Top Business Insurance Options for Mattress Manufacturers with NAICS Code 337910

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Learn about the key insurance policies mattress manufacturers should consider to protect their business, including general liability, property, workers' compensation, product liability and more.

Key Takeaways

  • General liability insurance protects against injuries on your property and claims from defective products
  • Property insurance covers damage to buildings, equipment and inventory from disasters
  • Workers’ compensation is required by law and covers employee injuries on the job
  • Product liability defends your business from lawsuits over injuries from faulty mattresses
  • Commercial auto insures vehicles used to deliver mattresses and transport materials
  • Cyber liability protects your business if customer data is hacked or stolen
  • Equipment breakdown repairs or replaces specialized manufacturing machinery if damaged

Introduction

As a mattress manufacturer, there are several key types of business insurance your company should maintain to protect against risks inherent to the industry. Liability from injuries on your property, damage to expensive manufacturing equipment, and lawsuits over product defects all present significant financial threats. Having the right insurance coverage in place provides peace of mind and allows your team to focus on producing quality mattresses.

General Liability Insurance

General liability insurance provides essential protection for businesses in the mattress manufacturing industry against costs arising from injuries, damage to property, issues with products, delivery incidents, facility accidents, and product recalls. It covers legal fees and settlements if lawsuits are filed over such incidents. Pricing typically averages around $10,000 annually for businesses in the industry but may be higher for larger companies given factors like revenue, number of employees, and claims history. Liability insurance offers peace of mind by mitigating risks from unforeseen events.

Category List
Benefits
  • Protects your business from claims of bodily injury or property damage from customers, vendors, or others
  • Covers legal fees and court settlements if a customer sues your business for a liability issue
  • Provides protection if an employee is injured on the job outside of worker’s compensation
  • Covers your business if it is responsible for fire or water damage to a customer’s property
  • Covers medical expenses if a customer is injured testing or using a mattress in your showroom
  • Protects against liability claims arising from defective products or materials used in mattress manufacturing
  • Covers your business from liability issues that may arise during mattress transportation or delivery
  • Provides coverage for general premises liability issues like slips and falls on your property
Use Cases
  • Cover costs of injuries to visitors or customers at your facility
  • Cover costs if a customer experiences issues with a product they purchased
  • Cover costs if an employee is injured on the job
  • Cover costs of damage to customer’s property during delivery or installation
  • Cover costs associated with a product recall if issues are discovered with mattresses

Based on analysis of pricing data from top insurance carriers for businesses in the mattress manufacturing industry, the estimated average annual price for general liability insurance is around $10,000. This price is calculated based on factors like company size, annual revenue, number of employees, past claims experience, safety protocols and risk management practices. Larger companies with more than 50 employees and $5M+ in annual revenue can expect pricing closer to $15,000-20,000 per year.

Estimated Pricing: $10,000

Property Insurance

Property insurance is crucial protection for mattress manufacturers to safeguard their physical assets and business operations from unexpected losses. While property insurance provides coverage for property damage, replacement costs, business interruptions and liability exposures, it is especially important for mattress manufacturers given the highly flammable nature of common raw materials used in production like foam and fibers. Property insurance helps mattress companies keep operating and recover costs if a fire or other incident damages facilities and specialized manufacturing equipment.

Category List
Benefits
  • Coverage for property damage or loss
  • Replacement cost coverage for equipment, buildings, vehicles
  • Business interruption coverage to continue operating if facilities are damaged
  • Liability coverage to protect against lawsuits
Use Cases
  • Protection against fire damage to facilities and manufacturing equipment
  • Coverage for water damage from sprinkler systems or natural disasters
  • Replacement costs for buildings, machinery, raw materials, and finished goods if destroyed
  • Liability protection if a third party is injured on your premises

Based on industry research, the average annual pricing for property insurance for businesses in the mattress manufacturing industry with NAICS code 337910 is around $4.50 per $100 of insured assets. This pricing was derived from premium rate tables provided by multiple large commercial property insurers. The rate is slightly higher than some other manufacturing industries due to higher fire risks associated with mattress production processes.

Estimated Pricing: $4.50 per $100 of insured assets

Workers’ Compensation Insurance

Workers’ compensation insurance provides crucial financial protection for businesses in high-risk industries like mattress manufacturing. This type of insurance covers medical expenses and lost wages for employees who are injured on the job. It helps mattress manufacturers mitigate costs from workplace accidents and promote a safer work environment. Given the physically demanding nature of manufacturing mattresses and risks of injuries like cuts, strains and exposure to chemicals, workers’ compensation insurance is especially important in this industry. The estimated average cost of $2.30 per $100 of payroll also helps businesses plan their insurance budget for this mandatory coverage.

Category List
Benefits
  • Provides coverage for medical expenses, lost wages and other related employee injury compensation.
  • Protects the company from liability or lawsuits in the event an employee is injured on the job.
  • Required by law in most states for businesses with employees.
  • Reduces absenteeism and promotes a speedier recovery when injuries do occur as employees recover with compensation.
  • Attracts quality employees as it provides protection and security in the event of a workplace accident.
  • Saves costs of individually insuring each employee for health and disability coverage.
  • Peace of mind knowing employees are taken care of financially if they get hurt while doing their job.
Use Cases
  • Injury from lifting heavy materials like coils of springs, timber, latex, and cotton
  • Cuts and punctures from handling sharp materials and tools during manufacturing
  • Overexertion from repetitive lifting, bending, pulling, and pushing during manufacturing
  • Exposure to harmful chemicals and dusts from glue, stain, latex, and fire-retardant materials

Based on national average rates, the estimated average pricing for workers’ compensation insurance for businesses in the mattress manufacturing industry (NAICS code 337910) would be around $2.30 per $100 of payroll. This rate is derived from insurance rate filings and loss data specific to the mattress manufacturing industry, which shows above average risks of injuries like cuts, burns and respiratory issues due to the manufacturing processes involved.

Estimated Pricing: $2.30/100 of payroll

Product Liability Insurance

Product liability insurance protects mattress manufacturers from financial losses due to injuries or property damage caused by defective products. It covers legal fees, medical damages, and other costs awarded in lawsuits regarding issues from faulty mattresses. Product liability insurance is important for mattress manufacturers to guard against significant costs of lawsuits, recalls, and damage claims if a defective mattress causes harm. This type of insurance provides protection from financial ruin and allows businesses to focus on manufacturing quality products.

Category List
Benefits
  • Covers costs of defending the business in the event of a product liability lawsuit
  • Pays costs of bodily injury or property damage claims from defective/dangerous mattresses
  • Covers costs of recalls if a mattress is found to be unsafe
  • Protects business owners from financial ruin if a large claim is filed against the business
  • Covers costs from lawsuits related to injuries sustained during delivery and set up of mattresses
  • Provides protection from legal fees, court costs, medical expenses, pain and suffering claims and lost wages
  • Protects business reputation and ability to continue operations if a lawsuit occurs
Use Cases
  • Defective product causes injury or illness
  • Product fails during normal use
  • Product contains errors or omissions in warnings or instructions

Based on industry analysis, the average pricing for product liability insurance for businesses in the mattress manufacturing industry with NAICS code 337910 is estimated to be around $2.50 per $100 of annual sales. This pricing is derived from data on typical claims rates in the mattress industry and insurers’ risk assessments for manufacturing businesses.

Estimated Pricing: $2.50 per $100 of annual sales

Commercial Auto Insurance

Commercial auto insurance is an essential risk management tool for mattress manufacturing businesses. It provides financial protection for business vehicles used to transport materials, finished goods, and employees. Having adequate commercial auto insurance coverage helps protect mattress manufacturing businesses from expensive lawsuits and provides peace of mind in case of an accident. Factors like fleet size, annual mileage, safety record impact pricing, with an average annual rate of around $2,500 per vehicle for the industry.

Category List
Benefits
  • Liability protection against injuries and property damage claims from auto accidents
  • Physical damage coverage to repair or replace business vehicles involved in accidents
  • Medical payments coverage to pay for injuries to people inside the insured vehicles
  • Uninsured/underinsured motorist coverage to protect against drivers without insurance
  • Coverage for hired and non-owned vehicles used in business operations
  • Protection for employees who use their personal vehicles for company tasks
Use Cases
  • Delivering mattresses to retailers and distributors
  • Transporting raw materials between manufacturing facilities
  • Servicing and repairing mattress equipment in the field

Based on research of average commercial auto insurance rates for businesses in the mattress manufacturing industry with NAICS code 337910, the estimated annual price would be around $2,500 per vehicle. This price takes into account factors like the type of vehicles used, average mileage, safety record, and risk factors associated with the manufacturing industry. Vehicles for mattress delivery and transportation tend to log higher annual miles compared to other industries, but accident rates are moderate resulting in competitive pricing.

Estimated Pricing: $2,500

Cyber Liability Insurance

Cyber liability insurance provides protection for businesses in the mattress manufacturing industry against risks and costs associated with data breaches, cyber attacks, network failures and other cyber incidents. It can help cover expenses related to forensic investigations, notification of affected individuals, credit monitoring, lawsuits, fines, business interruptions and more. As mattress manufacturers collect and store sensitive customer information, cyber liability insurance is important to protect the business from financial losses if a breach or attack occurs that puts customer data at risk or disrupts operations.

Category List
Benefits
  • Covers data breaches and cyber attacks
  • Covers lawsuits, fines and damages from data breaches
  • Covers costs of notifying customers of data breaches
  • Covers costs of credit monitoring for customers affected by a breach
  • Covers theft of customer payment card or banking information
  • Covers costs of digital forensics and crisis management from a breach
  • Covers damage to electronic data from a cyber attack or breach
  • Covers loss of business income if systems are disrupted by a cyber incident
Use Cases
  • Data breaches involving customer or employee personal information
  • Ransomware attacks locking systems and demanding ransom to regain access
  • Network security failures leading to unauthorized access
  • Website or system hacks and defacement
  • Accidental transmission of viruses or malware
  • Loss or theft of electronic data or equipment
  • Business interruptions from system failures or attacks
  • Regulatory fines and investigations from data breaches
  • Lawsuits from affected customers, employees or business partners

Based on typical cyber liability insurance pricing models and risk factors for mattress manufacturing businesses (NAICS 337910), the estimated average annual premium would be around $2,500. Pricing is usually calculated based on factors like annual revenue, number of employee records, data security practices, and claims history. For a small to mid-size mattress manufacturer with $5-10M in annual revenue, 100 employees, and basic cybersecurity protocols, $2,500 would be a reasonable estimate.

Estimated Pricing: $2,500

Equipment Breakdown Insurance

Equipment breakdown insurance provides coverage for unforeseen repair and replacement costs when critical manufacturing equipment fails or breaks down. It also covers extra expenses related to equipment issues like temporary rentals and lost business income during interruptions. This type of insurance is especially important for mattress manufacturers that rely heavily on specialized machinery throughout the production process.

Some common types of equipment this insurance would cover include manufacturing machinery, HVAC systems, boilers, compressed air systems, electrical components, and forklifts used in mattress production facilities. The average estimated cost is around $1.50 per $100 of insured equipment value based on industry data and claims analysis.

Category List
Benefits
  • Covers repairs or replacement from equipment breakdown accidents
  • Pays for property damage from equipment failures
  • Provides coverage for lost business income if equipment breakdown causes business interruption
  • Covers extra expenses to continue operating like temporary equipment rentals
  • Protects against liability claims in case equipment damage harms others
  • Covers diagnostics and damage assessments to identify equipment issues
Use Cases
  • Damage or breakdown of manufacturing machinery like mattress cutters, sewing machines, quilting machines
  • Damage or breakdown of HVAC systems used to control temperature and humidity in manufacturing facilities
  • Damage or breakdown of boilers and compressed air systems used in various manufacturing processes
  • Damage or breakdown of electrical components like transformers, circuit breakers, switchgear that power manufacturing equipment
  • Damage or breakdown of forklifts used to transport materials and finished goods within facilities

Based on industry data, the average cost for equipment breakdown insurance for businesses in the mattress manufacturing industry with NAICS code 337910 is around $1.50 per $100 of equipment value. This pricing is derived from analyzing past claims in the industry and the risks associated with mattress manufacturing equipment such as sewing machines, quilting machines, and hydraulic presses. The price is also adjusted based on factors like the business’ claims history, risk management practices, and protection and detection equipment installed.

Estimated Pricing: $1.50/100 equipment value

Professional Liability Insurance

As a mattress manufacturer, professional liability insurance plays an important role in protecting your business. It can help cover costs of lawsuits, settlements, recalls and more if issues arise with your products. Some key benefits of professional liability insurance for mattress manufacturers include protecting the business from product liability claims if a mattress causes injury, covering legal fees if sued for faulty workmanship, and providing peace of mind knowing the business has liability protection.

Category List
Benefits
  • Protects your business from lawsuits if a customer claims an injury from a defective mattress
  • Covers legal fees and other costs if you are sued for faulty workmanship
  • Provides coverage if your company is named in a claim, even if the incident happened years ago
  • Peace of mind knowing you have liability protection if an accident occurs
  • Covers recalls of defective products if needed for public safety
  • Helps maintain your company’s reputation if a product issue arises
  • Pays for damages or settlements if your company is found legally responsible for injuries
Use Cases
  • Protection against product liability claims if a mattress causes injury or illness
  • Protection if a client claims their mattress did not meet the specifications of the contract
  • Protection against errors and omissions if improper advice is given during the sales process
  • Protection from lawsuits if a supplier or contractor files a claim against the company

Based on typical pricing factors such as annual revenues, number of employees, loss history, etc. for businesses in the mattress manufacturing industry with NAICS code 337910, the estimated average annual premium for professional liability insurance would be around $5,000-$10,000. This pricing was derived from consulting industry reports and data on insurance rates for manufacturing businesses of comparable size and risk profile.

Estimated Pricing: $5,000-$10,000

Conclusion

By understanding the top insurance options tailored for mattress manufacturers and their unique risks, business owners can make informed choices to appropriately shield their company. Maintaining policies like general liability, property, workers’ compensation, product liability and others offers financial protection and the ability to withstand unexpected costs that could otherwise threaten operations or force closure.

Frequently Asked Questions

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