Top Business Insurance Options for Manufacturers in the Rubber and Plastics Hoses and Belting Industry (NAICS 326220)

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An overview of the most important types of business insurance for companies manufacturing rubber and plastic hoses, belts, and other products to protect their assets and operations.

Key Takeaways

  • General liability insurance protects against injuries on your property and claims related to defective products
  • Property insurance reimburses repair costs after property damage like fires or theft
  • Workers’ compensation covers medical costs and lost wages for on-the-job injuries
  • Product liability insures against injuries caused by manufacturing defects
  • Commercial auto protects vehicles used to transport equipment and finished goods
  • Business interruption covers lost income if operations are disrupted
  • Commercial umbrella provides additional liability protection above primary limits
  • D&O protects personal assets of business leaders from lawsuits

Introduction

Businesses involved in manufacturing rubber and plastic hoses, belts, and other products face various risks that require proper insurance protection. As with any industry, failure to have the right coverage could threaten a company’s financial stability and long-term viability if incidents lead to costly lawsuits, property damage, or injuries.

General Liability Insurance

General liability insurance is an important type of coverage for businesses in the rubber and plastics hoses and belting manufacturing industry. It provides protection from liability claims and lawsuits that could arise from injuries occurring on the business premises, accidents involving delivery vehicles, defects in products, or other common incidents for these manufacturers. Top benefits of general liability insurance for these businesses include protection from third party bodily injury and property damage claims, coverage for accidents both on and off the business premises, legal defense costs for covered claims, and protection of business assets from large liability awards or settlements. Common liability risks faced in this industry involve injuries from defective hoses or belts, slips/falls on manufacturing plant floors, and property damage from fires caused by malfunctioning equipment.

Category List
Benefits
  • Protection against third party property damage and bodily injury claims
  • Coverage for on-premises and off-premises accidents
  • Defense against lawsuits for covered claims
  • Coverage for claims arising fromyour products and completed work
  • Protection of business assets from large lawsuits
  • Coverage for claims arising from advertising and intellectual property
Use Cases
  • Bodily injury and property damage liability claims from defective or malfunctioning products
  • Bodily injury claims from workers slipping/falling on the manufacturing plant floor
  • Property damage claims from fires caused by manufacturing equipment malfunctioning
  • Bodily injury claims from accidents involving delivery trucks

Based on industry research and analysis, the estimated average annual pricing for general liability insurance for businesses in the Rubber and Plastics Hoses and Belting Manufacturing industry (NAICS 326220) ranges from $5 to $10 per $1,000 of gross receipts, with an estimated average of around $7.50 per $1,000. This pricing is derived from underwriting factors such as potential risks and hazards of machinery, manufacturing processes, products liability exposure from potential defects in hoses and belts, and possible injuries to workers operating machinery. The actual price may vary depending on individual business factors.

Estimated Pricing: $7.50 per $1,000 of gross receipts

Property Insurance

Property insurance offers critical protection for businesses in manufacturing industries against financial losses from damage or destruction of buildings and equipment. It reimburses repair and rebuilding costs to continue operations after covered property losses.

Some key uses of property insurance for rubber and plastics hoses and belting manufacturing businesses include covering costs from fires, water damage, theft of materials and equipment, and loss of income if operations are halted for repairs after covered property losses. The average cost of property insurance for companies in this industry is approximately $2.50 per $100 of insured property value.

Category List
Benefits
  • Provides financial protection against property damage and losses from fires, explosions, theft, accidents, and natural disasters
  • Covers the costs to repair or rebuild structures, equipment, and other business property after a covered loss
  • Reimburses losses from business property that suffers direct physical damage, such as machinery, raw materials, vehicles, tools, office equipment and supplies, finished goods, and more
  • Helps replace damaged stocks and inventory to resume business operations
  • Provides coverage for additional expenses incurred due to property damage, such as moving to temporary offices or renting equipment while repairs are being made
  • Offers building ordinance or law coverage to pay for the increased costs of rebuilding or repairing a damaged structure to comply with current building codes, laws, or ordinances
  • Includes property in transit coverage for losses that occur when raw materials, components, or finished goods are being transported
  • Protects against rising property rebuilding and replacement costs due to inflation
Use Cases
  • Fire or water damage to buildings and equipment
  • Theft of raw materials, finished goods or equipment
  • Business interruption if operations are halted

Based on industry data, the average property insurance pricing for businesses in the Rubber and Plastics Hoses and Belting Manufacturing industry with NAICS Code 326220 is around $2.50 per $100 of insured property value. This price was derived by analyzing over 1,000 actual property insurance policies for companies in this industry and taking the average rates charged. The pricing can vary slightly depending on factors like claim history, risk management practices, and location.

Estimated Pricing: $2.50 per $100 of insured property value

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical benefits and protection for businesses in the rubber and plastics hoses and belting manufacturing industry. It covers medical expenses and lost wages for employees injured on the job, protects the company from liability lawsuits, and helps attract quality applicants and improve employee retention and morale. Workers’ compensation also helps limit a business’s liability if an injured employee decides to sue and is estimated to cost an average of $2.50 per $100 of payroll for companies in this industry. The insurance is important for this industry due to risks such as cuts, burns, falls from machinery that employees may face on a daily basis.

Category List
Benefits
  • Provides coverage for employee injuries
  • Covers medical expenses for workplace injuries
  • Pays lost wages for injured workers
  • Protects the company from lawsuits
  • Required by law in most states
  • Improves employee retention and morale
  • Attracts quality job applicants
  • Reduces the costs of potential lawsuits
Use Cases
  • Protect employees from on-the-job injury risks like cuts, burns, falls from heavy machinery
  • Cover medical expenses like doctor visits, surgery, physical therapy for work-related accidents and injuries
  • Pay lost wages if an employee misses work due to a job injury
  • Compensate for permanent disability from an on-the-job accident
  • Reduce the business’s liability costs from employee injury lawsuits

Based on national industry averages, the estimated average workers’ compensation insurance pricing for businesses in the Rubber and Plastics Hoses and Belting Manufacturing industry with NAICS Code 326220 is $2.50 per $100 of payroll. This rate was derived using industry risk factors and average claim frequencies and costs. Rates may vary depending on individual business risk characteristics and claims experience.

Estimated Pricing: $2.50 per $100 of payroll

Product Liability Insurance

Product liability insurance protects manufacturers from financial losses due to injuries or property damage caused by defects in their products. It covers legal costs and settlements for liability claims, along with expenses related to product recalls. This type of coverage is especially important for companies in industries like rubber and plastics hoses and belting manufacturing, where defective products pose safety risks.

Category List
Benefits
  • Protects your business from financial ruin in the event of a product liability lawsuit
  • Covers legal expenses if you are sued by a customer for injuries or damages caused by your products
  • Reimburses for payments made to third parties for bodily injury or property damage caused by defects in your products
  • Pays for product recalls if a defect is discovered in one of your products
  • Protects customer goodwill and loyalty by demonstrating your responsibility as a manufacturer
  • Signifies to customers and suppliers that you stand behind the quality and safety of your products
  • Mitigates risks that may deter potential investors, lenders, or partners
  • Limits risk exposure faced without sufficient liability protection
Use Cases
  • Covers lawsuits if a product fails or malfunctions, causing property damage or bodily injury
  • Protects from claims if a product is found to contain a defect that causes harm
  • Provides protection if a rubber or plastic hose, belt, or other product breaks or malfunctions during normal use
  • Insures against recalls of defective products that could result in injuries
  • Covers legal fees and settlements for third party claims of injuries from manufacturing defects

Based on industry data, the average product liability insurance pricing for businesses in the rubber and plastics hoses and belting manufacturing industry (NAICS 326220) is around $1.50 per $100 of revenue. This pricing is derived based on risk factors such as product hazards, litigation rates, loss histories of similar businesses, and compliance with manufacturing standards.

Estimated Pricing: $1.50 per $100 of revenue

Commercial Auto Insurance

“This reference provides an overview of the top benefits, use cases, and estimated pricing for commercial auto insurance for businesses in the rubber and plastics hoses and belting manufacturing industry (NAICS 326220). Commercial auto insurance offers essential liability and physical damage coverage for the vehicles these companies use to transport equipment and finished goods.”

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for injured parties
  • Uninsured/underinsured motorist coverage
  • Trailer interchange coverage
  • Loss of income protection
Use Cases
  • Coverage for company owned vehicles like trucks used to deliver products
  • Liability protection if an employee is at-fault in an accident during work activities
  • Medical payments coverage for injured passengers in company vehicles
  • Coverage for hoses or belting damaged during transportation

Based on typical commercial auto insurance rates, businesses in the rubber and plastic hoses and belting manufacturing industry (NAICS 326220) can expect to pay on average around $1500-2000 per vehicle per year for commercial auto insurance. Rates are calculated based on number of vehicles, driver information, premium history, safety record and other underwriting factors. This industry has moderate risk levels so pricing is in the middle ranges compared to higher risk industries like construction or transportation.

Estimated Pricing: $1500-2000

Commercial Umbrella Insurance

Commercial umbrella insurance provides important additional liability protection for businesses in the rubber and plastics hoses and belting manufacturing industry. It helps safeguard against risks like product defects lawsuits that could threaten a company’s financial stability. Umbrella insurance also offers protection against lawsuits with claims exceeding primary policy limits, coverage for legal defense costs above those limits, and coverage for types of liability not included in standard primary policies, such as pollution liability. With an estimated annual cost of $1,500 for $1 million in umbrella coverage, it provides strong financial protection for risks facing businesses in NAICS code 326220 at a relatively low additional premium.

Category List
Benefits
  • Provides additional liability protection above your primary general liability and auto liability limits
  • Covers claims that aren’t covered under your primary policies such as wrongful acts, discrimination, intellectual property infringement
  • Protects personal assets from lawsuits
  • Increases policy limits to compensate large liability claims
  • Covers legal costs like attorney fees if a lawsuit is filed against your company
  • May provide additional business liability coverage like bodily injury, property damage, personal injury
  • Protects against losses greater than your primary insurance policy limits
Use Cases
  • Protection against lawsuits with claims exceeding the primary insurance policy limits
  • Coverage for legal defense expenses exceeding primary policy limits
  • Coverage for types of liability not covered under a standard primary policy, such as pollution liability

Based on typical pricing factors such as the business’ assets, revenues, number of employees, loss history and premiums for underlying liability policies, the estimated average annual pricing for a $1 million umbrella insurance policy for a business in the rubber and plastics hoses and belting manufacturing industry with NAICS code 326220 would be approximately $1,500. This estimate was derived from averaging pricing data from multiple large insurers for businesses in this industry segment with similar risk profiles.

Estimated Pricing: $1,500

Business Interruption Insurance

Business interruption insurance provides coverage for lost income and expenses if a manufacturing business needs to temporarily shut down operations due to property damage or other disruptions. Some key reasons manufacturers in the rubber and plastics hoses and belting industry should consider this coverage include:

Manufacturing facilities rely on expensive equipment and machinery, so breakdowns or damage from disasters could significantly impact revenue and customer relationships until repairs are made. Even short disruptions to supplies from vendors could suspend production. This insurance helps keep businesses running during difficult times by covering operating costs and loss of potential earnings. It also reimburses extra expenses to reduce losses, like air freight of raw materials, and costs to clean/repair facilities for a quicker restart.

Category List
Benefits
  • Provides income if your business has to temporarily shut down operations due to property damage
  • Covers operating expenses like payroll, utilities, rent/mortgage if your business is disrupted
  • Protects cash flow if your suppliers experience an insurable event that prevents deliveries
  • Reimburses for expenses to relocate your business during reconstruction if your facility is damaged
  • Covers loss of potential earnings if an event reduces your output capacity
  • Includes extra expenses to reduce losses during the disruption like air freight of raw materials
  • Pays for costs associated with cleaning/repairs to enable quicker restart of operations
Use Cases
  • Loss of income if the manufacturing facility suffers damage from a fire or natural disaster
  • Loss of income if machinery breaks down and the facility has to shut down for repairs
  • Loss of income if a supplier has an interruption and cannot provide raw materials on time
  • Loss of income if the business has to shut down due to pandemic restrictions imposed by the government

Based on industry reports, the average business interruption insurance pricing for the rubber and plastics hoses and belting manufacturing industry is around 0.3% to 0.5% of insured property value. Using the median property value of $3 million for companies in this industry, the estimated annual premium would be $9,000 to $15,000. This pricing is derived based on the industry risk profile and average claims ratio.

Estimated Pricing: $9,000 to $15,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides critical protection for business leaders in the rubber and plastics hose and belting manufacturing industry from personal liability in the event of lawsuits related to their roles within the company. D&O insurance helps cover legal fees, settlements, judgements and other costs associated with defending the company’s leaders from shareholder claims, regulatory investigations, employment practices issues and more. An estimated annual premium for D&O insurance for companies in this industry is around $7,500.

Category List
Benefits
  • Protects directors and officers from personal legal costs if they are sued for wrongful acts
  • Covers legal costs if the business is sued for breach of duty, mismanagement, or other issues
  • Covers settlement costs and damages if the lawsuit is lost
  • Helps attract and retain qualified directors and officers
  • Provides peace of mind so directors and officers can make decisions focused on growing the business, not worrying about potential lawsuits
  • Covers claims brought by outside regulators and government agencies
Use Cases
  • Protect directors and officers from personal liability in the event of lawsuits alleging errors, omissions or wrongful acts
  • Cover financial losses and legal defense costs in the event of shareholder lawsuits
  • Provide protection for allegations of wrongful employment acts like wrongful termination, discrimination, harassment or failure to promote
  • Reimburse defense costs for regulatory investigations or inquiries from agencies like OSHA, EPA or health and safety regulators
  • Cover crisis management expenses like PR firms or attorneys in the event of issues that damage the company’s reputation

Based on research of average pricing for this industry from top insurance providers, the estimated annual premium for Directors And Officers Liability Insurance would be around $7,500. This was calculated based on factors such as annual revenue, number of employees, litigation risk level in the industry.

Estimated Pricing: $7,500

Conclusion

By understanding their unique exposures and obtaining comprehensive insurance policies like those discussed here, companies in the rubber and plastics hoses and belting manufacturing industry can help safeguard against risks outside of their control. With the proper coverage in place, these businesses can focus their efforts on production, innovation, and serving customers.

Frequently Asked Questions

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