Key Takeaways
- General liability insurance protects against claims from third parties.
- Commercial property insurance covers damage to buildings and equipment.
- Commercial auto insurance is needed if vehicles are used for business.
- Workers’ compensation covers injuries sustained on the job.
- Umbrella insurance provides additional liability protection.
- Pollution liability protects against environmental damage claims.
- Inland marine insures movable property and equipment in transit.
Introduction
Businesses in the ground or treated mineral and earth manufacturing industry face a variety of risks that can threaten their financial health and operations. Choosing the right insurance plan is crucial to mitigate losses. This guide examines the top insurance options this industry should consider.
General Liability Insurance
General liability insurance is an important protection for businesses in the ground or treated mineral and earth manufacturing industry. It provides coverage for a variety of risks these businesses face on a day to day basis to help protect their assets and finances. With operations involving hazardous materials and heavy machinery, general liability insurance is critical to mitigate risks of accidents and injuries that could otherwise lead to costly legal battles and liability claims for businesses in this NAICS code 327992 industry. General liability insurance helps shield them from financial losses through defending lawsuit claims and paying damages if they are found responsible for incidents involving third party injury or property loss.
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Based on statistical analysis of general liability insurance pricing data for this industry (NAICS Code: 327992), the estimated average annual price is $5,000 – $10,000 per year. Pricing is dependent on factors like annual sales, number of employees, loss history, and risk level/mitigation measures in place. Companies in this industry often work with hazardous materials and heavy machinery which increases risk levels and pricing. The average estimate provided is for a small to medium sized business (10-50 employees, $2-10 million in annual sales) with no major liability claims in the past 5 years.
Estimated Pricing: $5,000 – $10,000
Commercial Property Insurance
“Commercial property insurance protects businesses from financial losses resulting from damage or destruction of buildings, equipment, inventory and other property. It is especially important for businesses in the ground or treated mineral and earth manufacturing industry due to the risks posed by heavy machinery and equipment.”
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Based on industry averages, the estimated average annual pricing for commercial property insurance for businesses in the Ground or Treated Mineral and Earth Manufacturing industry (NAICS Code: 327992) would be $2.50 per $100 of insured value. This pricing is derived from property insurance rate tables which take into account factors like the industry risks, claims history, security measures, location, and property valuations.
Estimated Pricing: $2.50/$100 insured value
Commercial Auto Insurance
Commercial auto insurance provides essential protections for ground and treated mineral and earth manufacturing businesses. It offers liability coverage, physical damage coverage for vehicles, medical payments, and customized options tailored to their needs. Coverage is especially important for businesses in this industry that rely on company vehicles like trucks to transport raw materials and finished goods. It protects them from costs associated with accidents and injuries involving company or hired vehicles.
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Based on national averages, the estimated average annual pricing for commercial auto insurance for businesses in the ground or treated mineral and earth manufacturing industry (NAICS Code 327992) is around $1,500 per vehicle. This pricing took into account factors like the type of vehicles used, average miles driven, safety record, and average claims in this industry. The price assumes standard coverage and no accidents or violations in the past 3 years.
Estimated Pricing: $1,500
Workers’ Compensation Insurance
Workers’ compensation insurance is an important type of coverage for businesses in industries involving hazardous work conditions like the ground or treated mineral and earth manufacturing industry. It provides protection for both employees and employers in the event of work-related injuries or illnesses.
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Based on national averages, the estimated average pricing for workers’ compensation insurance for businesses in the Ground or Treated Mineral and Earth Manufacturing industry with NAICS Code 327992 is around $2.50 per $100 of payroll. This price was derived using the industry loss costs and other risk factors published by the National Council on Compensation Insurance (NCCI). The industry has higher than average risk given the nature of work involving heavy machinery, materials handling, and hazardous conditions that are prevalent.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Umbrella Insurance
Commercial umbrella insurance provides extra liability protection for businesses in industries like ground or treated mineral and earth manufacturing that face various environmental, safety and operational risks. It protects against claims exceeding primary policy limits and gaps in other coverage. Umbrella insurance is especially valuable for these types of industrial operations to shield assets from costly lawsuits resulting from on-site accidents, injuries, product defects or regulatory violations.
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Based on average risks and claims data for businesses in the Ground or Treated Mineral and Earth Manufacturing industry with NAICS code 327992, the estimated annual pricing for $1 million of commercial umbrella insurance would be around $1,200. This pricing is derived from insurance company data that shows average costs for risks and claims in this industry falls in the middle range compared to other similar manufacturing industries.
Estimated Pricing: $1,200
Commercial Pollution Legal Liability Insurance
Commercial pollution legal liability insurance provides coverage for businesses in the ground or treated mineral and earth manufacturing industry. It protects against third party liability claims and cleanup costs from pollution incidents related to operations.
Some key benefits of commercial pollution liability insurance for these businesses include financial protection from pollution lawsuits, clean-up costs of existing contamination, and regulatory allegations. Common use cases where this coverage applies involve issues like contaminated runoff, hazardous material releases, improper waste disposal, and remediation of owned property contamination. On average, this type of insurance for NAICS code 327992 businesses costs $7,500 annually.
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Based on typical insurance industry rates and underwriting factors for businesses in the NAICS Code 327992 industry, the estimated average annual pricing for commercial pollution legal liability insurance would be between $5,000 to $10,000. Rates are usually determined based on factors like annual revenues, number of employees, types of pollutants handled, regulatory compliance history, and pollution control measures in place. For most ground or treated mineral and earth manufacturing businesses, an annual premium of $7,500 would be a reasonable estimate.
Estimated Pricing: $7,500
Commercial Inland Marine Insurance
Commercial inland marine insurance provides important protection for movable property and equipment used by businesses in the ground, treated mineral, and earth manufacturing industry. It covers assets like mining and excavating tools, vehicles, raw materials, finished goods, and manufacturing equipment during local production, transportation, and distribution operations.
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Based on typical commercial inland marine insurance policies for businesses in the ground or treated mineral and earth manufacturing industry, the estimated annual premium would be between $5,000-$10,000. This pricing is derived from considering average insurable values of $1-2 million for contents, inventory, and equipment. A rate of 0.5-1% of the total insured value is then applied as the premium.
Estimated Pricing: $5,000-$10,000
Business Interruption Insurance
Business interruption insurance protects businesses from losses resulting from unexpected interruptions to business operations. It provides coverage for lost income and extra expenses if property damage causes a suspension of operations.
Business interruption insurance helps companies in the ground or treated mineral and earth manufacturing industry continue operating after an insured property loss or damage by providing coverage for loss of income and extra expenses during the period of restoration. It is important for this industry because they have specialized equipment, facilities and inventory that are expensive to rebuild or replace in case of incidents like fire, flood or equipment breakdown. This insurance can help the business stay afloat during recovery.
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Based on the typical business interruption insurance pricing model of 0.4% to 1% of total insured value, and considering the average annual receipts of businesses in this industry is around $5 million (according to NASS data), the estimated price would be $20,000 to $50,000 per year. This price was derived by taking 0.4% to 1% of the average annual receipts to determine the total insured value as a baseline, which is a common approach in pricing business interruption insurance.
Estimated Pricing: $20,000 to $50,000 per year
Conclusion
Properly insuring a business in the ground or treated mineral and earth manufacturing industry helps protect from unforeseen risks and losses. The coverage options discussed provide financial protection and peace of mind so the business can focus on its core operations.