Top Business Insurance Options for Motor and Generator Manufacturing Companies with NAICS Code 335312

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This article covers the key business insurance options motor and generator manufacturing companies should consider and get quotes for to protect their business, employees, assets and customers.

Key Takeaways

  • General liability insurance protects against third-party injury and property damage claims
  • Commercial property insurance covers repairs/replacement of facilities and equipment after losses
  • Commercial auto insurance covers vehicles used for deliveries, service calls, and transporting goods
  • Commercial umbrella insurance provides additional liability coverage beyond primary policies
  • Workers compensation covers medical costs and lost wages for job-related employee injuries
  • Commercial inland marine insures equipment, tools, materials during transit or off-premises use
  • Product liability protects against costs of lawsuits over defective products causing harm
  • Commercial cyber liability covers costs of data breaches, ransomware, system outages

Introduction

As a manufacturer of motors and generators, it’s important to protect your business from unexpected risks and losses. Various types of commercial insurance policies are essential to maintain financial stability and continuity of operations should incidents occur.

General Liability Insurance

General liability insurance provides protection for motor and generator manufacturing businesses from costly legal claims and expenses arising from injuries to others or damage to their property. It covers a variety of incidents and risks associated with operating in this industry. Some key benefits of general liability insurance for businesses in this industry include protecting against liability claims from injuries occurring on premises, from defects in products, from damages to third party property, and from incidents during delivery or transportation of goods. Pricing for general liability insurance for businesses in this industry typically ranges from $3,000 to $5,000 annually based on factors like company size, sales, number of employees, loss history, and risk level associated with manufacturing activities.

Category List
Benefits
  • Protects against third-party bodily injury and property damage claims
  • Covers legal costs if a customer sues for damages or injuries
  • Protects physical assets like machinery, buildings, and inventory
  • Provides coverage for on-site accidents and events
  • Covers liability from defective products that cause property damage or bodily harm after sale
  • Insures against pollution and environmental damage on manufacturing sites
  • Protects reputation by ensuring proper compensation for issues
Use Cases
  • Protection against liability claims from injuries that occur on premises
  • Protection against liability claims from defects in products
  • Protection against liability claims from damages to third party property
  • Protection against liability claims from incidents during delivery or transportation of goods

Based on industry data and standard pricing models, the estimated average annual pricing for general liability insurance for businesses in the motor and generator manufacturing industry (NAICS code 335312) is around $3,000-$5,000. This pricing range takes into account factors like company size, annual sales, number of employees, loss history, and risk level associated with manufacturing activities. The final price offered can vary depending on the insurance carrier and individual underwriting review.

Estimated Pricing: $3,000-$5,000

Commercial Property Insurance

Commercial property insurance provides important financial protection for businesses in the motor and generator manufacturing industry. It helps ensure facilities, equipment, inventory and other operational assets can be repaired or replaced after uninsured losses to allow business continuity. Based on the pricing information provided, the average annual cost for commercial property insurance for businesses in this industry is estimated to be $2.50 per $100 of insured property value. This price factors in the unique risks associated with operating machinery, equipment breakdowns and potential property damage from manufacturing activities onsite.

Category List
Benefits
  • Protection against property damages and losses from fire, water damage, and other disasters
  • Reimbursement for costs of property repairs or replacement after a covered loss
  • Liability coverage in case someone is injured on your property
  • Business interruption insurance to cover lost income if your facility is unusable after a covered loss
  • Coverage for theft or vandalism of business property
  • Replacement cost coverage to repair or rebuild your property without deductions for depreciation
  • Deductible options to lower your premium costs
Use Cases
  • Protection against property damage from fires, explosions, storms and other disasters
  • Coverage for equipment breakdown like machinery failures and electrical problems
  • Liability coverage in case someone gets injured on your property
  • Business interruption insurance to continue paying operating expenses if your facility is unusable
  • Coverage for property in transit like equipment being delivered or inventory being shipped

Based on industry benchmarks, the estimated average annual pricing for commercial property insurance for businesses in the motor and generator manufacturing industry (NAICS Code: 335312) is around $2.50 per $100 of insured property value. This price was estimated using factors like the risks associated with machinery/equipment breakdown, potential for property damage from manufacturing accidents/malfunctions, as well as general property risks from fire, water, theft, etc. being carried out on manufacturing premises.

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

Commercial Auto Insurance

Commercial auto insurance is an important coverage for motor and generator manufacturing businesses (NAICS Code 335312) that rely on company vehicles to transport parts, deliver finished goods, and provide on-site service. The reference outlines the top benefits like liability protection, physical damage coverage, and medical payments coverage. It also describes common use cases like covering service vehicles and delivery trucks. Estimated average annual pricing of $1,500 per vehicle is provided to help businesses understand typical costs. The overview gives businesses in the industry valuable information on how commercial auto insurance can protect their operations and an idea of potential pricing.

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
  • Coverage for rental vehicles
  • Reduced legal and administrative costs
Use Cases
  • Cover vehicles used to transport parts/components between facilities
  • Cover vehicles used for deliveries to customers
  • Cover service vehicles used by technicians for repairs/maintenance

Based on industry analysis, the average pricing for commercial auto insurance for businesses in the motor and generator manufacturing industry (NAICS Code: 335312) is around $1,500 per vehicle per year. This pricing took into account factors like the type of vehicles used, average miles driven, safety records, number of vehicles. The risk profile for this industry is moderate compared to some other manufacturing industries.

Estimated Pricing: $1,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides added liability protection above an organization’s primary insurance policies. It helps cover gaps left by general liability, auto, workers’ compensation and other standard coverage.

Some key benefits of commercial umbrella insurance for motor and generator manufacturers include protecting personal assets from large liability claims, covering risks not covered by primary policies like pollution and cyber incidents, and providing additional liability limits. It also broadens coverage territory and includes certain enhancements over primary policies.

Category List
Benefits
  • Provides additional liability coverage above your primary liability insurance limits
  • Protects your personal assets from most lawsuits and liability claims that exceeds your primary liability insurance limits
  • Covers gaps left by your general liability, commercial auto, workers compensation and other primary policies
  • Covers against uninsurable risks like pollution, mold and silica exposure
  • Broadens coverage territory so you have protection wherever you do business
  • Provides seamless coordination between your primary policies and umbrella coverage
  • Often includes coverage enhancements not provided by your primary policies, like certain criminal defense reimbursement
  • Premiums are often quite affordable relative to the significant added protection
  • Covers brand reputation damage and restoration expenses in the event of a major crisis or liability incident
  • Insures against certain cyber risks and data breaches not covered under general liability
  • Helps ensures your business remains lawsuit-proof and financially stable by plugging gaps in your standard insurance program
Use Cases
  • Protect the company from large liability claims exceeding primary liability policy limits
  • Provide additional liability limits over primary insurance policies like commercial general liability, auto liability, employers liability
  • Cover punitive damages awards not normally covered by standard liability policies

Based on average data, commercial umbrella insurance pricing for businesses in the motor and generator manufacturing industry (NAICS code 335312) is usually around $1.50-$3.00 per $1,000 of covered liability, above the primary general liability limits, which are often $1 million. Factors like claims history, operations, and location would impact the final price. For a business with $1 million in primary coverage, $5 million in umbrella limits, no losses in the past 5 years, the estimated annual premium would be $7,500-$15,000.

Estimated Pricing: $7,500-$15,000

Workers Compensation Insurance

Workers’ compensation insurance is an essential risk management tool for motor and generator manufacturing businesses. It provides coverage for medical expenses, lost wages, liability protection and other benefits in the event an employee is injured on the job. The average estimated cost for workers’ compensation insurance in this industry is $2.50 per $100 of payroll. Common injury claims in this sector involve cuts, burns, repetitive strain and accidents involving heavy machinery. Having insurance can help cover costs associated with these risks and defend against potential lawsuits. It is particularly important for this industry due to the hazards of operating machinery, working with hazardous materials, and other manufacturing processes.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Covers a portion of lost wages if an employee cannot work due to a job-related injury or illness
  • Protects the company from liability if an employee is injured and decides to sue the employer
  • Required by law in all states
  • Provides return-to-work programs and rehabilitation services to help injured employees recover and go back to being productive members of the workforce
  • Offers discounted rates for companies with good safety records, incentivizing injury prevention best practices
  • Reduces turnover by helping injured employees return to their roles
Use Cases
  • Cover costs of injuries or illnesses of employees related to their job duties like cuts, burns and repetitive strain injuries from working on manufacturing equipment
  • Cover costs of claims from employees being exposed to hazardous materials during manufacturing processes
  • Cover lost wages, medical treatments and rehabilitation costs for employees suffering serious injuries like loss of limb from manufacturing accidents
  • Cover liability costs if an employee is injured or becomes ill due to unsafe or hazardous working conditions

Based on national average rates, the estimated average pricing for workers compensation insurance for businesses in the motor and generator manufacturing industry (NAICS 335312) would be around $2.50 per $100 of payroll. This rate is derived from risk rating and experience modification factors specific to injuries and claims in this manufacturing industry, which involves activities like welding, assembly, and use of heavy machinery that present physical risks to employees.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Inland Marine Insurance

Commercial inland marine insurance provides coverage for equipment, machinery, tools, supplies and inventory used in the operations of motor and generator manufacturing businesses. It protects these valuable physical assets while they are in transit or temporarily located away from the main facility. Coverage includes protection against accidents, natural disasters, and theft. It also insures newly acquired property before being formally added to the policy and provides worldwide coverage for items shipped internationally. Common use cases for this industry include insuring machinery, electronics, prototypes, raw materials and finished goods during transit and off-site use.

Category List
Benefits
  • Provides coverage for equipment, machinery, tools, materials and supplies used in your operations while they are in transit or at your facility
  • Protects against losses from accidents like fires, explosions and natural disasters like floods and earthquakes
  • Covers theft of covered property
  • Covers damage to covered property
  • Covers newly acquired equipment and property for a set period of time before needing to be added to the policy
  • Includes coverage for property in transit over land, air or water
  • Provides worldwide coverage for property in transit
Use Cases
  • Coverage for machinery, equipment and tools used in manufacturing and production
  • Coverage for electronic equipment like computers used for design, engineering and operations
  • Coverage for prototype products and samples during testing, demos and transport
  • Coverage for raw materials, parts and components during shipping and storage
  • Coverage for finished goods and products during domestic shipping within the US

Based on industry analysis, the average cost for commercial inland marine insurance for businesses in the motor and generator manufacturing industry is around $1.50 per $100 of equipment value. This price is derived from typical equipment values and loss ratios for this industry. Most insurers will calculate the final premium based on specific property schedules and loss histories provided.

Estimated Pricing: $1.50/100

Product Liability Insurance

Product liability insurance is an important protection for businesses in the motor and generator manufacturing industry (NAICS 335312). It helps cover costs associated with injuries, property damage, defective products, recalls, and lawsuits that could arise from unforeseen manufacturing issues. Given the nature of their products, motor and generator manufacturers face risks if defects occur, even with quality control processes. Product liability insurance provides financial protection and ensures they can continue operating if issues come up. It is estimated the average annual premium for a company in this industry with $10 million revenue would be $30,000.

Category List
Benefits
  • Protects against costs of lawsuits if a product is defective and causing injury, illness or property damage
  • Covers legal fees and costs if a lawsuit occurs
  • Pays damages if the company is found liable for injuries caused by defective products
  • Protects company reputation and branding if a defective product causes harm
  • Provides peace of mind in knowing the business is financially protected from unforeseen events
  • Allows the company to maintain positive customer relationships even if problems arise
  • Ensures the company can continue operating smoothly in the event of a lawsuit from an unforeseen product issue
Use Cases
  • Cover costs in the event that a product defect causes injury, illness or property damage
  • Cover legal defense costs if a customer files a product liability lawsuit
  • Cover costs associated with product recalls due to safety issues
  • Cover costs related to legal claims alleging inadequate warnings or instructions came with a product

Based on industry reports, the average annual pricing for product liability insurance for businesses in the motor and generator manufacturing industry (NAICS 335312) is around $3 per $1,000 of revenue. This pricing is derived based on risk factors such as the types of products manufactured, safety records, number of claims in the past, etc. For a business with $10 million in annual revenue, their estimated annual product liability insurance premium would be $3 x $10,000 = $30,000.

Estimated Pricing: $30,000

Commercial Cyber Liability Insurance

Commercial cyber liability insurance can help protect motor and generator manufacturing businesses from costs associated with data breaches, cyber attacks, and technology failures by reimbursing forensic investigations, notification expenses, damages to third parties, and more. Top benefits of this insurance for these businesses include covering legal expenses from privacy breach response requirements, protecting against third party claims from data breaches and system failures, reimbursing costs of credit monitoring and ransomware demands, and costs of network disruptions from cyber attacks. As manufacturers of motor and generators often work with sensitive customer and technical information, they are at risk of cyber incidents that could result in data breaches, ransomware infections or system outages. Commercial cyber liability insurance can help cover the costs of responding to incidents, as well as any legal and regulatory fallout. It can also protect the business from third party claims in the event customer data is compromised due to insufficient security practices. Estimated annual premiums for this industry range from $5,000 to $15,000 depending on company size and cybersecurity programs.

Category List
Benefits
  • Covers legal expenses and costs associated with privacy breach response and notification requirements
  • Protects against third party claims for damages from data breaches, system failures, security failures, etc.
  • Covers costs of forensic investigations, credit monitoring for affected individuals after a breach
  • Covers cyber extortion costs like ransomware demands
  • Covers lawsuits alleging negligence leading to a cyber event
  • Reimburses lost income due to network disruptions from cyber attacks
  • Covers brand damage and reputational harm costs after a cyber attack
  • Includes coverage for contractual liability if a third party is involved in a cyber attack on the business
Use Cases
  • Data breach or cyber attack resulting in the theft or loss of confidential customer, employee or company information
  • Ransomware attack or malware infection encrypting systems and demanding ransom to regain access
  • Loss of income or revenue due to a system outage or network disruption caused by a cyber incident
  • Costs of notifying customers and providing credit monitoring in the event of a data breach
  • Legal costs and fines from regulatory agencies for failure to secure personal information
  • Third party liability claims for failing to protect sensitive data provided by customers or partners

Based on typical pricing models for cyber liability insurance and considering risk factors such as industry exposure, company size and revenue, annual cyber insurance premiums for motor and generator manufacturing companies with NAICS code 335312 tend to be in the range of $5,000 to $15,000 per year. Larger companies with over $100 million in annual revenue can expect to pay closer to $15,000 while smaller companies under $10 million in revenue are usually quoted around $5,000. Pricing also depends on specific risk control measures and cybersecurity programs the company has implemented.

Estimated Pricing: $5,000 – $15,000

Conclusion

Taking the time to understand your unique insurance needs and getting quotes from multiple carriers will help you select the right combination of coverages at a competitive price. Proper insurance planning is a key part of any risk management strategy for motor and generator manufacturing companies.

Frequently Asked Questions

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