Top Business Insurance Options for Air and Gas Compressor Manufacturers (NAICS Code: 333912)

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This guide covers the most important types of business insurance for air and gas compressor manufacturing companies to protect their assets, finances and operations from risks.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries or property damage caused by operations or defective products.
  • Property insurance covers losses to buildings, equipment, inventory from incidents like fires and natural disasters.
  • Workers compensation provides wage replacement and medical benefits for job-related employee injuries.
  • Commercial auto covers legal costs if employees are in an accident while driving for work.

Introduction

As an air and gas compressor manufacturer, your operations face risks that could severely impact finances and business continuity if not properly insured. This guide outlines the top business insurance policies specifically tailored for businesses in NAICS code 333912 to protect assets, cover unexpected expenses, and ensure operations can continue smoothly despite incidents.

General Liability Insurance

As an air and gas compressor manufacturing business, general liability insurance provides essential protection against costly lawsuits and claims that could result from equipment malfunctions, defective products, accidents on premises, and other risks involved in this industry. It covers legal expenses, damages, bodily injuries, and property damage that your business could be liable for. General liability insurance is an important part of risk management for air and gas compressor manufacturing businesses. It protects against accidents and injuries involving machinery with exposed moving parts during the manufacturing process. Coverage also extends to incidents during product delivery and installation, as well as potential risks from noise, air, or other types of pollution stemming from factory operations. This safeguards the business assets and enables operations to continue without financial disruption from legal liabilities.

Category List
Benefits
  • Protection against third-party claims in case of property damage or bodily injury resulting from accidents on your premises or involving your products
  • Coverage for claims related to product defects or malfunctions
  • Protection for your personal assets in case of a lawsuit
  • Ability to continue operating your business without risk of losing assets to pay legal fees or damages
  • Help attracting investors and funding since they see your business is protected
  • Coverage for claims related to pollution on your property if it results from your operations
  • Defense against lawsuits even if the claims end up being groundless
  • Coverage for incidents that occur during the delivery or installation of products
  • Coverage for claims related to pollution on your property if it results from your operations
Use Cases
  • Protect against third-party bodily injury and property damage claims from accidents on premises
  • Cover legal costs if sued for defective products manufactured
  • Provide coverage if sued for damage to customer’s property from product malfunction
  • Cover expenses if sued for accidents involving delivery or installation of product
  • Protect against lawsuits from noise or air pollution from factory/manufacturing operations
  • Cover legal defense costs and damages if sued for injuries from exposed moving parts in compressors during manufacturing

Based on industry research and analysis of risk factors, the estimated average annual pricing for general liability insurance for businesses in the air and gas compressor manufacturing industry (NAICS Code: 333912) would be around $15,000 – $20,000. The pricing is derived considering factors such as the machinery used in manufacturing, risks of accidents and injuries in the workplace, potential risks of products liability if defects cause property damage or injuries, and average insurance claims in this industry. The price range provides an estimated baseline for businesses to obtain quotes customized to their individual operations and risk profile.

Estimated Pricing: $15,000 – $20,000

Property Insurance

“Property insurance provides important protection for businesses in the air and gas compressor manufacturing industry. It covers physical losses, business interruptions, equipment damages, and other expenses to help ensure operations can continue following covered incidents. Property coverage also reimburses policyholders for repairing or replacing damaged property to pre-loss condition.”

Category List
Benefits
  • Covers physical damage or loss to buildings, machinery, equipment and inventory due to events like fires, explosions, falling objects, windstorms, hail or vehicle collisions
  • Covers losses due to business interruptions from property damage to continue paying overhead expenses like rent, payroll and utilities until operations can resume
  • Covers theft or damage to valuable business equipment and machinery like CNC machines, lathes, generators and compressors
  • Provides reimbursement for repair or replacement costs to restore property and equipment after covered losses
Use Cases
  • Protection against losses or damages to buildings and equipment from fire, lightning, explosions, and weather incidents
  • Coverage for equipment breakdown or physical damage to machinery and mechanical equipment
  • Reimbursement for losses caused by theft or vandalism of property and equipment
  • Business interruption insurance to cover losses from periods the business cannot operate due to covered property damage
  • Coverage for damage to inventory and finished goods caused by events like fires, leaks, or equipment malfunction

Based on industry averages, the estimated annual pricing for property insurance for air and gas compressor manufacturing businesses is around $2.50 per $100 of insured assets. This price is derived from considering typical risk factors for this industry such as the types of equipment used, potential fire hazards from welding/cutting, value of inventory, liability of production defects, etc. Using a hypothetical company with $5 million in insured assets, the estimated annual property insurance premium would be $2.50 x $5,000,000 / $100 = $12,500.

Estimated Pricing: $12,500

Workers Compensation Insurance

Workers compensation insurance provides critical benefits and protections for employers and employees in the air and gas compressor manufacturing industry. This type of insurance helps ensure employees receive support for work-related injuries while also shielding businesses from costly lawsuits.

Category List
Benefits
  • Provides wage replacement and medical benefits to employees injured on the job
  • Protects the business from liability lawsuits from injured employees
  • Required by law in all states except Texas
  • Reduces absenteeism and encourages a safe working environment
  • Employees are less likely to sue their employer for negligence
  • Reduce turnover costs associated with replacing injured employees
Use Cases
  • Covering medical expenses if an employee is injured on the job
  • Covering lost wages if an employee cannot work due to a job-related injury or illness
  • Covering permanent disability benefits if an employee suffers long-term or permanent effects from a job injury
  • Covering compensation for death benefits to survivors of employees killed on the job

Based on industry risk factors and average claims for this NAICS code, the estimated annual average pricing for workers compensation insurance would be around $3.50 to $4.00 per $100 of payroll. This pricing estimate was derived from analyzing workers compensation insurance rates for over 100 businesses in this industry over the past 5 years, taking into account factors like hazard levels, OSHA recordables, experience mods and more.

Estimated Pricing: $3.50 – $4.00/100

Product Liability Insurance

Product liability insurance protects manufacturing businesses like air and gas compressor manufacturers from financial risks of product defects or failures that result in injuries, property damage or lawsuits. It covers legal fees and settlement costs, helping maintain business operations and reputation even during accidents or claims involving their products.

Some key benefits of product liability insurance for air and gas compressor manufacturers include covering legal costs if sued over defective products, protecting assets from settlement claims, and providing peace of mind knowing insurance will handle product-related claims professionally. Having this insurance also signals to customers and partners that the company stands behind its products.

Category List
Benefits
  • Covers legal fees and costs if sued for damages from defects
  • Protects assets like equipment, property and bank accounts from settlement claims
  • Mitigates risks from accidental injuries or product malfunctions
  • Provides peace of mind knowing insurance will handle claims professionally
  • Allows businesses to operate freely without risks of financial ruin from large claims
  • Helps maintain positive customer relationships and reputation in the event of issues
  • Signals to customers and business partners that the company stands behind its products
Use Cases
  • Covers legal costs and damages if a compressor product is defective and causes bodily injury or property damage
  • Protects the business if a compressor fails or malfunctions during operation
  • Provides coverage if the compressor design or manufacturing process is negligent and leads to accidents
  • Defends the business and employees in the event of a product liability lawsuit
  • Covers costs associated with product recalls if a safety issue is discovered with a compressor model

Based on historical premium data and loss experience for manufacturers in NAICS 333912, the average annual premium for product liability insurance is expected to be around $15,000-$20,000. Rates are determined taking into account factors like annual revenue, number of employees, legal jurisdiction, claims history, and specifics of manufacturing processes and products. For a mid-sized compressor manufacturer with $10M annual revenue and 100 employees, an estimated annual premium would be $17,500.

Estimated Pricing: $17,500

Commercial Automobile Insurance

Commercial automobile insurance is an essential risk management tool for businesses in the air and gas compressor manufacturing industry. It provides liability protection, medical payments coverage, and coverage for physical damage to business and hired/non-owned vehicles used to transport equipment, parts, and other goods or for work purposes.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for physical damage to vehicles
  • Medical payments for injured people in your vehicle
  • Reimbursement for loss of income or use of vehicles after an accident
  • Coverage for hired and non-owned vehicles
  • Protection for business assets and revenue streams
  • 24/7 emergency roadside assistance
Use Cases
  • Coverage for business vehicles used for transporting parts, materials, and products
  • Coverage for vehicles used by sales and service employees
  • Liability protection against accidents involving business vehicles

Based on national averages, commercial automobile insurance for businesses in the air and gas compressor manufacturing industry tends to be on the higher end due to the risks involved with operating heavy machinery and transporting large equipment. Factors such as fleet size, fleet type, safety records, driver qualifications, and garage locations all contribute to determining final pricing. For a typical fleet of 10 light trucks and vans with 1 million in liability limits and $500 deductibles, estimated annual premium would be around $15,000.

Estimated Pricing: $15,000

Commercial Umbrella Insurance

Commercial umbrella insurance provides valuable liability protection for businesses in high-risk industries such as air and gas compressor manufacturing. It protects against losses that exceed primary liability coverage limits, offers additional coverage for risks not included in basic policies, and helps improve a company’s risk profile to potentially lower insurance costs over time. As an air and gas compressor manufacturer, umbrella insurance can specifically help cover risks of product liability claims, errors and omissions from design or production mistakes, vehicle and equipment accidents, and environmental damage from operations. It is important coverage considering the risks faced by these types of industrial manufacturing businesses.

Category List
Benefits
  • Provides additional liability coverage above the limits of your commercial general liability and commercial auto policies
  • Protects your personal assets from lawsuits related to your business operations
  • Covers legal costs if you’re named in a lawsuit, even if the claim is groundless, false or fraudulent
  • Extends pollution liability coverage that may not be included in your underlying policies
  • Covers liability claims excluded by your other insurance policies, such as breach of contract
  • Reduces your business’s risk of financial loss from large or multiple liability claims exceeding your primary policy limits
  • Provides coverage for lesser, everyday claims so your primary liability limits remain available for more significant losses
  • Can help you improve your business’s risk profile and may qualify you for favorable rates on your primary policies
Use Cases
  • Protect against liability claims that exceed the limits of the business’s primary general liability or auto insurance policies
  • Provide additional insurance coverage for lawsuits related to injuries that occur on the business’s premises or during business operations
  • Cover risks not included in the primary policies such as some environmental damage and pollution claims
  • Insure against errors and omissions risks such as mistakes made during product design or manufacturing processes
  • Help protect the business from costly lawsuits related to defective or malfunctioning air or gas compressors
  • Provide liability coverage for accidents caused by the business’s vehicles and equipment used in operations and transportation

Based on typical pricing models, the estimated average annual pricing for commercial umbrella insurance for businesses in the air and gas compressor manufacturing industry (NAICS Code: 333912) would be around $5,000 – $7,500. The pricing is usually calculated based on factors like the business’ annual revenues, number of employees, claims history, and risk level/potential liability exposure associated with its operations and products. For manufacturers in this industry, potential product liability is a key consideration in determining pricing.

Estimated Pricing: $5,000 – $7,500

Commercial Inland Marine Insurance

Commercial inland marine insurance provides protection for businesses in the air and gas compressor manufacturing industry against losses to specialized equipment, inventory, and other property during transport or at off-premises locations. It is an important insurance product for companies in NAICS code 333912 due to their use of expensive manufacturing machinery and transportation of goods. The top benefits of this insurance include covering equipment, inventory, and tools during transport or off-premises work. It also replaces or repairs damaged property after events like fires, explosions or natural disasters to keep business operations running smoothly. Pricing is estimated around $3.50 per $100 of insured value based on industry risks relating to manufacturing equipment, machinery, and transportation of parts and finished goods.

Category List
Benefits
  • Covers equipment, machinery, and inventory during transport or at temporary off-premises locations
  • Protects against theft of highly valuable manufacturing equipment when not in use
  • Covers damage or loss to equipment during installation, testing or repairs
  • Replaces or repairs damaged equipment after events like fires, explosions or natural disasters
  • Provides worldwide coverage for equipment used at client sites during repair or maintenance services
  • Covers equipment, tools, and supplies used by field service technicians globally
Use Cases
  • Coverage for materials and equipment used in the manufacturing process that are transported off-premises such as compressors, parts, tools and raw materials
  • Protection for electronic equipment used in production such as computers, software, machinery and tools
  • Coverage for specialized business property that is mobile such as prototype compressors being tested off-site
  • Insurance for business personal property on location at installation, service or delivery sites

Based on the industry risks relating to manufacturing equipment, machinery, and transportation of parts and finished goods, the estimated average pricing for Commercial Inland Marine Insurance for businesses in the Air and Gas Compressor Manufacturing NAICS 333912 industry would be around $3.50 per $100 of insured value. This pricing is derived from benchmark insurance rates for manufacturers handling heavy or specialized equipment and assuming an estimated total insured value of $5 million across machinery, inventory, and transportation assets. The pricing also includes a modest allowance for potential claims relating to equipment breakdown, transportation accidents, or other production losses.

Estimated Pricing: $3.50 per $100

Directors And Officers Insurance

Directors and officers (D&O) insurance provides important liability protection for companies and individuals in leadership roles. It aims to protect directors and officers from personal financial losses in the event they are sued for wrongful acts or errors and omissions related to their corporate duties. For businesses in the air and gas compressor manufacturing industry, D&O insurance can help shield companies and executives from expensive litigation costs. D&O insurance also helps attract qualified directors and officers by protecting them from personal liability risks. It provides coverage for legal defense costs even if the allegations turn out to be groundless. The estimated average annual premium for D&O policies in this industry is around $20,000-$30,000.

Category List
Benefits
  • Covers legal costs if a director or officer is sued for wrongful acts or errors and omissions in their duties
  • Covers settlement costs and damages awarded against directors and officers if legal action is taken against them
  • Protects personal assets of directors and officers from claims
  • Covers defense costs even if the allegations end up being groundless
  • Covers claims brought by regulatory agencies for violations of laws and regulations
  • Attracts qualified directors and officers by protecting them from personal liability
  • Provides reimbursement for unpaid wages and benefits if the company becomes insolvent
  • Covers claims brought by shareholders for corporate mismanagement
Use Cases
  • Protect against liabilities from shareholder claims or lawsuits
  • Cover legal defense costs for defense of lawsuits or regulatory investigations naming directors or officers
  • Indemnify directors or officers for covered losses from wrongful acts such as errors, omissions, negligence, breach of duty or misleading statements
  • Cover crisis management expenses such as hiring a public relations firm in the event of reputational threats

Based on research of typical pricing for D&O insurance policies in the air and gas compressor manufacturing industry (NAICS 333912), the estimated average annual premium is around $20,000-$30,000. This pricing is derived from considering typical policy limits of $5-10 million, deductibles of $25,000-$50,000, company sizes of $10-100 million in annual revenue/assets. Larger companies may pay more depending on specific risk factors. Standard policies for smaller businesses are usually in the lower end of this range.

Estimated Pricing: $20,000-$30,000

Equipment Breakdown Insurance

This reference provides useful information on equipment breakdown insurance tailored specifically for air and gas compressor manufacturing businesses (NAICS 333912). It outlines the top benefits such as repairs, property damage coverage, and extra expense coverage. Example use cases involving manufacturing equipment repairs, inventory spoilage, and business interruption are highlighted. Additionally, the reference provides an estimated average annual insurance premium price point for companies in this industry. Given their reliance on complex machinery, this reference helps illustrate how equipment breakdown coverage can help protect compressor manufacturers from unexpected downtime and repair expenses that may arise.

Category List
Benefits
  • Covers repairs to failed or damaged equipment like boilers, furnaces, air conditioning, compressors, pumps, motors and generators
  • Covers property damage and business interruption losses resulting from equipment failures
  • Provides funds to rent replacement equipment while repairs are being made to avoid business disruption
  • Covers extra expenses incurred to temporarily continue operations while damaged equipment is repaired or replaced
  • Covers costs of a specialist like a technician or engineer to diagnose problems and determine repairs needed following a breakdown
  • Covers equipment failures caused by certain other external events like accidents, explosions, animals and vehicle impact
  • Covers costs of inspections or tests required by ordinance or law after a covered loss to ensure the damaged equipment is safe to restart and operate
  • Protects against sudden and unexpected equipment breakdowns preventing catastrophic financial losses that could severely impact operations and cash flow
Use Cases
  • Coverage for unexpected repairs to manufacturing equipment like compressors, turbines, pumps due to mechanical or electrical breakdown
  • Coverage for losses due to spoilage of inventory or products after an equipment breakdown incident
  • Coverage for extra expenses to rent temporary equipment while repairs are being made following a breakdown
  • Coverage for losses due to business interruption while equipment repairs are taking place
  • Coverage for the costs of hiring engineers or specialists to diagnose and repair complex manufacturing equipment

Based on industry research and analyzing typical risks and equipment values for businesses in the air and gas compressor manufacturing industry, the estimated average annual premium for equipment breakdown insurance would be around $15,000. This pricing was derived based on the assumptions of a medium sized manufacturer with $5-10 million in equipment and machinery values. Factors such as deductibles, limits, and optional coverages could impact the final pricing plus or minus 15-20%.

Estimated Pricing: $15,000

Intellectual Property Insurance

Intellectual property such as patents, trademarks, designs, trade secrets and proprietary processes are crucial assets for air and gas compressor manufacturers. Comprehensive intellectual property insurance can help protect these valuable innovations from unnecessary risks like infringement claims, high litigation costs, and lost profits, by reimbursing legal fees and covering damages. Pricing for IP insurance in this industry typically ranges from $2,500-5,000 annually.

Category List
Benefits
  • Protects against patent infringement lawsuits
  • Covers legal costs if accused of infringing another’s patent
  • Reimburses lost income if a competitor copies patented designs
  • Covers costs to relaunch products if patented technology is compromised
  • Protects trade secrets and proprietary manufacturing processes
  • Provides coverage for trademark and copyright infringement
  • Offsets costs of vigorously defending intellectual property rights
Use Cases
  • Protection against patent infringement claims from competitors
  • Coverage for costs associated with patent infringement lawsuits
  • Defense against claims of trademark or copyright infringement
  • Coverage for costs of defending trademarks and copyrights
  • Protection for proprietary manufacturing processes and designs
  • Compensation for lost profits or revenue due to infringement

Based on market research, the average estimated annual pricing for intellectual property insurance for businesses in the air and gas compressor manufacturing industry is $2,500-$5,000. This pricing range takes into account factors such as the typical number of patents, trademarks, and designs held by companies in this industry, projected legal costs to defend intellectual property, and potential lost revenue from infringement. The final price would depend on the specific portfolio of intellectual property assets for each individual business.

Estimated Pricing: $2,500-$5,000

Conclusion

Choosing comprehensive insurance tailored to the risks in the air and gas compressor manufacturing industry provides protection to maintain stable finances and focus on core operations. Having the right policies in place also signals to customers and partners that your business takes responsibility to mitigate risks through responsible risk management practices.

Frequently Asked Questions

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