Top Business Insurance Options for Boat Builders with NAICS Code 336612

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This guide covers the most important types of business insurance for boat building companies classified under NAICS code 336612, including their benefits, uses cases and estimated pricing.

Key Takeaways

  • General liability insurance protects against claims from injuries or property damage caused by your operations.
  • Property insurance reimburses costs to repair or replace buildings, equipment and inventory damaged by disasters like fires or storms.
  • Worker’s compensation insurance pays for injuries sustained by employees on the job as required by law in most states.
  • Commercial auto insurance covers vehicles used as part of business activities like deliveries.
  • Commercial umbrella insurance provides additional liability protection above primary policies’ limits.
  • Marine liability insurance covers risks related to boats being built, tested, transported or sold with defects.
  • Builder’s risk insurance protects investments in partially completed boats and stored materials.
  • Marine hull insurance reimburses repair costs if boats are damaged before delivery to customers.

Introduction

Insurance is essential for protecting boat building companies against risks inherent to their industry. This guide explains the top types of insurance for businesses classified under NAICS code 336612 along with their key benefits and uses.

General Liability Insurance

General liability insurance protects businesses from expensive lawsuits and pays for legal fees and damages if the business is found liable for incidents resulting in injury, damage or other losses. It covers claims from customers, employees and other third parties. Boat building businesses face risks from construction activities as well as delivering finished boats, so general liability insurance provides essential coverage for these types of risks.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal costs if you’re sued by a customer or individual due to an accident on your property or with your product
  • Provides coverage if an employee is injured on the job
  • Covers the cost of medical expenses, lost wages, rehabilitation, and other expenses for injured workers or others
  • Protects your business assets by covering settlement costs and damage awards if found legally liable in a lawsuit
  • Covers liability claims from defective workmanship
  • Protects you from lawsuits related to slip and fall accidents on your premises
  • Covers liability from incidents that occur after a boat is sold to a customer
  • Provides coverage for negligent advice or defective design that leads to injury or damages
  • Covers liability from incidents during delivery or transportation of boats
Use Cases
  • Protect against bodily injury or property damage claims from customers
  • Cover legal costs if sued for damages from faulty workmanship
  • Provide protection if an employee is injured on the job
  • Cover liability exposures from delivering or transporting boats
  • Protect against pollution claims if hazardous materials are improperly disposed
  • Cover legal defense costs if a client or employee sues for discrimination or other lawsuits
  • Provide coverage if a boat sinks or is damaged after leaving the yard but before delivery

Based on industry research and analysis of risk factors, the estimated average annual pricing for general liability insurance for businesses in the boat building industry with NAICS code 336612 is around $3,000 – $5,000 per year. This pricing is calculated based on factors like company size, annual revenue, number of employees, loss history, and the hazardous nature of boat building processes involving things like woodworking, welding, paints/chemicals.

Estimated Pricing: $3,000 – $5,000

Property Insurance

Property insurance is an important type of coverage for boat building businesses to protect their physical assets and operations. It reimburses repair or replacement costs if buildings, equipment, inventory or other property is damaged by events like fire, storms, accidents or other covered causes. Some key benefits of property insurance for boat building businesses include covering costs of damaged inventory, machinery or buildings, protecting against liability for damages to other properties, and reimbursing lost income if operations are disrupted by a covered event.

Category List
Benefits
  • Covers the costs to repair or replace buildings, machinery, equipment and other property in case of events like fire, storms or theft
  • Protects against liability for damages to other properties or injury to people in your facilities
  • Reimburses lost income or extra expenses in case operations are disrupted by a covered event
  • Covers materials and projects in process if they are damaged
  • Insures newly acquired equipment without having to immediately update the policy
  • Covers equipment being used temporarily away from premises
  • Covers losses from broken pipes or equipment breakdown
Use Cases
  • Protect buildings and other structures from fire, wind, hail and other disasters
  • Cover business property including inventory, machinery, equipment and tools
  • Replace damaged property in the event of a covered loss like fire or storm damage

Based on industry research and analysis, the estimated average annual pricing for property insurance for boat building businesses with NAICS code 336612 is around $2.50 per $100 of insured value. This pricing is derived from considering factors like the hazardous nature of the work involving tools, equipment and materials, risk of fire or accidents, and average claims experience in this industry.

Estimated Pricing: $2.50 per $100 of insured value

Worker’S Compensation Insurance

Worker’s compensation insurance provides important protection for both employees and businesses in high-risk industries like boat building. It ensures workers receive benefits if injured on the job while protecting employers from costly liability claims. Some key benefits of worker’s compensation for boat building businesses include covering medical expenses and lost wages for injured employees, reducing business liability, encouraging safety training and equipment to lower workplace risks, and attracting quality employees by providing protection and compensation for work injuries.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Protects the business from liability if an employee is injured and decides to sue
  • Required by law in all states except Texas
  • Pays defined benefits quickly and with less paperwork than handling a lawsuit
  • Reduces turnover by providing protection for injured employees
  • Provides return-to-work programs that can lower costs
  • Attracts quality employees and improves morale
Use Cases
  • Cover injuries from accidents or unusual incidents that occur during work
  • Cover workplace illnesses resulting from exposure to hazards
  • Provide wage replacement and medical benefits for employees who are injured at work
  • Protect the business from liability lawsuits from employees injured on the job
  • Cover the costs of mandated safety training and equipment to reduce workplace risks

Based on national averages for the boat building industry (NAICS 336612), the estimated average pricing for worker’s compensation insurance is around $2.50 per $100 of payroll. This price was derived using industry risk factors and average claim rates to calculate the expected losses for businesses in this category. The rate may vary depending on individual business risk characteristics such as past claims experience, safety programs, and employee job duties.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides important liability protection and coverage for vehicles used as part of daily business operations for companies in the boat building industry. The top benefits of commercial auto insurance for boat building businesses include liability protection against claims from accidents, coverage for damage or loss to business vehicles, medical payments to cover injured people’s medical bills, uninsured/underinsured motorist coverage, coverage for hired and non-owned vehicles, replacement cost coverage for new vehicles, and towing and labor costs being covered. Commercial auto insurance is essential for boat building businesses that utilize company vehicles as part of their daily operations, whether transporting employees, delivering materials, or traveling to meet with clients. The estimated average annual commercial auto insurance price for boat building businesses is around $1,800 based on industry risk factors and average claims.

Category List
Benefits
  • Liability protection against claims from accidents
  • Coverage for damage or loss to business vehicles
  • Medical payments to cover injured people’s medical bills
  • Uninsured/underinsured motorist coverage
  • Coverage for hired and non-owned vehicles
  • Replacement cost coverage for new vehicles
  • Towing and labor costs covered
Use Cases
  • Cover fleet vehicles used to transport employees, clients, and materials between work sites
  • Protect vehicles used for deliveries and pickups
  • Insuring company vehicles driven between office and client meetings or job sites

The average annual commercial auto insurance price for businesses in the boat building industry with NAICS code 336612 is estimated to be around $1,800. This pricing is based on industry data and risk factors such as the types of vehicles used, average number of vehicles, likelihood of accidents related to the business operations, and average claims in this industry. The price can vary depending on individual business factors such as number of employees, driver qualifications, safety record, and other underwriting considerations.

Estimated Pricing: $1,800

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection above a company’s primary policies like commercial general liability. It helps protect boat building businesses from costly legal claims.
Umbrella insurance is especially important for the boat building industry due to risks involved in manufacturing boats. It provides crucial coverage for legal damages exceeding primary policy limits that could bankrupt a company.

Category List
Benefits
  • Provides additional liability coverage above your primary liability policies like business general liability
  • Covers losses from incidents not covered under your primary policies like some negligence claims
  • Protects personal assets from lawsuits related to your business
  • Provides higher limits of liability to better protect from large loss claims
Use Cases
  • To provide additional liability coverage above the limits of the underlying commercial general liability or auto insurance policies
  • To protect assets from large loss claims exceeding primary insurance limits
  • To cover liabilities not included under commercial general liability, such as pollution and environmental impairment liability
  • To cover legal costs and fees associated with defending the company against large liability claims

Based on research, the estimated average annual pricing for commercial umbrella insurance for businesses in the boat building industry (NAICS 336612) is around $1,500-$3,000. This pricing range was derived from considering factors like the boats being built (recreational vs. commercial), number of employees, annual revenue/sales, clientele (retail vs. wholesale), insurance experience modification rate, and loss history.

Estimated Pricing: $1,500-$3,000

Marine Liability Insurance

Marine liability insurance provides crucial protection for boat building businesses. It covers a wide range of risks these companies face daily, from injuries occurring on their premises to legal claims arising from defects in boats they have produced. Additionally, it protects against lawsuits from customers injured while testing boats during or after construction, issues discovered with boat design or manufacturing after production leading to recalls, and accidents occurring during transportation of boats between facilities and customer locations.

Category List
Benefits
  • Protects your business from lawsuits in case of an accident or injury on your property
  • Covers legal costs and settlement fees if you are sued for damages your business may have caused
  • Insures damage to vessels you build or repair while in your care, custody, or control
  • Offers coverage for boats that are launched or towed by your facilities
  • Pays for lost or damaged client boats while on your premises
  • Covers liability if a boat you built has defects resulting in property damage or injury after sale
  • Provides coverage for your business vehicles used for transportation related to boat building
  • Protects against pollution events like fuel spills that happen on your property
  • Covers liability from accidents involving your cranes or other machinery
Use Cases
  • Protect against legal claims if a customer is injured while testing or operating a boat during or after the building process
  • Cover costs of damage or injury caused by a defective boat design or manufacturing error
  • Cover costs associated with recalls if a safety issue is discovered with boats after production
  • Protect against lawsuits from boat owners who are injured or whose property is damaged due to issues originating from boat construction or components
  • Cover costs and damages from accidents occurring during the transportation of boats between the building facility and dealer or customer locations

Based on typical pricing models for marine liability insurance, the estimated average annual pricing for businesses in the boat building industry (NAICS code 336612) would be around $5,000-$10,000. This pricing range takes into account factors like the size and annual revenue of the business, number of employees, types of boats built, loss history, and other risk-related variables. The pricing is usually determined through an underwriting process where an insurance company assesses the specific risks and operations of the business to set an annual premium amount.

Estimated Pricing: $5,000-$10,000

Builder’S Risk Insurance

Builder’s risk insurance provides crucial protection for businesses in the boat building industry during the construction process when boats are most vulnerable. It covers partially completed boats, materials, and liability risks that may arise from construction activities on-site or during transport. The estimated average annual premium for a boat building business with $5 million in insurable assets would be around $12,000, calculated at an industry standard rate of 0.24% of total insurable values. Builder’s risk insurance protects boat builders’ significant financial investment in labor and materials for boats not yet completed or delivered to customers.

Category List
Benefits
  • Covers damage or loss to boats under construction
  • Protects materials and supplies intended for the boats
  • Covers theft of materials and equipment
  • Covers damage during transport or launch of boats
  • Covers liability if damage occurs to other boats or property during construction
  • Provides coverage for damage to molds, forms or tanks used in construction
  • Covers the cost of recreating plans, molds or forms if damaged
Use Cases
  • Protect boats and materials during construction from risks of fire, theft, storms and other perils
  • Cover partially completed boats if a loss occurs before delivery to the customer
  • Cover boats during transport between the builder’s facilities or to/from a subcontractor
  • Provide coverage for materials and parts stored at the builder’s facilities
  • Cover liability risks that may arise during the construction process

Based on typical pricing schedules for builder’s risk insurance, the estimated average annual premium for a boat building business with $5 million in insurable assets would be around $12,000. This price was calculated using an industry standard rate of 0.24% of total insurable values.

Estimated Pricing: $12,000

Marine Hull Insurance

Marine hull insurance is an important type of commercial insurance for boat building businesses identified by NAICS code 336612. It provides key benefits like protecting the value of boats under construction, covering repair costs from accidents, reimbursing liability claims, and including loss of income coverage. Key use cases include insuring boats during transport, sea trials, demonstrations, and covering liability during the building process. Pricing is typically around $2.50 per $100 of insured value with deductibles of $1,000-$5,000 and total insured value of approximately $2 million for a medium sized builder, resulting in an annual premium of around $50,000. Marine hull insurance helps protect a boat builder’s financial investment prior to delivering vessels to their owners.

Category List
Benefits
  • Protects the value of boats and equipment being constructed or stored at facilities
  • Covers accidental damage to boats under construction from fires, storms, or machinery accidents
  • Reimburses costs to repair or replace boats damaged by sinking, grounding, or collisions
  • Covers liability if a boat under construction causes damage to other vessels or property before delivery
  • Includes loss-of-income coverage if production needs to be stopped or delayed due to insured damages
  • Coverage is specially tailored to the unique risks boat builders face during the construction process
Use Cases
  • Insuring boats during transport between the boat yard and dealers/customers
  • Providing coverage for boats undergoing sea trials prior to delivery
  • Insuring boats used for demonstrations or being tested by engineers/designers
  • Covering liability if a boat is damaged during the building/repair process

Based on typical pricing structures for marine hull insurance, boat builders in NAICS code 336612 can expect to pay around $2.50 per $100 of insured value for their boat inventory and works-in-progress. This rate is calculated based on the industry, boat size (most recreational boats are under 50 feet for this industry), coverage limits, deductibles of $1,000-$5,000, and business having been established for over 5 years without significant claims. The total insured value for a medium sized boat builder in this industry would be approximately $2 million resulting in an annual premium of around $50,000.

Estimated Pricing: $2.50/$100

Conclusion

Proper insurance safeguards a boat builder’s assets, operations and financial future. The coverage options discussed provide protection from lawsuits and costs associated with accidents, disasters, defects and more. Maintaining recommended insurance policies can help a business remain viable despite unexpected losses.

Frequently Asked Questions

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