Key Takeaways
- General liability insurance protects against lawsuits from injuries on the worksite or defective products
- Property insurance covers damage to buildings, equipment and inventory from disasters
- Workers’ compensation covers medical costs and lost wages for work-related injuries
- Commercial auto insures vehicles used for business
- Umbrella liability provides additional protection above primary limits
- Commercial Inland Marine insures equipment, tools and products during transit or off-site work
Introduction
Prefabricated metal building manufacturers face various risks to their business from potential lawsuits, property damage, injuries and losses when property/equipment is located away from the main premises or in transit. Maintaining proper insurance coverage plays a key role in protecting manufacturers financially from losses. This article covers the top types of business insurance businesses in this industry should consider.
General Liability Insurance
General liability insurance is an essential coverage for businesses in the prefabricated metal building and component manufacturing industry (NAICS 332311). It protects manufacturers from costly lawsuits if someone is injured on their worksite or by their products. Manufacturers in this industry face risks from injuries occurring during operations, products liability claims, and pollution or environmental damage. General liability insurance provides protection from a variety of lawsuits that manufacturers may face. The estimated average annual cost for general liability insurance for businesses in this industry is $4,000-$6,000 based on common risk factors.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and common factors such as number of employees, annual revenue, claims history, the estimated average annual pricing for general liability insurance for businesses in the Prefabricated Metal Building and Component Manufacturing industry (NAICS 332311) is around $4,000 – $6,000 per year. The pricing is usually determined based on having 20-100 employees and $5-10M in annual revenue. The pricing covers bodily injury and property damage liability, personal and advertising injury, medical expenses, etc. with an occurrence limit of $1-2M and an aggregate limit of $2-4M.
Estimated Pricing: $4,000 – $6,000
Property Insurance
Property insurance provides essential coverage and protection for businesses in the prefabricated metal building and component manufacturing industry. It protects their substantial investments and ensures financial security from losses due to hazards like fires, storms, floods and other disasters that could damage buildings, machinery, inventory and disrupt operations. Some key benefits include reimbursing repair/replacement costs, covering equipment breakdown, and ensuring lost income is covered if operations are disrupted. Common use cases where it applies include fire damage, weather damage, liability for injuries, reimbursing theft, and supporting repair/rebuilding after natural disasters. The estimated average annual pricing is around $2.50 per $100 of insured property value based on industry data and averages.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and average values, the estimated annual property insurance pricing for this industry would be around $2.50 per $100 of insured property value. This was derived from national industry averages, considering factors like claims history, risks of fire/weather damage to buildings/equipment, and insurance company rate filings for similar manufacturing industries.
Estimated Pricing: $2.50/$100
Workers’ Compensation Insurance
“Workers’ compensation insurance provides vital coverage and protections for employees and businesses in the prefabricated metal building and component manufacturing industry. This type of insurance addresses the risks that workers face on the job such as injuries from operating machinery and tools, lifting heavy materials, and exposure to industrial hazards. It also helps to comply with state laws, control costs from employee absences, and support employee retention and recruiting while demonstrating commitment to employees’ well-being.”
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average workers’ compensation rates for this industry, the estimated annual pricing would be around $6.50 per $100 of payroll. This rate was derived using payroll and loss data reported to the National Council on Compensation Insurance (NCCI) for businesses in this industry over the past 5 years. The rate also takes into consideration factors like employee duties and job descriptions, safety programs and records, and company size.
Estimated Pricing: $6.50/100 of payroll
Commercial Auto Insurance
Commercial auto insurance plays an important role for businesses in the prefabricated metal building and component manufacturing industry. It helps protect their financial interests and mitigate risks associated with vehicle usage that is common in transporting materials and equipment for this type of work. The reference outlines the top benefits of commercial auto insurance for this industry such as liability coverage, damage to vehicles, medical payments, uninsured motorist protection, and more. It also describes the most common use cases where commercial auto insurance applies including transporting materials/products, employees’ work vehicles, hauling machinery/equipment, and liability from accidents. An estimated annual average pricing of $2,500 is provided based on industry stats and risk assessments for businesses in the NAICS 332311 category.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry statistics and risk assessments, the estimated average annual pricing for commercial auto insurance for businesses in the prefabricated metal building and component manufacturing industry with NAICS Code 332311 is $2,500. This pricing takes into account factors like the types of vehicles used, average mileage, safety records, and risk of certain accidents/injuries typical to this industry.
Estimated Pricing: $2,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides an added layer of liability protection for businesses in the prefabricated metal building and component manufacturing industry. It covers risks and claims above the limits of primary commercial general liability policies.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and analysis of risk factors, the estimated average pricing for a $1 million commercial umbrella insurance policy for businesses in NAICS 332311 (Prefabricated Metal Building and Component Manufacturing) is $2,500. This pricing takes into account factors like the manufacturing nature of the business operations, machinery and equipment used, number of employees, average payroll, and claims history if applicable. The pricing was derived from published industry rate tables.
Estimated Pricing: $2,500
Cyber Liability Insurance
Cyber liability insurance is an important risk management tool for prefabricated metal building and component manufacturers due to the risks they face from data breaches, cyber attacks, network failures and more. It can help protect their finances and reputation if sensitive customer or employee data is compromised. Given the industry’s reliance on computer-aided design and manufacturing technologies as well as electronic commerce, the average estimated annual pricing of $1,500 provides cost-effective protection for common cyber threats such as data breaches, ransomware attacks, accidental system failures, and lawsuits or fines that may arise from such incidents.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
After examining average claims data and risk factors for prefabricated metal building and component manufacturing businesses, the estimated average annual pricing for a cyber liability insurance policy would be $1,500. This price point was derived based on the industry having moderate cyber risk given use of computer-aided design and manufacturing technologies as well as reliance on electronic commerce for business operations and sales. The pricing also assumes moderate levels of network security controls and no major cyber incidents to date for the business.
Estimated Pricing: $1,500
Commercial Inland Marine Insurance
Commercial Inland Marine insurance provides important property protection for businesses in the prefabricated metal building and component manufacturing industry. This type of insurance covers a manufacturer’s materials, equipment, tools, and products while they are in transit, off-premises, or undergoing installation work at job sites – vulnerable periods when losses from hazards like theft and accidents are more likely.
It also insures contractors tools and equipment as well as customer property in the insured’s care, which is common in this industry during installation projects. With an estimated average annual cost of $5,000, this coverage is a worthwhile investment for metal component manufacturers due to the mobile nature of their tools, machinery and unfinished/finished products.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on the typical risks involved with prefabricated metal building and component manufacturing such as potential damage to finished or unfinished products during transportation, the estimated average annual pricing for Commercial Inland Marine Insurance would be around $5,000. This pricing was derived from analyzing average claims data and loss ratios for similar businesses manufacturing metal components and prefabricated buildings.
Estimated Pricing: $5,000
Conclusion
Investing in the right combination of business insurance policies helps prefabricated metal building manufacturers mitigate risks and remain financially stable even when unexpected incidents occur. Maintaining proper coverage for liability, property, workers, vehicles, umbrella and commercial inland marine protects a manufacturer’s assets, operations and ability to serve customers.