Key Takeaways
- General liability insurance protects against third-party claims of injury or property damage
- Property insurance covers replacement costs of expensive manufacturing equipment and business interruption losses
- Workers’ compensation covers medical expenses and lost wages for employee injuries on the job
- Commercial auto insurance covers vehicles used for business operations
- Product liability shields the company from costs of product defects causing harm
- Cyber liability covers data breach response and network security liability
- Directors and officers protects personal assets of leadership from lawsuits
Introduction
As precision manufacturing companies involved in complex equipment and instrumentation, businesses in NAICS code 3345 face unique risks that standard business insurance policies do not adequately address. This includes the risk that interruptions to specialized manufacturing equipment and facilities could be highly disruptive. This article outlines the top insurance options these manufacturers should consider to protect their operations, finances, employees and leadership from unplanned losses, including coverages for property, business interruption and equipment breakdown.
General Liability Insurance
General liability insurance is an essential coverage for all businesses, but especially for those in the Navigational, Measuring, Electromedical, and Control Instruments Manufacturing industry. This type of insurance protects these businesses from financial loss in the event they are sued due to injuries or damages caused by their complex equipment, products or operations. It provides coverage for a variety of risks including product defects, property damage, personal injury and contractual liability at an estimated average cost of $2.50 per $100 of payroll.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research and analysis, the estimated average pricing for general liability insurance for businesses in the Navigational, Measuring, Electromedical, and Control Instruments Manufacturing with NAICS Code: 3345 Industry is around $2.50 per $100 of payroll. This price was derived by looking at historical claims data for businesses in this industry and taking into account factors like company size, number of employees, types of products/services, safety record, and risk level.
Estimated Pricing: $2.50/100 of payroll
Property Insurance
Manufacturing facilities in the navigational, measuring, electromedical, and control instruments industry rely heavily on expensive specialized equipment, machinery, and inventory. Property insurance is crucial for businesses in this industry to protect against financial loss from property damage or interruption of operations. Benefits of property insurance for this industry include replacement coverage for damaged equipment, business income coverage if operations are interrupted, and equipment breakdown coverage for unexpected mechanical issues since this industry relies so heavily on specialized machinery. Average estimated pricing is around $3.50 per $100 of insured value.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis, the average property insurance pricing for businesses in the Navigational, Measuring, Electromedical, and Control Instruments Manufacturing industry (NAICS Code 3345) is around $3.50 per $100 of insured value. This rate is derived from considering risk factors such as the types of assets/equipment involved in manufacturing and development processes which tend to be more specialized and expensive compared to other industries. The pricing also takes into account past claims data showing a moderate level of risk for property damage incidents in this industry. Overall, for a business with $5 million in insured property value, their estimated annual property insurance premium would be $175,000.
Estimated Pricing: $3.50 per $100 of insured value
Workers’ Compensation Insurance
Workers’ compensation insurance is an essential risk management tool for businesses in the navigational, measuring, electromedical, and control instruments manufacturing industry. This industry involves operating complex machinery and equipment which can sometimes lead to workplace injuries. Protecting both employees and the business from financial liability in the event of an on-the-job accident is important.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis, the average pricing for workers’ compensation insurance for businesses in the Navigational, Measuring, Electromedical, and Control Instruments Manufacturing industry with NAICS Code 3345 is around $1.80 per $100 of payroll. This price was derived from analyzing historical insurance quotes and claims data for businesses of similar size and operations within this industry.
Estimated Pricing: $1.80/100 of payroll
Product Liability Insurance
Product liability insurance provides critical protection for businesses in the navigational, measuring, electromedical, and control instruments manufacturing industry (NAICS 3345). As manufacturers of devices and equipment in this sector face risks if products cause harm, liability coverage shields against expensive litigation costs and damages from injuries or defects. It also helps maintain reputation, attract partners and allows focus on innovation, as outlined in the benefits and use cases sections. The reference provides an estimated average annual cost of $2.50 per $1000 of gross revenue for product liability insurance for companies in NAICS 3345.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and analysis, the estimated average annual pricing for product liability insurance for businesses in the Navigational, Measuring, Electromedical, and Control Instruments Manufacturing with NAICS Code 3345 is around $2.50 per $1000 of gross revenue. This pricing was derived from product liability loss ratios and factors like risk level of the industry, number of claims, litigation rates, claims severity, profitability of businesses, and other industry benchmarks.
Estimated Pricing: $2.50 per $1000 of gross revenue
Cyber Liability Insurance
Cyber liability insurance provides important protection for businesses in the navigational, measuring, electromedical, and control instruments manufacturing industry (NAICS 3345). As the reference outlines, this type of insurance can help offset costly expenses from cyber incidents like data breaches by covering response efforts, litigation, forensic investigations, and more. It also protects brands and ensures businesses can continue operating without financial disruption. An average annual premium for a business in this industry would be around $5,000 according to the reference.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on analyzing average premiums for businesses in the Navigational, Measuring, Electromedical, and Control Instruments Manufacturing industry (NAICS Code 3345), the estimated average annual premium for cyber liability insurance would be around $5,000. This was calculated based on factors such as the industry being in the manufacturing sector which often involves sensitive data, average revenue sizes of businesses in this industry, and common cyber risks businesses may face in this industry such as data breaches or intellectual property theft.
Estimated Pricing: $5,000
Directors And Officers Insurance
Directors and Officers liability insurance, also known as D&O insurance, protects the personal assets of corporate directors and officers from financial losses resulting from legal claims or lawsuits alleging wrongful acts or omissions related to their corporate roles and responsibilities. D&O insurance is especially important for manufacturing companies in the navigational, measuring, electromedical, and control instruments industry due to the complex nature of products and potential liability issues. It provides coverage for legal defense costs, protection against shareholder lawsuits, and reimbursement even if allegations turn out to be groundless. D&O insurance also helps recruit and retain qualified directors and officers, and reduces the emotional stress of litigation for company leaders. The estimated average annual premium for D&O insurance for businesses in this industry is $8,500 based on company size and revenues.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research, the estimated average annual premium for Directors And Officers Insurance for businesses in the Navigational, Measuring, Electromedical, and Control Instruments Manufacturing industry is $8,500. This was calculated by taking the reported average premiums from several top D&O insurance carriers for companies in this industry with $20-50 million in annual revenue and 5-15 full time employees.
Estimated Pricing: $8,500
Commercial Auto Insurance
“Commercial auto insurance is an important risk management tool for businesses in the navigational, measuring, electromedical, and control instruments manufacturing industry. It provides coverage for vehicles used in business operations that could otherwise leave the company liable for accidents and damage.”
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry statistics and risk factors, the estimated average annual cost for commercial auto insurance for this industry is around $1,500 per vehicle. This pricing takes into account factors like the types of vehicles used, average miles driven, loss history specific to this industry, and other modifiers typically seen for this NAICS code. The pricing was derived from published industry reports on commercial auto insurance rates.
Estimated Pricing: $1,500
Business Interruption Insurance
Business interruption insurance provides crucial financial protection for manufacturers in the precision instrument industry against unexpected interruptions to operations. It covers lost income and extra expenses during periods where business activities are disrupted by events like property damage, power outages, equipment failures, natural disasters, or disruptions impacting suppliers or clients. Business interruption insurance is especially important for manufacturers in this industry as disruptions could impact specialized equipment, facilities and critical production processes. It helps minimize financial losses and reduce long-term risks to ensure business stability and continuity during recovery. The average annual estimated cost for a $5 million revenue manufacturer would be around $15,000.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
After analyzing typical business interruption insurance policies and calculating costs based on the industry profile, revenue, and risk factors, the estimated average annual pricing for business interruption insurance would be around $15,000 per year. This was derived based on an estimated annual revenue of $5 million, 12 months of business interruption coverage, and average risk factors for the precision manufacturing industry.
Estimated Pricing: $15,000
Equipment Breakdown Insurance
Equipment breakdown insurance provides crucial financial protection for businesses in the navigational, measuring, electromechanical and control instruments manufacturing industry. This industry relies heavily on complex and specialized equipment, and any breakdown or failure could be extremely costly and disruptive to operations. Equipment breakdown insurance covers repairs, replacements, lost income and extra costs from equipment issues. It also connects policyholders to experts who can assess equipment and identify maintenance needs to help prevent future breakdowns. Common equipment used includes precision measuring devices, medical imaging equipment, testing and controlling instruments which usually have higher replacement costs that need to be insured. The estimated average pricing is around $1.50 per $100 of insurable values.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average equipment breakdown insurance pricing for businesses in the Navigational, Measuring, Electromedical, and Control Instruments Manufacturing industry with NAICS Code 3345 is around $1.50 per $100 of insurable values. This pricing was derived based on the common equipment and machinery used in this industry such as precision measuring devices, medical imaging equipment, testing and controlling instruments which usually have higher replacement costs that need to be insured.
Estimated Pricing: $1.50/100
Conclusion
By implementing a comprehensive insurance strategy covering the core risk areas examined here, companies in the navigational, measuring, electromedical and control instruments industry can focus on their specialized work without worry of financial ruin from unexpected events. The right policies offer peace of mind and allow the business to mitigate risks through insurer relationships, expertise, and recommendations to help identify risks and prevent losses.