Key Takeaways
- General liability insurance protects against third party injury and property damage claims
- Property insurance covers costs if equipment, tools or facilities are damaged
- Workers’ compensation covers medical costs and lost wages if employees are injured on the job
- Commercial auto insurance protects vehicles used for business purposes
- Business interruption insurance replaces lost income if operations are disrupted
- Equipment/machinery breakdown insurance covers repair costs if specialized tools or machinery break down
- Cyber liability insurance protects against costs of data breaches and network disruptions
- Commercial umbrella policy provides excess liability protection above primary policies
Introduction
Businesses in the commercial and industrial machinery and equipment repair industry face unique risks and rely heavily on specialized tools, equipment and facilities to operate. Having the proper types of business insurance in place is crucial to protect the financial health and long-term viability of operations.
General Liability Insurance
General liability insurance provides businesses in the commercial and industrial machinery and equipment repair industry with protection against costly claims and lawsuits that could arise from accidental injuries, property damage or errors made during repair work. It covers claims resulting from bodily injury, property damage, personal and advertising injury, medical expenses, faulty workmanship, and product liability. Pricing for general liability insurance in this industry typically ranges between $2,500-$5,000 annually based on factors like revenue, number of employees, prior claims history, and operations risk profile. Locations in larger cities may see slightly higher rates.
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Based on typical rates for this commercial machinery and equipment repair industry, the estimated average annual pricing for general liability insurance would be around $2,500 – $5,000. This pricing is derived based on considering average revenue, number of employees, prior claims history if any, and risk profile of the operations. Locations in larger cities usually see slightly higher rates.
Estimated Pricing: $2,500 – $5,000
Property Insurance
Property insurance provides vital financial protection for businesses in the commercial and industrial machinery repair and maintenance industry. It protects valuable tools, equipment, facilities and inventory from damages, losses, and theft to ensure the business can continue operating without significant financial issues. Additionally, property insurance provides coverage for liability issues if a customer is injured on the business premises or equipment being serviced is damaged. It also outlines the typical coverage benefits, common use cases and estimated average annual cost for a property insurance policy in this industry.
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Based on industry averages, the estimated average annual pricing for property insurance for businesses in the Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance NAICS Code 8113 Industry is $1,500. This was calculated based on factors such as average property values, claims history for the industry, and standard coverage levels for property insurance policies in this industry.
Estimated Pricing: $1,500
Workers’ Compensation Insurance
Workers’ compensation insurance is crucial for businesses in industries like commercial and industrial machinery repair and maintenance due to the risks of workplace injuries and illnesses. It provides essential medical, lost wage, and liability benefits to protect both employees and employers financially in the event of accidents or claims. Estimated pricing is around $1.50 per $100 of payroll based on risk factors in the industry. Top uses include injuries from accidents, repeated stress, and occupational diseases from prolonged exposure to hazards. The insurance also covers rehabilitation, training and lost wages to help seriously injured employees return to work.
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Based on industry analysis, the average estimated pricing for workers’ compensation insurance for businesses in the commercial and industrial machinery and equipment (except automotive and electronic) repair and maintenance industry with NAICS code 8113 is $1.50 per $100 of payroll. This price is derived based on risk factors such as the types of machinery, potential hazards on the worksite, frequency and severity of past claims within the industry.
Estimated Pricing: $1.50/ $100 of payroll
Business Interruption Insurance
Business interruption insurance provides crucial coverage for machinery and equipment repair businesses by protecting against loss of income if their operations are forced to temporarily close or experience interruptions due to covered incidents like property damage, equipment failures, or utility disruptions. It ensures cash flow continues and helps owners focus on resuming normal operations instead of financial troubles. Common risks to machinery and equipment repair businesses include damage from events like fires or storms as well as breakdowns of machinery that halts repair work. Given the nature of relying on functioning equipment and facilities, having backup may not always be feasible, so business interruption insurance can help offset losses until normal operations are restored. The estimated average annual cost for a business in this industry would be around $3,000-$5,000 based on typical revenue and expense factors used to calculate premiums.
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Based on typical factors used to calculate business interruption insurance such as revenue, operating expenses, insurance period chosen, etc. for businesses in the Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance NAICS Code: 8113 Industry, the estimated average annual pricing would be around $3,000-$5,000. This pricing range was derived from industry data that shows the average annual revenue for businesses in this NAICS code being around $500,000-800,000 with operating expenses making up around 60-70% of revenue.
Estimated Pricing: $3,000-$5,000
Commercial Auto Insurance
Commercial auto insurance provides important liability protection and coverage for vehicles used as part of business operations for companies in the commercial and industrial machinery equipment repair industry. It helps protect against financial losses from accidents and ensures the business can continue operating without disruptions from insurable vehicle incidents.
Top benefits of commercial auto insurance for this industry include liability protection, vehicle repairs and replacement coverage, medical payments, compensation coverage for injured employees, reimbursement for lost income or extra expenses, and coverage for legal costs from vehicle-related lawsuits.
Common uses of commercial auto policies for these businesses are covering vehicles used for mobile repairs and maintenance, transporting equipment to job sites, pickup and delivery of machinery, business travel by employees, company-owned vehicles, and non-owned vehicles used occasionally for business.
The estimated average annual premium for commercial auto insurance for businesses in this industry (NAICS 8113) is around $2,000, calculated based on number of vehicles, liability limits, and driver history and credentials. The risk level is considered moderate since vehicles transport equipment rather than extensive public road use.
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Based on typical rates charged by insurance carriers for this industry (NAICS Code 8113), the estimated average annual premium for commercial auto insurance would be around $2,000. This price is calculated based on factors like number of vehicles (usually 1-3 trucks or vans), liability limits of $1 million, and driver credentials/history. The risk for this industry is considered moderate since vehicles are used to transport equipment to job sites rather than being on public roads extensively.
Estimated Pricing: $2,000
Commercial Umbrella Policy
A commercial umbrella policy provides important excess liability insurance for machinery and equipment repair businesses. It offers additional protection above primary commercial policies such as general liability by covering claims that exceed the underlying limits. This protects the business and its owners from expensive lawsuits and large liability claims related to their operations. Some key benefits of an umbrella policy for this industry include extending coverage to other liabilities like libel or slander, covering legal defense costs, providing affordable ways to increase liability limits, and protecting from uncertainties associated with machinery repair work. Common uses of an umbrella policy are to protect against slip-and-fall liability, address defects or workmanship claims, and safeguard personal assets of business owners. The estimated average annual premium for a $1 million umbrella policy for a business in this NAICS code is $750.
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Based on typical pricing guidelines for businesses in the commercial and industrial machinery and equipment (except automotive and electronic) repair and maintenance industry (NAICS Code 8113), the estimated average annual premium for a $1 million commercial umbrella insurance policy would be $750. This is calculated based on an average rate of 0.75% of the policy limit. The rate may vary up or down depending on individual business factors such as loss history, operations, and location.
Estimated Pricing: $750
Equipment/Machinery Breakdown Insurance
Equipment breakdown insurance provides key protections for businesses in the commercial and industrial machinery repair industry. This type of insurance covers repair/replacement costs, rental expenses, lost income, and other additional costs if their specialized equipment experiences unexpected mechanical failures or other technical issues. It protects them from potential financial losses that can disrupt business operations and cash flow due to equipment downtime. Common causes of equipment failure like power surges, accidents, or natural disasters may also be covered depending on the policy details.
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Based on typical pricing factors like equipment values, number of employees, past losses and risk characteristics, the estimated average annual pricing for equipment/machinery breakdown insurance for businesses in the Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance industry with NAICS code 8113 would be around $1,500 – $3,000. This range was derived considering that businesses in this industry usually have moderate equipment values and risks since they are engaged in repair and maintenance works rather than large-scale manufacturing.
Estimated Pricing: $2,250
Cyber Liability Insurance
Cyber liability insurance provides important protections for businesses in the commercial and industrial machinery and equipment repair and maintenance industry. It can help cover costs associated with data breaches, network disruptions, lawsuits, and other issues that may arise from cyber incidents, which are common risks for these types of businesses that work with sensitive customer and equipment data on a daily basis. The top benefits of cyber insurance for these businesses include covering breach response costs, regulatory fines, legal defense costs, loss of income from network issues, PR costs to mitigate brand damage from incidents, and recovery from ransomware attacks. Estimated average annual pricing for cyber insurance for businesses in this industry ranges from $1,500-$3,000 based on factors like revenue, employees, data security practices, and risk level.
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Based on typical pricing models for small to medium sized businesses in industrial repair and maintenance services, the estimated average annual pricing for cyber liability insurance would be approximately $1,500-$3,000. This pricing range takes into account factors like annual revenue, number of employees, data security practices, and risk profiles. The pricing is usually determined using a combination of flat rate pricing and risk-based rating.
Estimated Pricing: $1,500-$3,000
Conclusion
Choosing the right mix of business insurance policies outlined here can help machinery equipment repair businesses effectively manage risks and uncertainties. It ensures they have financial protection and resources to continue serving customers without significant disruptions even if insurable events occur.