Top Business Insurance Needs for Motor Vehicle Gasoline Engine and Parts Manufacturers (NAICS 336310)

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This guide covers the key business insurance types motor vehicle gasoline engine and parts manufacturers need to protect their business including property, general liability, product liability, workers' comp, commercial auto and more.

Key Takeaways

  • Property insurance covers damages to buildings, equipment, inventory and protects business income from interruptions.
  • General liability protects against injuries to customers and third parties as well as product defects.
  • Product liability guards against injury lawsuits over defective products.
  • Workers’ comp covers medical costs and lost wages if employees get hurt on the job.
  • Commercial auto protects company vehicles and liabilities from accidents.
  • Umbrella provides excess liability coverage above primary policies.
  • Cyber liability protects against data breaches and network security incidents.
  • Equipment breakdown replaces damaged machinery and covers downtime costs.
  • Inland marine protects property and goods in transit or off-premises use.

Introduction

As a motor vehicle gasoline engine and parts manufacturer, there are key business insurance policies needed to protect both operations and revenues from unexpected losses. Due to the risks inherent in manufacturing processes and use of specialized machinery, certain coverage types are especially important for NAICS code 336310 businesses.

Property Insurance

Property insurance provides protection for businesses against unexpected financial losses or damage to buildings, machinery, equipment, inventory and other property from a variety of covered risks. It is an important risk management tool for manufacturing companies. Some key benefits of property insurance for manufacturers include covering damages from fires, accidents and natural disasters, replacement costs for repairs or rebuilding, business interruption coverage, and liability protection. Coverage can be customized to meet the unique needs of different manufacturing operations.

Category List
Benefits
  • Covers damages and losses to buildings and equipment due to fire, lightning, explosions, smoke, falling objects, vehicle impact and other physical damage
  • Covers theft or damage of business property by burglars or vandals
  • Covers losses due to business interruptions from a covered property damage to help pay continuing expenses if operations are temporarily shut down
  • Covers liability claims if faulty equipment or operations cause property damage to a third party
  • Offers replacement cost coverage to repair or rebuild damaged property to its condition prior to the loss without deductions for depreciation
  • Provides inland marine coverage for equipment, tools and other property used off-premises or in transit
  • Customizable coverage for unique manufacturing operations and high-value equipment needs
Use Cases
  • Protection against property damage and loss from accidents like fires, explosions, storms or other disasters
  • Coverage for equipment, machinery, tools and other business property and assets
  • Replacement cost coverage to rebuild or repair property after a covered loss
  • Business interruption or loss of income coverage if property damage causes downtime for business operations
  • Protection of inventory and raw materials against risks like fire or water damage

Based on industry averages, the estimated average annual pricing for property insurance for businesses in the Motor Vehicle Gasoline Engine and Engine Parts Manufacturing industry (NAICS Code 336310) is approximately $3.50 per $100 of property value. This price was derived based on national industry statistics that show an average property insurance expenditure of around 0.35% of property, plant and equipment value for businesses in this industry.

Estimated Pricing: $3.50 per $100 of property value

General Liability Insurance

General liability insurance provides important coverage for companies in the motor vehicle engine and parts manufacturing industry. It helps protect against financial losses from accidents and injuries that could severely impact business operations without proper protection. Manufacturers in this industry face high risks of injuries, fires, explosions and pollution due to the nature of their operations. General liability insurance is essential to mitigate costs from these kinds of losses and lawsuits and shield the business from potential bankruptcy.

Category List
Benefits
  • Protects your business from costs associated with lawsuits over bodily injury or property damage to customers or the general public
  • Covers medical costs and lost wages for employees injured on the job
  • Covers legal costs of defending a suit, even if allegations against you are groundless
  • Protects physical property of your business in event of fire, theft or natural disaster
  • Covers losses associated with vehicle accidents while doing business
  • Covers pollution or damage to the environment from accidents or leaks on your property
  • Provides liability coverage for your supplies, parts and products both on and off premises
  • Covers claims from defective products or faulty workmanship that causes injury or property damage to others
Use Cases
  • Cover bodily injury and property damage claims from defective or faulty products
  • Cover third-party claims if a worker gets injured on the job
  • Cover third-party claims if someone gets injured on your business premises
  • Cover third-party claims in the event of fire or an explosion related to your operations
  • Cover environmental damage or pollution claims from business operations

Based on industry research and benchmarking against other similar manufacturing industries, the estimated average annual pricing for general liability insurance for businesses in the Motor Vehicle Gasoline Engine and Engine Parts Manufacturing industry with NAICS Code 336310 is $5,000 per year. This estimate was derived by taking into account factors like industry hazards, average payroll, number of employees, loss history data, and policy limits/deductibles that are typically purchased for this industry.

Estimated Pricing: $5,000

Product Liability Insurance

Product liability insurance is crucial coverage for any business in the motor vehicle gasoline engine and engine parts manufacturing industry. This type of insurance can help protect a company’s revenues and reputation in the event of defects that cause injuries, property damage, recalls or lawsuits. It is especially important for this industry since defective products could potentially cause serious bodily injury or property damage from accidents. Maintaining customer trust is also vital for competitive success. Product liability insurance provides protection from the financial risks and costs inherent in manufacturing complex auto parts, where defects pose risks of substantial liability.

Category List
Benefits
  • Protects against lawsuits if a customer claims injury or property damage from a defective product
  • Covers legal fees and award costs if you are found liable in a product liability lawsuit
  • Helps retain customers and reputation by demonstrating financial responsibility for product safety
  • Covers the costs of product recalls if a defect is discovered
  • Significantly lowers risks and demonstrates financial stability to suppliers, vendors and partners
  • Provides peace of mind in knowing your business is protected from financial losses due to manufacturing defects
  • Covers the liability costs associated with potential defects, protecting revenues
Use Cases
  • Cover costs and damages if a defective product causes bodily injury or property damage
  • Cover legal costs and fees if the company is sued for a product-related incident
  • Cover costs associated with a product recall if a defect is discovered
  • Protect the company’s reputation and customer relationships in the event of a product issue
  • Provide coverage for ongoing product support, maintenance, or replacement

Based on industry data and analysis of claims history, the estimated average annual pricing for product liability insurance for businesses in the motor vehicle gasoline engine and engine parts manufacturing industry (NAICS Code: 336310) would be around $1.20-$1.50 per $100 of annual receipts. This pricing is derived from considering risk factors such as the likelihood of defects in complex machinery/parts leading to accidents, injury claims, potential for large lawsuit settlements, and regulatory compliance costs.

Estimated Pricing: $1.20-$1.50 per $100 of annual receipts

Workers Compensation Insurance

Workers compensation insurance provides critical protection and benefits for both employers and employees in high-risk industries like motor vehicle gasoline engine and parts manufacturing. With inherent risks of injuries from operating machinery, lifting heavy items, chemical exposures, vehicle accidents, and hearing loss from loud machinery, workers comp coverage is an essential part of doing business in this field. The top benefits, use cases and estimated pricing information show why this insurance is so important for companies in NAICS code 336310.

Category List
Benefits
  • Protection from employee lawsuits in the event of a workplace injury or illness
  • Covers medical expenses and lost wages for injured employees
  • Reduced liability costs compared to not having insurance
  • Attracts quality job applicants and employees by providing protection and benefits
  • Required by law in all states for businesses with 1+ employees
  • Peace of mind knowing employees are cared for if an accident occurs on the job
  • Demonstrates employer commitment to employee safety and well-being
Use Cases
  • Workplace injuries from operating machinery and tools
  • Workplace injuries from lifting heavy parts and materials
  • Workplace injuries from slips, trips or falls
  • Chemical exposures or burns
  • Workplace accidents involving vehicles or transportation of materials
  • Hearing loss from prolonged exposure to loud machinery noise

Based on the average payroll and loss data for businesses in this industry, the estimated average annual pricing for workers compensation insurance would be around $2.50 per $100 of payroll. This pricing was derived based on the industry average total payroll of around $50 million and average annual losses of $1.5 million over the past 5 years for companies of similar sizes.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is an important consideration for businesses in the motor vehicle gasoline engine and engine parts manufacturing industry. It provides liability protection and covers vehicles used as part of business operations. Companies in this NAICS 336310 industry often rely on fleets of delivery trucks and use personal vehicles for business purposes, so commercial auto insurance helps protect these assets and business activities. The estimated average annual cost of $2,500 per vehicle also helps businesses plan and budget for this necessary insurance coverage.

Category List
Benefits
  • Liability protection in the event of an accident involving a business vehicle
  • Physical damage coverage to repair or replace a vehicle if it’s in an accident or damaged
  • Medical payments coverage to pay for injuries to people inside a business vehicle
  • Uninsured/underinsured motorist coverage to pay for damage caused by drivers who don’t have enough insurance or none at all
  • Rental reimbursement to cover costs of renting a replacement vehicle if a business vehicle is in the shop for repairs
  • Loss of use coverage to compensate for loss of income if a business vehicle is in the shop for repairs
Use Cases
  • Coverage for company owned vehicles like trucks and vans used to deliver parts
  • Liability coverage for accidents caused by company drivers
  • Coverage for personal vehicle use for business purposes

Based on industry data and average risks, the estimated average annual pricing for commercial auto insurance for businesses in the Motor Vehicle Gasoline Engine and Engine Parts Manufacturing (NAICS Code: 336310) industry is around $2,500 per vehicle. This estimate takes into account factors like the type of vehicles used, average miles driven, loss history of the industry, and other standard rating factors used to price commercial auto insurance policies for businesses in this industry. Additional vehicles would be priced at a slightly discounted rate compared to the first vehicle.

Estimated Pricing: $2,500

Umbrella Insurance

Umbrella insurance provides additional liability coverage for businesses to protect them from costly lawsuits and legal damages that exceed their primary insurance limits. It offers protection for risks not covered under typical commercial policies.

Some key benefits of umbrella insurance for manufacturers in the motor vehicle engine and parts industry include protecting the business from high liability claims arising from product defects or accidents, environmental damage, intellectual property lawsuits, and risks during business travel. Pricing for umbrella insurance for this industry is estimated around $2,300-$3,500 per $1,000 of revenue for $1 million in additional coverage.

Category List
Benefits
  • Protects business from costly lawsuits and legal damages
  • Provides additional liability coverage above primary policies
  • Covers negligent acts by employees and other individuals on business property
  • Protects personal assets of business owners and shareholders
  • Covers pollution and environmental damage from accidents
  • Covers risks not included in other commercial policies
  • Protects the business’s reputation in the event of an accident or product malfunction lawsuit
Use Cases
  • To protect from high liability claims and lawsuits arising from product defects
  • To protect from high liability claims and lawsuits arising from workplace accidents and injuries
  • To protect from high liability claims and lawsuits arising from environmental damage or pollution
  • To protect from lawsuits arising from intellectual property or patent infringements related to engine or part design
  • To provide liability protection for business travel by company vehicles

Based on typical pricing models for umbrella insurance, businesses in the motor vehicle gasoline engine and engine parts manufacturing industry (NAICS Code 336310) can expect to pay around $2.30-$3.50 per $1,000 of revenue for 1 million dollars of umbrella coverage. This pricing is derived from industry loss data and risk profiles for businesses in this NAICS code which involve manufacturing processes that have moderate to high risks of product liability exposures but low risks of injuries to employees or the general public.

Estimated Pricing: $2,300-$3,500

Cyber Liability Insurance

Cyber liability insurance is an important risk management tool for any business. It helps protect manufacturers in the motor vehicle gasoline engine and engine parts industry (NAICS 336310) from the financial risks of data breaches, network attacks, and lawsuits involving technology issues or customers’ sensitive data. Given the sensitive customer and employee data these manufacturers collect as well as their reliance on IT systems, cyber liability insurance provides coverage for the costs of responding to cyber incidents and protects against third party liability claims. Coverage includes costs associated with notifying individuals of a breach, offering credit monitoring services, performing forensic investigations, facing regulatory fines or penalties, experiencing business interruption from network outages, and defending intellectual property lawsuits. Pricing is tailored to business size and risk profile but averages around $7,500 annually for mid-sized companies with solid security practices in place.

Category List
Benefits
  • Covers costs of a data breach like notifying affected individuals, providing credit monitoring services, forensics investigation, legal expenses etc.
  • Covers liability in the event a third party sues your business for damages from a data breach or system failure like system downtime/business interruption
  • Covers costs to restore or replace lost/stolen data and damage to your network infrastructure
  • Provides access to legal defense and PR/crisis management services if your company is involved in a data breach incident or cyber attack
  • Covers liability protection if a supplier or vendor suffers a breach affecting your customers’ data
  • Covers cyber extortion threats like ransomware that encrypt your systems until a ransom is paid
  • Includes coverage for disputes with online vendors and failure of hardware/software by third parties
Use Cases
  • Data breaches involving customer or employee personally identifiable information (PII)
  • Network security failures leading to systems compromise
  • Cyber extortion and ransomware attacks
  • Damages from third party intellectual property infringement such as patent lawsuits
  • Business interruption from network downtime or systems failure
  • Liability claims from defective products or designs that cause property damage or bodily injury
  • Regulatory fines and penalties for violating data privacy regulations

Based on analysis of typical cyber insurance policies and pricing for businesses in the motor vehicle gasoline engine and engine parts manufacturing industry (NAICS 336310), the estimated average annual pricing would be around $5,000 – $10,000. Factors that influence pricing include annual revenue, number of employees, compliance with industry security standards, and past security incidents or claims experience. For a mid-size company in this industry with $50-100M in annual revenue and 500 employees, following basic industry security standards, the estimated price would be near $7,500 per year.

Estimated Pricing: $7,500

Equipment Breakdown Insurance

Equipment breakdown insurance provides critical coverage for manufacturers against unexpected equipment failures and mechanical issues. It protects against financial losses from repairs, replacements, extra costs and lost revenue when machinery breaks down.
Given the importance of specialized machinery for the motor vehicle gasoline engine and engine parts manufacturing industry, equipment breakdown insurance is especially important to minimize financial losses from unplanned outages. It covers the costs of repairs or upgrades to comply with new safety regulations. As a motor vehicle parts manufacturer, this insurance also provides financial protection for mechanical and electrical failures of machinery critical to production processes.

Category List
Benefits
  • Covers repair or replacement costs for equipment damaged by electrical or mechanical breakdown
  • Provides coverage for losses resulting from power outages or electrical surges that damage sensitive electronic equipment
  • Covers additional expenses like lost profit, rental expenses for temporary replacement equipment during repairs
  • Covers the costs of hired professionals like engineers or technicians required for repairs
  • Covers property damage to other equipment caused by the failure of covered equipment
  • Provides access to experienced equipment breakdown claims specialists who can help expedite repairs
  • Covers the costs of complying with updated industrial safety regulations after equipment upgrades
Use Cases
  • Protection against losses from equipment failures like breakdowns of industrial machines used in manufacturing processes
  • Coverage for losses from electrical and mechanical failures of critical equipment like furnaces, boilers and air conditioning systems
  • Replacement or repair costs for damaged equipment after failures, accidents or power outages
  • Business income loss coverage if equipment failures cause shutdown of production lines
  • Extra expenses to rent temporary equipment while repairs are underway

Based on industry analysis, the average estimated pricing for equipment breakdown insurance for businesses in the motor vehicle gasoline engine and engine parts manufacturing industry with NAICS code 336310 is around $1.50 per $100 of property value. This price is derived from typical insurance rates for manufacturing industries that involve heavy machinery and factory equipment which often face breakdown risks. The equipment in this industry such as machining equipment, casting equipment, and assembly lines usually range in the hundreds of thousands to millions of dollar values.

Estimated Pricing: $1.50/100 property value

Inland Marine Insurance

Inland marine insurance provides coverage for valuable business property and equipment that is not permanently located at one site. It is well suited for motor vehicle gasoline engine and engine parts manufacturers due to their need to protect prototypes, tools, inventory and goods during transport or at customer locations. Inland marine offers manufacturers protection for production machinery used off-site, vehicles used for business operations, and inventory stored both on and off premises.

Category List
Benefits
  • Covers equipment and tools used off-premises
  • Provides protection for goods in transit
  • Covers temporary storage of unfinished goods or inventory
  • Covers merchandise and fixtures used at trade shows and exhibits
  • Covers prototype equipment and parts used for testing
  • Insures tools and molds used for contract manufacturing
  • Covers manufactured goods during demonstration or customer evaluation
  • Covers prototype equipment and parts used for testing
  • Insures tools and molds used for contract manufacturing
Use Cases
  • Property in transit
  • Vehicles used for business operations
  • Machinery and equipment used in manufacturing and production
  • Inventory stored both on and off premises
  • Media and technology equipment such as computers, software and networking infrastructure

Based on industry data and average values, the estimated pricing for inland marine insurance for businesses in the motor vehicle gasoline engine and engine parts manufacturing industry with NAICS code 336310 would be around $1.50 per $100 of insured value. This price was derived from looking at common coverage limits purchased, average property values at risk, loss histories, and other insurance rates for similar manufacturing industries dealing with automotive parts.

Estimated Pricing: $1.50 per $100 of insured value

Conclusion

In summary, property, general liability, product liability, workers’ comp, commercial auto and other specialized coverage help limit financial exposure to risks manufacturers face every day. Maintaining the right insurance portfolio is essential for competitive success and financial stability in this industry.

Frequently Asked Questions

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