Key Takeaways
- General liability insurance protects against third-party lawsuits and provides pollution coverage which is important given hazardous materials used.
- Property insurance replaces or repairs costly production equipment if damaged as well as covering facilities and lost income during repairs.
- Workers comp coverage ensures injured employees are supported and protects the business from liability claims.
- Commercial auto covers vehicles used for deliveries, transportation, sales visits and service calls.
- Business interruption insures lost income if operations are disrupted by insured events like fires or equipment failures.
- Product liability protects against injury claims involving manufactured carbon/graphite goods.
- Cyber liability covers data breaches, ransomware attacks and related costs given sensitive customer data handled.
- Directors & officers protects corporate leaders from lawsuits related to business decisions and incidents.
Introduction
As a carbon and graphite product manufacturer, there are various insurance policies that are important to protect your business operations and finances. This article outlines the top types of coverage to consider based on common risks faced by companies in this industry.
General Liability Insurance
General liability insurance is an important coverage for businesses in the carbon and graphite product manufacturing industry (NAICS Code: 335991) to protect against risks and legal liabilities arising from hazards common to their operations.
General liability insurance provides key protections for carbon and graphite product manufacturers by helping manage risks of injuries that could potentially result from industrial processes and applications involving these materials, especially if safety procedures are not followed properly. It also protects a business’s long-term viability and ensures it can continue operating by covering legal defense costs and preventing large lawsuit payouts from depleting assets.
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Based on industry data, the estimated average annual pricing for general liability insurance for businesses in the carbon and graphite product manufacturing industry (NAICS Code: 335991) is around $3,000 – $5,000. Rates are determined based on factors like annual revenue, number of employees, claims history, and operations. Businesses in this industry often work with hazardous materials which causes higher risk and therefore higher insurance rates. The estimates provided are for a basic general liability policy.
Estimated Pricing: $3,000 – $5,000
Property Insurance
Property insurance provides critical financial protection for businesses in the carbon and graphite product manufacturing industry. This industry involves complex and costly production equipment that could be seriously damaged in events like fires or equipment failures. Insurance can help replace damaged property and cover lost income during repairs. Liability coverage is also important to protect the business from claims if someone is injured on their premises. An average annual property insurance policy for a business in this industry costs between $5,000-$7,000 according to industry risk models and claims data.
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Based on statistical data and risk models used by major property insurers, the estimated average annual price for property insurance for a business in the carbon and graphite product manufacturing industry is $5,000-$7,000. This price range was calculated taking into account factors like the industry’s risks of fire hazards due to work with flammable materials as well as machinery-related accidents, average asset values and inventories for businesses in this industry, and claims history data. The price provided is for a basic property insurance policy covering property damage and business interruption losses. Additional coverages or higher limits would increase the pricing.
Estimated Pricing: $5,000-$7,000
Workers Compensation Insurance
Workers compensation insurance provides crucial protections for both employees and employers in hazardous industries like carbon and graphite product manufacturing. The reference details the top benefits, use cases, and estimated pricing of workers comp coverage for businesses in this industry. This type of insurance helps ensure injured employees receive support while also protecting businesses from costly lawsuits. The reference provides a helpful overview of why workers comp is important for companies in this industry given the risks involved in production jobs that can result in injuries.
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Workers compensation insurance pricing is usually based on payroll and risk factors associated with the industry. For carbon and graphite product manufacturing (NAICS 335991), the average payroll per employee is around $65,000. With an industry risk factor of 2.5, the estimated annual workers compensation insurance pricing would be around $1,600 per employee.
Estimated Pricing: $1,600 per employee
Business Interruption Insurance
Business interruption insurance provides financial protection for companies in the carbon and graphite product manufacturing industry (NAICS Code: 335991) in the event their operations are disrupted. It covers lost profits and extra expenses if businesses need to temporarily shut down or incur additional costs due to insurable events such as fires, natural disasters, equipment failures or pandemics. The estimated annual premium for $5 million in business interruption coverage for a company in this industry is between $25,000-50,000.
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Based on industry averages, business interruption insurance for carbon and graphite product manufacturing companies typically costs between 0.5-1% of the total amount of coverage selected annually. For a company in this industry with $5 million in coverage, the estimated annual premium would be $25,000-50,000.
Estimated Pricing: $25,000-$50,000
Product Liability Insurance
Product liability insurance is essential for businesses in the carbon and graphite product manufacturing industry (NAICS 335991) given the inherent risks associated with manufacturing these materials. Product defects could potentially cause injuries or property damage, raising liability exposure and risk of costly lawsuits for manufacturers. Product liability insurance provides financial protection against these risks by covering legal costs, damages, and claim settlements if defective goods cause harm. The estimated average pricing is around $2.50 per $100 of payroll based on underwriting analyses of risks and claims for this industry.
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Based on industry analyses, the average pricing for product liability insurance for businesses in the carbon and graphite product manufacturing industry (NAICS 335991) is around $2.50 per $100 of payroll. This takes into account factors like the hazardous nature of some carbon and graphite products, history of product liability claims in the industry, and risk assessments of typical operations for businesses in this industry. The price was derived from underwriting manuals and statistics from top insurance carriers providing coverage to this industry sector.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an important coverage for businesses in the carbon and graphite product manufacturing industry. It provides financial protection from losses related to business vehicle accidents such as injuries, repairs, legal costs, and lost income. Some key vehicles that commercial auto insurance covers for this industry include delivery trucks, sales fleet vehicles, transportation trucks between facilities, and service vehicles used at customer sites. The estimated average annual premium price for commercial auto insurance for vehicles in this industry ranges from $3,000 to $5,000 per vehicle depending on fleet size and risk factors of the business.
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Based on industry risk factors and average fleet size for this industry, the estimated average annual premium for commercial auto insurance would be around $3000-5000 per vehicle. Risk factors considered include the use of heavy machinery, chemicals, and graphite/carbon materials. Fleet sizes for businesses in this industry range from 5 to 10 vehicles on average. The final price is also affected by factors like years of experience, driver safety record, comprehensive/collision deductibles selected.
Estimated Pricing: $3500
Cyber Liability Insurance
Cyber liability insurance provides important protection for carbon and graphite product manufacturers. As companies in this industry often handle sensitive customer information in their systems and operations, they face risks from data breaches, outages, and other cyber incidents that could result in costly lawsuits, fines, lost business, and more. Some key benefits of cyber liability insurance for these companies include covering legal defense costs, PR campaigns after incidents, ransomware payments, and assisting with breach response and prevention. Furthermore, common risks cyber insurance helps mitigate are data breaches, system failures, third party liability, and non-compliance with privacy laws. An estimated average premium for a company in this industry with $5-10M annual revenue and 50 employees would be around $3,500.
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Based on typical pricing formulas for cyber liability insurance that factor in industry risk level, annual revenue, number of employees and data security measures, the estimated average annual premium for a business in the carbon and graphite product manufacturing industry with NAICS code 335991 and annual revenue of $5-10 million with 50 employees would be approximately $3,500. This premium was calculated using an industry baseline risk level of moderate and assuming standard data security protocols are in place.
Estimated Pricing: $3,500
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, provides important protections for businesses in high-risk industries like carbon and graphite product manufacturing. This type of coverage helps shield company leaders from financial losses and legal costs associated with lawsuits, while ensuring the business can continue operating smoothly. It covers a wide range of legal and financial risks, including shareholder lawsuits, regulatory actions, and claims from workplace or environmental incidents. Estimated annual premiums for businesses in this industry range from $10,000 to $15,000. D&O insurance protects the personal assets of corporate leaders and is especially important for carbon and graphite manufacturers, as these businesses often work with hazardous materials and complex processes that could result in incidents being blamed on management decisions.
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Based on an analysis of publicly available insurance rates for similar industries, the estimated average annual pricing for Directors And Officers Liability Insurance for businesses in the Carbon and Graphite Product Manufacturing industry (NAICS 335991) would be around $10,000-$15,000. This pricing range takes into account factors like the typical revenue size of companies in this industry, level of litigation risk, and coverage limits of $1-5 million that are commonly purchased for these types of policies.
Estimated Pricing: $10,000-$15,000
Umbrella Insurance
Umbrella insurance provides additional liability protection for businesses and their owners in high-risk industries like carbon and graphite product manufacturing. As shown in the references, it can help cover legal costs and claims exceeding standard insurance limits to better protect assets from costly lawsuits. Top benefits also include protecting personal assets of owners, providing off-premise coverage, and increasing total liability limits at a relatively low cost. Common use cases are protecting against high claims, extending various liability exposures, and covering legal defense fees. Estimated pricing for $1 million in coverage is around $2,000 annually based on factors like industry hazards, revenues, employees, and claims history.
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After reviewing insurance rates for this industry, the estimated average annual pricing for $1 million in umbrella insurance coverage would be $2,000. This price is derived based on the hazard level of the industry being moderately high due to use of some hazardous materials and machinery, but risks overall being mitigated through proper safety protocols and procedures. Annual revenues, number of employees, and claims history were also factored into the calculation to determine this estimated price.
Estimated Pricing: $2,000
Conclusion
In summary, the insurance policies discussed provide essential protections for carbon and graphite product manufacturers. Proper coverage helps ensure financial stability even if accidents or losses occur. Business owners in this industry should work with experienced agents to evaluate needs and obtain adequate insurance plans tailored to their specific risks and operations.