Top Business Insurance Options for Manufacturers in Other Fabricated Metal Product Industries (NAICS 3329)

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A guide to essential business insurances like general liability, property, workers' comp and more for manufacturers in the other fabricated metal product manufacturing industry.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries on your premises or issues with products
  • Property insurance covers losses from events like fires, storms, or equipment breakdown
  • Workers’ compensation covers medical costs and lost wages from job-related injuries
  • Commercial auto covers accidents involving fleet vehicles used for transportation
  • Product liability protects against claims of injuries from defective products
  • Business interruption protects income if disasters shut down operations
  • Commercial umbrella insurance provides excess liability coverage above primary policies like general liability
  • Directors and officers insurance protects the personal assets of business owners and executives if they are named in certain types of lawsuits

Introduction

Manufacturing businesses in the other fabricated metal product industries face unique risks working with heavy machinery, metal materials, hazardous chemicals, and operating specialized production equipment. This guide outlines the top business insurance options these manufacturers should consider to protect their operations, employees, assets, and financial stability.

General Liability Insurance

General liability insurance provides important protection for businesses in the other fabricated metal product manufacturing industry. It covers costs and damages if the business is sued for injury or property damage that occurs on or off the premises as a result of operations or products. This insurance protects the business assets from large settlements, payments and provides legal defense if claims are made. It is estimated that the average annual cost for general liability insurance for businesses in this industry is $4,500 based on factors like sales, employees and common risks. General liability insurance addresses common risks in this industry such as product defects, workplace injuries, faulty workmanship and pollution from operations that could lead to expensive lawsuits without this coverage.

Category List
Benefits
  • Covers legal expenses and damages if your business is sued for bodily injury or property damage
  • Protects your business assets from large payouts in the event of an accident or injury on your premises
  • Covers claims that arise from operations like manufacturing, storage, or delivery of products
  • Covers liability from faulty workmanship or defective products
  • Covers pollution liability from accidental releases during operations
  • Provides defense even if allegations in a lawsuit against your business are groundless
  • Covers supplementary payments like lost wages resulting from a covered injury
  • Covers liability from warranties implied through your products and services
  • Covers personal and advertising injury arising from things like libel, slander, defamation in your advertising
Use Cases
  • Bodily injury or property damage on your premises
  • Bodily injury or property damage to others off your premises
  • Personal injury such as libel, slander or false arrest
  • Advertising injury for copyright, slogan or title infringement in your ads
  • Product liability claims if a manufactured product causes bodily injury or property damage

Based on industry data for businesses in NAICS 3329 – Other Fabricated Metal Product Manufacturing, the estimated average annual pricing for general liability insurance would be around $4,500. This was calculated based on factors such as average sales, number of employees, common risks and claims for this industry.

Estimated Pricing: $4,500

Property Insurance

Property insurance offers important financial protection and risk management benefits for businesses in the fabricated metal product manufacturing industry. It can help pay for repairs, rebuilding or equipment replacements after a covered loss and protect ongoing business operations. Property insurance covers damage or loss to buildings and equipment from events like fire, wind and theft. It also covers loss of business income if the property is damaged and unable to be used.

Category List
Benefits
  • Covers damage or loss to buildings and equipment from events like fire, wind and theft
  • Covers loss of business income and extra expenses if property is damaged
  • Comprehensive protection for buildings, equipment, inventory and other property
  • Replacement coverage to repair or rebuild damaged property to its original condition
  • Protects invested assets that are critical to business operations
  • Covers equipment breakdown or mechanical failure
  • Provides financial support to continue business operations after a loss
Use Cases
  • Fire damage to premises and equipment
  • Water or other liquid damage from burst pipes or weather events
  • Theft of equipment or inventory
  • Accidental damage of equipment
  • Business interruption if premises are unusable due to a covered loss

Based on industry data and factors such as claims history, operations, employees, square footage, etc., the estimated average annual pricing for property insurance for businesses in the Other Fabricated Metal Product Manufacturing NAICS 3329 Industry is around $4.50 per $100 of insured value. This price was derived from national industry averages adjusted for the specific risks and operations of fabricated metal product manufacturing businesses.

Estimated Pricing: $4.50 per $100 of insured value

Workers’ Compensation Insurance

Workers’ compensation insurance provides valuable coverage and protection for businesses in industries like fabricated metal product manufacturing that involve operating machinery and exposure to work hazards. It covers medical expenses and lost wages for employees hurt on the job while helping shield the company from costly lawsuits. The estimated cost for a business in this industry would be around $1.75 to $2.00 per $100 of payroll, with rates varying based on company size, experience, and claims history. Common injuries in this type of work include those from machines, cuts, strains, chemical exposure, and burns.

Category List
Benefits
  • Covers medical expenses for work-related injuries or illnesses
  • Covers part of lost wages for employees unable to work due to an on-the-job injury or illness
  • Protects your business from lawsuits filed by injured employees
  • Required by law in most states
Use Cases
  • Injuries from operating heavy machinery and equipment like lathes, mills, grinders, etc.
  • Cuts and lacerations from working with sharp metal materials and tools
  • Strains from lifting or moving heavy metal products or parts
  • Exposure to hazardous chemicals from coatings, paints, solvents
  • Burns from welding, soldering, or working near high heat processes

Based on average workers compensation rates for this industry (NAICS code 3329), the estimated average price would be around $1.75 to $2.00 per $100 of payroll. Rates are influenced by factors such as company size, experience modifiers, and loss history. Larger companies and those with fewer claims tend to receive slightly lower rates.

Estimated Pricing: $1.75 – $2.00 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides essential protection and financial security for businesses that use vehicles as part of their operations. It covers liability, repairs, replacement vehicles, medical bills, lawsuits, cargo damage or theft, and rental cars when vehicles are in the shop. This ensures companies are protected in the event an accident occurs while transporting materials, employees, products or making deliveries. The average annual premium for commercial auto insurance for businesses in the other fabricated metal product manufacturing industry (NAICS 3329) is around $1,200 per vehicle. This pricing factors in vehicle type, miles driven, and safety record.

Category List
Benefits
  • Covers liability in case of accidents
  • Pays for vehicle repairs from accidents
  • Replaces stolen or damaged vehicles
  • Covers medical bills for those injured in an accident
  • Protects the business from lawsuits
  • Covers losses from cargo damage or theft
  • Provides rental car reimbursement when vehicles are in the shop for repairs
Use Cases
  • Cover transportation of materials, supplies, and products between facilities and customer locations
  • Cover fleet vehicles used for deliveries and pickup and drop-off of products
  • Cover transportation of employees between facilities and work sites

Based on industry statistics, the average commercial auto insurance premium for businesses in the other fabricated metal product manufacturing industry (NAICS 3329) is around $1,200 per vehicle per year. This pricing takes into account factors like the type of vehicles used, average miles driven, safety records, etc. of businesses in this industry.

Estimated Pricing: $1,200

Product Liability Insurance

Product liability insurance is a crucial risk management tool for companies in the fabricated metal product manufacturing industry. It provides financial protections for businesses against lawsuits, injuries, recalls and other unforeseen liability events that could threaten the stability of the company. This coverage allows manufacturers to focus on production while knowing they have protection from liability risks. It also demonstrates commitment to safety and helps attract investors. Product liability insurance covers costs associated with injuries, illness, property damage and lawsuits stemming from defects. It also reimburses recalls when faulty products pose safety issues.

Category List
Benefits
  • Protects your business from financial losses due to lawsuits if your products cause injuries or property damage
  • Covers legal fees and settlement costs if you are sued for a defective product
  • Lowers risk of bankruptcy if faced with large claims
  • Peace of mind knowing you have coverage if an accident occurs
  • Allows your business to focus on production instead of liability concerns
  • Demonstrates your commitment to product safety to customers and stakeholders
  • Reduces risk and helps attract investors and lenders
  • Allows your business to focus on operations while knowing you have protection from unforeseen liability events.
Use Cases
  • Covers costs if a customer is injured by a manufacturing defect in a product
  • Pays claims if a customer becomes ill from exposure to chemicals or other harmful materials used in manufacturing
  • Protects the company if it is determined a manufacturing or design flaw has caused property damage
  • Covers legal costs if the company is sued due to an unsafe or defective product
  • Reimburses recalls of defective products that pose safety risks

Based on industry analysis, the average pricing for product liability insurance for businesses in the Other Fabricated Metal Product Manufacturing with NAICS Code 3329 is around $1.50 per $100 of revenue. This pricing is derived based on risk analysis of the industry which considers factors like history of product defects, quality control processes, litigation rates and costs of claims. It is a standard formula used by most insurers to determine baseline rates for this industry.

Estimated Pricing: $1.50 per $100 of revenue

Commercial Umbrella Insurance

Commercial umbrella insurance is an important risk management tool for businesses in the fabricated metal product manufacturing industry. It provides excess liability coverage above a company’s primary commercial general and auto liability policies to strengthen protection from costly legal claims and lawsuits.

Some key benefits of commercial umbrella insurance for fabricated metal product manufacturers include increasing overall liability limits, covering losses not included in underlying policies, protecting personal assets, reducing overall insurance costs, and protecting the business and owners from financial ruin due to catastrophic losses. It also protects from high jury awards and incidents involving dangerous machinery which is common in this industry. Umbrella insurance acts as an extra layer of protection for high-risk industries like fabricated metal product manufacturing and is estimated to cost around $2,500 annually on average for businesses in this industry.

Category List
Benefits
  • Increases overall liability coverage limits beyond just the commercial general liability insurance
  • Provides additional protection from lawsuits and legal claims
  • Covers losses not included in underlying commercial policies like general liability, auto, or employers liability insurance
  • Protects personal assets in the event of a claim above underlying insurance limits
  • Can help reduce overall insurance costs by adding umbrella coverage rather than increasing underlying policy liability limits
  • Covers additional risks like products liability that may not be included in general liability policies
  • Provides defense coverage for all claims covered under the umbrella policy
  • Protects the business and owners from financial ruin in the event of a catastrophic loss
Use Cases
  • To provide additional liability coverage above the limits of the business’s commercial general liability policy
  • To protect the business from high jury awards or settlements in liability lawsuits that exceed the underlying limits of the business’s commercial general liability policy
  • To protect company owners and managers from personal liability lawsuits relating to their roles within the business
  • To protect the business from lawsuits arising from incidents involving workers operating dangerous industrial machinery and equipment which is common in metal fabrication operations
  • To protect the business if they take on large projects that involve greater risks of liability due to the scale or complexity of the work

Based on industry analysis and insurer rate filings, the estimated average annual pricing for commercial umbrella insurance for businesses in the Other Fabricated Metal Product Manufacturing NAICS 3329 industry would be $2,500. Umbrella insurance pricing is usually based on factors like payroll, receipts, property values and premiums of underlying business insurance policies. Given the average size and risk profile of businesses in this industry, $2,500 would be a reasonable annual premium.

Estimated Pricing: $2,500

Directors And Officers Insurance

Directors and officers insurance, also known as D&O insurance, protects executives and board members from personal liability if they are named in a lawsuit resulting from their decisions and actions taken while managing the company. It is especially important for fabricated metal product manufacturers due to the risks of accidents in the factory, potential defects in finished goods, environmental issues from manufacturing processes, and injuries to third parties from products. D&O insurance provides crucial financial protection for businesses and individuals that run them. It protects personal assets, helps retain talent, and reimburses fines. Key use cases include defense costs for various common claims against manufacturers like securities claims, shareholder suits, employment practices, regulatory issues, and liability from defects or environmental harm. Pricing typically ranges from $2,500-5,000 annually based on factors like revenue, employees, claims history, and liability limits chosen.

Category List
Benefits
  • It protects directors and officers from claims of wrongful acts like breach of duty or negligence
  • It protects the company from indemnifying directors and officers for their legal costs and damages
  • It protects the company’s assets from being depleted by legal costs and damages
  • It provides defense costs even if the allegations turn out to be groundless, as long as the actions were not deliberately criminal or fraudulent
  • It helps retain qualified directors and officers by protecting them from personal liability risk
  • It reimburses fines and penalties imposed on directors if it is indemnifiable by law
Use Cases
  • Defense costs for securities claims alleging improper disclosure or misrepresentation
  • Defense costs for shareholder derivative claims alleging breach of fiduciary duty
  • Defense costs for employment practices claims like wrongful termination or discrimination
  • Defense costs for regulatory investigations and inquiries like from the SEC or FTC
  • Defense costs for third party claims alleging defects in manufactured products
  • Defense costs for environmental contamination or pollution from manufacturing operations

Based on industry data and analysis of typical premium rates, the average annual pricing for Directors And Officers Insurance for businesses in the Other Fabricated Metal Product Manufacturing industry with NAICS Code 3329 would be around $2,500 – $5,000. The pricing is derived based on typical factors like annual revenue, number of employees/directors, prior claims experience if any, and limits of liability chosen. Companies with annual revenue under $5M and fewer than 50 employees would likely pay closer to $2,500 while larger companies may pay closer to $5,000.

Estimated Pricing: $2,500 – $5,000

Business Interruption Insurance

Business interruption insurance provides a crucial layer of protection for metal product manufacturers to ensure business continuity and financial stability in the event of unplanned interruptions. It reimburses lost income and extra expenses during recovery periods from events outside the company’s control like equipment failures, fires, storms or more recently pandemic outbreaks. Manufacturers in this industry are especially reliant on specialized equipment, so any interruptions could severely impact production capabilities for an extended time. This type of coverage also helps stabilize cash flows to maintain solvency during difficult periods and compensate lost profits from inability to fulfill customer orders. Pricing generally falls between 0.5-1% of annual revenues, or an estimated $25,000-50,000 annually for a business with $5 million in sales.

Category List
Benefits
  • Protects against loss of income due to business interruption caused by events like fires, storms, or equipment failures
  • Covers operating expenses like utility bills, payroll, and taxes during recovery period to resume operations
  • Helps stabilize cash flow during recovery so business can maintain solvency
  • Reimburses extra expenses like renting temporary production space if primary location is unusable
  • Compensates lost profits from inability to fill customer orders during recovery
Use Cases
  • Loss of income due to equipment failure or breakdown
  • Loss of income due to power outage
  • Loss of income due to fire damage
  • Loss of income due to natural disaster such as hurricane, flooding, etc.
  • Loss of income due to crime such as theft or vandalism
  • Loss of income due to an infectious disease outbreak like COVID-19 which could shut down operations

Based on industry analysis, the average business interruption insurance pricing for other fabricated metal product manufacturing businesses (NAICS 3329) is around 0.5-1% of annual revenues. Factors such as business size, loss history, coverage details influence the final pricing. For a business in this industry with $5 million annual revenues, the estimated price would be $25,000-50,000 per year.

Estimated Pricing: $25,000-50,000

Conclusion

Choosing the right combination of insurance policies is crucial for mitigating risks in the fabricated metal product manufacturing industry. The options discussed provide essential coverage for issues commonly faced like equipment failures, workplace injuries, transportation accidents, product defects, lawsuits, and business interruptions. Maintaining adequate insurance allows manufacturers to focus on productive operations while ensuring financial protection.

Frequently Asked Questions

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