Top Business Insurance Options for Manufacturers in the Other Engine Equipment Industry (NAICS 333618)

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A guide to essential business insurance policies for companies in NAICS 333618 (Other Engine Equipment Manufacturing) industry including general liability, property, commercial auto, workers' compensation, professional liability, cyber liability and more.

Key Takeaways

  • Consider general liability, property, commercial auto, workers’ compensation and professional liability insurance as core policies
  • Also evaluate needs for cyber liability and umbrella insurance due to risk profile of the industry
  • Review coverage options, pricing estimates and top use cases for each type of insurance relevant to your operations

Introduction

As a business operating in the other engine equipment manufacturing industry, it is important to protect your physical assets, employees, and legal liability through adequate insurance coverage. This industry involves machinery, vehicles, hazardous processes and stored data, so selecting the right policies is crucial to your risk management strategy. The top insurance options to consider include:

General Liability Insurance

General liability insurance provides critical protection for businesses in the engine equipment manufacturing industry. It covers claims of property damage or bodily injury from accidents on the premises or involving defective products. General liability insurance also covers legal costs if the business is sued for damages from accidents or injuries. It can protect against liability claims if a customer is injured while using or servicing engine equipment.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal defense costs if a claim is filed against your business
  • Limits your financial liability if an accident occurs on your premises or during your operations
  • Covers claims that result from errors and omissions in product designs or specifications
  • Protects independent contractors and temporary employees under your supervision
  • Provides coverage for pollution and environmental impairments from business activities and property ownership
  • Covers claims arising from faulty workmanship or defective products
Use Cases
  • Protect against property damage or bodily injury claims from accidents on your premises
  • Cover liability claims from defective products or parts you manufactured
  • Liability protection if a customer is injured while using or servicing your equipment
  • Cover legal costs if you are sued for damages
  • Provide coverage if a vehicle crash or accident is caused by a defect in one of your parts

Based on industry data, the average estimated annual premium for general liability insurance for businesses in the other engine equipment manufacturing industry (NAICS code 333618) is around $2,500 per year. This was calculated based on factors such as average payroll, number of employees, type of equipment/products manufactured, potential risks/hazards involved, past claims experience, and compliance with safety standards.

Estimated Pricing: $2,500

Property Insurance

As a business operating in the other engine equipment manufacturing industry, it is important to protect your significant physical assets and investments from unexpected losses through adequate property insurance. Some key benefits of property insurance for manufacturers include covering costs of damaged property and equipment, business interruptions, liability exposures, and protecting invested capital and company assets. Common use cases where coverage applies include protection against property damage from disasters, loss of income if property is temporarily unusable, liability lawsuits, equipment breakdown, and insured equipment in transit. The estimated average annual pricing for property insurance for this industry is around $3.50 per $100 of insurable values.

Category List
Benefits
  • Covers costs of damaged property and equipment due to fire, storms, theft and other unexpected events
  • Covers costs of business interruptions if property damage prevents operations
  • Covers liability exposures if faulty equipment causes damage to third party property
  • Protects invested capital and company assets
Use Cases
  • Protection against damage or loss to buildings, machinery, equipment and inventory due to events like fire, explosions, storms or other disasters
  • Coverage for loss of income/business interruption if the property is temporarily unusable due to a covered event
  • Liability insurance to protect against lawsuits in the event someone gets injured on your property or due to defective products manufactured
  • Coverage for equipment breakdown or mechanical failure of machines and factory utilities
  • Protection for equipment and stock during overland transit in case of accidents or cargo theft

Based on industry data and risk profiles, the average annual property insurance pricing for businesses in the Other Engine Equipment Manufacturing industry (NAICS Code: 333618) is estimated to be around $3.50 per $100 of insurable values. This pricing was derived considering factors like the types of equipment and machinery used, potential fire hazards, business size, location, safety measures, claims history, and more. Higher risks may be priced higher while lower risks may get small discounts.

Estimated Pricing: $3.50 per $100 of insurable values

Commercial Auto Insurance

“Commercial auto insurance provides essential liability and physical protection for manufacturing businesses that use fleet vehicles. It shields companies from expensive lawsuits and repairs in the event of an accident. Coverage options help protect assets and ensure business operations can continue smoothly.”

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for employees and passengers
  • Coverage for goods and equipment being transported
  • Replacement rental vehicles if a company vehicle is in the shop for repairs
  • Covers non-owned and hired vehicles if needed to complete a job
Use Cases
  • Covering company-owned vehicles like trucks used to transport finished goods
  • Providing coverage for employee vehicles used for business purposes like sales calls and client meetings
  • Insuring vehicles used in a delivery or transportation service for parts or equipment

Based on national industry averages, the estimated average annual price for commercial auto insurance for businesses in the Other Engine Equipment Manufacturing industry (NAICS 333618) would be around $1,800. This estimate was calculated based on factors like the types of vehicles owned, average number of vehicles, average miles driven, safety record, and average claim amounts for this industry. Vehicles for this industry would mainly consist of service trucks, delivery vans and pickup trucks used to transport equipment and parts.

Estimated Pricing: $1,800

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical benefits and protection for both employees and employers in hazardous manufacturing industries like other engine equipment manufacturing (NAICS 333618). It ensures employees receive medical expenses and lost wages if injured on the job, while also shielding businesses from costly lawsuits. The top benefits, use cases and estimated pricing are outlined below.

Category List
Benefits
  • Covers medical expenses if an employee gets injured or becomes ill due to their job
  • Pays lost wages if an employee cannot work due to a work-related injury or illness
  • Protects the business from lawsuits if an employee is injured on the job
  • Provides return-to-work programs and rehabilitation services to help injured employees recover
  • Prevents increased costs of private disability insurance or healthcare if offered by the employer
  • Reduces turnover by helping workers recover from injuries faster
  • Results in lower premium costs over time if the business maintains a good safety record and fewer claims
Use Cases
  • Work injury from operating heavy machinery or equipment
  • Accidents involving bodily injury from manufacturing processes like welding or cutting
  • Slips, trips, and falls in the workplace
  • Hearing loss or damage from industrial noise exposure
  • Exposure to hazardous materials or chemicals used in manufacturing processes

Based on average rates for this industry, the estimated annual pricing for workers’ compensation insurance would be around $2.50 per $100 of payroll. This rate is derived from analyzing historical claims data and risk levels for businesses in the Other Engine Equipment Manufacturing industry. The rate may vary slightly based on individual business factors like safety record, number of employees, job roles, etc.

Estimated Pricing: $2.50/100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses in NAICS 333618 industry from costs of lawsuits related to defective products or poor work. It provides coverage for legal defense expenses and damages awards or settlements related to negligence claims. Some key benefits of professional liability insurance for manufacturers in NAICS 333618 include protecting business assets from liability lawsuits, covering costs of product recalls, covering legal costs of intellectual property infringement lawsuits, and providing liability coverage for injuries during demonstrations or installations.

Category List
Benefits
  • Protects your business assets from lawsuits over defective products or poor workmanship
  • Covers legal fees and costs if your company is sued for negligence, errors or omissions
  • Protects business owners and employees from personal liability claims related to their work
  • Covers losses if a manufacturing error causes damage or injury to customers or their property
  • Demonstrates financial responsibility to customers and helps maintain good reputation
  • Allows the business to focus on operations rather than liability risks
  • Covers losses if a manufacturing error causes damage or injury to customers or their property
Use Cases
  • Protect against third-party liability claims from defective or faulty products
  • Cover costs and damages from product recalls
  • Cover legal costs if sued for intellectual property infringement like patent, copyright or trademark infringement
  • Cover liability claims from failure or malfunction of products or equipment
  • Protect against liability claims from injuries caused during product demonstrations or installations

Based on typical pricing models for professional liability insurance, the estimated average annual premium for businesses in the Other Engine Equipment Manufacturing industry (NAICS 333618) would be around $5,000-$7,000. This pricing is derived based on factors such as the business’ annual revenue, number of employees, claims history, and risk profile associated with their operations and services provided.

Estimated Pricing: $5,000-$7,000

Cyber Liability Insurance

Cyber liability insurance is an important tool for businesses in the other engine equipment manufacturing industry to protect themselves from financial losses due to data breaches, cyber attacks, and network security incidents. As a manufacturer that collects and stores sensitive customer and business data, they face risks of theft, loss, or accidental exposure of personally identifiable information that could lead to lawsuits,regulatory fines, and reputational damage if a breach occurs. This type of insurance can help cover costs associated with responding to incidents, paying forensic investigation, legal fees, customer notifications, credit monitoring, PR/crisis management expenses, business interruption losses, cyber extortion payments, and third party liability claims.

Category List
Benefits
  • Covers costs of responding to a data breach including legal services, forensics investigations, and notifications
  • Covers lawsuits by customers and clients if their personal data was compromised
  • Covers losses from business interruption if systems are offline due to a cyber attack
  • Covers cyber extortion and ransomware payments if files are encrypted
  • Covers PR and advertising costs after a data breach to manage reputational damage
  • Covers the costs of notifying individuals if their personal information was involved in a breach
  • Provides liability protection if a third party cyber attack or data breach impacts their organization
  • Covers the appointment of a public relations firm or call center to handle inquiries after a breach
Use Cases
  • Data breach involving theft or loss of customer personally identifiable information (PII)
  • Distributed denial-of-service (DDoS) attacks leading to network downtime and lost business
  • Malware infections like ransomware that could encrypt systems and disrupt operations
  • Third party liability if a vendor or supplier experiences a breach involving the manufacturer’s data
  • Regulatory fines and lawsuits from affected customers in the event of a data breach

Based on an analysis of typical pricing for cyber liability insurance policies for businesses in the NAICS 333618 industry, the estimated average annual premium would be $5,000-$7,000. This pricing is derived from considering the industry risk profile, typical revenue levels, and common policy limits/deductibles chosen. Businesses in this industry deal with machinery and industrial equipment, so they are at higher risk of cyber attacks and data breaches that could disrupt operations or damage proprietary designs/plans. The estimated premium range provides coverage of $1-3 million in limits with a $25,000 deductible.

Estimated Pricing: $5,000-$7,000

Umbrella Insurance

Umbrella insurance provides an important additional layer of protection for businesses in high-risk industries like other engine equipment manufacturing. By covering claims above primary policy limits, umbrella insurance helps protect a company’s assets and owners from expensive lawsuits or damage awards. The estimated average annual cost for an umbrella insurance policy for a business in the Other Engine Equipment Manufacturing industry with NAICS code 333618 would be $4,500. Umbrella insurance can help protect these businesses from high-risk lawsuits related to product liability, defective manufacturing, injuries on the work site, and more by providing crucial protection against lawsuits with massive liability claims that could bankrupt a smaller business.

Category List
Benefits
  • Protects assets from judgements that exceed primary policy limits
  • Provides additional liability coverage above standard business insurance limits
  • Covers legal defense costs for lawsuits beyond primary coverage amounts
  • Protects personal assets of business owners and shareholders from business-related claims
  • Covers liability risks not included in primary policies, such as pollution events
  • Extends coverage for risks like negligent hiring or retention
  • Covers claims that fall under multiple policies with overlapping coverage
Use Cases
  • Protecting against claims exceeding primary insurance limits
  • Providing liability protection across multiple policies (general liability, automobile, etc.) in one coverage
  • Covering legal costs and damages awarded from lawsuits
  • Protecting business owners and executives from personal liability lawsuits related to business operations
  • Protecting against high-value product liability or defective product claims related to manufacturing equipment
  • Providing higher liability limits needed for larger scale business operations in this industry

Based on average claims data and risks for businesses in the Other Engine Equipment Manufacturing industry with NAICS code 333618, the estimated average annual pricing for an umbrella insurance policy would be $4,500. This estimate was derived by looking at average liability risks and claims amounts for this industry type and factoring in the average assets and revenues of businesses in this category.

Estimated Pricing: $4,500

Conclusion

Proper insurance selection helps manufacturers in NAICS 333618 industry shield their business from unpredictable events while ensuring operations can continue smoothly. Taking time to understand your unique risks and comparing coverage options allows selection of policies tailored to your needs. Maintaining strong risk controls through training, safety programs and technology also helps lower insurance costs over the long run.

Frequently Asked Questions

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