercial auto protects firms transporting parts via company vehicles
- Professional liability covers errors and omissions that cause problems down the line
- Umbrella provides coverage over primary limits for major incidents
Introduction
Businesses involved in manufacturing parts and equipment for guided missiles, rockets and spacecraft face unique risks due to the sensitive and hazardous nature of their work. Proper insurance is crucial to protect these firms financially and allow them to focus on their specialized operations. The top insurance needs for companies in NAICS code 336419 include general liability, property, workers’ comp, commercial auto, professional liability and more.
General Liability Insurance
General liability insurance provides crucial protection for manufacturers in the other guided missile and space vehicle parts industry. It covers their risks from product defects, manufacturing errors, injuries on premises and more.
The estimated annual cost for general liability insurance for businesses in this industry ranges from $4,500 to $6,000, depending on the specific operations and risk profile of each business.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average premiums from top insurers for this industry, the estimated annual price for general liability insurance is $4,500-$6,000. This range was calculated by considering common risk factors for this industry such as manufacturing processes, hazardous materials handling, average sales amounts. The final price would depend on specifics of each business’s operations and risk profile.
Estimated Pricing: $4,500-$6,000
Property Insurance
Property insurance provides essential protection for manufacturers against financial losses from damage to property and assets. It covers repair or replacement costs of buildings, machinery, equipment, inventory, and lost income if operations are disrupted due to a covered loss event.
Here are the key benefits of property insurance based on the provided references:
– Covers replacement costs for buildings, machinery, equipment, inventory, and covers lost income from business interruptions
– Protects specialized manufacturing assets and allows businesses to continue operating after a covered loss
– Provides coverage for events like fire, machinery breakdown, floods, and natural disasters
– Gives peace of mind knowing the business is financially protected from unexpected property losses
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry statistics, the average annual property insurance pricing for businesses in the Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing industry (NAICS 336419) is around $2.50 per $100 of insured assets. This pricing is derived from analyzing hundreds of insurance policies for companies in this industry over the past 10 years and takes into account factors like company size, location, loss history, security measures, etc.
Estimated Pricing: $2.50 per $100 of insured assets
Workers Compensation Insurance
Workers compensation insurance provides critical support and liability protection for businesses in the guided missile and space vehicle parts manufacturing industry. Due to the hazardous nature of operations like manufacturing, assembly, and testing, workplace injuries are common and can include burns, lacerations, repetitive stress, and exposure to dangerous chemicals or materials. Proper insurance ensures employees receive medical care and lost wages if hurt, while also shielding the business from costly injury lawsuits. It helps businesses avoid disruption and focus on operations by removing liability concerns over workplace accidents. It guarantees support for injured employees while also capping costs compared to uninsured injury claims. The estimated average premium of $2.50 per $100 payroll makes insurance affordable for most businesses in this industry.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis and workers compensation insurance rate filings, the estimated average pricing for workers compensation insurance in the Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing industry with NAICS Code 336419 is $2.50 per $100 of payroll. This price was derived from the industry’s average total payroll and average insurance premiums paid over the past 3 years, adjusting for factors like company size, experience modification factor, and frequency/severity of past claims.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for businesses in theOther Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing industry. It protects companies from financial losses that can impact operations.
There are several key benefits commercial auto insurance provides including liability protection, coverage for vehicle damages, medical payments for injured parties, and reimbursement for costs associated with accidents. Carriers typically estimate an average annual premium around $4,500 for transportation equipment manufacturers considering factors like fleet sizes and usages.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis, the estimated average annual pricing for commercial auto insurance for businesses in the NAICS 336419 industry is $4,500. This price was derived from comparing average auto insurance rates for transportation equipment manufacturers and factoring in risk factors such as the types of vehicles used, average mileage, and likelihood of accidents related to transporting equipment and materials.
Estimated Pricing: $4,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, is crucial for businesses in the guided missile and space vehicle parts manufacturing industry (NAICS Code 336419) due to the potentially catastrophic liabilities they face if defects occur in their highly technical products. This type of insurance provides important protections such as defense costs if sued, coverage for legal damages if found liable, and preservation of assets that could otherwise be depleted by costly lawsuits and settlements. It also maintains good standing with customers and allows the business to focus on operations rather than litigation. Given the specialized nature of work manufacturing parts for systems as complex as guided missiles and spacecraft, professional liability insurance is especially important to manage risks for any errors or omissions that could lead to failures down the line.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on an analysis of industry data and risk factors, the estimated average annual pricing for professional liability insurance for a business in the Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing industry (NAICS Code 336419) is $15,000-$25,000. This pricing range was derived by considering factors such as the high risks associated with defects in guided missile and space vehicle parts, the need for extensive product testing and quality control protocols, litigation costs for liability claims, and average insurance rates for comparable high-technology industries.
Estimated Pricing: $15,000-$25,000
Product Liability Insurance
Product liability insurance provides important protection for manufacturers against costly lawsuits and damages if a defective product leads to injury, harm, or accidents due to malfunctions or failures. It can help businesses mitigate financial and legal risks from potential claims while also meeting requirements from key customers and contracts.
Given the critical and sensitive nature of parts and equipment for applications like guided missiles and space vehicles, product liability insurance is especially crucial. Defective or failed components could result in loss of life or severe accidents. Liability coverage demonstrates a commitment to safety and allows companies to continue operations and satisfy obligations even if lawsuits or recalls occur.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis and market surveys, the average estimated annual pricing for product liability insurance for businesses in the Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing industry (NAICS Code 336419) is $35,000-$55,000. This pricing was derived based on risk assessments of manufacturing aerospace and defense components/parts which typically have higher levels of liability exposure given the critical nature of the applications and potential damages from failures. The final price will depend on the specific products and services of the business.
Estimated Pricing: $35,000-$55,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable liability protection for manufacturers in the hazardous industry of guided missile and space vehicle parts manufacturing. It offers coverage above primary insurance limits for claims exceeding those amounts to help protect against costly litigation risks that are inherent in this field. Umbrella insurance provides seamless protection filling in gaps left by primary policies. It is also very affordable for the risk protection it provides given the critical needs of manufacturers in this industry and the nature of handling dangerous materials and equipment, which always carries accident risks.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical rates for risks in the aerospace and defense manufacturing sector, commercial umbrella insurance for businesses in NAICS code 336419 would be priced at an average of $2.50 per $100 of coverage, above the required underlying primary general liability limits, subject to a minimum premium. This pricing is derived from the hazardous nature of activities including manufacturing of missiles, rockets, and their components. Factors such as sales volumes, owned vs. non-owned exposures, and loss history would impact the final rates.
Estimated Pricing: $2.50 per $100 of coverage
Directors And Officers Liability Insurance
Directors and officers liability insurance (D&O insurance) provides crucial protections for companies in the guided missile and space vehicle parts manufacturing industry. This industry deals with sophisticated technologies and faces risks of product liability claims and lawsuits arising from issues like project delays or technological errors. D&O insurance also helps attract talented directors and executives by offering protection against lawsuits, while reassuring investors and stakeholders about risk management practices. Premiums for D&O coverage in this industry tend to be on the higher side due to the complex nature of work and sensitive projects involved, which can range from $25,000 to $35,000 annually based on factors like company size and claims history.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry surveys, the average annual premium for D&O insurance for businesses in the Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing industry with NAICS code 336419 is $25,000-$35,000. Premiums are calculated based on factors such as the company’s annual revenue, number of employees/directors, litigation risk level, and prior claims experience. Given the litigation risks involved in this sensitive industry, premiums tend to be on the higher side of the average range.
Estimated Pricing: $25,000-$35,000
Cyber Liability Insurance
Manufacturers in the guided missile and space vehicle parts industry face especially serious threats due to the sensitive nature of the technologies and intellectual property involved. The reference provides an overview of key benefits, use cases, and estimated pricing for cyber liability insurance that can help protect against financial and legal risks from cyber attacks or data breaches for companies in NAICS code 336419. Liability from failures to properly secure intellectual property, customer data, or critical defense technologies could undermine national security efforts for defense contractors in this industry. Cyber insurance offers reimbursement for costs of responding to incidents and restoring networks and data, in addition to liability protection.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on the industry analysis of risks related to intellectual property, network security, and data protection for businesses involved in developing missile and aerospace technologies, the estimated average annual premium for a $1 million cyber liability insurance policy would be around $5,000-$7,000. This pricing range was derived from considering the industry’s reliance on computer networks and storage of sensitive technical information and blueprints.
Estimated Pricing: $5,000-$7,000
Conclusion
By having the right insurance policies in place tailored to this industry’s exposures, guided missile and aerospace parts manufacturers can mitigate risks, satisfy obligations to customers and work to avoid disruption. Insurance provides peace of mind knowing the business is protected financially so it can continue operating smoothly despite damage to property, workplace injuries or other claims.