Key Takeaways
- General Liability protects against bodily injury and property damage claims from customers.
- Property Insurance covers costs to repair or replace equipment and facilities damaged by events like fires or storms.
- Workers’ Comp covers medical costs and lost wages for employees injured on the job.
- Commercial Auto protects against liability from vehicle accidents involving company vehicles.
- Product Liability covers legal costs if customers are injured by defective paper goods.
- Business Interruption pays lost income if operations are suspended due to covered events.
- Umbrella insurance provides additional liability coverage above primary policies and protects business assets.
- Employment Practices Liability Insurance covers lawsuits over issues like wrongful termination and discrimination.
- Cyber liability protects against costs of data breaches, ransomware attacks and other cyber incidents.
Introduction
As an All Other Converted Paper Product business owner, it’s important to understand the types of insurance your industry commonly needs to protect against risks. This article outlines the top business insurance options manufacturers in NAICS code 322299 should consider.
General Liability Insurance
General liability insurance is an important coverage for businesses in the paper manufacturing industry. It provides protection from costly legal claims and lawsuits that could threaten the operations and assets of the business. Some key benefits of general liability insurance for businesses in this industry include protecting them from third-party injury claims, lawsuits from defective products, and liability from incidents on their premises. It also provides coverage for product recalls, pollution risks from manufacturing, errors and omissions related to their services, and defense costs for liability lawsuits. The estimated average annual cost of general liability insurance for businesses in this industry falls between $1,500 to $2,000.
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Based on industry averages, the estimated average pricing for general liability insurance for businesses in the All Other Converted Paper Product Manufacturing industry with NAICS code 322299 is around $1,500 – $2,000 per year. This pricing was derived from looking at insurance rates for similar manufacturing industries that work with paper and other materials. Factors like company size, annual revenues, safety record, and claims history can impact the actual pricing.
Estimated Pricing: $1,500 – $2,000
Property Insurance
Property insurance provides crucial protection for businesses in the all other converted paper product manufacturing industry. It covers costs from unexpected losses like fires, equipment damage, natural disasters, property crimes, and equipment breakdowns to keep operations running smoothly. Manufacturing facilities in this industry contain expensive equipment, machinery, inventory, and are at risk of losses from events like fires, floods, equipment malfunctions, vandalism, and theft. Having proper insurance coverage ensures businesses can continue operating and repairs or replaces damaged property after covered loss events.
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Based on industry analysis and average pricing data, the estimated annual property insurance pricing for businesses in the All Other Converted Paper Product Manufacturing industry (NAICS Code 322299) would be around $1.50 per $100 of insured property value. This pricing was derived from considering industry-specific factors like the types of manufacturing machinery and equipment used, risk of fire or other property damage incidents, quality of risk management/safety practices, claims history, and location.
Estimated Pricing: $1.50 per $100 of insured property value
Workers’ Compensation Insurance
Workers’ compensation insurance is an essential benefit and risk management tool for businesses in the all other converted paper product manufacturing industry. It provides medical, wage replacement, and liability protections for employees injured on the job while helping businesses control costs and comply with labor laws. Estimated annual premium rates average $1.20 per $100 of payroll based on industry risks and claims data. Common risks for employees include cuts, burns, falls from lifting heavy materials, and repetitive stress injuries from manufacturing tasks.
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Based on national average premium rates for the All Other Converted Paper Product Manufacturing industry (NAICS Code 322299), the estimated average annual premium per $100 of payroll would be $1.20. This rate is derived from statistical loss data reported to state Workers’ Compensation agencies and pooled together by the National Council on Compensation Insurance (NCCI). The average payroll per employee in this industry is approximately $45,000, so for a business with 10 employees, the estimated annual workers’ comp insurance premium would be $5,400.
Estimated Pricing: $1.20 per $100 of payroll
Product Liability Insurance
Product liability insurance is crucial for any business that manufactures or sells products, as it protects the company from financial risks posed by defective or unsafe products that could cause harm to customers or third parties. Product liability coverage compensates those injured by products and pays for legal costs if the business is sued.
The reference provided details the key benefits, use cases and estimated pricing of product liability insurance for businesses in the All Other Converted Paper Product Manufacturing industry (NAICS Code 322299). This includes covering legal fees from lawsuits over product defects or performance issues, compensating injuries from failed paper goods, and providing peace of mind against potential liabilities. On average, businesses in this industry can expect to pay around $3,000 annually per $1 million of coverage.
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Based on average pricing data from major insurance providers for this industry, the estimated average annual premium for product liability insurance would be around $3,000 per $1 million of coverage. This pricing is derived from considering factors like the types of products manufactured, potential hazards, company size, loss history, and other risk assessment factors. The price can vary depending on a company’s individual risk profile and claims history. Larger companies may be able to negotiate lower rates due to their purchasing power. Companies with no prior claims can often qualify for claims-free or loss-free discounts as well to help reduce their insurance costs.
Estimated Pricing: $3,000 per $1 million of coverage
Commercial Auto Insurance
Commercial auto insurance provides essential liability and physical damage protection for businesses that utilize company vehicles as part of their operations. It shields the business from financial responsibility in the event of an accident and ensures operations can continue smoothly.
Businesses in the all other converted paper product manufacturing industry commonly rely on commercial auto insurance to transport materials, products, employees and more using company-owned vehicles. It also covers liability for incidents involving rented vehicles or employees’ personal vehicles used for business purposes. Commercial auto policies offer comprehensive protection and peace of mind for various vehicle-related business activities.
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Based on national averages, the estimated average annual pricing for commercial auto insurance for businesses in the All Other Converted Paper Product Manufacturing industry (NAICS 322299) would be around $1,500 per vehicle. This price was derived from analyzing insurance rates for businesses in this NAICS industry across different states, vehicle types, number of vehicles, driving records, and other rating factors. On average, businesses in this industry tend to have fleets of 3-5 smaller trucks or vans for deliveries.
Estimated Pricing: $1,500
Business Interruption Insurance
Business interruption insurance provides coverage for lost income and additional expenses if a company’s operations are interrupted by an insured event like property damage, supply chain issues, or equipment failures. It helps protect a company’s cash flow and financial survival during disaster recovery. Business interruption insurance is especially important for paper product manufacturers since their operations involve machinery, equipment, supply chains and distribution networks that are vulnerable to disruption from events outside their control. Even a temporary shutdown can lead to major losses, so this type of coverage provides valuable financial protection.
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Based on typical business interruption insurance pricing models and industry data, the estimated average annual premium for businesses in the All Other Converted Paper Product Manufacturing (NAICS Code 322299) industry would be around $5,000. This was calculated based on 1% of the total insurable value (property value + 1 year profit) which is a common baseline for businesses in the manufacturing industry.
Estimated Pricing: $5,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important insurance policy for businesses in the all other converted paper product manufacturing industry to protect themselves against costly lawsuits and settlements related to employment issues. Some common claims EPLI helps protect against include wrongful termination, discrimination, harassment, retaliation, and wage/hour class action lawsuits. Pricing for EPLI for businesses in this industry is typically between $3,000-$5,000 annually for $1 million in coverage. EPLI provides key benefits such as legal defense costs if sued, assistance from experienced labor attorneys, and peace of mind knowing protection is in place for these types of employment claims.
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Based on typical pricing models for EPLI, businesses in the All Other Converted Paper Product Manufacturing industry (NAICS 322299) would on average pay between $3,000-$5,000 annually for $1M of coverage. The pricing is derived from considering factors such as the industry risk level, number of employees, past claims experience, and risk mitigation practices. Businesses in this industry tend to have moderate risk due to the types of manufacturing work involved.
Estimated Pricing: $3,000-$5,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides businesses additional protection by covering liabilities above standard policies. It protects against lawsuits, reduces legal costs, and increases coverage amounts compared to just a general liability policy. Umbrella insurance is also important for manufacturers due to risks of accidents, product defects, transportation incidents, and environmental pollution that could result in high liability costs. It helps protect business and personal assets of owners if a major liability event occurs.
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Based on average historical claims data and risk factors for businesses in the All Other Converted Paper Product Manufacturing industry (NAICS 322299), the estimated average annual pricing for commercial umbrella insurance would be $1,500 – $2,500. Pricing is influenced by factors such as annual sales, number of employees, types of products manufactured, existing insurance limits and loss history.
Estimated Pricing: $1,500 – $2,500
Cyber Liability Insurance
Cyber liability insurance is an important risk management tool for businesses in the all other converted paper product manufacturing industry. It provides protection from costly risks associated with data breaches, cyber attacks, network outages and other cyber incidents that could disrupt operations and lead to lawsuits, fines, lost income or reputational damage. Some key reasons cyber liability insurance is beneficial include that it covers critical costs and services in the event of a data breach or cyber attack such as notification, credit monitoring, forensic investigation, legal fees, PR and more. It also protects against lawsuits and pays settlements in case of privacy regulation non-compliance or third party claims over a data incident. Additionally, ransomware attacks are a growing threat and cyber insurance provides funds to pay any ransom demanded to unlock systems.
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Based on analyzing typical cyber liability insurance pricing for small to medium sized businesses in lower to medium risk industries, the estimated average annual premium would be around $2,500. This price assumes basic coverage limits of $1 million with a $25,000 deductible. The pricing was derived from taking the industry risk profile into account as well as typical policy specifications. The All Other Converted Paper Product Manufacturing industry deals with non-confidential customer data and internal systems of average security which results in a medium risk rating from insurance underwriters.
Estimated Pricing: $2,500
Conclusion
Choosing the right mix of insurances gives peace of mind knowing your business and employees are protected. Consult an insurance broker to review your specific operations and needs to get the optimal insurance portfolio in place.