Key Takeaways
- General liability insurance protects against lawsuits from injuries on premises or defective products
- Property insurance covers damage or theft to buildings, equipment and inventory
- Workers compensation covers medical costs and lost wages for injured employees
- Commercial auto insurance provides liability protection for company vehicles
- Product liability defends against claims regarding injuries from manufactured goods
Introduction
As a business owner in the all other plastics product manufacturing industry, it is important to understand the types of risks your business may face on a day to day basis and have the proper insurance in place. Several key lines of insurance should be considered including general liability, property, workers compensation, commercial auto and more.
General Liability Insurance
General liability insurance provides essential protection for plastics manufacturers against costly lawsuits and claims that could threaten the viability of their business operations. It covers legal fees and damages awards if third parties are injured on the business premises or by defective products. Liability insurance protects plastics manufacturers from financial risks outside of their control like accidents, defects, and failure to follow regulations by covering legal costs, damages and allowing them to continue operating if sued.
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Based on industry averages, general liability insurance for businesses in the All Other Plastics Product Manufacturing industry with NAICS code 326199 generally ranges between $1500-$2500 per year. Premiums are calculated based on factors like number of employees, annual sales revenue, type of products manufactured, safety record and claims history. For an average business in this industry with 10 employees and $2 million in annual sales, the estimated average annual premium would be around $2000.
Estimated Pricing: $2000
Property Insurance
Property insurance offers crucial protection for businesses in the plastics manufacturing industry. It covers replacement costs for expensive equipment, machinery, buildings, and inventory against risks like fire, theft, storms and more. It also provides liability coverage if anyone is injured on the business property. The average annual premium for a plastics manufacturing business is estimated to be around $4,500 based on typical property values and insurance rates. Property insurance protects businesses from financial losses and allows them to continue operating after insured property damage or destruction occurs.
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Based on typical pricing factors like location, property values, loss history etc, the estimated average annual property insurance premium for businesses in the All Other Plastics Product Manufacturing industry with NAICS code 326199 is around $4,500. This was calculated based on industry reports that put the typical property values covered for manufacturing businesses around $3-5 million and average insurance rates of $1.50-$2 per $100 of coverage.
Estimated Pricing: $4,500
Workers Compensation Insurance
Workers compensation insurance provides important protection for businesses in industries like plastics manufacturing where there are inherent risks of on-the-job injuries. It covers medical expenses and lost wages if employees get hurt, while also protecting the company from expensive lawsuits. The estimated average cost for a business in the NAICS Code 326199 industry is $2.50 per $100 of payroll. Workers comp insurance helps improve employee morale and reduces turnover by ensuring proper medical care is available if an incident occurs on the job.
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Based on national average pricing data, the estimated average workers compensation insurance pricing for businesses in the All Other Plastics Product Manufacturing industry (NAICS Code: 326199) is around $2.50 per $100 of payroll. This price was calculated based on the industry risk level, average claims experience, and expected loss ratio. The risk level for this industry is moderate given that there are inherent manufacturing hazards but typical safety precautions are in place to mitigate risks.
Estimated Pricing: $2.50/per $100 of payroll
Business Vehicle Insurance
Business vehicle insurance provides important protections for commercial vehicles used by businesses in the all other plastics product manufacturing industry. It covers liability, property damage, medical payments and more should any accidents occur involving company vehicles. Key benefits include insuring employees and vehicles used to transport materials between facilities, as well as protecting commercial trucks used at the manufacturing plant.
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Based on industry averages, the estimated average annual business vehicle insurance pricing for businesses in the All Other Plastics Product Manufacturing industry (NAICS 326199) is around $1,500-$2,000 per vehicle. Factors that impact pricing include number of vehicles, driving record, safety features of vehicles. Pricing may vary slightly depending on location and individual business risk factors.
Estimated Pricing: $1,500-$2,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides additional liability protection for businesses beyond their primary insurance policies. It helps protect commercial clients like all other plastics product manufacturing businesses from risks inherent to their industry by covering lawsuits, protecting assets, reducing overall insurance costs, and providing coverage for specific risks common in the plastics manufacturing sector. Some of the key benefits of commercial umbrella insurance for businesses in the all other plastics product manufacturing industry (NAICS 326199) include providing coverage for injuries occurring on business premises, defective products lawsuits, transportation or delivery accidents, and pollution liability claims. With an estimated average annual premium of $1,500 for a $1 million policy, commercial umbrella insurance offers cost-effective protection against significant liability risks for all other plastics product manufacturers.
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Based on typical factors like annual revenues, number of employees, losses history, the estimated average annual premium for a $1 million commercial umbrella insurance policy for businesses in the All Other Plastics Product Manufacturing industry (NAICS 326199) would be approximately $1,500. This pricing is derived from insurance rate manuals and underwriting guidelines, taking into account the risks typically associated with plastic product manufacturing operations.
Estimated Pricing: $1,500
Product Liability Insurance
Product liability insurance is essential protection for manufacturers against costly claims and lawsuits. It covers legal fees and damages if a defective product causes harm. This helps businesses avoid financial risks and continue operating smoothly.
Businesses in the plastics manufacturing industry face risks if their products are defective and cause injuries. Product liability insurance defends them against lawsuits and recalls due to safety issues. It gives owners peace of mind knowing the business is protected.
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Based on industry research, the average product liability insurance pricing for businesses in the All Other Plastics Product Manufacturing industry with NAICS code 326199 is around $2.50 per $100 of gross receipts. This pricing is derived from considering the industry risk level and average claims data. The risk level for this industry is higher than some manufacturing industries due to the involvement of chemicals and plastics materials. However, compared to industries like pharmaceuticals and medical devices, the risk level and claims amounts are generally lower which leads to this average estimated price.
Estimated Pricing: $2.50/$100 of gross receipts
Commercial Auto Insurance
Commercial auto insurance provides many benefits for plastics manufacturers that rely on vehicles to transport materials, products, and personnel. It offers liability protection and coverage for vehicle repairs in the event of an accident, which can help protect the business financially. Some key uses of commercial auto insurance for plastics manufacturers include covering delivery vehicles, insuring company vehicles used for transportation between facilities and warehouses, and protecting vehicles used for sales and client visits. Pricing for commercial auto insurance for plastics manufacturers is typically around $1,500 per vehicle. The insurance is essential as it covers risks associated with regular business transportation and delivers that are core operations for many plastics manufacturing companies.
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Based on industry data and averages, the estimated annual price for commercial auto insurance for businesses in the All Other Plastics Product Manufacturing industry with NAICS code 326199 is around $1,500 per vehicle. This estimate takes into account factors like business size, number of vehicles, driving records, liability limits, and industry risk level. The plastics manufacturing industry typically has higherthan- average risk levels which impacts pricing.
Estimated Pricing: $1,500
Conclusion
In summary, general liability, property, workers compensation, commercial auto, umbrella and product liability insurance are vital for businesses in the all other plastics product manufacturing industry to protect both their operations and assets from potential financial losses. Having the right insurance coverage in place provides peace of mind and allows owners to focus on running their business without worrying about unexpected litigation or property damage expenses.