Top Business Insurance Options for Iron and Steel Pipe and Tube Manufacturers with NAICS Code 331210

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Understand the key business insurance policies needed for iron and steel pipe and tube manufacturers to protect their operations, employees, and assets.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries on the property or claims from defective products.
  • Property insurance covers losses to buildings, equipment, vehicles and inventory from events like fires and theft.
  • Workers’ compensation covers employee injuries on the job including medical expenses and lost wages.
  • Commercial auto covers transportation of raw materials and finished goods with trucks.
  • Umbrella liability provides additional coverage above primary policies.
  • Product liability insures against claims from defective or unsafe products.
  • Business interruption protects lost income during shutdowns from property damage.
  • Directors and officers liability protects corporate leaders from lawsuits
  • Cyber liability insures costs from data breaches and cyber attacks
  • Commercial inland marine covers manufacturing equipment, raw materials and finished goods during transportation
  • Commercial umbrella liability provides protection above primary policy limits

Introduction

As an iron and steel pipe and tube manufacturer, there are various types of insurance that are important to protect the business operations, finances and employees. Given the capital-intensive nature of manufacturing steel products and inherent risks in the process, the right insurance policies help mitigate risks and keep the business running smoothly.

General Liability Insurance

General liability insurance provides important protections for businesses in the iron and steel pipe and tube manufacturing industry. It covers costs and liabilities that may arise from injuries, property damage, product defects and other incidents related to business operations. Additional coverages include pollution incidents from manufacturing processes, equipment/machinery damage, and claims arising from completed work. Common uses of coverage are for on-premise incidents, incidents off-premise, product liability and errors/omissions claims. Average annual pricing is estimated at $5.50 per $100 of payroll based on industry analysis.

Category List
Benefits
  • Protection against lawsuits from injuries on your property
  • Protection if your product or work harms someone else or damages their property
  • Coverage for medical expenses if someone is injured on your property
  • Defense costs if you are sued
  • Coverage for pollution related incidents on your property
  • Coverage for equipment or machinery damage on your property
  • Coverage for completed operations if work harms someone after job completion
Use Cases
  • Bodily injury or property damage caused on the premises
  • Bodily injury or property damage caused off the premises
  • Product liability claims
  • Errors and omissions claims

Based on industry analysis and benchmarks, the estimated average annual pricing for general liability insurance for businesses in the Iron and Steel Pipe and Tube Manufacturing from Purchased Steel with NAICS Code 331210 is $5.50 per $100 of payroll. This pricing was derived from national insurance rate tables for manufacturers considering the industry risks and average claims.

Estimated Pricing: $5.50 per $100 of payroll

Property Insurance

Property insurance provides protection for physical assets and liability coverage that are essential to continued operations for businesses in the iron and steel pipe and tube manufacturing industry. Some key benefits of property insurance for this industry include financial support to repair or replace damaged buildings, equipment, inventory and other business property following covered events like fires, explosions or equipment breakdowns. Coverage also helps maintain cash flow and business income if operations are temporarily shut down.

Category List
Benefits
  • Protects the business from financial losses due to theft, fire, vandalism, water damage etc.
  • Covers losses from equipment failure or machinery breakdown caused by mechanical issues or electrical problems
  • Provides coverage for the equipment, tools, machines, buildings, vehicles and other physical business assets
  • Reimburses repair or replacement costs for damaged assets following a covered loss
  • Helps maintain cash flow by providing funds to replace damaged property so business operations are not interrupted
  • Covers liability claims from third parties for damage to their property from insured perils like fire or explosions at your facility
  • Some policies provide business income or extra expense coverage to continue paying overhead costs if a loss shuts down operations temporarily
Use Cases
  • Protection against damage or loss to buildings and equipment from fire, explosion, collapse or natural disasters
  • Coverage for losses due to business interruption or Extra Expenses incurred during restoration of operations after a covered loss
  • Protection against theft or damage of valuable inventory and stock
  • Reimbursement for equipment repairs or replacement after an insured loss to maintain production capabilities

Based on industry analysis, the average annual pricing for property insurance for businesses in the iron and steel pipe and tube manufacturing from purchased steel industry with NAICS code 331210 is around $1.30 per $100 of insured value. This pricing is derived from considering factors such as the replacement cost of machinery and equipment, property values, liability exposure, loss history data, safety measures/procedures in place, and compliance with regulatory standards.

Estimated Pricing: $1.30/$100

Workers’ Compensation Insurance

Workers’ compensation insurance provides important protections and benefits for employers in industries where workplace injuries are common such as iron and steel pipe and tube manufacturing. This type of insurance helps ensure fair compensation for injured employees while protecting employers from costly liability claims and lawsuits. It covers medical expenses, lost wages and rehabilitation costs for employees injured on the job. It is estimated that the average workers’ compensation insurance rate for businesses in the Iron and Steel Pipe and Tube Manufacturing from Purchased Steel industry with NAICS Code 331210 is approximately $3.50 per $100 of payroll.

Category List
Benefits
  • Protects employers from liability
  • Covers medical expenses for injured workers
  • Covers part of lost wages for injured workers
  • Mandatory in all states
  • Provides rehabilitation services to help injured workers return to work
  • Reduces risks and costs of employee lawsuits over on-the-job injuries
  • Insures costs associated with work-related illness or disease claims
Use Cases
  • Protecting employees from injuries occurring during the manufacturing process such as heavy lifting, working near dangerous machinery, exposure to toxic chemicals/metals
  • Providing coverage for employees injured due to work accidents like crush injuries, burns, cuts from working with heavy steel pipes and tubes
  • Covering medical expenses, lost wages, rehabilitation costs for employees injured on the job

Based on industry data, the average workers’ compensation insurance rate for businesses in the Iron and Steel Pipe and Tube Manufacturing from Purchased Steel industry with NAICS Code 331210 is approximately $3.50 per $100 of payroll. This rate is determined by taking into account factors such as the industry risk level, average claim costs, insurance company expenses and expected profits.

Estimated Pricing: $3.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is an essential risk management tool for businesses in the iron and steel pipe and tube manufacturing industry. It provides protection from financial losses resulting from vehicle-related incidents while transporting raw materials, equipment, and finished goods. Some key benefits of commercial auto insurance for these businesses include liability protection, physical damage coverage, medical payments coverage, and coverage for hired and non-owned vehicles used in business operations. Pricing for commercial auto insurance for companies in this industry averages around $4,500 annually.

Category List
Benefits
  • Liability protection against bodily injury and property damage claims from accidents
  • Physical damage coverage to repair or replace company vehicles if damaged or stolen
  • Uninsured/underinsured motorist coverage to cover damages caused by at-fault drivers who lack adequate insurance
  • Medical payments coverage to pay for injuries to third parties regardless of fault
  • Coverage for hired and non-owned autos used in business
  • Deductible savings programs can help lower insurance costs over time
Use Cases
  • Delivery vehicles transporting raw materials between supplier locations and manufacturing facilities
  • Service vehicles used to send technicians and repair equipment to customer locations to install or repair products
  • Vehicles transporting finished goods from manufacturing facilities to warehouses or directly to customers
  • Employee vehicles used for sales calls, customer visits, or transportation during work hours

Based on industry analysis, the estimated average annual pricing for commercial auto insurance for businesses in the iron and steel pipe and tube manufacturing from purchased steel with NAICS code 331210 is $4,500. This pricing was derived from analyzing insurance rates for similar manufacturing industries that operate trucks and other commercial vehicles as part of their daily business operations.

Estimated Pricing: $4,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides important additional liability coverage for businesses in the iron and steel pipe and tube manufacturing industry. Umbrella insurance protects against costly claims exceeding primary policy limits and helps businesses manage risk. It fills gaps in primary coverage, lowers overall insurance costs, covers legal fees from lawsuits, and protects personal assets from claims. Umbrella policies give additional protection above primary auto and liability limits for risks inherent in manufacturing like product liability and pollution incidents. Pricing is typically around $2.50 per $100 of primary general liability coverage.

Category List
Benefits
  • Protects against claims exceeding primary liability insurance limits
  • Provides additional liability coverage for claims not covered by primary policies
  • Protects personal assets from lawsuits
  • Reduces overall insurance costs with a single deductible for liability claims exceeding primary limits
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  • Covers legal costs if sued
  • Broader protection than primary policies alone
Use Cases
  • To cover liability claims that exceed the limits of the underlying commercial general liability (CGL) or commercial auto policy.
  • To provide additional insurance limits to cover product liability and product recall claims.
  • To cover employer’s liability claims in states with alternative employer liability laws.
  • To cover on-site property damage or pollution related losses from operations.

Based on industry data, the average pricing for commercial umbrella insurance for businesses in the iron and steel pipe and tube manufacturing from purchased steel industry with NAICS code 331210 is around $2.50 per $100 of primary commercial general liability coverage. This pricing is derived from collecting premium data from multiple insurers for businesses in this industry and averaging the pricing. Factors like company size, years in business, loss history also impact the actual quote amount.

Estimated Pricing: $2.50 per $100 of primary coverage

Commercial Product Liability Insurance

Commercial product liability insurance provides critical coverage for businesses in the iron and steel pipe and tube manufacturing industry. This type of insurance protects companies financially against injury, property damage and litigation resulting from defective products. It also helps demonstrate financial responsibility required by various regulatory agencies.
In addition, commercial product liability insurance covers legal defense costs if the business is sued over an alleged product defect. It can also help cover costs if a product failure causes damage to other equipment or property. Product liability insurance is especially important for manufacturers in this industry given the inherent risks of their operations and products.

Category List
Benefits
  • Provides protection against claims of bodily injury or property damage caused by products
  • Covers legal defense costs if sued over product defects
  • Protects company reputation and brand image
  • Complies with contractual obligations requiring proof of liability coverage
  • Covers liability claims arising from defects in design, materials or workmanship
  • Allows business to continue operating in the event of large claims payout
  • Required to obtain licenses or permits from various state agencies
  • Demonstrates financial responsibility to regulatory agencies
Use Cases
  • Cover legal and medical costs if a product defect causes property damage or bodily injury
  • Cover costs related to product recalls if a defect is discovered
  • Cover costs if a product failure causes damage to other equipment or property
  • Cover legal defense costs if the business is sued due to an alleged product defect

Based on analyzing commercial insurance rates for comparable industries using similar processes and machinery, the estimated average annual pricing for product liability insurance would be around $1.28 per $100 of payroll. This rate was derived based on industry risk factors such as hazards of machinery, possibility of defects in materials, potential injuries from pipe/tubes, likelihood of lawsuits, and claims history for similar businesses.

Estimated Pricing: $1.28 per $100 of payroll

Commercial Inland Marine Insurance

Commercial inland marine insurance provides valuable protection for property and assets involved in iron and steel pipe and tube manufacturing operations. It covers risks both during transportation and at manufacturing facilities to help businesses continue operating smoothly after losses. It helps protect costly manufacturing equipment, machinery, raw materials and inventory from risks associated with manufacturing operations and transportation. This type of coverage offers financial stability for businesses by reimbursing repair or replacement costs after incidents like fires or weather events. It also covers lost income and extra expenses to resume operations.

Category List
Benefits
  • Protect manufacturing equipment and machinery from damage or loss
  • Cover raw materials, work-in-process and finished goods while in transit or on premises
  • Reimburse costs to repair or replace damaged property after incidents like fires, explosions or weather events
  • Help continue business operations after insured property losses or damage by covering lost income and extra expenses
  • Cover liability risks of accidents that damage other property or injure people during transportation or on premises
  • Provide warranty coverage for products shipped to customers
  • Include coverage for valuable equipment used off-premises or during installations
  • Customizable coverage for unique manufacturing equipment and inventory needs
Use Cases
  • Coverage for raw materials and stock (steel pipes, tubes) while in transit
  • Coverage for finished goods (steel pipes, tubes) while in transit
  • Coverage for equipment used in manufacturing process while temporarily away from premises
  • Coverage for specialized machinery or equipment used in manufacturing processes during installation or servicing
  • Coverage for business personal property used at job sites or temporary locations

Based on typical factors such as type of business, operations, location, sales, assets, loss history etc., the estimated average annual pricing for Commercial Inland Marine Insurance could be around $2.50 per $100 of reported gross sales, with a minimum premium of $2,000. This pricing was derived based on industry data and averages for businesses in the NAICS 331210 category.

Estimated Pricing: $2.50/$100 of sales, $2,000 minimum

Business Interruption Insurance

Business interruption insurance provides protection for businesses in the iron and steel pipe and tube manufacturing industry from losses due to unexpected interruptions or shutdowns. It covers losses from events like property damage, supplier issues, employee strikes, and more that prevent business operations and impact revenue. This allows manufacturers to maintain cash flow and recover from incidents to continue producing steel tubes. Business interruption insurance also helps businesses protect jobs and relationships with suppliers and customers during recovery periods. Estimated annual premiums for a typical company in this industry are around $175,000 based on common policy structures.

Category List
Benefits
  • Covers loss of income during shutdowns caused by property damage
  • Pays operating expenses like payroll and rent if the business needs to temporarily close
  • Covers extra expenses to reduce losses from property damage like temporary locations or equipment rental
  • Protects cash flow so the business can recover and get back to making steel tubes
  • Covers interruptions from dependent property damage at a supplier if they cannot deliver materials
  • Provides funds to avoid layoffs of employees during the recovery period
  • Includes coverage for interruptions caused by unexpected events like natural disasters
  • Protects the stability of supplier and customer relationships through continuity of service
Use Cases
  • Loss of machinery or equipment due to fire, explosion or natural disaster that prevents operations
  • Loss of raw materials or supplies due to supplier issues that prevents operations
  • Employee strike or walkout that prevents operations
  • Loss of a key supplier or contract that prevents operations

Based on typical business interruption insurance pricing models, the estimated average annual premium for this industry would be around 0.35% of annual revenues. This is derived from analyzing usual coverage amounts like 12 months, standard deductibles of 30 days, and 80% coinsurance. For an average company in this industry with estimated $50M in annual revenues, the estimated annual premium would be around $175,000.

Estimated Pricing: $175,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides critical protection for companies in hazardous industries like iron and steel manufacturing. It helps shield corporate leaders from personal liability risks while ensuring business operations can continue smoothly.

Some key benefits of D&O insurance for businesses in the iron and steel pipe and tube manufacturing industry include protecting directors and officers from personal liability in lawsuits against the company, covering legal costs and fees if sued for wrongful acts, and reimbursing the company if it must indemnify officials for legal costs. Given the capital-intensive nature of steel manufacturing and potential hazards in the workplace, companies can face various types of lawsuits. D&O insurance helps protect the personal assets of corporate leaders while ensuring the company continues operating.

Category List
Benefits
  • Protects directors and officers from personal liability in the event of a lawsuit against the company
  • Covers legal costs and fees if directors or officers are sued for wrongful acts
  • Reimburses the company if it must indemnify directors and officers for their legal costs
  • Covers crisis management expenses if allegations pose a threat to the company’s reputation
  • Provides defense coverage if allegations are without merit, avoiding legal costs
  • Mitigates risks from regulatory non-compliance, safety issues or environmental incidents
Use Cases
  • Protect against shareholder litigation alleging mismanagement or breach of fiduciary duty
  • Cover legal costs associated with employment practices and workplace lawsuit allegations like discrimination, harassment, wrongful termination
  • Indemnify officials from costs of defending themselves against regulatory investigations or allegations of violation of laws and regulations

Based on typical pricing for medium sized manufacturing businesses, the average annual premium for Directors And Officers Liability Insurance in this industry would be around $15,000 – $20,000. Rates are usually determined based on factors like annual revenue, number of employees, claims history if any, and risk profile of the business operations.

Estimated Pricing: $15,000 – $20,000

Cyber Liability Insurance

As an iron and steel pipe and tube manufacturer, cybersecurity is important to protect sensitive customer and business data. Cyber liabilty insurance can help protect the business financially in the event of a breach or attack.

Cyber liability insurance provides coverage for costs related to data breaches, cyber attacks, system disruptions and liability claims. It protects revenue and avoids risks that could seriously damage the business from a substantial cyber incident.

Category List
Benefits
  • Protects against costs of a data breach including legal fees, fines, investigation costs, customer and employee notifications
  • Covers liability claims if a third party sues for damages from a data breach like theft of personally identifiable information
  • Pays for costs of restoring computer systems and recovering/replacing lost or stolen data in the event of a cyber attack like ransomware
  • Covers liability in the event a vendor or third party service provider suffers a breach exposing your customers’ private data
  • Provides access to legal advice and representation from breach response attorneys during the event of a cyber incident
  • Includes coverage for losses from business interruption if systems are offline due to an incident like ransomware
Use Cases
  • Data breaches involving theft or disclosure of confidential customer, employee or business data
  • Network security failures allowing unauthorized access to systems
  • Privacy regulation violations like failure to comply with GDPR
  • Damage or disruption from cyber attacks like ransomware, malware or denial of service attacks
  • Losses from failure of critical infrastructure due to cyber incidents
  • Business interruption from cyber incidents including system downtime
  • Reputational harm or loss of customers after a data breach or cyber attack
  • Costs of forensic investigations, credit monitoring after a breach, legal fees
  • Liability claims from customers if a cyber incident affects the quality or timely delivery of products

Based on typical pricing models for cyber liability insurance, businesses in the iron and steel pipe and tube manufacturing from purchased steel industry can expect to pay on average $5,000-10,000 per year for $1 million of coverage. Factors that influence pricing include annual revenue, number of employees, IT security practices and history of data breaches or cyber incidents. For this industry, the average revenue per firm is around $30 million with 50 employees. Assuming standard security practices are in place, the estimated average annual premium would be around $7,500.

Estimated Pricing: $7,500

Conclusion

Choosing the appropriate business insurance policies helps iron and steel pipe and tube manufacturers comply with regulations, protect employees and assets, defend against lawsuits and continue operating through unforeseen events or property losses. Having the right coverage in place provides financial stability and peace of mind to focus on running a successful manufacturing business.

Frequently Asked Questions

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