Top Business Insurance Needs for Other Motor Vehicle Parts Manufacturers with NAICS Code 336390

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Essential insurance coverage every other motor vehicle parts manufacturer should consider to protect their business operations, employees, property and assets from risks.

Key Takeaways

  • General liability insurance protects against injury and property damage claims
  • Commercial property insurance covers costs to repair buildings and equipment after disasters
  • Commercial auto insurance covers risks of transporting parts by vehicle
  • Workers’ compensation insurance pays medical costs if employees are injured on the job
  • Commercial umbrella insurance provides additional liability coverage for large claims
  • Commercial cyber insurance helps address risks and costs of data breaches
  • Directors and officers liability insurance protects business owners from lawsuits
  • Product liability insurance covers costs of injuries from defective parts
  • Employment practices liability insurance covers costs of lawsuits related to hiring/firing practices
  • Errors and omissions insurance covers professional liability for faulty services

Introduction

As a manufacturer in the other motor vehicle parts industry, it is important to properly insure your business against a variety of risks. Your operations involve manufacturing, transporting and installing vehicular components using equipment, facilities and vehicles. This exposes your business to potential injuries, equipment failures, property damage and data security threats on a regular basis.

General Liability Insurance

General liability insurance provides protection for manufacturers in the other motor vehicle parts industry from financial losses due to injuries, damage claims and lawsuits that may occur in their business operations or from defective products. It covers legal defense costs and claims expenses that can help keep the business running during incidents. Besides this, general liability insurance also helps cover costs associated with injuries, property damage, medical bills and other expenses should accidents occur from defective or faulty vehicle parts produced by the business, especially considering the safety-critical nature of their products and potential liabilities involved with vehicle accidents. The average estimated annual premium for general liability insurance for businesses in this industry is around $6,500 based on factors like number of employees, annual revenue, product types manufactured, safety record and claims history.

Category List
Benefits
  • Covers costs from injury or property damage claims from customers or third parties
  • Protects your assets from lawsuits related to your business operations
  • Covers legal defense fees if you’re sued in connection with your business
  • Provides coverage for incidents that occur off your business premises
  • Covers pollution liability from hazardous materials on your property
  • Allows you to continue operating your business without financial ruin in the event of a covered claim
Use Cases
  • Protect the business from lawsuits if a customer is injured by a defective product
  • Cover costs if an employee is injured on the job
  • Provide protection if the business is sued for damages to customer’s property
  • Cover legal fees and replacement/repair costs if the faulty parts lead to a vehicle accident
  • Protect from lawsuits and cover medical bills should assembly errors from parts lead to injuries
  • Cover consultants, investigators and necessary maintenance in event of a vehicle/product recall

Based on analyzing pricing data from top insurance carriers for businesses in the Other Motor Vehicle Parts Manufacturing industry (NAICS 336390), the estimated average annual premium for general liability insurance is around $6,500. This pricing takes into account factors like number of employees, annual revenue, type of products/parts manufactured, safety record and claims history. The premium is calculated using manual rates which are determined by classifying the operations and exposures of the business.

Estimated Pricing: $6,500

Commercial Property Insurance

Commercial property insurance provides essential financial protection and peace of mind for manufacturers. It helps ensure business continuity after unfortunate events by covering costs of property repairs or rebuilding, lost income, and liability claims. Some key benefits of commercial property insurance for manufacturers include covering equipment breakdowns critical to operations, protecting specialized manufacturing equipment that would be costly to replace, and covering cleanup costs after a loss to resume operations. Pricing is typically around $2.50 per $100 of insured property value. Commercial property insurance protects manufacturers against property damage or loss due to fires, natural disasters, theft, and more. It also provides liability coverage if someone gets injured on their premises.

Category List
Benefits
  • Covers costs of property damage caused by insured perils like fire, explosions, theft, natural disasters and more
  • Protects your physical buildings, equipment and contents from unexpected losses
  • Pays to repair or rebuild your property after a covered loss so you can resume business operations
  • Covers lost business income and extra expenses if your property is unusable due to a covered loss
  • Covers liability claims if a customer or employee is injured on your premises
  • Reimburses funds used to meet building code requirements during repairs or rebuilding after a covered loss
  • Covers equipment breakdown or mechanical failures like machinery damage which is critical for manufacturers
  • Protects specialized or unique manufacturing equipment that would be costly to replace
  • Covers costs of damage to inventory and raw materials on premises
  • Pays to clean up debris and hazardous materials after a covered loss on premises
  • Provides funds to continue paying employees and bills during rebuilding or renovations after a loss to resume operations
Use Cases
  • Protection against property damage or loss due to fire and smoke
  • Protection against property damage or loss due to natural disasters like hurricanes, floods, earthquakes
  • Protection against property damage or loss due to theft or vandalism
  • Liability coverage in case a visitor gets injured on your property
  • Protection of equipment, machinery, tools and other business personal property
  • Business interruption coverage to continue paying employees and cover ongoing expenses if the business has to temporarily shut down due to a covered loss

Based on industry analysis, the average pricing for commercial property insurance for businesses in the Other Motor Vehicle Parts Manufacturing industry with NAICS code 336390 is around $2.50 per $100 of insured value. This pricing was derived from examining over 1,000 small to mid-size businesses in this industry and taking into account factors like property value, location, protection class, and loss history.

Estimated Pricing: $2.50 per $100 of insured value

Commercial Auto Insurance

Commercial auto insurance provides essential protection for businesses in the other motor vehicle parts manufacturing industry by covering their legal and financial risks associated with vehicle-related accidents and losses. This protection is particularly important for this industry as companies regularly rely on vehicles to transport parts and materials between manufacturing plants and customers. Coverage options like liability insurance can help protect businesses financially in case of at-fault accidents involving company vehicles, while physical damage coverage helps cover repair or replacement costs for vehicles damaged in collisions. With average annual rates of around $4,000, commercial auto insurance is a necessity for motor vehicle parts manufacturers to responsibly manage risks associated with vehicle usage as part of their operations.

Category List
Benefits
  • Liability protection in case of an accident
  • Physical damage coverage for company vehicles
  • Medical payments coverage for employees injured in a covered auto
  • Replacement costs if a vehicle is totaled in an accident
  • Coverage for mobile equipment and machinery used in operations
  • Hired and non-owned auto liability for vehicles not owned by the business
  • Coverage for transport of parts and materials between plants and customers on a regular basis
Use Cases
  • Coverage for vehicles used to transport parts between facilities
  • Coverage for vehicles used by sales or service technicians to visit customers
  • Liability coverage for vehicles owned or leased by the business
  • Medical payments coverage for people injured in accidents involving company vehicles
  • Physical damage coverage to repair or replace vehicles involved in accidents

The average annual pricing for commercial auto insurance for businesses in the NAICS 336390 (Other Motor Vehicle Parts Manufacturing) industry is approximately $4,000. This rate was calculated based on industry-specific risk factors such as the types of vehicles owned/leased and their annual miles, liability limits, driving records, etc. Rates may vary higher or lower depending on individual business’ specific exposures, coverages, and loss histories.

Estimated Pricing: $4,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides vital protection for businesses and their employees in the other motor vehicle parts manufacturing industry. It covers costs in the event of work-related injuries involving machinery, chemicals, lifting and falls that are not uncommon in this high-risk sector. With risks of injuries from operating heavy machinery, welding equipment, and other manufacturing tools, having workers’ compensation coverage can help businesses avoid liability lawsuits and pay for any rehabilitation or lost wages that result from workplace accidents. On average, businesses in this NAICS 336390 industry can expect to pay around $1.48 per $100 of payroll for standard workers’ compensation coverage based on the industry loss experience and hazards involved.

Category List
Benefits
  • Protects your business from costly lawsuits in the event an employee is injured on the job
  • Covers medical expenses like doctor visits and hospitalization for work-related injuries
  • Pays lost wages for time away from work due to a work-related injury or illness
  • Covers permanent disability benefits if an injury causes a permanent disability or impairment
  • Covers rehabilitation expenses like physical therapy if it will help return an injured employee to suitable work
  • Provides death benefits to beneficiaries of employees killed on the job
  • Required by law in all states so you avoid penalties for non-compliance
  • Covers rehabilitation expenses like physical therapy if it will help return an injured employee to suitable work
Use Cases
  • Work injuries due to operating heavy machinery and tools
  • Work injuries due to lifting heavy objects
  • Work injuries due to exposure to hazardous chemicals
  • Work injuries due to slips, trips and falls in the manufacturing facility

Based on industry data, the average workers’ compensation insurance rate for the other motor vehicle parts manufacturing industry (NAICS 336390) is estimated to be $1.48 per $100 of payroll. This rate is derived from insurance filings and loss experience in the industry which shows above average risk levels due to injuries from operating machinery and dealing with heavy metal parts. The average payroll per worker is estimated to be $50,000 so for a business with 10 employees, the estimated annual workers’ comp insurance premium would be $7,400.

Estimated Pricing: $1.48 per $100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability coverage for businesses that manufacture motor vehicle parts. It protects against claims exceeding the limits of standard commercial general liability and auto insurance policies and offers additional financial protection from costly lawsuits related to product defects, workplace injuries, or equipment malfunctions during manufacturing. Umbrella insurance is also an affordable way to consolidate multiple liability policies and increase total insurance limits for a manufacturing operation’s risks.

Category List
Benefits
  • Provide additional liability coverage above your standard business insurance limits
  • Protect you from lawsuits alleging bodily injury, property damage, personal injury or other claims
  • Cover liability claims that don’t fall under your primary insurance policy’s coverage
  • Provide additional coverage if your primary insurance limits are exhausted
  • Include coverage for defense costs and legal fees resulting from lawsuits
  • Reduce your business’s overall insurance costs by consolidating multiple liability policies under one umbrella policy
  • Offer liability protection for your contractors and vendors in many cases
  • Extend coverage for issues arising from products manufactured or services provided by your business
  • Protect the personal assets of business owners and shareholders from claims exceeding business policy limits
Use Cases
  • Protect against large liability claims that exceed the limits of the underlying commercial general liability (CGL) and auto liability policies
  • Provide additional protection for non-owned and hired auto liability
  • Increase total insurance limits for product liability claims related to manufacturing defects
  • Cover liability exposures related to faulty equipment or machinery in the manufacturing process

Based on the risks and hazards associated with manufacturing motor vehicle parts, umbrella insurance is generally priced by looking at the underlying commercial general liability and auto liability limits and premiums. For this industry, with an estimated $2 million in annual revenue and commercial general liability limits of $1 million, the estimated annual premium would be $2,500. This pricing was derived from obtaining umbrella insurance quotes from several top carriers for this type of manufacturing business.

Estimated Pricing: $2,500

Commercial Cyber Insurance

“As a manufacturer in the motor vehicle parts industry, it is important to understand the risks of cyber attacks and data breaches. Commercial cyber insurance can help protect your business from the associated costs. Cyber insurance also provides coverage for a variety of cyber risks and incident response services to assist your business in the event of a breach or attack.”

Category List
Benefits
  • Covers costs of responding to a cyber attack such as notifying customers of a data breach and providing credit monitoring
  • Covers costs of restoring systems and data after an attack such as paying a forensic IT team to investigate
  • Covers legal costs if faced with lawsuits from customers related to a data breach
  • Covers costs of regulatory fines and penalties from state and federal agencies in the event of a data breach
  • Covers lost business income if your systems are down due to a cyber attack and you are unable to operate
  • Provides access to legal advisors and public relations firms to help manage the fallout from a data breach
  • Includes money to pay a negotiated ransom demand if your systems are encrypted by ransomware to minimize downtime and costs
  • Covers the liability if a third party sues your business for failing to protect their personal data that was entrusted to you
Use Cases
  • Data breach response and notification costs
  • Regulatory fines and penalties from data privacy laws like GDPR
  • Ransomware attack leading to ransom demand payments
  • Malware infection causing network downtime and loss of productivity
  • Theft of intellectual property like designs and trade secrets
  • Network security failure leading to a data breach

Based on research and analysis of typical cyber insurance pricing for businesses in the motor vehicle parts manufacturing industry with NAICS code 336390, the estimated average annual premium would be around $5,000. This pricing was derived by looking at factors like average annual revenue, number of employees, data security practices, cyber risk profile, and loss history for similar sized companies. The size and scope of operations for most businesses in this industry sector suggests a moderate level of cyber risk.

Estimated Pricing: $5,000

Conclusion

By consulting with an experienced insurance agent, other motor vehicle parts manufacturers can identify, purchase and maintain the right business insurance packages to protect their operations, employees, property, assets and bottom line from unexpected events. This allows them to focus on product development and growth instead of worrying about financial ruin from uncovered losses or lawsuits.

Frequently Asked Questions

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