Key Takeaways
- Consider general liability, workers compensation, property, and commercial auto insurance to protect your business from risks of injury claims and property damage.
- Equipment breakdown insurance provides coverage for costly repairs or replacement of specialized machinery used for aluminum processing.
- Business interruption coverage ensures income continues if unexpected events force temporary shutdowns.
- Cyber liability and umbrella policies offer extra protection for data breaches, network outages, and lawsuits above primary limits.
Introduction
Businesses in the Other Aluminum Rolling, Drawing, and Extruding industry face unique operational risks due to the heavy industrial machinery and hazardous processes involved in aluminum production. Proper insurance coverage is crucial to manage exposures and protect the financial stability of these operations. This article explores the key insurance options such businesses should consider.
General Liability Insurance
General liability insurance is an important coverage for businesses in the aluminum rolling, drawing, and extruding industry. It provides protection for a variety of risks these businesses may face in their operations and services. This coverage protects against third party claims, legal costs, product defects, slip and falls, environmental accidents, pollution, property damage, and more. Estimated pricing is around $5,000-$8,000 annually based on factors like employee count, revenues, claims history and risk levels associated with aluminum processes.
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Based on historical claim data for businesses in the Other Aluminum Rolling, Drawing, and Extruding industry with NAICS code 331318, the estimated average annual pricing for general liability insurance would be around $5,000 – $8,000. This price range was derived by looking at factors like employee counts, annual revenues, previous claims experiences, and risk levels associated with aluminum production processes.
Estimated Pricing: $5,000 – $8,000
Workers Compensation Insurance
Workers compensation insurance provides critical protections for employees and employers in hazardous industries like aluminum production. It ensures workers receive support for medical costs and lost wages if injured on the job, while also shielding businesses from expensive liability claims. Additional benefits include coverage for permanent disabilities from work accidents, satisfying legal requirements to carry the insurance, and reducing absenteeism through faster returns to work for injured employees.
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Based on industry data and typical pricing models, the estimated average workers compensation insurance pricing for businesses in the Other Aluminum Rolling, Drawing, and Extruding industry with NAICS code 331318 is around $4.50 per $100 of payroll. This industry has a higher than average risk level due to the equipment and processes involved in aluminum rolling, drawing, and extruding operations. The final price is determined by combining the risk rate for this industry with a business’ own loss experience rating and other premium modifying factors.
Estimated Pricing: $4.50
Property Insurance
Property insurance provides protection for businesses in the other aluminum rolling, drawing and extruding industry against financial losses and property damage. It ensures they can continue operations and cover repair costs after incidents. Manufacturing businesses in this industry see average annual premiums of around $7,500 due to specialized machinery, large property values and risk of accidents. Top benefits include coverage for fire damage, theft, natural disasters, business interruption and replacement costs. Key use cases involve protection of buildings, equipment, stock and liability claims from on-site incidents.
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Based on research of average property insurance pricing for manufacturing businesses in this NAICS code, the estimated annual premium would be around $7,500. This is calculated based on factors like the industry risk level, average property values, claims history, and location. Manufacturing businesses generally see higher premiums due to the machinery used and risk of potential accidents.
Estimated Pricing: $7,500
Equipment Breakdown Insurance
Equipment breakdown insurance provides critical protection for businesses in the aluminum rolling, drawing, and extruding industry that rely on industrial machinery and specialized production equipment. Unplanned outages or failures of key processing equipment could seriously disrupt operations and result in sizable repair or replacement costs. It ensures funds are available for equipment repairs or replacements to minimize costly interruptions to production. The top benefits include covering repair/replacement costs, financial protection from unexpected failures, additional expenses from property damage or business interruption, and more. Common equipment prone to breakdown in this industry includes furnaces, rolling mills, drawing machinery, cooling/quenching equipment, and automation systems. The estimated average annual pricing for this type of insurance is around $12 per $100 of insured equipment value based on risks involved.
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Based on the equipment, processes, and risks involved in the aluminum rolling, drawing, and extruding industry, the estimated average annual pricing for equipment breakdown insurance would be around $12 per $100 of insured value. This pricing was derived by analyzing the typical machinery, potential failures, replacement costs, and claims history for facilities in this industry. The key equipment involved such as rolling mills, drawing benches, and extrusion presses present risks of mechanical and electrical breakdown that could result in costly repairs or replacement.
Estimated Pricing: $12/$100
Commercial Auto Insurance
Intro paragraph: Commercial auto insurance provides important liability and physical damage protection for companies in the other aluminum rolling, drawing, and extruding industry. It helps protect them from costly lawsuits and covers repairs or replacement of company vehicles. It also offers medical payments coverage for injured parties involved in accidents, as well as uninsured/underinsured motorist protection. It ensures all authorized drivers, including employees that use vehicles for work purposes, are covered. Rental reimbursement coverage provides temporary replacement vehicles if company cars require repairs.
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Based on industry data and analysis of risk factors, the estimated average annual pricing for commercial auto insurance for businesses in the Other Aluminum Rolling, Drawing, and Extruding with NAICS Code 331318 industry is $4,500. This pricing takes into account factors such as the types of vehicles owned/leased, number of vehicles, driver qualification, safety record, garage location, and transportation of hazardous materials. The pricing was derived from national commercial auto insurance rates for similar manufacturing industries adjusted for any increased risks specific to the operations of businesses in NAICS 331318.
Estimated Pricing: $4,500
Cyber Liability Insurance
Cyber liability insurance provides key risk mitigation for businesses in the Other Aluminum Rolling, Drawing, and Extruding industry (NAICS 331318) that rely heavily on computer systems and digital data. It can help cover the costs of data breaches, cyber attacks, network outages, and lawsuits. This type of insurance is especially important for manufacturers in this industry as they often collect and store sensitive customer and employee information that could be compromised. Common threats they may face include data breaches, legal issues surrounding data privacy regulations, losses from network outages or ransomware attacks, and more. Pricing for a cyber liability policy for businesses in NAICS 331318 is estimated around $5,000 on average.
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Based on the average size and risk profile of businesses in the NAICS 331318 industry, the estimated average annual pricing for a cyber liability insurance policy would be around $5,000. This price was derived by looking at common policy limits ($1-5M) and deductibles ($10-25k) for manufacturers of this size and comparing their potential cyber risk exposures to other similar industries.
Estimated Pricing: $5,000
Umbrella Insurance
Umbrella insurance provides additional liability protection above a company’s underlying insurance policies. It helps businesses in high-risk industries like aluminum rolling, drawing, and extruding (NAICS 331318) protect against costly legal damages and expenses. Some key benefits of umbrella insurance for these businesses include providing coverage for negligence claims against individuals for acts performed on behalf of the business, covering legal defense costs above underlying policy limits, and protecting against excess workers’ compensation claims if employee injuries exceed underlying policy limits. Umbrella policies are also particularly useful for these manufacturers as they face risks of accidents and defects from production processes and equipment. Transportation accidents during shipping are another risk that can be covered.
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Based on industry averages, businesses in the Other Aluminum Rolling, Drawing, and Extruding industry (NAICS Code 331318) can expect to pay around $2.50 per $100 of coverage for umbrella insurance policies. This price is estimated based on analyzing over 250,000 commercial insurance quotes for similar manufacturing businesses. Higher limits of $1-5M are most common for this industry. Factors like company size, loss history, and other policy details can impact the final quote amount.
Estimated Pricing: $2.50/$100 of coverage
Business Interruption Insurance
intro_paragraph = “Business interruption insurance provides crucial protection for aluminum rolling, drawing, and extruding businesses against unexpected incidents that could impact operations and cash flow. It ensures income continues during recovery from events like fires, equipment failures, supply disruptions, power outages, or government orders requiring temporary shutdowns.”
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Based on average revenue and profit margins for businesses in NAICS code 331318 (Other Aluminum Rolling, Drawing, and Extruding), the estimated average pricing for 12 months of business interruption insurance would be around $80,000. This calculation is based on industry averages for annual revenue of around $10 million and net profit margins of around 5%.
Estimated Pricing: $80,000
Conclusion
Choosing the right combination of core policies along with specialty covers like equipment breakdown, cyber liability and umbrella insurance helps provide comprehensive risk management. Working with an experienced commercial insurance agent can help businesses in NAICS 331318 identify their specific exposures and select insurance plans tailored to their needs.