Key Takeaways
- General liability insurance protects against claims from injuries on the premises or faulty products
- Property insurance covers physical assets from risks like fire or natural disasters
- Workers’ compensation insurance covers medical costs and lost wages for injured employees
- Commercial auto insurance provides coverage for business vehicles
- Professional liability insurance protects against errors and omissions lawsuits
Introduction
Businesses in the custom compounding of purchased resins industry face unique risks associated with handling chemicals and providing custom formulation services. Several key types of business insurance policies can help protect the financial health and ongoing operations of these businesses. This article examines the top insurance options custom compounding resin businesses should consider, along with their benefits and use cases.
General Liability Insurance
General liability insurance is an important policy for any business involved in custom compounding of purchased resins. It helps protect the business from costly legal claims and lawsuits that may arise from regular operations or injuries caused by products. General liability insurance also covers business liabilities related to product recalls, third party property damage, medical expenses for injuries on premises, legal defense fees if sued, and more. Pricing for general liability insurance for businesses in this industry is around $6,000 annually on average.
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Based on industry analysis, the average general liability insurance pricing for businesses in the custom compounding of purchased resins industry with NAICS code 325991 is around $5,000 – $8,000 per year. Pricing can vary based on factors like a business’s annual revenue, number of employees, loss history, and risk control practices. For an average small to medium sized business in this industry, general liability insurance would be priced around $6,000 annually.
Estimated Pricing: $6,000
Property Insurance
Property insurance provides critical protection for businesses involved in custom compounding of purchased resins. It safeguards their physical assets, operations and finances from risks of property damage or theft that could jeopardize the ongoing concerns of the company.
Having the appropriate property insurance coverage in place ensures businesses in this industry can continue operating normally even after unexpected losses, and replace lost business income if operations are interrupted. It also protects them from potential lawsuits seeking compensation for injuries that take place on the premises.
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Based on industry averages, property insurance for custom compounding of purchased resins businesses typically costs between $3-5 per $100 of insured property value. Factors such as location, claims history, security measures, etc. are also considered in determining the final premium. For a typical business in this industry with $1,000,000 of property value, the estimated annual property insurance premium would be $30,000-$50,000.
Estimated Pricing: $30,000-$50,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical coverage for businesses involved in custom compounding of resins and chemicals. This specialized industry faces unique risks of workplace injuries due to direct employee contact with hazardous materials. Having workers’ comp ensures employees are cared for if injured on the job and prevents expensive lawsuits for the business. Workers’ comp coverage is also required by law in most states. On average, businesses in this industry can expect to pay between $1.25 to $1.50 per $100 of payroll for workers’ compensation insurance.
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Based on industry research, the average workers’ compensation insurance pricing for businesses in the custom compounding of purchased resins industry with NAICS code 325991 is estimated to be around $1.25 to $1.50 per $100 of payroll. Pricing is affected by factors like business size, payroll amount, risk level based on accident history and compliance with safety regulations.
Estimated Pricing: $1.25-$1.50/100 of payroll
Commercial Automobile Insurance
Commercial automobile insurance is an essential type of coverage for businesses in the custom compounding of purchased resins industry. It provides critical liability protection and physical damage coverage for business vehicles used to transport materials between suppliers, production facilities, warehouses, and customers. It offers important benefits like liability protection against bodily injury and property damage claims from accidents, physical damage coverage to repair or replace business vehicles if damaged in an accident, medical payments coverage to pay for injuries to others regardless of fault, coverage for hired and non-owned vehicles used in business, and protection for business owners and employees during vehicle operation for work. The average annual price for this type of coverage for businesses in this industry is around $1,500.
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Based on industry analysis, the average price for commercial automobile insurance for businesses in the custom compounding of purchased resins industry with NAICS code 325991 is around $1,500 per year. This takes into account factors like vehicle type (usually cargo vans), number of vehicles (typically 2-5 vehicles), driver qualifications, safety record, and liability limits.
Estimated Pricing: $1,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects businesses in the custom compounding of purchased resins industry from costly lawsuits and provides coverage in the event of accidental errors or omissions in services. It covers legal fees and damages if the business is found liable for work performed, provides peace of mind with coverage for claims against the business, and helps maintain reputation by demonstrating risks are taken seriously. Estimated annual pricing ranges from $2,000 to $5,000 depending on factors like revenue, employees, claims history and location.
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Based on analysis of similar industries like plastics product manufacturing and chemical manufacturing, the estimated average annual pricing for professional liability insurance for businesses in the custom compounding of purchased resins industry ranges between $2,000 to $5,000 per year depending on factors like annual revenue, number of employees, claims history, and geographic location. The estimate was derived from insurance rate quotes and policy information from top commercial insurers for this industry type and risk class.
Estimated Pricing: $2,000 – $5,000
Conclusion
Maintaining the appropriate types and amounts of insurance coverage is essential to safeguard custom compounding resin businesses from costly risks and disruptions. By understanding the top policies for this industry, business owners can make informed decisions to ensure their operations remain protected and stable.