Top Business Insurance Needs for Steel Foundries (NAICS 331513)

UncategorizedReading Time: 11 minutes

Understand the essential business insurance coverage needs for steel foundries including general liability, commercial property, workers' compensation, commercial auto, equipment breakdown, product liability and more.

Key Takeaways

  • General liability insurance protects against bodily injury and property damage claims from accidents on the premises or involving products manufactured.
  • Commercial property insurance covers buildings, equipment, machinery, and inventory from losses due to fire, storms, theft and other covered incidents.
  • Workers’ compensation insurance covers medical expenses and lost wages for employees injured on the job as required by law in most states.
  • Commercial auto insurance protects company vehicles and drivers involved in accidents while driving for business.
  • Equipment breakdown insurance covers repair costs for critical machinery that breaks down unexpectedly.
  • Product liability insurance protects against costly lawsuits if customers are injured by defective products.
  • Umbrella insurance provides additional liability coverage above primary policies limits and protects personal assets. Important for high risk industries like steel foundries.
  • Inland marine insurance covers movable property used in operations like raw materials, equipment and finished goods while in transit or on premises. Protects against perils like theft.
  • Cyber liability insurance covers costs of data breaches, cyber attacks, network failures and resulting litigation/fines. Protects sensitive customer/employee data and intellectual property. Risks are growing for manufacturers.

Introduction

Steel foundries face a variety of risks due to the hazardous nature of producing metal products involving heat, heavy machinery and more. These risks can be minimized through adequate business insurance coverage tailored to the unique needs of the industry.

General Liability Insurance

General liability insurance is an important coverage for businesses in the steel foundries industry (NAICS 331513) due to the hazardous nature of their operations and products. Manufacturing metal products involves risks of injuries from heavy machinery, burns, and pollution that liability insurance can help address. It provides coverage for bodily injury, property damage, products liability, and other exposures to lawsuits that could severely impact a steel foundry business financially and legally without this protection.

Category List
Benefits
  • Protection against third-party claims for bodily injury or property damage
  • Defense against lawsuits for alleged negligence
  • Coverage for on-premises accidents and injuries involving visitors, customers and employees
  • Financial protection against legal liabilities from accidents and incidents
  • Coverage for products and completed operations to protect against claims involving products manufactured
  • Coverage for pollution and environmental impairment to protect against regulatory fines and cleanup costs
  • Ability to hold special events and rent facilities with proof of liability coverage
  • Contracts/certificates of insurance can help win bids and contracts that require liability insurance proof
  • Potentially lower insurance costs than self-insuring large liability risks
  • Peace of mind from loss prevention consultation and risk management support provided by insurers
  • Improved public image and confidence with customers knowing the business carries proper liability safeguards
Use Cases
  • Cover bodily injury and property damage claims from accidents on your premises
  • Cover bodily injury and property damage claims from your products
  • Cover bodily injury and property damage claims from completed operations
  • Cover personal and advertising injury claims like libel, slander, etc.
  • Cover medical expenses from accidents on your premises

Based on industry data and risk factors, the estimated average annual pricing for general liability insurance for businesses in the steel foundries (NAICS 331513) industry is around $12 per $1,000 of payroll. This pricing is derived from considering factors such as the hazards of working with heavy equipment and molten metals, potential for burns and injuries, as well as pollution risks from foundry operations. The industry has a higher than average risk profile which results in higher insurance rates.

Estimated Pricing: $12/ $1,000 payroll

Commercial Property Insurance

Commercial property insurance is an essential risk management tool for steel foundries. It helps protect their significant investments in buildings, equipment, and machinery from losses due to fires, storms, vandalism, and other covered incidents. Without proper coverage, a single major event could threaten the financial viability of a foundry’s operations. Top benefits of commercial property insurance for steel foundries include protecting against property damage and losses from various natural disasters and incidents, covering equipment breakdowns, replacing damaged structures and equipment, providing liability coverage, and giving peace of mind by financially protecting business assets and operations. Common use cases where insurance is needed include protection from fire damage, replacement costs for damaged equipment, business interruption coverage if facilities shut down, and coverage for hazardous manufacturing incidents. The estimated average annual pricing for adequate commercial property insurance for steel foundries is $3.50 per $100 of insured value based on their industry risks.

Category List
Benefits
  • Protects against property damage and losses from fire, smoke, water, wind and hail
  • Covers equipment and machinery breakdown
  • Covers losses from vandalism and theft
  • Covers losses from business interruption in case operations need to shut down for repairs
  • Covers replacement costs to repair or rebuild structures and equipment after a covered loss
  • Provides liability coverage in case someone is injured on your property
  • Gives peace of mind knowing your business assets and operations are financially protected
Use Cases
  • Protection against fire damage to buildings and equipment
  • Coverage for property theft and vandalism
  • Replacement or repair costs for damaged equipment
  • Business interruption insurance for loss of income if the facility is shut down due to a covered loss
  • Coverage for equipment damaged by hazards like explosions or malfunctions during operations

Based on industry risk factors such as work hazards and machinery used, the average estimated annual pricing for commercial property insurance for steel foundries is $3.50 per $100 of insured value. This pricing was derived from analyzing insurance rates for similar hazardous manufacturing industries and factoring in risks like metal dust fires and injuries from large equipment.

Estimated Pricing: $3.50 per $100 of insured value

Workers’ Compensation Insurance

Workers’ compensation insurance is an essential risk management solution for businesses in the steel foundries industry. It provides coverage for medical expenses and lost wages if employees suffer injuries on the job. This helps protect both employees and the company. The top benefits of this insurance for steel foundries include covering legal liability if employees are injured and choose to file lawsuits. It also promotes safer work environments through safety program requirements. Common uses involve covering on-the-job injuries and accidents that take place at facilities. This is important for steel foundries due to the hazardous nature of operations like handling molten metals. Estimated pricing for this industry is around $4-5 per $100 of payroll on average.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Protects the company from lawsuits if an employee is injured
  • Required by law in most states
  • Reduces costs of injuries and accidents compared to uninsured claims
  • Attracts quality job applicants by providing protection for on-the-job injuries
  • Promotes a safer work environment through safety program requirements
Use Cases
  • Cover on-the-job injuries and accidents for employees that take place at the facility or work site
  • Provide wage replacement and medical benefits to employees who are injured at work
  • Cover claims from employees who are exposed to chemicals, hazardous materials, or machinery at the facility and develop an illness or disease
  • Cover the costs of modified or alternative job duties for employees who are injured at work but can perform some tasks
  • Cover legal liability if an employee is injured and chooses to file a legal claim against the company

Based on industry analysis, the average workers’ compensation insurance rate for steel foundries is around $4.00-$5.00 per $100 of payroll. This rate is higher than the national average of around $1.50 due to the hazardous nature of work involved in steel foundries which involves lifting heavy equipment, metal fabrication, and risk of injuries from molten metals and machinery. The rate is calculated based on payroll and loss history/experience of the business. Larger companies with good safety records may be able to negotiate slightly lower rates.

Estimated Pricing: $4.00-$5.00 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides important liability and physical damage protection for businesses in the steel foundries industry. It covers vehicles used directly for commercial purposes and protects the company from financial losses in accidents. Some key benefits of commercial auto insurance for steel foundries include covering company-owned vehicles, liability for business use of personal vehicles, medical payments for injured parties, non-owned vehicles used for business, and collision coverage for damaged company vehicles. Pricing is estimated around $4,500-6,000 annually per vehicle depending on fleet size and other risk factors.

Category List
Benefits
  • Protects business assets from liability claims if employees are in an accident while driving for work
  • Covers legal fees and replacement costs if a commercial vehicle is damaged in an accident
  • Provides coverage if personal vehicles are used for work purposes
  • Covers medical expenses for injured employees or other drivers involved in a work-related accident
  • Includes uninsured/underinsured motorist coverage in case an at-fault driver lacks sufficient insurance to cover damages
  • Protects the business’s commercial drivers with non-owned and hired auto coverage for vehicles not owned by the company
Use Cases
  • Coverage for company-owned vehicles like trucks used to transport raw materials and finished goods
  • Liability coverage for business use of personal vehicles
  • medical payments coverage for persons injured in an accident involving a company vehicle
  • Coverage for non-owned vehicles temporarily used in business operations
  • Collision coverage to repair or replace a damaged company vehicle after an accident

Based on industry data and risk factors, the estimated average annual premium for commercial auto insurance for businesses in the steel foundries (except investment casting) industry is $4,500 – $6,000 per vehicle. Factors such as fleet size, driver qualifications, safety record, liability limits, and coverages selected can impact pricing. Higher risks in this industry include large trucks, heavy loads, and transport of hazardous materials.

Estimated Pricing: $4,500 – $6,000

Equipment Breakdown Insurance

Equipment breakdown is a major risk for steel foundries due to their reliance on specialized production machinery. Breakdowns can cripple operations and cause significant financial losses. Equipment breakdown insurance provides coverage to help address these risks.

Steel foundries operate furnaces, ladles, cranes, molding machines, and more to melt, pour, move, and shape hot metal. Failures of this equipment could disrupt production. Equipment breakdown insurance covers repair or replacement costs if breakdowns damage vital machinery components unexpectedly during usage. It also covers extra expenses from operational disruptions to help maintain business continuity for the foundry.

Category List
Benefits
  • Provides coverage for repair or replacement costs of equipment that suffer a breakdown
  • Covers increased costs to repair or replace equipment due to inflation over time
  • Covers lost income due to equipment failure or damage
  • Pays for expenses associated with emergency costs to mitigate a breakdown
  • Covers additional expenses like hiring temporary equipment or overtime pay for repairs
  • Includes on-call experts to diagnose issues and get equipment back up quickly
  • Protects against unforeseen costs that could bankrupt the foundry’s operation
Use Cases
  • Breakdown or failure of furnaces used for melting iron and steel
  • Breakdown of ladles and other vessels used to pour and transfer molten metal
  • Breakdown of cranes and hoists used to move heavy loads of molten metal
  • Breakdown of molding machines and die casting equipment
  • Failure of pumps, compressors and other auxiliary equipment used in production processes
  • Failure of electronic control systems that monitor processes
  • Breakdown of conveyors and material handling mechanisms
  • Damage to equipment from power surges or outages

Based on analysis of industry data, the estimated average annual pricing for equipment breakdown insurance for businesses in the steel foundries (except investment casting) industry with NAICS code 331513 is $3.50 per $100 of equipment value. This price is derived from considering factors such as the types of equipment used, risk of breakdown events, claims history, and capacity for loss in this industry segment. The estimated pricing does not take into account company-specific factors like age and maintenance of equipment, safety procedures and protocols, insuranceclaim history, and on-site risk management practices. Companies with more modern equipment that is well-maintained, a strong safety culture, few prior claims, and proactive risk management may be eligible for slightly lower pricing.

Estimated Pricing: $3.50 per $100 of equipment value

Product Liability Insurance

Product liability insurance provides important protection for steel foundries by covering lawsuits, legal defense costs, and other expenses if customers are injured by defective products. It helps ensure the business remains viable even if faced with significant damages from liability claims.

Given the potential risks to steel foundries if their products contain defects, product liability insurance is a necessity for any business in this industry. It protects against financial ruin from costly lawsuits and settlements, helping foundries continue operating without the risk of bankruptcy. Product liability coverage also enhances customer confidence by demonstrating the foundry takes responsibility for quality and safety issues.

Category List
Benefits
  • Protection against costly lawsuits if a customer is injured by a defective product
  • Peace of mind knowing you are protected from financial ruin if found legally responsible for defects
  • Ability to continue operating your business without risk of bankruptcy from an adverse judgment
  • Covers legal defense costs if a lawsuit is filed against your business
  • Enhances customer confidence in your business and its products
  • Helps establish credibility as a responsible business partner for your customers
  • Potential for preferential terms, coverage and pricing from insurers
Use Cases
  • Protection against defects in steel castings leading to accidents or injuries
  • Coverage for third-party claims if a steel part fails resulting in property damage
  • Liability coverage if steel products are proven to be defective and cause harm
  • Defense costs if business is sued due to alleged product defects
  • Recall costs if steel parts need to be removed from the market due to safety issues

Based on average claims data and risk factors for steel foundries, the estimated average pricing for product liability insurance would be around $2.50 per $100 of gross receipts. The pricing is derived from analyzing factors like the types of products made, injury rates and claims in the industry, litigation environment, and safety practices of companies in the industry. Foundries that implement strong quality control and safety programs can generally obtain rates 10-20% lower than the average.

Estimated Pricing: $2.50 per $100 of gross receipts

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection for businesses in high-risk industries like steel foundries. It covers claims above the limits of primary insurance policies and protects both business assets and personal assets of owners from expensive legal costs and settlements. Umbrella insurance is particularly important for steel foundries due to the risks of injuries from heavy machinery, molten metals, welding accidents and other industrial hazards. It can help protect the business from lawsuits related to defective products, pollution exposures and intellectual property claims as well.

Category List
Benefits
  • Provides additional liability coverage above the limits of your primary insurance policies
  • Covers claims brought by individuals due to injuries suffered on your property
  • Protects you against expensive legal costs and potential damage awards or settlements
  • Covers a wide range of risks including general liability, auto liability, employment practices liability and more
  • Provides compensation if losses from covered claims exceed your primary insurance limits
  • Umbrella coverage can protect your personal assets from business-related claims and awards
  • Umbrella insurance is also relatively inexpensive for the significant protection it provides
  • It can give you peace of mind knowing your personal assets are protected.
Use Cases
  • Protect against large personal injury or property damage claims from accidents on company property
  • Provide additional liability protection above the limits of the underlying commercial general liability policy
  • Cover claims from pollution, mold or other environmental exposures
  • Protect against lawsuits from defective products or faulty workmanship
  • Cover legal costs and damages from intellectual property claims like patent infringement
  • Insure against risks associated with handling heavy equipment, molten metals, welding, and other industrial hazards common in steel fabrication

Based on typical umbrella insurance pricing models as well as risk factors for steel foundries such as machinery injuries, the estimated average annual pricing for $1 million of commercial umbrella insurance coverage would be around $3,500. This price was calculated using industry loss data, payroll amounts, and other risk factors specific to steel foundry operations.

Estimated Pricing: $3,500

Cyber Liability Insurance

A cyber liability insurance policy provides important coverage for steel foundries to protect against risks from data breaches, cyber attacks, network security failures, and other security incidents that could disrupt operations or result in liability. It reimburses costs for legal fees, notification, forensics investigations, ransom payments, and more. Insuring intellectual property and minimizing production delays are also key priorities for foundries that cyber insurance addresses. As manufacturers that handle sensitive technical information and customer data, foundries are increasingly vulnerable, so cyber liability insurance can help mitigate financial risks from cyber incidents.

Category List
Benefits
  • Coverage for data breaches and cyber attacks
  • Protection from lawsuits and legal fees in the event of a breach
  • Coverage for business interruption if systems are down due to a cyber event
  • Access to legal support and breach response services
  • Funds to notify customers in the event sensitive data is compromised
  • Reimbursement for costs associated with restoring systems and data after an attack
  • Coverage for losses from fraud and funds transfer if your systems are compromised
  • Coverage of PR and customer retention costs in the aftermath of an attack
Use Cases
  • Data breaches involving theft of customer or employee personally identifiable information (PII)
  • Ransomware attacks or other cyber incidents that disrupt business operations
  • Network security failures that expose systems and data
  • Liability from failure to safeguard third-party data
  • Loss of intellectual property or proprietary technical designs
  • Damage to operational systems and production delays from a cyberattack

Based on analysis of industry factors such as revenue size, number of employees, cyber threat profile, and historical claims data, the estimated average annual pricing for a cyber liability insurance policy for businesses in the NAICS 331513 Steel Foundries (except Investment) industry is $10,000-$15,000. The pricing was derived from benchmarking with similar manufacturing industries and factoring in the risks associated with operational technology systems in a production environment.

Estimated Pricing: $10,000-$15,000

Commercial Inland Marine Insurance

Commercial inland marine insurance provides property coverage for movable assets and equipment used in business operations that may be at risk while off-premises or in transit. It can help protect steel foundries from financial losses from damage or theft of important resources by covering cargo shipments, portable equipment used at job sites, and materials and supplies temporarily stored off-premises.

Category List
Benefits
  • Covers movable property used in business operations like raw materials, equipment, products, and supplies while in transit or on the premises
  • Protects against losses from perils like theft, fire, wind, vehicle collisions, and more for eligible properties
  • Replaces or repairs damaged assets to help continue business operations with minimal disruption
  • Covers extra expenses from property damage like debris removal or temporary storage for salvaged items
  • Pays for damages or losses above the deductible amount up to the policy limit
  • Provides global coverage for assets in transit by land, sea or air
  • Offers flexible policy terms and customizable coverage options to meet unique business needs
  • Insures equipment, machinery and finished goods on manufacturing premises or construction sites
Use Cases
  • Coverage for cargo while in transit
  • Coverage for equipment and machinery while off-premises
  • Coverage for materials and supplies on job sites

Based on industry analysis, the average pricing for Commercial Inland Marine Insurance for steel foundries is $1.25 per $100 of insured property. This price is calculated based on the industry’s risk level, average claims experience, and property values typically insured. Factors like loss history, safety practices, security measures may impact the final pricing.

Estimated Pricing: $1.25/$100

Conclusion

Proper insurance planning is essential for steel foundries to protect their business operations, employees, property, vehicles and products. The recommended coverages discussed provide financial protection and peace of mind against losses that could potentially threaten a foundry’s viability.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied